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PayPal's New Policy On Holding Funds ...

Merchant Accounts, payment processors, integrating shopping carts, secure servers and anything related to taking payments and processing online orders

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PayPal's New Policy On Holding Funds ...

Postby CorpRebel » Sat Feb 09, 2008 11:42 pm

"EBay's new policy of holding PayPal funds on "high-risk" transactions for up to 21 days has business owners spooked."

Here's a link to the article ...

http://money.cnn.com/2008/02/08/smbusin ... /index.htm

Remember that PayPal is NOT considered a bank under banking regulations in the U.S. They can do pretty much what they want.

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Postby karynsolo » Sun Feb 10, 2008 10:57 am

I have long despised doing much with paypal myself that is why I have a regular merchant account, people can still pay us by paypal but I prefer going the merchant account route much better.

BTW paypal does not just hold funds 21 days if they decide that they want more information from you they can hold funds indefinately. I had it happen to me that they held funds for almost a year for no good reason at all, they began asking for proof of ID , I gladly sent that in, then they said they didnt receive the fax so I sent it again, then it was " we have to review " the information you sent, one excuse after another.

They always wait to pull this stuff until you have a good amount of money in your account, never when there is a couple hundred dollars or less. I finally got all of my money but with no interest for my time and trouble having to wait for it.

the horror stories on nopaypal.com tell it all about how shady they operate.

For those who are running a business I would advise going the extra few steps to get a merchant account. I use Authorize.net and they have been great.
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Postby CorpRebel » Sun Feb 10, 2008 11:36 am

karynsolo wrote:BTW paypal does not just hold funds 21 days if they decide that they want more information from you they can hold funds indefinately. I had it happen to me that they held funds for almost a year for no good reason at all, they began asking for proof of ID , I gladly sent that in, then they said they didnt receive the fax so I sent it again, then it was " we have to review " the information you sent, one excuse after another.


Oh, I understand what they can do. It's in their TOS. That's why I don't leave much in the account OR my attached bank account. Outside of a few reports/guides I don't use PP for selling much else.

But I have to have a PP account anyway as most of what I do online is affiliate marketing and a majority of the programs I'm involved with only payout via PayPal.

The "convenience" aspect.

the horror stories on nopaypal.com tell it all about how shady they operate.


THOSE sites I take with a grain of salt. I'd bet a BIG chunk of change that "most" people there complaining actually DID violate PP's TOS/AUS policies.

Not saying many are not true but it's like all the people that got their AdSense accounts banned ... Most DID do something wrong.


For those who are running a business I would advise going the extra few steps to get a merchant account. I use Authorize.net and they have been great.


Most people starting out online probably wouldn't qualify for most "good" merchant accounts wthout paying hefty fees. Unless one has almost perfect credit.

Sometimes one has to take a bit of the bad along with the good. REALITY! :wink:



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