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Banned from Paypal/Limited by Paypal, but you still need to pay using them? Here's a workaround...

by GR Marketing
11 replies
Hey guys,

Like many people here I have had problems with Paypal.

My story is the same as many others, a sudden influx of payments, a limitation slap, sending out your entire life's documents to them, then getting the email that your money is frozen for 6 months and your account is closed.

I've since moved on to other solutions, and this thread isn't meant to bash Paypal, however there is a big problem that goes along with account closure.

When they close your account, your name, address, and credit cards that you have on file goes in their system.

If you try to pay someone who has a Paypal account using your tainted information, they will reverse payments, and you could end up flagging the persons account that you were trying to pay and they could get into hot water with Paypal.

This is a huge problem, especially for internet marketers like me, who depend a lot on outsourcers for many aspects of my business; content, SEO, graphics, etc...

And its nearly impossible to shop on eBay without a Paypal account.

Most of these outsourcers/eBay sellers only use Paypal, and either can not or will not seek alternative payment solutions.

If this is case, here's a simple little workaround that I discovered that makes things a whole lot easier.

It's called the GreenDot MoneyPak.

https://www.moneypak.com/PayPal/Index.aspx#

Essentially its a prepaid card you purchase from a local store with cash, then you can give your outsourcer or whoever you need to pay with Paypal the MoneyPak number and the cash goes directly into their Paypal account.

The best thing is that the fee for the card is only $4.95.

This is a breath of fresh air, considering I had been using Western Union to send cash to my outsourcers and eBay sellers, and it was costing me $20+ in fees per transaction.

I'm pretty sure someone is in the same situation...

And I hope this post helps you save a little cash, helps you keep your business relationships going with your Paypal exclusive service providers, and reopens the eBay marketplace to you.
#banned #pay #paypal #paypal or limited #workaround
  • Profile picture of the author cashp0wer
    This seems to be a great work around. I am hearing more and more about PayPal doing this to people. They need to do something to fix this problem or something better will come out and replace them.
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  • Profile picture of the author talfighel
    Yeah, this should work out for you. I don't know why PayPal is closing so many accounts. Maybe they are scared that people are using them for illegal purposes.
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  • Profile picture of the author John Ayling
    Just out of interest- what other payment solutions did you move on to after paypal?
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  • Profile picture of the author GR Marketing
    Hey John,

    I use the following:

    WePay - http://www.wepay.com

    After a few of months in good standing with them, they give you access to your money 1 day after its paid. Not instant like with a Paypal debit card, but still not bad. The only downside is no digital products with them, so I use them exclusively to process payments for services. And they also don't support payments from every country. Its also super easy to get setup with them, and completely free.

    Amazon Payments - http://payments.amazon.com/

    I'll use them when WePay can't take the card of someone. This happens from time to time as WePay has not rolled out into a lot of the developing world yet, like Indonesia, Singapore, etc. They hold your payments in reserve for 14 days when you first open your account, but after 6 months in good standings they may switch you to a faster payout schedule.

    Clickbank - Digital Products Retailer: Affiliate Program & Sell Online - ClickBank

    I use them for all my e-Products. There are some downsides though. First you have to pay $49 to open your first product, and its $29.95 per product after that. Then they take 7.5% in transaction fees + $1, so that's sort of a drag. Finally, they only pay out once a week, so you have to wait a while to get your cash. But the upside is that they can accept Paypal payments on your behalf, and of course there is the large affiliate network as well, so it all evens out.

    With these three I was able to keep my business running smoothly without having to deal with all the BS Paypal puts one through.
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  • Profile picture of the author Anoosh Kashefi
    Sounds like a pretty cool idea, seeing as so many people get banned from Paypal so often.

    They have become a monopoly and I sincerely hope somebody comes along to wipe them, and Ebay out of the way. Their power has gone to their heads.

    I quit selling on Ebay because they power they have put into the seller. The whole system is a giant conspiracy for them to take everyone's money, ban that person telling them they will have to "hold your money for 6 months".

    6 months? why the hell would you need to hold my money for HALF A YEAR? So that you can invest MY money while I wait and hope that I get what is rightfully mine?

    Horrible system, really. Woops, looks like I am here to bash Payapl. My bad
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  • Profile picture of the author ScooterDaMan
    I was under the impression that PayPal also blocks you by IP address as well as shipping address. How did you get around that?
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    • Profile picture of the author WillR
      Originally Posted by cashp0wer View Post

      I am hearing more and more about PayPal doing this to people. They need to do something to fix this problem or something better will come out and replace them.
      Originally Posted by talfighel View Post

      Yeah, this should work out for you. I don't know why PayPal is closing so many accounts. Maybe they are scared that people are using them for illegal purposes.
      Originally Posted by Anoosh Kashefi View Post

      They have become a monopoly and I sincerely hope somebody comes along to wipe them, and Ebay out of the way. Their power has gone to their heads.
      If you can't make things work with Paypal then I don't think you would have much luck with any other payment processor that came and replaced them.

      The simple fact is Paypal are NOT doing anything any normal company in their situation would do.

      We all love to use Paypal because of it's simplicity and it's wide spread use. But along with such a simple and easy to use payment solution comes a LOAD of risk. It is up to Paypal to mitigate this risk otherwise banks and the like stop supporting them and they go out of business.

      If you have had your account frozen then it means Paypal deems your business model too risky for their system. Sure, you might not feel the same way about things and it's quite unlikely you would, but that doesn't matter. All that matters is how your business model appears to Paypal.

      A new payment processor that worked much the same way as Paypal would not last long if they allowed any and all business types to run through their system.
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  • Profile picture of the author Randohm
    Oh wow, this was a great post and it's a great thread. All I can offer to this conversation is to say thank you for the great information. I haven't had any really bad experiences with paypal but I know some who have and it's a little scary to think about. Thanks again for posting this.
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