Another Paypal Nightmare

Discussion in 'Ecommerce Forum' started by YoungMoneyChina, Feb 21, 2010.

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  1. YoungMoneyChina

    YoungMoneyChina UKBF Newcomer Free Member

    156 31
    A few years ago we had a few thousand pounds frozen in our paypal account as they deemed a couple of large transactions we had in that week as high risk. We had to send them some paperwork to prove we were genuine and after about a month the funds were released. We were assured that now they had all of this information it would not happen again.

    Afraid that does not seem to be the case.

    Last week our paypal account began "holding" funds from us, this has steadily built up to a good few thousand pounds being held by them which seem to be transactions seemingly picked at random.

    These funds are linked to an Ebay account that we use to clear stock.

    We contacted them and they have told us that it will be because of one of the following reasons:

    Ebay account is less than 6 months old
    Ebay account has less than 100 feedbacks
    Ebay account has below 95% feedback rating

    None of these apply to us.

    I have tried contacting ebay and they say this is nothing to do with them and that our ebay account has no issues that should result in this.

    Paypal say that its nothing to do with them and that its ebay who are responsible for the money being held.

    Paypal seem to be quite relaxed about the whole thing saying that the funds will clear into my account aslong as the buyer doesnt complain within 21 days. They also seem to think that this facility may become common place for ebay transactions to give the buyers more security.

    It seems pretty crazy to me that the Ebay/Paypal setup is so geared towards buyers, as a seller were open to a minefield of issues presented by such practices.

    Has anyone been in a similar situation already? im looking for a contact number for someone who can resolve this for me either at paypal, or ebay, can anyone help with that?

    As it stands the restricted funds in the paypal account are going up and up each day and i have no idea if i will actually see that money.

    Thanks
     
    Posted: Feb 21, 2010 By: YoungMoneyChina Member since: Oct 7, 2007
    #1
  2. upnorthal

    upnorthal UKBF Newcomer Free Member

    518 54
    As I have warned other people. Paypal can do pretty much what they want.
    They are not bound by UK law.
     
    Posted: Feb 21, 2010 By: upnorthal Member since: Jul 2, 2009
    #2
  3. Zeal

    Zeal UKBF Newcomer Free Member

    955 252
    Although this isn't business related - my partner's funds got "put on hold" until the buyer left good feedback...
    This however, didn't happen. The buyer claimed she never received the dress AND had the funds returned to her.
    Judging by the buyers feedback - she had done this previously. We even offered proof of postage!

    Paypal/Ebay is most definitely set up to protect buyers... This shouldn't be the case :(
    It's a shame that paypal hold such a large chunk of the market... maybe they'd act differently if they never :-/


    I do hope you get your issue sorted!
     
    Posted: Feb 21, 2010 By: Zeal Member since: Oct 3, 2009
    #3
  4. upnorthal

    upnorthal UKBF Newcomer Free Member

    518 54
    Originally Posted by some anti paypal website
    According to PayPal accepting their ToS (Terms of Service) in effect means you waive your rights to credit card consumer protection laws if you want to use their service, and that you may not issue a chargeback for unauthorized use of your credit card and PayPal account, or if you do, then they have the right to limit your account.


    From a consumers point of view, it would be unlawful to prevent a person exercising their consumer rights. I'd do the chargeback anyway, and wait for Pay Pal to sue me in a UK court.
    Reality is, they would just close your Paypal account and probably prevent you using their services again.
     
    Posted: Feb 21, 2010 By: upnorthal Member since: Jul 2, 2009
    #4
  5. silvermusic

    silvermusic UKBF Ace Free Member

    2,162 586
    It could also be for many more reasons too, even the type of product you sell if it's deemed to be in a risky category such as mobile phones for example. More and more people are finding holds on account funds nowadays. Those like myself who put through several hundred small transactions a month seem to not suffer from this, although since dumping eBay some months back the number has dropped.
     
    Posted: Feb 21, 2010 By: silvermusic Member since: Nov 22, 2008
    #5
  6. quikshop

    quikshop UKBF Big Shot Free Member

    3,705 720
    Ebay and PayPal are the same company and apply common rules for risk assessment. Sounds like they've tightened their risk scoring as a lot of businesses are doing and unfortunately your perfectly viable business has fallen foul to a computer algorithm.

    You're more likely to see a blue Whale shopping in Woolworths than get good customer service from PayPal...
     
    Posted: Feb 22, 2010 By: quikshop Member since: Oct 11, 2006
    #6
  7. upnorthal

    upnorthal UKBF Newcomer Free Member

    518 54
    Paypal does work for a lot of businesses without issue.

    The thing is, when it bites back - it can really hurt.
     
    Posted: Feb 22, 2010 By: upnorthal Member since: Jul 2, 2009
    #7
  8. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

    252 6
    SagePay seem to be the new kids on the block
     
    Posted: Feb 22, 2010 By: taggingsupplies Member since: Dec 15, 2007
    #8
  9. homehydro

    homehydro UKBF Newcomer Free Member

    45 4
    sagepay - how so?
     
    Posted: Feb 22, 2010 By: homehydro Member since: Dec 29, 2009
    #9
  10. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

    252 6
    I see them on more and more websites online at the checkout area.
     
    Posted: Feb 22, 2010 By: taggingsupplies Member since: Dec 15, 2007
    #10
  11. YoungMoneyChina

    YoungMoneyChina UKBF Newcomer Free Member

    156 31
    Unfortunately much like eBay paypal has a great image for the general customer and its going to take a lot to get them to change there habbits.

    I can not see how eBay and Paypal can continue to be used when they act so terribly towards business users but at the same time i cant see anyone taking them over.

    If this was any other company providing a service that i was putting tens of thousands of pounds through each month im sure they would be bending over backwards to keep me happy but with no competition eBay and Paypal couldnt care less.

    Another good days trading means another grand is held back in my paypal account. They said that this holding of funds could last 120 days. This could end up being a whole lot of money! :(
     
    Posted: Feb 23, 2010 By: YoungMoneyChina Member since: Oct 7, 2007
    #11
  12. NuBlue

    NuBlue UKBF Ace Full Member

    1,168 236
    They used to be Protx and have always been a big player in the gateway market.
     
    Posted: Feb 23, 2010 By: NuBlue Member since: Oct 19, 2005
    #12
  13. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

    252 6
    Someone here should start a new company the name "Payme.com he he
     
    Posted: Feb 23, 2010 By: taggingsupplies Member since: Dec 15, 2007
    #13
  14. ChrisXLP

    ChrisXLP UKBF Newcomer Free Member

    9 0
    Belucrative, is it showing up in your Overview as a Pending Balance? We have the same thing despite having a great Ebay standing. A percentage of each and every transaction is held back for 90 days 'in case of dispute', meaning should any customer complain and demand a refund, the funds are there for PayPal to take. Our Pending balance is normally £1k-2k which is just sat there instead of being spent on more stock.

    Of course, the fact PayPal will be receiving interest on that money for 90 days has nothing at all to do with it...
     
    Posted: Feb 24, 2010 By: ChrisXLP Member since: Feb 18, 2010
    #14
  15. YoungMoneyChina

    YoungMoneyChina UKBF Newcomer Free Member

    156 31
    Hi Chris,

    Yes it is, how long has yours been doing this for? Have you tried contacting them about it? what was the result?

    There does not seem to be a limit on how much there holding, its just going up each day. Its at 3k now and every payment we get just goes into this hold.

    Surely this cant be legal? there holding funds for no reason. There terms state that for an account like ours there should never be a need to hold funds.

    Thanks
     
    Posted: Feb 24, 2010 By: YoungMoneyChina Member since: Oct 7, 2007
    #15
  16. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

    252 6
    paypalsucks.com
     
    Posted: Feb 24, 2010 By: taggingsupplies Member since: Dec 15, 2007
    #16
  17. ChrisXLP

    ChrisXLP UKBF Newcomer Free Member

    9 0
    Ours has been in place for over a year now, and as far as I know its permanent. Ours is only held for 90 days then it comes back to us on a daily basis. Once you get into the pattern its not too bad, just annoying to see all that money sat there and you can't access it.
     
    Posted: Feb 24, 2010 By: ChrisXLP Member since: Feb 18, 2010
    #17
  18. YoungMoneyChina

    YoungMoneyChina UKBF Newcomer Free Member

    156 31
    Thanks for the reply chris, that situation would be a nightmare for us. We just could not justify running this ebay business if the funds were subject to a 90 day hold.

    Our account feedback isnt perfect at 99% but surely its not bad enough to warrant this?

    Would you mind messaging me with your ebay username so i can compare accounts, ill happily provide you with mine. Im just worried that if your account is in similar or better standing than ours then we will end up with the same paypal hold situation that your in which is, as i said earlier not something this business could live with.

    Thanks
     
    Posted: Feb 24, 2010 By: YoungMoneyChina Member since: Oct 7, 2007
    #18
  19. TruthLogic

    TruthLogic UKBF Newcomer Free Member

    6 0

    A company operating within the UK is NOT bound by the laws of the LAND?

    you sure about that?


    Paypal own termsn and conditions state:

    [FONT=&quot]14.3 Governing Law and Jurisdiction.[/FONT] This Agreement and the relationship between us shall be governed by English law. For complaints that cannot be resolved otherwise, you submit to the non-exclusive jurisdiction of the English courts arising out of or relating to this Agreement or the provision of our Services without prejudice to your right to also initiate a proceeding against PayPal in that context before the competent courts of and in Luxembourg. In simple terms, “nonexclusive jurisdiction of the English courts” means that if you were able to bring a claim arising from this Agreement against us in Court, an acceptable court would be a court located in England, but you may also elect to bring a claim in the court of another country instead. English law will apply in all cases.



    WHICH MEANS


    THROW THEM IN COUNTY COURT!
     
    Posted: Aug 1, 2012 By: TruthLogic Member since: Jul 9, 2012
    #19
  20. jamesbyfield

    jamesbyfield UKBF Newcomer Free Member

    20 2
    I use sagepay and it does the trick for me.
     
    Posted: Aug 1, 2012 By: jamesbyfield Member since: Aug 1, 2012
    #20
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