posted on September 27, 2000 02:21:30 PM
Having been a member of PayPal since January 2000, I've (up to this point) been a supporter of their service. My customers and I have used it on numerous occasions, and never a problem. Until now. This is the email I received today...
"Your account was restricted because
you are the recipient of funds from an
account that has received reports of
possible fraudulent use of a credit card.
In order to lift this restriction you
must submit an appeal to the PayPal
Account Review Department at
[email protected].
Thank you,
PayPal Account Review Department
PayPal, a free service of X.com"
So I say, "Well, that sucks". Luckily, I've taken everyone's advice here in the past, and regularly cleaned out my account. And, I did not go through the whole process of verifying my account. There's only $21 in the account, so it won't break me to not be able to get to it. But, as I started thinking about it, I realized that any of my auctions that end in the near future may be paid for through PayPal, which they will I'm sure readily accept payment. Money which I still won't be able to get at, even though it has nothing to do with the alleged "fraudulent use".
I wish PayPal would send out a little more info for the user when they restrict accounts. I filed my "appeal", which I guess amounts to a reply email of "Hey, what the h%^$?" That's pretty ambiguous also.
Anyone here go through this process, and care to share the outcome?
posted on September 27, 2000 02:38:39 PM
Hello,
I got a similar e-mail last Friday (9-22) at 5:59 PM. You forgot to mention the "you must respond within 72 hours" part. Well I did respond within a few hours and still have not heard from PayPal. Also I clicked on the info about restricted accounts and filled out their little online box, I got an auto reply to that. Still haven't heard from a person. My problem is someone reported that I didn't send their item, I did. I emailed PayPal with all the info and a picture of the insurance slip. Luckily I stopped accepting PayPal 2 weeks ago, and have not money left in the account. Well this just does it. If/when the restriction is lifted I'm going to close the acccount. Please anybody with a similar experience let us know your outcome and how long it took. I've read of similar probs but no one ever follows up here with the outcome.
posted on September 27, 2000 02:55:28 PM
As far as I can tell, this applys to all funds in my account. The account has been frozen. Also, I included the entire text from the email they sent me. There wasn't any mention of a 72 hour window.
Seems kind of odd that when it comes to restricted accounts, people are getting different emails.
Thanks for the replys...keep'em coming!
"Who's tending the bar? Sniping works up a thirst"
posted on September 27, 2000 03:25:37 PM
YTo keep this from snowballing, ou might consider either closing your current account (and reopening when this snafu is cleared up, if you've still got the taste for Paypal) or changing the email addy on it to something other than the one you use for ebay so that high bidders can't automatically send you money. If you do that, remember you've got to DELETE the ebay email addy; if it's just an alternate, Paypal will still stick the money into your account (where of course you can't get to it). You'll still have to field bidder questions, but I'd think that'd be the least of your worries right now.
My sympathies and best wishes for a quick "recovery" (sorry, couldn't resist)!
posted on September 27, 2000 03:41:20 PM
Boy, it makes no sense to me whatsoever that they would restrict ALL your funds -- past, present, future. Yikes.
I'm thinking of the several posts that were made to the various PayPal threads when the "upgrade or lie" brouhaha surfaced, that PayPal isn't under any banking regulations.
I just have trouble thinking that any bank would or could do this to any of their customers UNLESS they suspected the account holder of fraud as well.
Shaking my head in disgusted and outraged disbelief. . .
posted on September 27, 2000 03:52:47 PM
I know at one time in paypal's TOS for that day, you could not close an account while it was restricted, and they kept accepting funds into it, ones that you could not take out.
posted on September 27, 2000 03:55:42 PM
Boy am I glad I cleaned out my paypal account I took it off my auctions all but a few on Yahoo that still have yet to send, but it has been off my auctions on Ebay for 2 weeks now. There has been no change or drop in sales. The people that used to pay me via paypal or now just paying me via paydirect. They seem to like it better and so do I. I don't think and hope they won't ever pull this stuff. I can understand maybe the funds in question but all of it even now funds coming in and you have 72 hours to repsond? What if you were on Vacation or sick? What if it is a lot of money? I certianly am in no position to lose a lot of money a fe hundred but who wants to take the chance. Sorry to hear it happened to you. Even though the amount isn't for much just the hassle is a real bummer.
posted on September 27, 2000 03:56:01 PM
Did I read this wrong? I thought it said that someone who allegedly might be using a fradulent charge card sent YOU funds. What are YOU guilty of to deserve having your account frozen and necessitating an appeal on YOUR part??? At worst, they should freeze the amount that is possibly from a fradulent account, but then WHAT happened to the assurance that they would not let sellers be defrauded by a buyer (which is what they seem to be intimating)or is that only for BUSINESS and premier accounts??? PPD - where are you??????? -Rosalinda
TAGnotes - daily email synopsis about the Online Auction Industry http://www.topica.com/lists/tagnotes
posted on September 27, 2000 04:00:01 PM
<<Did I read this wrong? I thought it said that someone who allegedly might be using a fradulent charge card sent YOU funds. What are YOU guilty of to deserve having your account frozen and necessitating an appeal on YOUR part??? >>
At one time, paypal's logic in this was that the "buyer" using the fradulent card was working with the "seller". The main goal was to get the money from the CC using paypal and ebay auctions.
posted on September 27, 2000 08:36:24 PM
Damon does a good job monitoring, answering what questions he can, and investigating and fixing what he can. Wish other companies cared as much and tried as hard.
You can also call customer service at -
1-877-672-9725
-Rosalinda
TAGnotes - daily email synopsis about the Online Auction Industry http://www.topica.com/lists/tagnotes
posted on September 27, 2000 08:51:42 PM
Right after x.com took over, I got an e-mail saying that my account had been locked for "a possible link to a fraudulent account". This irritated me greatly as I had done nothing but accept a few payments. I called customer service and was told that they had no more information that what was stated in the e-mail. I then sent an e-mail to their fraud dept inviting them to share with me what the problem was and I would be more than happy to help them any way I could. I never heard back from a person, but about 4 days later got an e-mail saying that my account had been unlocked. They never did tell me what the problem was.
posted on September 27, 2000 09:08:47 PM
I've said it before, I'll say it again:
You DON'T need PayPal!!!!
We got along just fine before without it.
To put your funds in their hands is so foolish I'm surprised so many signed up! Then again, that was the purpose of the $5.00 "gift" of a referral fee.
It's interesting to see how many bit the carrot. Now the carrot is slowly being eliminated and all you're left with is a bank-wannabe, hosing you with arbitrarily restrcited access to your own money!!!!
If you don't feel like a fool now, you should!
And don't say I didn't warn you!
For buyers PayPal is great...but for sellers, it SUCKS! The problem for PayPal? If you can't keep the sellers happy, buyers will no longer have anyone to pay through PayPal!
[ edited by paulstar on Sep 27, 2000 09:10 PM ]
posted on September 27, 2000 09:16:38 PM
Paulstar -
Easy, big guy. Yes, this sucks. Big time. But I don't think that everyone who used, or uses, PayPal is a sucker, or stupid. I think PayPal has grown far beyond their initial dreams, and along with such rapid growth comes growing pains. I guess I'm just surprised that this wasn't handled a bit better. Granted, if I had more than $21 in the account, I'd be a bit more steamed! Luckily, I listened to all the smart folks here.
I have contacted paypaldamon, and hope to get some answers, which I will post here, soon.
"Who's tending the bar? Sniping works up a thirst"
posted on September 27, 2000 09:18:26 PMKeep in mind...
PayPal is a fringe business capitalizing on, for the most part, Ebay's tremendous success. They have little, if any, leverage here. They seem to have bitten more off than they can chew, and I believe that before long the chickens will come home to roost.
How long do you think a bank would last if it just started arbitrarily restricting your money? Could you imagine? You walk in to make a withdrawal and they say "NOPE, first you have to make an appeal." "But I need my money now" you reply.
Fortunately, nothing soothes a vulnerable patron like those warm, canned, automated responses, especially when discussing something as trivial as your own money.
posted on September 27, 2000 09:29:08 PMpaul Oy! we HEARD YOU, we heard you, already! and this is still a free country. You can use or not use, but there is no reason for bashing...
Damon hi...glad you a still around.... Personally, I am back to checks and Money Orders.....But you are a good man. It's just your company that is a little...young....
******************** Shosh http://www.oldandsold.com/cgi-bin/auction.cgi?justdisp&Rifkah
OUCH!! PayPal says they will protect sellers and users if paid from verified account. No mention of punishing the seller if a bidder may be guilty of fraud?
This is not a good sign.
I have said it before; since paypal is not a bank, and there are no rules or regulations that PayPal must follow, Paypal can do whatever they want.
posted on September 28, 2000 04:45:45 AM
I've known about how PayPal responds to 'fraudulent funds' and I know how BillPoint responds also. Does anyone have information on what PayDirect or ExchangePath actions are when (not if) the fraudulent funds issue arrives?
Personally, I am back to checks and Money Orders...
..But you are a good man. It's just your company that is a little...young....
