You may recall a few years back Paypal put a six-month hold on $5,000 of mine for no reason, and with no recourse for me other than to bend over and take it. Phone calls to Paypal support were met with inaccurate information, lies, and a general run-around. It was only after threatening Paypal with legal action that they called me, apologized, and released all of my money. For my entire story, see this post: How to get your money back from Paypal .
That post about how I got my money back from Paypal, posted way back in 2008 still gets more search traffic than any other post in my blog, telling me that even today Paypal still
steals holds money from other people for 6 months at a time, leaving them just as frustrated and helpless as I was when it happened to me. Every once in a while someone will post a comment on that post thanking me for helping them get their Paypal funds released. It always makes me proud when this happens, so I am happy to share this comment from “James” who shared how following my advice helped to get the reserve on his Paypal account for over $4,000 removed:
Another success story!
We applied for a phone card reader a few months ago and were eventually approved. However right after that, we were hit by a 20% rolling 60 day reserve. Calls and requests for reasons to PayPal customer service were futile. Paypal said to check back in 90 days and if no chargebacks, then reserve might be lifted. 90 days past, no chargebacks (we never had a single chargeback in 7 year history). Paypal said tough luck, reserve stays on. They kept denying the card reader triggered the reserve, and I just found it too coincidental that immediately after applying for the swiper, we were stuck with the reserve. Mind you, we were also a top-rated plus Powerseller with 100% positive feedback (2000+ no negatives).
So I sent an email to all the aforementioned PayPal executive email addresses with my own version of your letter. I estimate 75% of the emails bounced, some others sent back standard automated replies, and the others did not respond.
So next step, I filed a complaint with the BBB. Nothing happened for nearly 3 weeks. Then one day as I was almost out the door from work, the phone rang. It was a gentleman who identified himself as a senior dispute executive in the escalation department. He said he reviewed my account and found the reserve to be baseless. He also confirmed it was indeed the phone card reader that set off the reserve. He commended our impeccable Ebay/Paypal record and stated the reserve would be lifted immediately and all funds (now over $4k) would be available for immediate withdrawal. I was ecstatic, this totally made my day. He was very helpful and for once, I was happy with the way things were handled. The extra cash went to pay off vendors and we are finally caught up on our bills.
This may or may not work for you, but it’s worth a try. I’m sure it also helped that we had a flawless track record with both Ebay and PayPal. Moral of the story, DO NOT EVER APPLY FOR THE MOBILE CARD READER! It will end up placing a restriction on your Paypal account. Good luck to all!