YES, you read it right. Paypal has now claimed another victim today. They have frozen my account for NO reason at all. They claim there was fraudulent activity because most of my transaction as for intangible goods and cannot be tracked. STAY AWAY FROM PAYPAL IF: 1. sell domain names 2. do web design 3. sell ebooks 4. any other intangible product or service that cannot be tracked! This is the worst day of my life.... Thanks paypal.
Wow bummer to hear that, just keep riding there asses and they will eventually unfreeze your account.
Ouch that sucks. I think I will withdraw money from my paypal account if I have over $100 in it so I don't lose it. If I were you I would call them and demand for your money or get your account unfrozen.
Thanks guys, but they will not unfreeze my account. I had ALOT of money on this account and they are holding it because they can. After being on the phone with them for more than 6 hours I gave up and refunded everyone who had paid me with the hope to get paid again through another solution. This has spawned the biggest upset of my life, and now I am determined to build a solution for all the webmasters who get SCREWED by paypal on a daily basis. Please tell me what you would like to see in this payment processor and I will include it.
Was there a direct reason for the hold - like excessive refund requests? I'm setting up a campaign and was planning use them. Clickbank offers cc processing..... Dean Edwards
Hey Dean, no, there was not. I simply had several payments coming from different clients who were paying for intangible services. Paypal seems to be totally oblivious to the fact that I make my living online and can't ask for my clients to pay me via bank transfer. They cancelled my account and now I am out thousands of dollars and have lots of angry clients. Even if you document each transaction with a note as to why they are paying you, they will assume it's fraudulent and freeze the account. Most of the time they will not give a chance to explain why they paid you and simply deny your appeal. Several people from this forum are teaming up to create a proper rival for paypal in the next coming months. This is our chance to destroy a monster that has made our lives miserable. Let's end the monopoly paypal has on the payment processing industry online. Anyone care to join us? PM ME
I do not believe that Paypal would do this "Just Because they can"... They may have a good reason or someone may have filled a chargeback against you, these are the common reasons. ~ Mike
paypal freezes account that they find suspicious, and if you are dealing huge amounts of cash through paypal, your account is already a hot account, i guess that's what happened to yours
I believe that many things are going on. Paypal is a worldwide used and trusted payment proccessor. One thing is that how are you going to get an aggreement with banks to transfer money to and from their accounts and also be able to spend the money with a "New" payment processor when no one knows about it and no one will trust it to start with. I think that it shall be a hard job to pull off, but good luck in case you do. ~ Mike
Paypal are rubbish. They are also the biggest online payment processor in existance. And unfortunately, without SERIOUS capital, you aren't about to setup a rival to it, and even if you do, nobody will use it (trust issues). I'm leaving them as soon as I can setup a serious CC processing method. I'm thinking of setting up my own gateway, or something like that. Paypal just isn't safe.
I'm going to contact you.... As for the people saying paypal would do it for no reason.... well I beg to differ what people fail to see is that large companies like paypal and blizzard have SOOOO many clients that if they just "scam" less than .4% of them it will not hurt them because there is the other 99.6% saying there legit.... I know you are not going to believe me but I have personally studied the practices of paypal and blizzard for over 2 years and researched a lot of complaints and if im right im guessing the OP here had atleast 2 to 3 transactions daily and almost never withdrew any funds... now paypal sees this golden because they can withhold is funds and than after X amount of time KEEP his money and there is nothing you can legally do about it... now from personal experience paypal once more than once has frauded me(never account ban though) and they have went against there own word but what I'm getting to is the best example which is when someone got there money back for a digital good (though when I claimed a digital good against a WoW service provider they said I could not claim my money because it was a digital good) and the money was given to me in CAD... well after the took it back paypal did not charge me once not twice not four not five but six times for the currency exchange rate.... well ok i called them and they said it was because i had to pay each time the money was xfered from mine to his to paypals... ok that makes 3 times total well 4 since he got the refund (that scamming sob) and I did not get this resolved until I finally hired a lawyer to sit down and pick threw there TOS and find that they were in the wrong only than was I refunded the currency exchange rates. Now my point is if I even made any sense because I'm typing fast is that I just told you my story and after reading it you still arnt going to believe paypal is a scam because 99.6% of you are never going to have any MAJOR problems (besides scammer disputes) with paypal....
INCORRECT, they do not have ANY reason why they cancelled my account. I have SIX (6) hours worth of recording from all day today dealing with four different people in paypal and they all gave me unreal and different reasons why my account was being shut down. Yes, STAY AWAY from paypal. AGAIN, incorrect. I am a US Verified Business account with three years of clean records. I make my living via paypal and I never take the money out of my account because I have a debit card that allows me to use the money anywhere. They had NO valid reason why my account was cancelled, other than "fraudulent" reasons that were not given to me. Trust me Mike, my mind is riddled with questions like these. But I am 2,000% determined to take paypal out of business and start something that is really honest and protects all parties involved. I agree, but once I sit down with several of my partners the capital will not be an issue. It will just depend on how angry paypal made me, and that is how capitalism works. Thanks Puddinlover, I am going to respond to you after I finish replying here. Paypal has very strange and unethical TOS that do not protect you. For example, I have an executive director of paypal ON TAPE telling me that paypal is designed to take your RIGHTS out of the equation and you forfeit ANY ownership of your money when you sign up for paypal. I have spoken to my attorney about an hour ago and he advised me to spread this tape and show people what paypal is really made of.
That's the problem jatsim, they have created an online monopoly that has captured 96% of the market place and gives no chance for competition. But they are starting to crumble as the size gets too large to micro-manage. I have realized that they have no option but to hire people who are inept and would usually be working at your local fast food place, there people are in charge of making decisions that could cost people hundreds of thousands of dollars. It has also been proven that paypal takes advantage of your cashflow, which means that they freeze your account simply because you bring in a large amount of traffic in hopes of gaining a good amount of percentage points on your money. So in essence, they are acting as a banking institution without your consent and without being FDIC insured. There is a slight break in regulation that allows paypal to operate in this "gray" area in the payment processing industry and its slowly coming to light with more allegations of fraud like my case. Anyone else want to join the "War Against Paypal"?
If you bothered to read the legal agreement, you would know that Paypal is not a conducive place for intangible items. Besides if you understand the people who resides in DP, you would know that there is a growing number of people who plainly ignore contractual agreements, sign up from non-supported country and used fake addresses and VCC to get their paypal account. Basically that should give you an indication of the lawless marketplace that Paypal has become solely because of the people who uses them. With intangible items, there is no way to provide proof of deliery and since paypal was not physically there to see that you provided the item in question, they would usually side with those who are out of pocket first, ie the buyers. You should know that they provide No protection when it comes to intangible items and if you do still engage in them, you do it at your own risk. Because the sad thing is that although there are bad customers, they are equally as many bad vendors out there. So who do your believe if you are the 3rd party who is not there when the contract or delivery was done and thus the only way to prove anything would be the an independent 3rd party proof of delivery. You could easily live without Paypal as I have for years. The thing is that to be a Paypal member, you need to have a credit card (either to verify your account or to raise your spending limits) and as such all online customers should have credit cards. There are many credit card payment processors out there which could provide this service to you. Anyone telling you that they can only pay via Paypal and not by any means would be inevitably fall into the group of people whom you should never trust, they are made up of fraudsters, people who use fake ID, use fake address, underaged and people with bad designs. Basically the undesirables in the online marketplace. If they are out to trick paypal, what would stop them from not trying to trick you too. Another thing is that when you deal with someone you do not know, ensure that you do your due diligence on the other party first and when you are ensured 100% that they are honest then that is the time to deal with them. If there is a shadow of doubt on your end then do not work with them at all. It is afterall your business interest that you should take care and a little bit would go a very long way.
TRUE!! but is ok if you just use that paypal to ebay not in others transaction online. seems like many people hate paypal so deeply.
Hey eddy2099, thank you for your contribution to the topic. I must say I agree with you on every point you made. But I still believe paypal should not be able to plainly take someone's life line away on a hunch that there might be fraud involved. Understand that the reason for this thread is to bring awareness to the people who deal with paypal on a daily basis and are not aware of the risk they are running.Paypal has proven to be the most unsafe payment processor online because they totally disregard any arguments from both parties. The fact that a payment was made on an intangible item does not mean is a cause for fraud to occur. It is also duly noted that every single transaction is perfectly documented, as I require all my clients to describe the reason for payment in a detailed manner on the item description For the ( futile ) purpose of protection against illegal chargebacks. Paypal, after admitting to this fact, they still contacted each of my clients to verify the validity of the purchases. All my clients called me concerned about the accusations and I explained the facts to them. There was not ONE person who told paypal I was misleading them or defrauding them which simply backs my claim of unfairly shutting down my business. There are thousands of claims like mine, they just don't speak out as much as I do. lol