Pay-Pal just lost their minds!!

[OConnor Racing]

I received a notice from Pay-Pal yesterday. The notice stated that the funds in my account were subject to a 21 day hold. I called them today wondering what I did wrong. The answer I got was nothing. The gentleman informed me that ALL Pay-Pal customers got the same notice. He went on to say they were doing this to protect themselves when they pay claims. They freeze your money and don’t release it until three days after your customer receives their product.

Let’s think about this for a second. Say someone in California sends me an engine for a rebuild. After I look things over, I quote $800 for parts, labor and shipping. He agrees and sends me a 50% deposit to cover the parts. I now have to take money out of my own pocket to cover the parts. It stinks but I do it anyway. I finish the engine a week later and call for the balance of the bill. He pays with Pay-Pal and I ship the job. Turns out my new customer is a scumbag and when he gets his engine he files a claim with Pay-pal stating I did something wrong. Pay-Pal will promptly refund all of his money and reimburse themselves with funds from my account. The bottom line is I’m out the $800 I was paid, my time and the money I spent on parts while my new customer is loving his new engine.

I presented this potential problem to customer service and was told, “Thank you for your comments Mr. O’Connor and I’ll make sure the proper department is notified”. I told him I was very disappointed and would be opening a merchant account this afternoon and would no longer accept payments from Pay-Pal. I don’t think it bothered them much.

I’m sure most of you have Pay-Pal accounts. Give them a call and tell them how you feel. They’re very nice over the phone.

 

[JonS]

if this is the way they wanna start operating then they have just lost my business. however i haven't received any such email from them...yet.

 

[super noober]

wow.. thats some grimey sheet..

 

[OConnor Racing]

You won't get an e-mail. Log into your account and you'll see a notification at the top. I think you have to be a seller on e-bay to receive the notice.

 

[JonS]

OIC, i'm not a seller on ebay. i just buy sh*t. if this is for only sellers then i really feel bad for you. i'd personally never be shady like that, but there are a few that are. just a risk i guess.

 

[sicivicdude]

I'm a seller on Ebay and have a premier Paypal account and have no such notification.

I really hate the way that Paypal and Ebay have taken a roll in shaping transactions. First the took away the ability of the seller to put out anything other than a positive review, then they put out "protection" measures to keep buyers safe which actually hurt sellers (and don't really keep buyers all that safe), and charge a 15% fee to do so...(listing, plus final value, plus paypal fees!)

You want to know one of the safest and easiest ways (not to mention cheapest actually) to send money? USPS postal money order. It's like a cashiers check but it can be redeemed at any post office with just a valid government ID, the money has to be handed over when the money order is made (which means that they can't "take it back"), the post office will hand out legal US tender (instead of "holding onto it), and it's guaranteed! If it's lost, the issuer can take the receipt upto the post office and get another one for free.

Best of all, it's $.90 to get one for reasonable amounts....

 

[OConnor Racing]

Great. So he lied to me as well. I'm glad the rest of you didn't get the notification. I'm done with them for the big dollar items. Checks, money orders and cash it is.

 

[sicivicdude]

Great. So he lied to me as well. I'm glad the rest of you didn't get the notification. I'm done with them for the big dollar items. Checks, money orders and cash it is.

I just don't see a notification right now.... It may pop up there tonight or something, who knows!

 

[slickerthanyou]

I just checked my account, No such notification. You sure you didn't get a phising email? I got one last week that my account was frozen and i had to provide them all my info including credit and bank accounts I forwarded it to Paypal spoof and they did and investigation and it was phising! Had the paypal trademark and all but i wasn't buyin it!
I let ya know if that changes!

 

[B-1]

sounds like you need to get a credit card machine ken lol

 

[OConnor Racing]

I always log in from the main page and like I said, I called them. It's not a big deal for me. Just makes it hard for my customers if they want to use Pay-pal. I have a credit card machine. Just never had a reason to use it with pay-pal.

 

[PikledBeats]

Ok sorry to tell you ken but it is not everyone, but you are right that it is more likely to happen to ebay sellers. Here is direct info about the 21 day holds and how it is determined whether you have one on your account.

21-day hold states: In a small percentage of cases where it has been determined the risk of dissatisfied buyers is higher, PayPal may delay release of the payment funds to the seller until the buyer has left a positive feedback or 21 days have passed without a dispute, claim, chargeback or reversal filed on that transaction.

The FAQs state that PayPal considers a number of factors in determining a whether a transaction may have a higher risk of dissatisfied buyers, including the following:

Seller's % Positive Feedback in the last 30 days
Seller's Detailed Seller Ratings in the last 30 days
Final price for the item
Shipping & handling fee
PayPal will release the hold when the earliest of the following occurs: the buyer leaves positive feedback; 3 days after confirmed item delivery; or 21 days without a dispute, claim, chargeback, or reversal filed on that transaction. (PayPal said if a buyer leaves a negative feedback but does not initiate a dispute, PayPal would release the funds to the seller after 21 days.)

My guess is that it has to do with shipping charges as shipping engines is expensive, in an ebay situation the hold is put on people known for overcharging shipping which results in paypal disputes .... Just a thought.

 

[sicivicdude]

Ok sorry to tell you ken but it is not everyone, but you are right that it is more likely to happen to ebay sellers. Here is direct info about the 21 day holds and how it is determined whether you have one on your account.

21-day hold states: In a small percentage of cases where it has been determined the risk of dissatisfied buyers is higher, PayPal may delay release of the payment funds to the seller until the buyer has left a positive feedback or 21 days have passed without a dispute, claim, chargeback or reversal filed on that transaction.

The FAQs state that PayPal considers a number of factors in determining a whether a transaction may have a higher risk of dissatisfied buyers, including the following:

Seller's % Positive Feedback in the last 30 days
Seller's Detailed Seller Ratings in the last 30 days
Final price for the item
Shipping & handling fee
PayPal will release the hold when the earliest of the following occurs: the buyer leaves positive feedback; 3 days after confirmed item delivery; or 21 days without a dispute, claim, chargeback, or reversal filed on that transaction. (PayPal said if a buyer leaves a negative feedback but does not initiate a dispute, PayPal would release the funds to the seller after 21 days.)

Ah so if you only sell cheap stuff, there's less of a risk of Paypal getting stuck giving back large amounts of money.... they won't hold it.

If you have large charges pass through they'll hold. Kinda sh*tty and makes sense all at the same time....

 

[slickerthanyou]

I always log in from the main page and like I said, I called them. It's not a big deal for me. Just makes it hard for my customers if they want to use Pay-pal. I have a credit card machine. Just never had a reason to use it with pay-pal.

Well, It's makes a great excuse, I see it now, (In my nicest voice to my wife), "Hunny, I have to drive to Conneticut to pay Ken as he doesn't except paypal as they have screwed him over! I'll see ya later in the week!"

Her response would be something like this, "ain't gonna happen! send him a check!" I:I


Sucks Bro!

 

[PikledBeats]

Ah so if you only sell cheap stuff, there's less of a risk of Paypal getting stuck giving back large amounts of money.... they won't hold it.

If you have large charges pass through they'll hold. Kinda sh*tty and makes sense all at the same time....

High shipping costs is one of the biggest reasons for the hold as it creates a large majority of paypal disputes, the funny thing is that they typically only impose holds in the case of complaints, with all the satisfied customers ken has it is hard for me to believe he has complaints, this most likely came about from electronic auditing which paypal is notorious for using.

 

[vspec]

Great. So he lied to me as well. I'm glad the rest of you didn't get the notification. I'm done with them for the big dollar items. Checks, money orders and cash it is.

Can I still use paypal to buy the 400ex conversion bushings from you?

 

[Paulie B]

I don't have the notice either. Paypay/Ebay are greedy basturds.
For example I have a $1000 item I want to sell.
Ebay charges me a few bucks for the auction and then PayPal charges $300.
Yup 300 for doin nothing.
The work around is to sell my item for $300 and charge $700 shipping.
Then the auction only cost $30 and thats $270 back in my pocket...

 

[EvilElvis]

I am in the similar situation ....I sold a broken laptop for "parts Only" clearly stated in the description it was SLAMMED on the floor and for parts only this ahole gets the laptop and says its TOO BROKEN LOL anyways he filed a claim against me and my paypal was frozen I tried to fight it to no avail ......not only is my paypal in the negative $133 but my ebay acct is suspended and ebay refunded him his money and I never received the laptop back .....I called ebay they said it was shipped, so now I have no choice but to be stolen from...

 

[OConnor Racing]

I think I know what's going on. In September, I sold a bunch of stuff on E-bay. I used my personal Fed-ex account to do the shipping. Couple this with all of the shipping I've done with engines and parts. When I used my own account, Pay-pal had no tracking numbers or verification that I actually shipped the items I was paid for. It looks like they want me to provide tracking numbers to them when I use my account. I'll still use them for the small stuff like bushings and gaskets but not for the larger items. It's just too risky and too easy to get scammed. Thanks again for all of the help.

 

[Awk08]

I think I know what's going on. In September, I sold a bunch of stuff on E-bay. I used my personal Fed-ex account to do the shipping. Couple this with all of the shipping I've done with engines and parts. When I used my own account, Pay-pal had no tracking numbers or verification that I actually shipped the items I was paid for. It looks like they want me to provide tracking numbers to them when I use my account. I'll still use them for the small stuff like bushings and gaskets but not for the larger items. It's just too risky and too easy to get scammed. Thanks again for all of the help.

just create a new, different paypal account ????