What Paypal do NOT like...

by WillR
42 replies
There was an interesting article published in the NYTimes about Paypal. In the article a spokesperson from Paypal listed a number of reasons as to why they limit accounts.

I thought some may like to see this. Although these are factors I already knew about, I do believe there are still a lot of people around this forum who choose to believe their reasons for doing things are far more personal.

I have highlighted the parts that I find important... for those of us selling any type of goods or services using Paypal.

Katherine Hutchison, senior director of risk management at PayPal, said it has employed hundreds of mathematics scholars with Ph.D.’s who work on software to detect and prevent fraud. One potential sign of fraud, she said, is an unusually large transaction.

For example, if a merchant regularly sells items that cost $30 to $50, and then suddenly sells a $3,000 item, PayPal cannot be completely sure that the seller actually has such a valuable item in her inventory, so it proceeds cautiously to protect the buyer. “When you walk into a dollar store or a drugstore, you’re not going to buy fine jewelry there,” she said.
Another warning sign is a spike in activity, like a sudden burst of transactions in a formerly quiet account. PayPal says it has seen cases where this is a sign that a person is about to go bankrupt and is selling off all of his possessions — possibly before fleeing the country.
Source: http://www.nytimes.com/2012/08/02/te...y.html?_r=2&hp
#paypal
  • Profile picture of the author hebsgaard
    The really worrying part of the article was how it didn't help the PreRace guy that he had notified PayPal of the sudden influx of money. That's what I've always been told you should do.
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    • Profile picture of the author WillR
      Originally Posted by hebsgaard View Post

      The really worrying part of the article was how it didn't help the PreRace guy that he had notified PayPal of the sudden influx of money. That's what I've always been told you should do.
      Yes, a lot of people will tell you to do that but ofcourse it makes no difference whatsoever. Think about it logically. If I WAS using Paypal to run some sort of scam, then I could just as easily call them up and warn them just like any other person. So it's obvious Paypal are never going to take notice of anything like that. All you do achieve by calling them up is possibly a manual look over your account that may have otherwise not happened.

      My advice, do not call and 'warn' them about anything. It will prevent nothing. Anything out of the ordinary will be treated as such whether you have warned them about it or not.
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      • Profile picture of the author Cali16
        Originally Posted by WillR View Post

        My advice, do not call and 'warn' them about anything. It will prevent nothing. Anything out of the ordinary will be treated as such whether you have warned them about it or not.
        I'm not trying to "shoot the messenger" here, Will, so don't take my post personally. But I am wondering, based on the statements you quoted, what people are supposed to do? Sudden influxes can happen for all sorts of reasons, such as selling a bunch of stuff (as Brian said, for legitimate reasons (like paying off an unexpected medical bill) and NOT just before "leaving the country"), having a successful product launch, or taking a new direction with their business that turns out to be more lucrative than anticipated, to name a few.

        If they want to "red flag" these situations in order to investigate them (as in, perhaps, actually TALKING to the account owner directly (duh, what a concept!) to gather more information regarding the unusual account activity) rather than freezing their account for 6 months, then that would be fine. But holding anyone's money for 6 months simply because THEY determine it MIGHT be due to fraudulent activity, that's a crime in my opinion. Holding anyone's funds for that long can absolutely devastate someone financially.

        I do agree that ,in a lot of cases in which accounts have been limited, there has been a violation of their TOS. BUT, the things you copied from the article you referenced sound pretty subjective. And that's the real problem with PayPal, IMO.

        How much is too much and how fast is too fast? If someone here at the WF decides to launch a WSO after months of struggling, and it's met with great success, what are they supposed to do? Use an alternative payment processor so they don't risk PayPal suddently limiting their account? Hmmmmm... all but one WSO that I've ever purchased in my 5+ years here used PayPal.

        My biggest issue with PayPal is that some things are just too subjective, and honest people are penalized severely for perfectly legitimate transactions in their accounts. And, since no one regulates PayPal, they can pretty much do whatever they want.

        One last thing, why on earth does it take "mathematics scholars with PhDs" to determine that a sudden, large influx in funds might indicate fraud? Most people with no more than a high school diploma can make that association. But, it's the high school grads who are also probably smart enough to realize that it might just make sense to look a little further into the situation before jumping to the most negative conclusion and automatically (and severely) penalizing the account holder ... :rolleyes:
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        • Profile picture of the author GMD
          Banned
          It's a great post and thanks for bringing some of what was written in the NY Times to our attention.

          The sad fact, however, is this is nothing new. The information about PayPal's software keeping track of the "average" amount of what one receives for products and PayPal being suspicious of "large" transactions has been well known since about 2002 -- in fact, for those of us who follow the inner workings of PayPal closely, know that "Igor" (the name of PayPal's fraud detection software) keeps track of all sorts of silly, supposedly "suspicious" user behaviors.

          My bottom line with PayPal is this: they're not the police.

          They're SUPPOSED to be a money transmitter, PERIOD. Facilitate the transfer of funds between two or more parties and leave it at that.

          While fraud detection is important (maybe actually act until somebody complains first), PayPal's software goes well beyond it's mandate and actually treads into the fortune teller, predicting the future, business and it's almost always wrong.

          Right now, PayPal has about 110 MILLION active user accounts.

          How many accounts are affected if even 1 or 2% of accounts get wrongly "limited" or "frozen"? Right.
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          • Profile picture of the author WillR
            Originally Posted by Cali16 View Post

            I'm not trying to "shoot the messenger" here, Will, so don't take my post personally. But I am wondering, based on the statements you quoted, what people are supposed to do? Sudden influxes can happen for all sorts of reasons, such as selling a bunch of stuff (as Brian said, for legitimate reasons (like paying off an unexpected medical bill) and NOT just before "leaving the country"), having a successful product launch, or taking a new direction with their business that turns out to be more lucrative than anticipated, to name a few.
            I can tell you I have had several cases where my account has had a large influx of money in a very short period of time. I didn't hear from Paypal in most cases. Then a few months ago I finally got the call. The dreaded call. A guy from Paypal risk department wanting to ask me a number of questions about my business model and these recent spikes.

            We spoke for about half an hour. He asked me questions, I answered them all logically. He said thanks very much for being such a help, we just wanted to know the reason behind these spikes and you've definitely cleared that up for us.

            He then took the time to listen to my business model and asked if spikes like this happened frequently. I explained that they do and the reason behind why they do. He was more than happy with my explanation, and said he perfectly understood. He said he would make a note on my account that I do have regular spikes and the reasons why they occur.

            I even mentioned this forum several times, as did he, and he had no problem with it at all. Remember, this was a guy from their risk department not just a puppet on the phone. So that puts to bed all those stupid people going around telling people if you sell on the Warrior Forum you will get your account limited. They couldn't be any further from the truth. It's WHAT and HOW you sell... not WHERE you sell.

            He said because of my volume he'll have an account manager call me who I can then liaise with once a month or so and chat about things so Paypal can help serve ME better.

            He then went on to tell me because of my volume I could now apply for merchant fees which were cheaper and it took all of one press of a button to apply and be approved. I didn't even know about this until he told me. This guy was clearly trying to help me and I thought he could not have been any more professional if he tried.

            Personally, I have nothing but good things to say about them. I understand their position (and that's what I kept saying to the guy on the phone) and I understand why they do and do not do certain things. They are a business trying to minimize their risk just like you or I. The sooner people treat them like a REAL business, the better.

            Originally Posted by Jackson Tan View Post

            they do not like 100% commission products too
            Who does? 100% commission products just look dodgy. Why would someone be willing to sell their product and receive no money for it? You and I as marketers both know the reason why but normal people like Paypal do not. They see one person selling a product and another, completely unrelated person, collecting all the money for that product. Do you not think that looks just a little bit weird?

            Imagine if you walked into your local corner store to purchase a carton of milk. When you went to pay for the milk the guy behind the counter told you to go across the road and give the money to the lady running the video rental store. Would you think that was perfectly normal behavior or would you not find it just a little bit strange?

            Honestly, it still amazes me how some people do silly things like running 100% commission products and then play all dumb when they get their account limited. Of course they are going to have a problem with something like that... as would any business with half a brain.

            Originally Posted by kindsvater View Post

            This is why PayPal's risk management is a joke and there are a seemingly infinite number of complaints against the company. How many millions of accounts does it have? Of those, sure this happened a couple times.
            You show me any company that has the same number of paying customers as Paypal do and do not also have a whole heap of complaints out there against them. The reality is the people complaining are tiny in comparison to the number of people using Paypal without any problems whatsoever.

            Originally Posted by kindsvater View Post

            Someone suddenly selling their stuff is not indicative of fraud. It is indicative of someone selling their stuff. If this is associated with disputes of purchases not being received then there is an issue.
            They are not saying it IS fraud. They are saying if you do things that share similar patterns then their fraud detection will pick up on it and you will be investigated further. I really don't see the problem with that at all. If Paypal just let everything slide then none of us would be using it anyway because there would be so much more fraud on there.
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            • Profile picture of the author Josh Anderson
              Originally Posted by WillR View Post

              Imagine if you walked into your local corner store to purchase a carton of milk. When you went to pay for the milk the guy behind the counter told you to go across the road and give the money to the lady running the video rental store. Would you think that was perfectly normal behavior or would you not find it just a little bit strange?
              Actually that is called "factoring" and it is prohibited by merchant providers and in some cases depending on the situation it could be considered a crime. States have anti-factoring laws on the books.

              http://www.merchantequip.com/merchan...ard-laundering

              That is what is so interesting about institutions like PayPal being allowed to operate as "third party processors" and this is why the federal government has passed new laws regarding reporting by merchant processors and third party processors.
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          • Profile picture of the author therichb
            Originally Posted by GMD View Post

            It's a great post and thanks for bringing some of what was written in the NY Times to our attention.

            The sad fact, however, is this is nothing new. The information about PayPal's software keeping track of the "average" amount of what one receives for products and PayPal being suspicious of "large" transactions has been well known since about 2002 -- in fact, for those of us who follow the inner workings of PayPal closely, know that "Igor" (the name of PayPal's fraud detection software) keeps track of all sorts of silly, supposedly "suspicious" user behaviors.

            My bottom line with PayPal is this: they're not the police.

            They're SUPPOSED to be a money transmitter, PERIOD. Facilitate the transfer of funds between two or more parties and leave it at that.

            While fraud detection is important (maybe actually act until somebody complains first), PayPal's software goes well beyond it's mandate and actually treads into the fortune teller, predicting the future, business and it's almost always wrong.

            Right now, PayPal has about 110 MILLION active user accounts.

            How many accounts are affected if even 1 or 2% of accounts get wrongly "limited" or "frozen"? Right.
            Cool Stats here!!! Thanks for sharing this pretty important info.

            Paypal has built itself as a big leader in money transferring authority & almost no one is available in the present market to beat its leadership criteria.

            Many options are available to us but most people either new or experienced go with PP using their credit cards & in some cases, a/c freezes which no one can stop. We dont know when we are crossing the limits of policy & start blaming PP. No good
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        • Profile picture of the author WMS2212
          Tell them to send you bank cashiers checks to your address at your home , or get a special postoffice box for this .. then there shouldnt be any problems , i would think it woulds solve the problem all together .. i would really do the bank cashiers checks // i dnt know about a postal money order .. because they had been finding ways to counterfiet them in the past .. clicksure wants my bank account information.. and for 1 i dnt have one ,, for 2 i would never give them any iformation like that , when they are based in china as gambling , and the U K. sorry they can mail me my Bank cashiers checks to my address ... and paypal .. i dnt want to be arrested for any wrong doings .. if this were to be a scam .. so im not gonna screw up my account with them either . been using them for 6 years now . and its nice to have them there when you need them .. Posted this August 8 th 2012 .. oh and P,s if they would send bank cashiers checks to pay us for our work , then i would just have my bank make sure the check isnt counterfiet also. before i cash or deposit it .. then you still dnt get burned on nothing ....and i also think they can send it certified and restricted delivery .. then you may sign for it as long as the company is legit and legal ... it should all pan out in the legal form, then nobody gets in trouble ... and has any accounts froze .. when having to many accounts they do get suspicious to all .. cause if you have an account with more then 5,000 in it you have to pay a certain portion of taxes on it . so if you have several accounts with only 5,000 in them, i would just pull so much out and put it in a very safe place .. i know several people who do this ... yea anything over 5,000 the IRS wants involved .. found this out from someone in florida that knows her shit pretty well .. and she does very well, for what she does with her buisness .. I would love to get started in this Pin your Income . but i havnt figured out how to get it going ,, ive tried to Email them on how i want paid . to where the cashiers checks can be sent to my home or post office box ..But they wnt get back to me . ive tried several times to get an anwser from them and nobody returns and information , so that is a little scary to and makes me real skeptical about all this .. and there are no ties with the B.B.B. better buisness buearu. i dnt want to give clicksure any bank account information as i dnt have one . but i do want to start making money . if this company is legit .. ohh and i also tried to advertise thru my timeline on facebook and had it up and finished and facebook denied me because they didnt like the contents of this company .. so, to me its has me thinking its a huge scam so far ..i am a member of Pinterest and thats how i want to make money thru pin your income .. but i dnt know how to get started with a free website . i dnt have the money to pay for expensive websites ... So if someone could give me an idea on how i can get started with out it costing me anything , then i would really appreciate it . with out being scamed .. Thanks So Much . and the mean time i will still be investigating and looking to see if all this is scams .. cause i really need to make money . the economy is really bad , and i am disabled Woman, and can not work out side my home . thats why i am looking for a legit and legal way to make a good income at home ... These people , have no trusted or safe sites seals, on their web or video pages that i have seen as of yet , this also concerns me as well .... Its Something to really think about . and i know that you all arent stupid out there, to fall for anyones sound to good to be true scams .. So dnt give no information to anybody with out the trusted seal sites or safe seals / or with out the BBB symbol... cause it just shows that something isnt right .. Always Observe things and dnt fall for anything not legal and legit.. if you read a lot of everyones post like i have .. the company is brand new and hasnt been out very long at all to be rated yet .. but to me so far , i,d say its a fly by night thing because of the base is china and they are considered as gambling , and the other email for them is the Uk and when you do need to reply to them ,no one ever replies back to ya .. so your questions dnt get answered at all ..
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    • Profile picture of the author Bryan Zimmerman
      Originally Posted by hebsgaard View Post

      The really worrying part of the article was how it didn't help the PreRace guy that he had notified PayPal of the sudden influx of money. That's what I've always been told you should do.

      There's a HUGE difference in letting them know you're going to have a spike in transactions and it winds up being 20K verses1 million dollars in 3 days. I think anyone that brought in a million in 3 days is going to get flagged anywhere they are if they've never done that before.

      A lot of times it really depends on who you get on the phone and if they do what they said they were going to do or not. If you can get your volume up to where you can get an account manager it's a whole different world and they actually become extremely helpful.

      However, making sure your parameters are set right can help a lot. In your profile you have parameters you set when you create your account such as monthly volume, price points, website sold from, etc etc. Make sure you have those set right and if you know you're going to go over them CHANGE them before you do.

      If I had to decide between calling them and not, I'd go with calling. There's been plenty of examples of people doing that and it working out just fine. More so I would imagine than not calling and just letting it ride. But, regardless of any of that, I have still yet to see anyone account get flagged, limited or banned that there wasn't more to the story than what you hear about. Parameters not set right, accounts being dormant for a while then running 5 figures through it in days, withdrawing more than 5K in 24 hours, etc.
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  • Profile picture of the author Matt Frost
    Great post, love the topic. So what do you do if they freeze your account due to a sudden influx of sales? your in trouble right? Calling them and warning them won't help mainly because your talking to some random customer sales rep or or customer service rep, who don't and can't do jack sh*t about it.
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  • Profile picture of the author funkynassau
    It's one thing for them to be on guard and watching for potential problems, it's another to hold a person's money for months on end without a resolution. I havent had it happen to me, but plenty of people complain about their lack of communication with customers. They should be finding a way to speed up the process and contact sellers much quicker to resolve things.
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    • Profile picture of the author Walter Parrish
      Originally Posted by funkynassau View Post

      It's one thing for them to be on guard and watching for potential problems, it's another to hold a person's money for months on end without a resolution. I havent had it happen to me, but plenty of people complain about their lack of communication with customers. They should be finding a way to speed up the process and contact sellers much quicker to resolve things.
      lol you should have heard about them in the old days.

      once i ordered an item a video after some weeks, i never received the video, i called all the numbers on the site, the businesses number listed with paypal, never could get the and they had many numbers and most were dead, they never returned a call. i put in my claim, paypal shut down my account and the businesses.

      when i contacted paypal they said i would have to provide them certain info like bank statements, etc via fax. the fax number was always busy. i call paypal and they say they have 1 number for faxes lol. one day i finally got the fax through and they say oh it looks like you made copies send it again, eventually i got it all resolved through their 1 fax number, but that was my bit of paypal hell.

      well i did have another issue, the issue where ebay would somehow pull up old paypal information when selling items and customers paying on an old paypal account that i no longer had login information for. this was resolved over a period of two weeks, when one supervisor stepped in and solved it. it was a weird thing though because every bit of information that you use in normal business, wasn't good enough for paypal as if they were intentionally trying to find id and documentation i didn't have. things like where did you live in this year, what bank account did you have in this year. never your common info like drivers license, mothers maiden name, ss etc. it all just left me with the perception that they do things intentionally.

      back in the 90s and early 20s a lot of ebay sellers were abandoning paypal. i got curious so i began to ask them why. all of their answers were that they had a lot of money in paypal and their accounts were froze, we're talking like enough to put these small businesses out of business 4k to 60k. so, they didn't complain they just quietly moved on to other payment processors, and merchant type accounts.

      My Feelings,
      paypal is good for newebies, and those of us just starting out, but after you get some decent money setup alternate ways of receiving payments as your own Security Measure. Also, research the companies that you deal with to make sure you can get paid in other ways, not just the paypal.

      lol which makes me think i need to do more research on the ones i plan on using.

      Thanks everyone
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  • Profile picture of the author Matt Frost
    Its fked up cuz I'm always having seconds thoughts about using paypal and I'm about to start using it in a few days.

    Should I just use clickbank? They don't give a f*ck about how many sales your getting, cause they know whats up, however they're taking a larger cut.

    decisions, decisions......
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    • Profile picture of the author mulesmurf
      Originally Posted by Matt Frost View Post

      Its fked up cuz I'm always having seconds thoughts about using paypal and I'm about to start using it in a few days.

      Should I just use clickbank? They don't give a f*ck about how many sales your getting, cause they know whats up, however they're taking a larger cut.

      decisions, decisions......
      Hi,
      You may have though of this, but maybe you can try getting a credit card processing account?

      As far as PayPal goes, at first they have some limits on your account at first, if you get no complaints and charge backs, they don't worry so much about you. I worked for a company who usually charged customers for seo type services. They went out of town for a few days, and had no internet access. when they came back, they "ran through" all the payments and payment requests. Pay Pay, froze their account for a month.

      So that is something to think about. They did eventually get their money, but they quit PayPay cause they were mad. But, it sorta makes sense too. Someone could have jacked their computer or something,.
      mulesmurf
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  • Profile picture of the author gcbmark20
    This is one of those things you forget to question really isn't it.

    Thanks for the heads up on this and will bookmark this page for future reference.

    Hope this comes in handy one day thanks again WillR
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  • Profile picture of the author yougpeter
    Very good post.There was lot of things that i didn't know.Thanks.
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  • Profile picture of the author IntoughShape
    great stuff , that lady in the article sounded like a clueless ret@rd... lol
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  • Profile picture of the author AlwaysAwa
    Hi guys this horror stories come after wiki leak incident? Thanks
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  • Profile picture of the author kindsvater
    Another warning sign is a spike in activity, like a sudden burst of transactions in a formerly quiet account. PayPal says it has seen cases where this is a sign that a person is about to go bankrupt and is selling off all of his possessions — possibly before fleeing the country.
    This is why PayPal's risk management is a joke and there are a seemingly infinite number of complaints against the company. How many millions of accounts does it have? Of those, sure this happened a couple times.

    Someone suddenly selling their stuff is not indicative of fraud. It is indicative of someone selling their stuff. If this is associated with disputes of purchases not being received then there is an issue.

    Rare, outlier events should not drive or excuse company policy.

    Another way of reading this: PayPal thinks you need cash so it will limit your account so you can't access your money for 6 months.

    .
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  • Profile picture of the author Jackson Tan
    I just got my paypal account limited a month ago and had to went thru several phone call and negotiation before getting my account..

    they do not like 100% commission products too
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  • Profile picture of the author contentwriting360
    Banned
    That's a nice share. Pieces of information directly from the PayPal authorities.
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  • Profile picture of the author Patrick Kelly
    Hi,

    PayPal certainly holds quite a bit of power, especially if we have a large sum of money within its vault and all of a sudden we are restricted from accessing it!

    Thanks for the post. Useful information.

    cheers, Patrick
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  • Profile picture of the author mattjay
    anytime i have done any sort of product launch, where i am going to be getting a lot of payments, even little ones, I have contacted paypal and told them "i'm about to get a lot more activity" and i have never had an issue with them. People have started bogus disputes with me in the past over $5 wsos and as soon as they come in, i address every one and refund people, since i have a money back guarantee, dont' know what the dispute is about lol, but oh well.

    Bottom line is i have heard horror stories from paypal users, but they have never done anything bogus to me. I just make them aware of anything that happens out of the ordinary and it's always been ok.
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  • Profile picture of the author grabdavid
    paypal hate loosing money. People that open multiple accounts. People that cause the most manual action from complaints.
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  • Profile picture of the author redielan
    i now paypal dont like multiple accounts
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  • Profile picture of the author J Bold
    The problem is when paypal is "protecting themselves" and doing the hold your money for 6 months thing they are often in violation of the law in certain states according to the license they hold to transact business in those states.

    I completely understand their position in some cases but when it comes to that big limitation from what I've heard from others paypal say they are doing it to protect themselves and I can certainly understand that. But then when someone wants a refund they say no, funds are frozen, can't refund with this held money that we are holding for things like possible high refunds. Isn't that why they were holding the funds in the first place? Makes no sense to me. It's not happened to me but that's what I've heard in many a story...
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  • Profile picture of the author SFquality
    Interesting observation about paypal, I didn't know that.
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  • Profile picture of the author sloanjim
    UN F*** beleivable! And people actually get paid to create crap like that?

    What's more worrying is how the "financial elite" pat therm on the back and say "well done"
    No wonder the world is all screwd up.

    Why don't they deal with each case with common sense? Is that too much to ask for nowadays?

    Crumbs really? That's the first time I have even seen this never mind thought about it......What next? They seem to make stories up. That's actuially laughable......In a frightning way.

    He ypapyla maybe they are actually doing some biz? Ever cross your warped minds?

    Another warning sign is a spike in activity, like a sudden burst of transactions in a formerly quiet account. PayPal says it has seen cases where this is a sign that a person is about to go bankrupt and is selling off all of his possessions — possibly before fleeing the country.
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  • Profile picture of the author sloanjim
    hey papyal I just had a spike in sales better contact the FBI I must have sold crude oil from Iran.

    Or maybe I am on cahoots with Escabar down in Columbia...

    LOL what a joke! How did they get so big? There'e hope for for all the red necks if these dumbasses can get so big.
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  • Profile picture of the author Matt Frost
    Its really sad... and funny at the same time, idiot sh*t paypal. They really need to do something though, its a big problem for us
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  • Profile picture of the author AigulErali
    Hi Warriors,

    Some of the Many Reasons Paypal May Limit Your Account, Freeze Your Funds and
    Even Close Your Account:


    Believe it or not, this is not an exhaustive list, but it does give you an idea of just how vulnerable your account can be.

    •A sudden influx of money into your account or more money than you usually receive added to your account

    •Transferring “too much” money out of your account

    •Calling Paypal customer service and making someone angry

    •Paypal thinks you have more than 2 personal accounts

    •Appearing to use your account to speculate in the currency market

    •Somebody (buyer, seller) filed a complaint against you

    •You filed a complaint against someone else (buyer, seller)

    •Chargebacks - whether someone else initiated it against you or you filed a claim

    •Charging what Paypal thinks are excessive shipping and handling fees (you don't pay Paypal a charge for these fees, so Paypal thinks you're trying to get out of paying them)

    •Paypal doesn't like your website content (seriously)

    •Paypal believes you are in violation of its User Agreement or its Acceptable Use Policy

    •You purchase pornography or anything else Paypal finds objectionable with your account (It doesn't matter that it's legal)

    •You turn in someone to the police who is using Paypal to commit fraud (That's against the privacy policy. No, I'm not making this up)

    •You use your Paypal account without first verifying it

    •Paypal suspects your contact info isn't up to date (even if it actually is up to date)

    •Paypal called you and you did not answer

    •You were a victim of fraud, such as a phishing site

    •You reported an unauthorized transaction on your account

    •You use your Paypal debit card too much

    •You use your Paypal debit card to make an online transaction or to place a telephone order

    •You use your Paypal debit card in another state or county

    •You didn't use the proper methods to refund a buyer

    •You owe Ebay money

    •You are late paying your Ebay fees

    •You received negative feedback on Ebay

    •You moved to an address formerly occupied by someone with a limited Paypal account

    •You logged into Paypal from a different than usual location

    •You logged into Paypal from an Internet cafe

    •You used a proxy to log into Paypal

    •Your account is linked or suspected of being associated to the account of someone whose account has been limited

    •Paypal conducted a credit check on you and decided your score is too high, or too low, or you have too much credit

    •Someone tells Paypal you're engaging in illegal or fraudulent activity, or Paypal suspects you're engaging in illegal or fraudulent activity

    •Paypal believes your business is risky, or your business practices are risky

    •You sold something to a scammer

    •You posted anti-Paypal writings in public (includes the Internet)

    •You withdrew $2500 or more in a day or over the weekend from your Paypal account

    •You refused to supply private information to Paypal when they asked for it

    •You supplied private information to Paypal but did not supply it fast enough

    •The phone number you give Paypal used to belong to someone who had Paypal problems

    •Your ISP number used to belong to someone who had Paypal problems

    •You conducted a transaction (buying or selling) with someone who has Paypal problems

    •Paypal asked you for a tracking number you don't have (such as an ebook or other digital product)

    •You sold a Play Station, Computer, or other high priced item that scammers sometimes sell

    •When registering you made a typo in your name

    •Your account balance is negative

    •Your account balance might become negative

    •Paypal tried to withdraw money from your credit card or bank account but was declined

    •You bought or sold something Paypal doesn't like, such as academic or OEM software, concert tickets, etc.

    •You sent money to a country Paypal doesn't authorize, or you received money from a country Paypal doesn't authorize

    •Your bank account is new

    •The name on your bank account does not exactly match the name on your Paypal account

    •The name on your social security card does not exactly match the name on your Paypal account

    •You have a high credit card balance

    •You have been sued, arrested, charged with a crime, have too many debts, etc.

    •Your account shares some similar details to another account that's already been frozen

    •You tried to change your personal account details but weren't able to

    •You removed a credit card or a bank account from your Paypal account

    •And many, many more, most of which Paypal is keeping a secret...


    just my 2 cents..
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    • Profile picture of the author Josh Anderson
      [DELETED]
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      • Profile picture of the author Joel Young
        Reading through this thread, I've decided that I will not be using PayPal for my renewed efforts in IM. I've had an account there since 2001, and for quite a few years I had $3,000-$7,000 per month flowing through it. However, it's been five years since that's happened, so if I suddenly have a higher cash flow again, it sounds like I could be frozen out. And right now that would be devastating, considering my current financial situation.

        I've used 2CO in the past, and do have accounts with a couple other places, so I'm going to find out which one will allow me to make bigger money.
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    • Profile picture of the author JEasy
      Originally Posted by AigulErali View Post

      Hi Warriors,

      Some of the Many Reasons Paypal May Limit Your Account, Freeze Your Funds and
      Even Close Your Account:

      Believe it or not, this is not an exhaustive list, but it does give you an idea of just how vulnerable your account can be.

      •A sudden influx of money into your account or more money than you usually receive added to your account

      •Transferring "too much" money out of your account

      •Calling Paypal customer service and making someone angry

      •Paypal thinks you have more than 2 personal accounts

      •Appearing to use your account to speculate in the currency market

      •Somebody (buyer, seller) filed a complaint against you

      •You filed a complaint against someone else (buyer, seller)

      •Chargebacks - whether someone else initiated it against you or you filed a claim

      •Charging what Paypal thinks are excessive shipping and handling fees (you don't pay Paypal a charge for these fees, so Paypal thinks you're trying to get out of paying them)

      •Paypal doesn't like your website content (seriously)

      •Paypal believes you are in violation of its User Agreement or its Acceptable Use Policy

      •You purchase pornography or anything else Paypal finds objectionable with your account (It doesn't matter that it's legal)

      •You turn in someone to the police who is using Paypal to commit fraud (That's against the privacy policy. No, I'm not making this up)

      •You use your Paypal account without first verifying it

      •Paypal suspects your contact info isn't up to date (even if it actually is up to date)

      •Paypal called you and you did not answer

      •You were a victim of fraud, such as a phishing site

      •You reported an unauthorized transaction on your account

      •You use your Paypal debit card too much

      •You use your Paypal debit card to make an online transaction or to place a telephone order

      •You use your Paypal debit card in another state or county

      •You didn't use the proper methods to refund a buyer

      •You owe Ebay money

      •You are late paying your Ebay fees

      •You received negative feedback on Ebay

      •You moved to an address formerly occupied by someone with a limited Paypal account

      •You logged into Paypal from a different than usual location

      •You logged into Paypal from an Internet cafe

      •You used a proxy to log into Paypal

      •Your account is linked or suspected of being associated to the account of someone whose account has been limited

      •Paypal conducted a credit check on you and decided your score is too high, or too low, or you have too much credit

      •Someone tells Paypal you're engaging in illegal or fraudulent activity, or Paypal suspects you're engaging in illegal or fraudulent activity

      •Paypal believes your business is risky, or your business practices are risky

      •You sold something to a scammer

      •You posted anti-Paypal writings in public (includes the Internet)

      •You withdrew $2500 or more in a day or over the weekend from your Paypal account

      •You refused to supply private information to Paypal when they asked for it

      •You supplied private information to Paypal but did not supply it fast enough

      •The phone number you give Paypal used to belong to someone who had Paypal problems

      •Your ISP number used to belong to someone who had Paypal problems

      •You conducted a transaction (buying or selling) with someone who has Paypal problems

      •Paypal asked you for a tracking number you don't have (such as an ebook or other digital product)

      •You sold a Play Station, Computer, or other high priced item that scammers sometimes sell

      •When registering you made a typo in your name

      •Your account balance is negative

      •Your account balance might become negative

      •Paypal tried to withdraw money from your credit card or bank account but was declined

      •You bought or sold something Paypal doesn't like, such as academic or OEM software, concert tickets, etc.

      •You sent money to a country Paypal doesn't authorize, or you received money from a country Paypal doesn't authorize

      •Your bank account is new

      •The name on your bank account does not exactly match the name on your Paypal account

      •The name on your social security card does not exactly match the name on your Paypal account

      •You have a high credit card balance

      •You have been sued, arrested, charged with a crime, have too many debts, etc.

      •Your account shares some similar details to another account that's already been frozen

      •You tried to change your personal account details but weren't able to

      •You removed a credit card or a bank account from your Paypal account

      •And many, many more, most of which Paypal is keeping a secret...


      just my 2 cents..
      They may as well put "Breathing" on the list.

      I also find this listed reason extremely funny:
      •Calling Paypal customer service and making someone angry

      So I guess if your account gets frozen then you should call and be happy about it. You don't want to make the customer service rep angry even though they're susposed to be trained to deal with these situations.

      Pretty amazing stuff...
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  • Profile picture of the author sloanjim
    In other words "we'll ban you whenever we godammed feel like doing so..."
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  • Profile picture of the author SamAlnawar
    But if you are honest and not doing fraud or misrepresentations just do whatever you PayPal never limit or freez your account....this is for those people who earn bucks by way of fraud and go away.
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  • Profile picture of the author Randall Magwood
    Yeah selling $20 products successfully then all of a sudden getting a $5,000 sale does sound irregular. I guess any merchant account service would get suspicious about that.
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    • Profile picture of the author Walter Parrish
      Originally Posted by Randall Magwood View Post

      Yeah selling $20 products successfully then all of a sudden getting a $5,000 sale does sound irregular. I guess any merchant account service would get suspicious about that.
      It's the part about shutting down your account or limiting it for months that gets me. A company could go out of business in that amount of time.
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  • Profile picture of the author Fireworks Freelancer
    Banned
    Those are baseless arguments from Paypal and nothing more!
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  • Profile picture of the author fenomeno
    Info from first post is really stupid from Paypal. If I am selling services or goods for $5-$10 for example, and decide to offer something more valuable and sell it for $3000, why is that a possible fraud for them???
    If I dont use my Paypal more than twice per year, and now I decide to try myself as freelancer why would be a fraud to have suddenly 5 transactions per day??

    Paypal is soooooo unsecure for business. I use it, but I dont like it. I think Moneybookers (Skrill) is so much better choice. But its a pitty that Paypal is the most popular.
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  • Profile picture of the author Alexander K
    I definitely would say don't use paypal.

    They ARE NOT a credit card processor as they claim to be.

    If someone wants to pay with a credit card, paypal will cap the amount the person can buy from you, before they require the person to create an account.

    Paypal screwed me over big time doing this. I called them and they wouldn't lift the cap or do anything to help me out, despite a good history of this person paying and no disputes. The paypal rep basically told me I need to sign up with another company to receive payments from him if the person didn't want to sign up for paypal.

    Total joke and I had been a supporter of paypal until now.
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  • Profile picture of the author careybaird
    100's of mathematics scholars employed by Paypal concluded that "If somebody gets more incoming transactions than normal they are selling their possessions and about to go bankrupt".

    Genius.

    Yes I am bitter because my account was limited during a busy period once I should have notified them, but reading this thread I guess it wouldn't have guaranteed anything.
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  • Profile picture of the author AigulErali
    @ JEasy

    "Sorry, but Google doesn't like you" - thank you for heads up :-)

    I don't care about it, cuz everything I wrote is true...

    Inside every adversity is a greater opportunity...
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