Sorry to hear about this, but it does happen and Paypal has to protect itself as well. Adding another party into the credit card transaction process is always a bit risk. But what I just wanted to point out - not only should you have withdrawn your money, but you should also set up a separate checking account only for Paypal. Because they will go into your checking account and withdraw money. And especially in the United States, it is actually easy to withdaw money like this instead of depositing money. A few years ago when I was consulting with a healthcare agency, there were about 30 states that you had to be licensed with (costs $10,000 a year) to be a fiscal intermediary. Some states might consider Paypal an FI so they have even more regulations to follow at that point
Thats exactly why I dont let my balance go over $200. I heard too many horror stories to trust paypal...
I've got a similar PayPal horror story, thats why I now only keep small amounts of money in PayPal now.
My paypal account vanished. It would cost more in phone bills than what my loss will be... £3 I was cheesed off about it, but i can only trade using paypal at the moment..... Rob
Could be worse, I've heard lots of story's where people have had there funds frozen and the balance was over $2,000! The best thing to do is only keep as much as you need in PayPal.
I've never had any issues with Paypal, and I've used them for over 5 years. I'm beginning to wonder whether there is an ulterior motive for this thread. Most of the "Paypal sucks" sites refer its readers to an affiliate merchant account company called CardService International. For instance, check out paypalsucks.com and aboutpaypal.org, they are the top anti-Paypal listings on Google. Then as you start reading, they'll both refer you to their "top picks" for recommended merchant account companies. The weird thing is they both refer you to the same exact affiliate page. Very fishy! Sounds like some people are trying to cash-in on some isolated cases of Paypal mishaps.
I have found that even larger merchant accounts do the same thing with larger transactions. It happened to me several years ago with a mainstream merchant account. Tried to transfer a large sum to the business bank account,a nd they put a freeze on the account. When I called them they said they were putting the money in a frozen fund in case of chargebacks to customers. They said they were worried I would withdraw all the money, then my customers would start a rush of chargeback requests, leaving them holding the bag. They eventually released the money one portion at a time, but it tooks months. I was very upset. So I do not think paypal is being worse than that big merchant was, but I will be wary about withdrawing a large sum now that you mention it.
Nothing wrong with Paypal I always use it for all transactions. You weren't smart enough to withdraw the money, its your problem. I never leave a balance over $150 with paypal no matter what happens. Peace,
yes u never have problem because ur transaction are slow, if u have $200/per day sale then u will see paypal stop ur account with in a week.
Hi D4rKNull, I'm very sorry to hear this. PayPal screws everyone. I have gotten limited 3 times in Feb and got a email PayPal on April that they can no longer have me as a customer. I had a Verified US PayPal that that time, since i have moved in Trinidad, i haven't got limited yet. I noticed they mostly go hard on US customers. Now i sell ebooks and i be careful of what i'm doing. I make sure and send an invoice to customers first as service instead.