PayPal Issues - Warrior+, JVZoo & DigiResults

I know for a fact people who got their PayPal accounts frozen over using DigiResults for payments.

JVzoo is probably just too new.

I was hoping you would respond :-)

I had a feeling you would have a good idea on this. I was tending to think the same way. I exclusively used Warrior+ when I lost my first account.

It does seem as though it raises less red flags what with payments coming from one account rather split between dozens of affiliates.

Would you even go as far as to say that it would be safer to launch away from the forum entirely? I believe you launch a lot of products but I never hear of you having any problems..

Whats your secret!?

Do you think that PayPal judge each WSO they investigate on its merits or do you think they tar everyone with the same brush?

Speaking from experience, when my account was limited and I called them. The person I spoke to on the phone was under the impression that I owned the Warrior Forum and would not accept anything else.

I know they have automated flags but it feels as though once it goes for manual review if they see a WSO thread they immediately put us all in the same category.

It seems to me that the main issue lies with PayPals acceptable products/services. They are not very clear. The best interpretation seems to be to avoid Internet Marketing information products entirely.

With that said, would it not be best if the WSO affiliate networks dont allow us to sell products that are against PayPals TOS?

I know its a business owners responsibility to make sure they are operating within their processors terms. But by the same token, Warrior+ wouldnt allow us to sell guns through their system, so why can we sell other products that PayPal dont allow?

I am just playing devil's advocate here...

Yes, that is true that merchant banks do review accounts and usage. Their fraud and risk management systems monitor transactions outside the merchants pre-approved parameters.

That is why it is imperative to get bank approvals before you do business. That is the primary difference between merchant banking models and PayPal. You can sign up with PayPal instantly and find out later you're screwed when you want your money.

The other key factor is PayPal "keeps" your money for you. It's theirs, not yours, until they send it to you. As you know, the merchant banking model sends your money directly to your local bank account.

While it is true that a merchant bank can withdraw charge-backs from your bank account, at least you have the option to defend yourself first. Your risk is just the single payment in dispute. You don't get that "privilege" with PayPal. They can freeze your account first, seizing all your money, then ask you why they should give it back to you.

The best strategy to solve this entire payment problem is to segment the process. PayPal has bundled the entire processing infrastructure under their dominion. This gives them total control from alpha to omega. Yes, they are god in their universe.

To escape, we simply build our own alternative pipeline. I find it interesting that marketers who spend endless hours on writing html code, designing landing pages, crafting copy, and designing every aspect of conversion then spend so little time on protecting their money.

After laboring 5,000 hours to earn $5,000 dollars, why would you let some punk hold all your money and then you have to beg to get it back?

PayPal's business model is simply a protection racket. Their arrogance is galling. They can conduct their blackmail equally upon any intended or unintended victim of the day. They hold all the cards...and your money.

By segmenting the payment process, you can select the best desirable element for each part. This is just what you do with every other part of your business. You pick the software, solutions, and systems that best fit your business model. You can do the same for your payment pipeline.

When you market online, you can build and select the various components you want to use for your business style or buy into one of those so-called one-button millionaire models. The same exists in the payments sphere.

With a millionaire model, you are at the mercy and success of the guru's system. Yes it works for some. Others not so well. You're doing the same with PayPal. As long as you worship the king, he'll grant you favors.

For those that desire freedom as well as free enterprise, it may be well to develop your own escape tunnel if you ever need it or when the time is right.

I won't take the time to detail all the elements here, but suffice it to say that there are multiple options for better solutions. PayPal's dominance will not last forever. Many in the industry are gunning for a piece of the PayPal pie, myself included. The innovations being developed everyday rival the creativity and tenacity of many members of the WF.

PayPal has made a strategic decision to move into the mobile payments sphere. On March 15, they launched a pilot program with Home Depot to buy products with PayPal's mobile model. They've also penned an agreement in January with a payment provider for major retailers.

This is part of the process that reveals their move to retail as they limit their online payment risk, i.e. "high-risk" affiliate and "pyramid" marketing models. That is why we see them suddenly shutting down legitimate accounts with top-level affiliates.

Simply said, it doesn't matter how much volume you do with no problems. The more business you do the higher the risk. The processor holds the contractual liability under VISA/MC rules for charge-backs.

When you deconstruct the processing system, their are six to nine elements depending on how you bundle or unbundle. PayPal of course is not a bank, but is simply a money transfer and escrow operation. They could be classified as the actual merchant within the sector.

You can replicate the functions with your own elements. There is the consumer interface, secure gateway, networks, and pipeline to conduct the transaction through the banking network. We ride the rails of Visanet and FDN, and a few others when desired. PCI issues are better handled with tokenization and many new network options are moving here as well as mine.

Without writing a treatise here, let me jump to the merchant banking aspect. Some commentary has been made along this. Let me caution not to lump your experience in with what's actually available. Like any industry, this is an art as well as a science.

One bank, one processor, one underwriter does not an industry make. The benefit of merchant banking is there are as many options as there are merchant banks, and underwriters for that matter. I've been in the financial sector as well as marketing for almost three decades.

I can go to one bank and be laughed out of the office or another who welcomes me with open arms. It's all a matter of what and who you know. That may not be fair, but it is reality. I know who lies and who dies. Everyone talks a good game, but not everyone can deliver. Things change too. That's why you need to know where else you can go and what your options are.

That's why I was able to secure one unnamed super affiliate on this forum a $1.2 million annual pre-approved processing volume with up to $5,000 transactions through a major multi-national merchant bank with no financial records. I have my new favorite bank and underwriters.

Here's the best part. If he ever has a problem with this bank, I already secured a second merchant bank approval. That's another bank, not just another account.

Another WF member has been turned down three times. This was primarily due to his own careless mistakes and other financial issues, i.e. dozens of bad reviews online. But he is being approved today with one of my back-up merchant banking solutions. Nevertheless, we made the necessary risk and reputation management improvements to protect his business going forward.

Remember this. Unless you're an unmitigated crook, there are always options to plug in a different merchant bank approval on the back end of your personal payment pipeline. Do not confuse merchant banks with these online alternative payment providers. Most of these just work with one merchant bank or processor.

There are also options to reduce risk from charge-backs, high-volume product launches, "high-risk" business, and other challenges. Just like hosting companies create redundancy and routing alternatives you can do the same. Yes, you can work around bank-related risk issues too and well as get approvals even if you're on the do not process list.

The final issue that can bring down PayPal's dominance and house of cards is payment wallets. Right now, instant checkout is available with a few clicks on PayPal. We have EFT and echeck payments now, but payment wallets will soon replicate push-button checkout.

Would your hard-earned income and tireless labor deserve anything less than maximum protection?

Because every business model and owner are different, I have dozens of different back-end solutions and establish new banking and network relationships every week. We are launching our own three-tier payment system with flexible back-end merchant banking options.

A payment system can only be as good as the sum of it's parts. Innovation and access are key in the never ending quest for improvement. As fast as you can suck money into your marketing funnel, your system should be able to route it directly to your pocket as fast as possible. That includes avoiding bank risks too.

As Bill said, you can never be completely secure, but you can sure make the maximum effort to protect yourself and your hard-earned profits. Everyone is out to take them from you so fight back.

The best solution is your solution. Build what works for your business, volume, and protection. Don't leave your precious assets in the hand of a known abuser.