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PayPal Advice

Discussion in 'Payment & Shipping' started by more4less, Apr 11, 2006.

  1. more4less

    more4less

    Joined:
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    After two weeks of ranting on everybody else's threads, I thought it was appropriate to create my own thread. I hope that this will become a sticky because I would like to just generally address what has become common PayPal issues and questions here.

    PayPal is a great idea and for 95% of users it is a wonderful way to do business without any problems. BUT there are drawbacks and you should know them if you want to protect yourself. I would like to offer a few pieces of advice so you may avoid becoming another PayPal VICTIM.

    1. PayPal is a great option for payment, but if you have any kind of volume in sales you should immediately consider a merchant account as well. If PayPal decides to freeze your account you are no longer able to accept online payments and you WILL see your sales dramatically decrease. Just like the saying goes, NEVER PUT ALL OF YOUR EGGS IN ONE BASKET. (This is also good because PayPal is less likely to freeze if they see you have an established merchant account)

    2. Be aware that the Seller and Buyer Protection offered on PayPal is not exactly as it seems. You can follow the direction to the letter and still find yourself on the losing end of this 'protection'. Never buy or sell any item that you are not prepared to lose. We all know there are scammers out there and if they really want to get you they are going to get you. Trying to follow the rules is still recommended but don't expect them to protect you at all times. Keep your own documentation, research as much as you can, and do good business and your are bound to come out ahead. (Also note that typically neither of these 'protection' policies apply to international sales.)

    3. As an extention of #2, never 'offer' insurance and signature confirmation as an option. For anything of value these must be required, at the very least you have to get a signature confirmation. These are the only tools you have to prove that the transaction was completed. Don't give up your protection because the buyer doesn't feel like paying for it. Because in the end it is up to you, not the buyer, to provide proof of delivery.

    4. Always use your CC for transactions on PayPal. Mastercard and Visa only. AMEX and Discover are not recommended because in the case of chargebacks they do not hold PayPal responsible for chargeback and disputes. Also keep in mind that you have every right to dispute the charge with your CC company, but if you win, PayPal may very well debit your account for that amount. Be prepared to lose the money or spend a lot of time fighting with PayPal over lost funds, a frozen account, or worse, an 'authorized' withdraw from your bank account.

    5. If you have to supply PayPal with a bank account in order to make withdraws, you may want to consider opening a second account just for PayPal and internet transactions. This can limit your vunerability to unauthorized charges. Keep in mind that these charges may cause your account to be overdrawn and assessed NSF charges, but typically you can have these reveresed if the charges were not authorized.

    6. Never let anyone log into PayPal using your computer and vise versa. PayPal has a great way of linking accounts and occasionally it has no rhyme nor reason. PayPal does use ISP to link accounts though and although this is a silly way to link accounts, it is done and it causes problems for many. If at any time PayPal has 'linked' your account with another and the other user has a problem with PayPal, their problem now becomes your problem. For example, I found a story on Ebay's discussion boards of a woman who was frozen because her account and 17 others had been linked to a deceased persons account because of ISP 'rolling' assignment. Now it seems strange to me that PayPal would actually assume that all 17 accounts were truly linked but they did AND even though they actually did debit one of the accounts for the debt of the deceased person's account, the other 16 accounts were still being held responsible for the same amount. Talk about double dipping??????

    7. Along the same lines as #4, don't try to fool the PayPal system. They do link accounts and even if people do not know each other they will freeze accounts for the misdoings of another. Example, Customer A buys from Customer B and pays with PayPal, Customer B then buys something from Customer C and also uses PayPal. PayPal discovers that Customer A has used a stolen credit card. All three accounts will immediately be affected. Even though Customer C had nothing to do with the original transaction they are still considered to be a receipient of fraudulent funds. This is the hardest problem to avoid because in all likelyhood your transaction was valid and without fraud. Again keep in mind that you shouldn't complete any transaction through PayPal that you are not prepared to lose.....

    8. READ PayPal's ToS, and understand it fully. They are not very flexible if they catch you breaking a rule and if you have any kind of funds in your account they could be held for 180 days. Their ToS is long and complicated but it's the small print that has most often caused problems with users.

    9. Keep in mind that despite knowing the ToS, you could still get burned because of the simple phrase found in it, "If PayPal 'believes' that you cause a liability to yourself, PayPal, or other members". This statement is so broad that it is often the only thing in the ToS that PayPal can get you with. Many people on this forum are dealing in high-risk electronic items. Although PayPal doesn't specifically disallow these items in their ToS, it seems that selling a large quantity of them in a short period of time is enough to trigger their system. I suggest selling these items one at a time and withdrawing the funds after each sale. Do not make another sale until the first one has cleared the bank. Once you have a little history you may be able to slide under the radar, but that is not guaranteed. Unfortunately, PayPal has no means of qualifying sellers before they get caught up in this nasty situation of account 'freezes' but if you only have one payment in your account at any one time the 'freeze' shouldn't hurt as bad. Also, refer back to #1. PayPal is less likely to freeze you if you have an established merchant account. If you get one, contact them and let them know, MAYBE it will help, but who really knows.....

    10. If your PayPal account is frozen or you feel you have been unjustly treated, remain persistent. Supply all the information requested and follow-up constantly to assure they have received said information. Know your rights, there are many sites like www.paypalwarning.com and www.paypalsucks.com that can give you advice and resources in bad situations. Be prepared to report PayPal to all the appropriate authorities. BBB, FTC, and the AG of California and Nebraska to name a few.

    As for me, after one month of a frozen account, I finally had my account released this weekend. They just acted like nothing had ever happened. It took more than 30 phone calls, more than 10 faxes, and I eventually reported them to all the named agencys above and more.

    I am not sure what that final push was, but I did start a thread on Ebay Friday afternoon letting everyone know of 'My PayPal Hell'. I also kindly informed Ebay they would not be receiving my monthly fees unless they got them from PayPal. Again who knows what finally made them release my funds, but knowing that PayPal employees read all the Ebay discussions, I can't help but think they were hoping for some good publicity on my positive outcome.......

    Please feel free to contribute any pointers of your own and I will add them to this post. Hopefully it will help people from getting caught up in the sticky mess that PayPal has become known for.

    UPDATE: I just checked the email for my business and strangely there was an email from PayPal regarding my complaint to the AG of California. It kindly stated that the actual reason for my account termination was that I had failed to completely submit ALL of the requested information. It appears that one of the tracking ID's which I submitted 3 times had not made it into the computer and that is the reason for my account termination.

    I know that is complete junk because my husband made only one sale on his account before it was frozen and cancelled because of mine and he had provided the proper information and PayPal even called his 1 customer, but his account is still cancelled, maybe we should file an AG claim on his account as well, NOT.
  2. MustHaveMobiles

    MustHaveMobiles Community Moderator

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    Did you write this or was it taken from another source? Only ask as I have recently read a similar post on another forum. Will take a look and see if I can re-find the forum post.

    If it is your then you may need to speak to the other poster as they may be ripping your work.
    Clearance UK likes this.
  3. more4less

    more4less

    Joined:
    Mar 14, 2006
    Messages:
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    Nope, this is all me, and I highly doubt someone could have ripped it off so quickly because I just posted about 10 minutes ago. Anyway, I wouldn't object any way. The more people who have the information the better they can protect themselves.

    I can see how someone may come up with similar information because I myself have merely found this information from the hundreds of postings and stories I read at the previously named 'information' sites. I have spent a lot of time reading stories on these sites lately and I was just hoping to pass on some of the things I have learned.......
    Clearance UK likes this.
  4. guru4us

    guru4us

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    I have stickeyed this thread for now. Good post. IMHO: doesnt matter where its coming from...its giving out good advice
    Clearance UK likes this.
  5. TheNiceGuyOK

    TheNiceGuyOK

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    Nov 15, 2005
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    this is exactly why I now have a paypal account with false information. It has a virtual CC, and virtual bank account. Paypal has scammed me for alot of money ( someone hacked my account), and I will NOT alow this to happen again.
  6. maithai

    maithai

    Joined:
    Jun 9, 2006
    Messages:
    5
    paypal recently decided to suspend my account, along with eBay. I was given no indication that they were going to do this. Its put me in a catch22 situation as i need to pay the suppliers, but if I cant get the funds from paypal, cant pay the supplier, buyer doesnt receive goods. Have sent the required information to paypal, but I will be very surprised if any of the buyers now give me positive feedback on eBay.

    Thoroughly miffed about the whole situation, and having spoken to other people this has happened to, it might take months before paypal unsuspends my account!
  7. djltrading

    djltrading Banned Member

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    brilliant information and great advice, i temporarily took paypal off my shopping cart because i was worried they would freeze my account. but now i have a lot more information, am more confident on accepting paypal now.
  8. BillyA

    BillyA Retired Moderator

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    My friends Paypal account was recently frozen. In an official email and through securely logging into Paypal's Resolution Center, they are asking for his supplier information.

    Is this normal?
  9. ara-uk

    ara-uk Banned Member

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    Yes David, they asked me for my suppliers as well when my account was frozen last year.
  10. Anthony

    Anthony

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    How on earth can they justify wanting your suppliers information?

    What a complete farce!
  11. ara-uk

    ara-uk Banned Member

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    Many people pre-sell items on eBay and use PayPal as their primary payment method.

    I sold 100 iPods last year through eBay and received over £12k into my PayPal account within a 3 day period.
    Now you'd be thinking what a stupid thing to do. Well it actually wasn't, because I'd done exactly the same thing 3 months previously but with JBL speakers and not iPods.
    The final values of the auctions of both items was around the same, give or take £10.

    The only difference with the two was that I had the speakers on hand and was able to deliver them out right away. PayPal watched my eBay feedback over the next couple of days and saw that all was well, so they didn't freeze my account.
    However, with the iPods, PayPal decided to freeze my account within 1 week of me receiving the £12k..purely because they thought there was potential fraud. I called PayPal to explain the situation saying I needed the funds to pay my supplier. This is where they told me to fax the supplier's details and any relevant invoices in to see if there actually was a supplier.

    This could explain PayPal's need for supplier's details, although I still think it is a totally ridiculous way of verifying a seller, but seems to work for them!:confused:
  12. Anthony

    Anthony

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    Thanks for the explanation Azeem, I can see where Paypal are coming from now, still a little unethical imo though.
  13. MustHaveMobiles

    MustHaveMobiles Community Moderator

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    Its come under the money laundering regulations, this information is pretty much a pre requisite from them to solve 'issues'..
  14. jcfisher21

    jcfisher21

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    Aug 27, 2006
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    6
    I have a general question regarding Paypal Security. I have recently found a supplier who has decend prices for iPods. He accepts Paypal. I wanted to do an initial transaction for a large sum but decided to buy a smaller quantity even though the unit price was higher. The total came up to $2100. Now, I have decided that even with Paypal I wont' take the chance of loosing that much money, so I split the payment in two separate transactions. Paypal claims to insure you up to $1000 on a transaction if you "qualify" for their buyer/seller protection program. The end seller happens to be a Paypal Business Verified Member. Also, I am paying via a Major Visa Credit Card. Does everyone think that this is a good idea? Have I done everything in power to insure a safe transaction? Thanks
  15. cherylsonoda

    cherylsonoda

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    I found a supplier and they accept paypal.I thought paypal was 100 % safe for both parties.If i use my CC for paypal is it 100% safe? What about using LC( letter of credit) is it safer?
    Cheryl
  16. Anthony

    Anthony

    Joined:
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    Paypal is definitely not 100% safe. You will struggle to find any payment method that is 100% safe.

    Have a read over at Wholesale Helper - Secure Payment Methods.
  17. danky

    danky

    Joined:
    Mar 30, 2006
    Messages:
    175
    They called me and asked for information. I totally bsed my way through it. Anywho, Azeem where did you get a number? I believe ive searched high and low for a paypal phone number.
  18. cherylsonoda

    cherylsonoda

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    Okay thanks Anthony :)
  19. Theory817

    Theory817

    Joined:
    Oct 17, 2006
    Messages:
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    From Paypal's site:

    PayPal Customer Service Agents are available to help you during the following times:

    4:00 AM PDT to 10:00 PM PDT Monday through Friday
    6:00 AM PDT to 8:00 PM PDT on Saturday and Sunday

    Call us at: 1-402-935-2050 (a U.S. telephone number)

    We may only discuss an account with the account-holder. Please have the following information available when you call:
    • Your telephone number
    • Your email address
    • The last 4 digits of your credit card or bank account registered with PayPal
  20. kelvingb

    kelvingb

    Joined:
    Dec 4, 2006
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    hi,everybody,I m new here.I m very glad to make some friend from different country in here.I m from china,dealing in wholesale the consumer electric.
    Who can tell me if the Paypal is safety for seller? Many customer of mine request me to accept Paypal as method of payment,original i just accept Wire Transfer as method of payment,many customer can t agree that,but they prefer Paypal as method of payment.i want to expand my business now,so i begin to care the Paypal.In china,Paypal is not very popular,but as i know,it s very popular in US and some Euro country like UK,France...I have viewed all the Paypal Policy and Help Features,but i worry about Paypal can t protect the seller against chargeback by some scammer.
    Some friend from US or UK or France,
    Pls teach me how can i solve the issue about chargeback if i really send the goods to my customer?:welcome: :welcome:

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