Get Your Money Back From Paypal : Drew’s Story

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.

3 thoughts on “Get Your Money Back From Paypal : Drew’s Story

  1. I have a similar situation. They are asking me to provide a copy of drivers license and social security along with supplier contact info, invoices and so on.
    Isn’t this illegal? Somebody without driver’s license or social security opens account, then when you have money on the account paypal doesn’t allow to withdraw it asking to provide what you never had and what was not a requirement to operate in the first place. Isn’t this called extortion?

  2. Since having an interest in IM, I’ve been reading comments about Paypal. Some good, some not so good. I too have a paypal account but the amount is usually negligible. But it’ll still hurt if ever Paypal decides to hold my account.

    Question, is there any other provider similar to Paypal that would be worth looking into? I guess Paypal is the biggest that’s why most, if not all, go to it so being so, they can act that way. A competitor would surely make be on their toes.

  3. From my experience, I have an online store, direct credit card processing takes about half of all transactions. If you have google checkout the number should be bigger. Moneybookers is quite widespread.

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