posted on April 5, 2006 01:31:44 PM
Hello
Just read a highly negative website on PayPal I have a question to the seasoned
players.
If you use PayPal on your website not on eBay and you get someone who uses a stolen credit card does PayPal freeze your account for 180 days like it states? If your account is frozen then you can't take anymore orders correct?
Why would so many businesses use PayPal if this were true - alot of places would not be able to conduct business.
posted on April 5, 2006 01:53:40 PMWhy would so many businesses use PayPal if this were true
There is your misconception right there. You will find that most businesses have their own merchant account and prefer to accept payments that way. Many did have PayPal accounts only to drop them because of their lack of security. I cannot say that 100% of what you read there was true, but I would suspect that the overwhelming majority would be.
As far as freezing the account. That used to happen frequently until PayPal was sued. Now they are only suppose to freeze the funds that are directly from the fraudulant transactions. And for the most part, that does hold true.
posted on April 5, 2006 02:24:16 PM
There are websites which take paypal because they dont have a merchant account .there are fixed fee related to having a merchant account-annual fee,monthly statement fee,minimum discount fee etc etc.
If you have your own merchant account and someone places an order with a stolen credit card,your merchant account provider will debit your bank account for whatever the puchase is plus a chargeback fee ranging from 25-50 dollars
/ lets all stop whining !! /
posted on April 5, 2006 02:29:09 PM
Does PayPal freeze your account if there is a problem with the stolen credit card so that you could not process more orders or they just chargeback the amount in dispute and you keep doing business with other customers?
posted on April 5, 2006 02:50:50 PM
They would freeze the amount of the transaction that had the stollen card used. So if you had $10,000 in your PayPal account and one transaction that was for $125 that ended up being from a stollen credit card they would freeze $125, not the entire $10,000.
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein
posted on April 5, 2006 03:00:44 PM
From the PayPal user aggrement.
Receipt of Payments; Risk of Reversal of Transactions; Collection of Funds you owe PayPal. When you receive a payment through the Service, unless you follow the steps necessary to qualify for our Seller Protection Policy, you are not protected against a subsequent reversal of the transaction. In the event that the sender's transaction is reversed for any reason and you do not qualify for the Seller Protection Policy for that transaction, you will owe PayPal for the amount of the reversed transaction plus any fees imposed on PayPal as a result of the reversal. Examples of such a reversal include, but are not limited to, a credit card reversal by the sender of the payment, and a reversal of the transaction because the sender of the payment was using a stolen credit card or unauthorized bank account. PayPal will seek to recover the funds from you by debiting your PayPal balance and, if there are not sufficient funds in your PayPal balance, PayPal reserves the right to collect your debt to PayPal by any other legal means.
PayPal reserves the right to ask a recipient of a payment for further authentication or other information in order for him or her to accept it. Users who receive more than $10,000.00 USD in payments during a single month may be required to provide PayPal with additional information. Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein
posted on April 5, 2006 03:17:23 PM
PayPal really tries to discourage shady enterprises (MLM's & Gifting Schemes & Lotteries & Online Gambling) from using their services...
This all is different than how PayPal treats CC CHARGEBACKS against eBay sellers: as I've demonstrated here twice, with a CC CHARGEBACK, PayPal will freeze the amount of the chargeback only while it does its investigation...ANNOYING BUT UNDERSTANDABLE...
However, if you run a website with a PayPal cart, and they become suspicious that ye be doing sumptin shady, the YES, they do FREEZE YOUR WHOLE ACCOUNT for 180 days:
posted on April 5, 2006 03:18:45 PM
you asked-
Does PayPal freeze your account if there is a problem with the stolen credit card so that you could not process more orders or they just chargeback the amount in dispute and you keep doing business with other customers?
/////////////////////////////////////////////
It really depends,say if Paypal senses there is fraud involved on the part of the seller,there have been cases of Ebay seller or any website sellers who keep accepting payments with no intention of shipping the goods,it is better to shut down the account than to face more chargebacks .
/ lets all stop whining !! /
posted on April 5, 2006 04:03:23 PM
Merchant accounts usually have a reserve - either a fixed amount or a percentage set aside to cover charge backs and disputes. Since PayPal does not a reserve they have to resort to either freezing the amount claimed by the charge backer, or the account and then waiting for fresh funds to arrive. PayPal will also often label those same funds as from a "potential fraudulent" source and if paid to someone else then their account may be likewise affected. Fortunately this can't happen with a merchant or bank account.
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein