Comments on: What to do when your Paypal account is frozen…

By: Aisling

Aisling — Sat, 07 May 2011 06:58:50 +0000

I have been using Paypal for six years and they have shafted me non stop over the years without any cause or reason,i have never had negative feedback on Ebay.Recently i was delighted to find out some of the merchant services could be integrated into my small business online and my other service orientated business,i began telling my customers they could now pay me by credit card etc until one day i woke up and without reason paypal said they would be holding all my money received for 30 days from now on.As a small business owner i can not wait that long for cash flow and i then had to turn around to my customers and explain they now could not pay me online and i had to remove over fifty PAY NOW buttons from my website.I am disgusted and so fed up with this company!!Also i had no real response when i called to complain and they haven’t gotten back to me since!!

By: Bill

Bill — Sat, 23 Apr 2011 11:40:41 +0000

We are an online income tax company and Paypal froze our new merchant account at the peak of the tax season. Not only did they deny access to our money, but they also prevented customers from paying for our services. We fortunately had a backup credit card service provider, but we were down for a couple of hours while integrating the other system. This cost us some money! We eventually did get our money, but their actions were unforgivable. We never used them again.

By: Drew

Drew — Sun, 31 Jan 2010 02:04:37 +0000

I’ve been using paypal as my transactions processor for 3 years or so, and have been pretty active the entire time, since I sell a lot of stuff on multiple sites.

Anyways, During January 2010, i sold 150 items for under $20 on ebay… not one single issue and apx 130 of the 150 had already left positive feedback. not a single negative feedback, chargeback, or problem whatsoever.

Everyone’s happy. … Except me.

I wake up Friday morning (January 29, 2010), planning to transfer the funds to my bank account, since all sales for the month had been completed… Low and behold, my Paypal account is frozen.

Paypal is asked for inventory descriptions, vendor invoices, and receipts.

I sent Paypal my vendor invoice (sales agreement), inventory listed of all the details.

Nope…. After providing what they wanted, now they want more, and stuff there is no way I can provide, like written rights for being a reseller of the products by the manufacturer and even copies of my vendors contracts and sale agreements with their supplier (illegal as sin).

What? I don’t need rights to resell what i purchased wholesale from a distributor and Paypal sure does NOT have the right to require me to get a copy of my vendors contracts with their supplier.

Needless to say, it’s now a paypal horror story on the tune of $2,455.63. It took them 1 whole day to say they will hold my money for 180 days….

Great way to start off 2010…. If you are a merchant and use paypal, this WILL be you soon. AVOID. Paypal is a scam, and is operating a criminal organization.

Me, most likely my online business is going to be annihilated, unless i can get back up to par fast. The entire amount in my paypal is what pays for my vendor balances. If I can’t get that paid, i am through. No job, no money, etc. I have signed up for moneybookers as a merchant, but am still awaiting a response for a few days now.

By: donna woodhead

donna woodhead — Thu, 26 Feb 2009 15:19:41 +0000

payapl have limited my account and done all necessary steps they want driving licence or passport now dont have these think unfair been ebay seller 3years paypal shouldnt interfere

By: water damage restoration detroit

water damage restoration detroit — Sun, 25 Jan 2009 18:39:40 +0000

Paypal has hosed me several times.

By: best mineral makeup

best mineral makeup — Wed, 04 Jun 2008 19:36:09 +0000

I have personally had several accounts frozen, given paypal everything that they ask for, had zero complaints and they still hold my money for 180+ days. I honestly think that this is part of the business plan, to hold these funds interest free. The merchant accounts are no better either. I think that Congress needs to take a serious look at this problem instead of steroids in baseball.

By: Classic Movie Store

Classic Movie Store — Thu, 18 Oct 2007 19:41:38 +0000

You only have to search the net to find the paypal stories, and it is a shame that they failed so badly with their customer service… no need to flame them!

Anyone who depends on their online income must spread the risk that this paypal service brings. We use 3 different payment processors at my site, in the hope that if one gives trouble you can still accept money…

Not to mention there is a growing number of people who will not use Paypal out of principle, so it it good to have other processors..

I believe this poor customer service comes from having the overwhelming monopoly, they really need some competition to sharpen them up..

This is why I am such a google checkout fan… If they can get as big it will do us all a favour.