eBay has been in big trouble the last 2 years because of the way they push the sellers with all those hard to follow policies, then they came out with some things to bring sellers back, kind of started to work when all of the sudden paypal strikes with the most incredible abusive method to keep seller's money, the Paypal Rolling Reserve. They say they will take money for 60 days and 5% in most cases, but any dispute ( and you know you will get a few if you sell on eBay ) it will transform into a 6 months, 20% a day, no interest and no way to get out. But get this, the rolling reserve is intended to be a way to put some money aside if you get any disputes but if you get a dispute, they take extra money from the money outside the rolling reserve cash, the rolling reserve money does not count to them. If you transfer money from another paypal or from a bank, they take 20%, if you refund the money, they still keep the 20%, if you sell in a different currency, they will take 20% of every currency and if a dispute occurs in a currency you do not keep a balance on but have plenty in dollars in paypal, they will reverse any money you transfer for last 3 days, all of it, even if you have plenty in dollars or even if the amount is small enough to be covered with one transfer. Paypal is the very worst financial institution, they are not protected by any goverment agency that can secure your money or that stupid 20% they are holding, thus it is illegal because is theft. It is like getting a thief with some stolen goods and he saying he was going to give it back in 6 months. In some accounts, paypal is taking so much money, it will be enough to cover 500 disputes, have you ever seen a paypal account with 500 disputes being allowed to stay open? I understand the rolling reserve concept but it should be based on the amount of sales and average ticket, in my case, they are holding $60,000 dollars at least at the end of the 6 months period, so far is 7,000 and counting. This is an abuse, does anyone know about a lawsuit being formed againts this rolling reserve scam? Just when eBay stop the cash, checks and money orders and made it super difficult to take credit cards, then paypal comes out with the biggest scam of internet business. If we allow this, all companies will abuse us, we need to fight back this kind of issues. Thousdands of sellers now need your support, any constructive comments?
hello i am replying to this post because i am so sick of this cr*p with paypal taking my money too. I run an ebay store on ebay and started in febuary 2009 and have been doing really good selling. I went to sign up for a pro store and got denied for whatever reason. that was something through paypal that has nothing to do with my ebay selling or should be a decision to decide to take money from u and hold it. Now paypal out of no where starts taking money (rolling reserve) from me. can anyone guess now on october 5th 2009, how much is pending(which means i cant get to) 3,259.60. Now i have so much money being taken from me i cant pay ebay there money,which guess what they are the same company---EBAY OWNS PAYPAL---WOW!!!!!!!---SO WHAT IM SAYING BASICALLY IS PAYPAL TAKES 10 TO 20 % OF YOU DAILY EARNINGS AND HOLDS IT now thats your profits pretty much because the margins suck on ebay everyone knows that Ill will end with i am so upset this happened and im ready to help with a lawsuit when the rest of you are---dave
All payment processors (Authorize.net, LinkPoint, Internet Secure, ECHO, 2Checkout, WorldPay, etc) all have a Rolling Reserve policy they use on accounts they feel are at risk of chargebacks, excessive refunds, fraud, and a number of other reasons. The Rolling Reserve is always returned to you after a period of time. Some hold it for a couple of weeks, some for 30 days, some for 60 and some for even six months. Mostly it was just Merchant Accounts that had a reserve policy but now PayPal is adopting that policy as well. Why? This except from www.merchanthotline.com is meant for Merchant Accounts but it allow applies to PayPal as well:
The sickoo's at paypal is holding 3K of mine and want me to either refund or wait for 6 months, now my business is shut until i get another payment processing installed and i am out in limbo for 3K . iam relatively new to online business and a lesson learned ...i did come across posts before about how the gentemen and gentle womens of paypal sucks ba**s but too lazy to look into alternatives and a price is being paid now. This got me thinking ...and yeah to be fair to both consumers and merchants alike both these parties want each others money and goods and we let this middle man like paypal to give consumers the confidence to buy online, paypal bends over backwards to kiss the consumers butt at the cost of screwing us. Messsage to merchants is their are other other alternatives to paypal even thought its hard for initial setup ..but it will save you a lot of grievance after... lets spread an awareness among the merchants to boycott paypal and embrace the rest of the crooks in the banking industry ...ultimately they all suck , but one less then the other that is all..
We just got hit with a 12% reserve for 180 days which will completely ruin our businesses cashflow. I want to find a new merchant provider. Any suggestions? Thanks ahead.
I know, thats insane... I just signed up for Payapl Express and they hit me with a 30% rolling reserve for 90 days... talk about screwed (
yes, it is getting hard to trim the marks. When I fleece, i want the $$$ right away - so I can get out of town. With rolling reserves, it is like they are supporting legit business only.
yeah, but common, 90 days? what kind of bank establishment holds a payment for 90 days. I can understand maybe a month? maybe a month and a half, but as a business owner that 30% they hold is a BIG deal