Another Paypal Customer Gets His Money Back

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:
Image of getting money from Paypal

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!

Another Paypal Customer Gets His Money Back by

8 thoughts on “Another Paypal Customer Gets His Money Back

  1. I have recently been limited, they lied to me 8 times in the space of 5 hours. I’ve sent 23 people at PayPal an email explaining my situation, let’s hope it goes somewhere! I’ll notify you whether anything happens, I’ve explained my site gets 250k UV a month and told them if they lie to me again I’ll show my users what they’re really like. (rude emails, rude twitter responses).

  2. I am in the works of setting up on-line payment for a website of mine. Is there another on-line payment service that the masses will use and will treat you appropriately?

  3. After taking the time to set up a storefront on eBay, I found that not only was I paying additional fees on eBay, but PayPal started holding back a good chunk of my money in rolling reserves. Not only was it difficult (I needed that money to pay down bills) but it was an accounting NIGHTMARE! (I don’t have the money for a bookkeeper so I have to do my own bookkeeping, unfortunately.)

    My solution was simple. I closed my eBay storefront and continued selling my products exclusively through my website. Then I waited several weeks until I could access my money and removed it immediately.

    Since that time, I’ve used my PayPal account only for making purchases (on eBay.) BTW, I never had any chargebacks and only an occasional return.

    Today I received an email from PayPal: “Because of your consistently good performance, we’re removing your account’s
    rolling reserve.”

    Hah! They’re crazy if they think I’m going to take the time to set up another eBay store and start the whole thing over! I had considered the swipe device (we sometimes sell our items at live events) but after the rolling reserves nightmare, I decided not to. My online customers periodically ask me why I haven’t installed the PayPal payment option on my website. I simply tell them that I’m not willing to let PayPal hold up our money for weeks at a time. I’ve lost a customer or two (because they didn’t have a credit card and wanted to make a payment directly from their bank account) but I don’t trust PayPal with my business. Personal eBay transactions are fine…but not business.

    Thank you, Randy for an excellent blog article.

  4. Thank you so much for this post, I’m having my money held as well and it’s putting me out of business… no warning. 25% of my money is being held for 4 months (yes I said 4 months, NOT 90 days!). Paypal now has over $3000 of my money. I cannot pay my rent, my Ebay fees, or buy the gold and supplies needed to get my orders out. Paypal has basically tied my hands behind my back and said ‘Tough luck- you think you had it hard before? Now try to run your business with 1/4 less money!!’. I will lose my business very soon, a business I’ve dedicated 8 years of my life to… if I can’t get Paypal to release my money. I have 100% positive feedback on Ebay and Etsy with many returning customers. It all started when a customer used a bad/stolen credit card and then did a chargeback (hoping to defraud me I guess). I did absolutely nothing wrong. I’m going to read your ‘how to get my money back from Paypal’ post right now! Thank you thank you!!

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