This guest-post by Drew is a followup to my “How to get your money back from PayPal” post. Drew is currently fighting to have his funds released by PayPal.
I’ve been using paypal as my transactions processor for 3 years or so, and have been pretty active the entire time, since I sell a lot of stuff on multiple sites. Anyways, During January 2010, i sold 150 items for under $20 on ebay… not one single issue and apx 130 of the 150 had already left positive feedback. not a single negative feedback, chargeback, or problem whatsoever. Everyone’s happy. … Except me.
I wake up Friday morning (January 29, 2010), planning to transfer the funds to my bank account, since all sales for the month had been completed… Low and behold, my Paypal account is frozen. Paypal is asked for inventory descriptions, vendor invoices, and receipts. I sent Paypal my vendor invoice (sales agreement), inventory listed of all the details.
Nope…. After providing what PayPal wanted, now PayPal wants more, and stuff there is no way I can provide, like written rights for being a reseller of the products by the manufacturer and even copies of my vendors contracts and sale agreements with their supplier (illegal as sin). What? I don’t need rights to resell what i purchased wholesale from a distributor and Paypal sure does NOT have the right to require me to get a copy of my vendors contracts with their supplier.
Needless to say, it’s now a paypal horror story on the tune of $2,455.63. It took them 1 whole day to say they will hold my money for 180 days.. Great way to start off 2010….If you are a merchant and use paypal, this WILL be you soon. AVOID. Paypal is a scam, and is operating a criminal organization.
Me, most likely my online business is going to be annihilated, unless i can get back up to par fast. The entire amount in my paypal is what pays for my vendor balances. If I can’t get that paid, i am through. No job, no money, etc. I have signed up for moneybookers as a merchant, but am still awaiting a response for a few days now.