Paypal is a criminal organization

same thing happened to me some time ago, but they blocked over 50k usd their support and policies are horrible

 

Now they are "linking" accounts that I've had for 10 years that have never had a problem. Total seized accounts right now: $23,500.

 

This is how people end up on the news.

 

 

Considering so many businesses have been scammed by paypal, i am amazed there has not been a class action lawsuit against them, especially in litigation crazy USA. What gives?

Now they are "linking" accounts that I've had for 10 years that have never had a problem. Total seized accounts right now: $23,500.

 

This is how people end up on the news.

 

That is the exact same thing they did to me. What a sham of a company.

 

I did not even bother following up on that $15k when my 6 month ban ended in May. Fcuk 'em.

 

Still gets my blood boiling how they just up and sweep the rug from underneath your feet. Oh well.. more $$$ to be made.

 

If they must be used, is the best policy then to transfer funds into a bank account to the maximum extent possible and be ready to lawyer-up at a moment's notice?

What am I missing guys?

 

I don't understand how this seems to keep happening based on what you guys are saying. I have used paypal for buying stuff and haven't had an issue. Is it just when you use it as a merchant to receive payments?

 

What reason do they give for just freezing your account?

 

I just don't quite understand why they appear to do this or how it seems to be acceptable?

What am I missing guys?

 

I don't understand how this seems to keep happening based on what you guys are saying. I have used paypal for buying stuff and haven't had an issue. Is it just when you use it as a merchant to receive payments?

 

What reason do they give for just freezing your account?

 

I just don't quite understand why they appear to do this or how it seems to be acceptable?

 

I know. It seems insane. And it is. They do not give you a reason for doing it, simply "our security team has identified this account as having a very high risk of fraud, and according to the user agreement we are seizing these funds pending our investigation."

 

That is verbatim what was said. Okay, on one account - sure go ahead and perform your due diligence on us and once you are satisfied with the results either 1) Seize the account and get your ass sued by me or 2) Release the funds. But to go back to ALL of the businesses I've been associated with and just take their money? Seriously. What a bunch of low life scumbags.

 

I have heard horror stories, but I always assumed that the account holders were doing something nefarious or there were outstanding legit claims against the business. Now, seeing the position that they take- I must say that these paypal people are actually criminals and should be prosecuted for theft.

 

I will only offer a bit of advice: Do not ever, ever, ever utilize paypal to purchase or sell anything you value. Be prepared to place whatever money you have in the account on a roulette wheel, with 0% odds of dropping.

 

Update: Today, they actually debited a customer's bank account for $1645. This was an inactive account, that I helped setup back in 2003 to do online commerce of boat parts, in Houston Texas. The account had not been accessed in over 2 years, and paypal just drafted $1645 from their Frost Bank account to cover- based solely on their email- as a reserve on "current transactions." Absolutely f'cking incredible these animals.

 

This is the kind of thing that less sane people will walk into a lobby and just start mowing people down about. Seriously. I don't condone violence, but it's going to push someone over the edge at some point. You steal from people who are on the verge, sometimes all it takes is a nudge.

 

 

 

 

 

 

 

 

I know. It seems insane. And it is. They do not give you a reason for doing it, simply "our security team has identified this account as having a very high risk of fraud, and according to the user agreement we are seizing these funds pending our investigation."

 

That is verbatim what was said. Okay, on one account - sure go ahead and perform your due diligence on us and once you are satisfied with the results either 1) Seize the account and get your ass sued by me or 2) Release the funds. But to go back to ALL of the businesses I've been associated with and just take their money? Seriously. What a bunch of low life scumbags.

 

I have heard horror stories, but I always assumed that the account holders were doing something nefarious or there were outstanding legit claims against the business. Now, seeing the position that they take- I must say that these paypal people are actually criminals and should be prosecuted for theft.

 

I will only offer a bit of advice: Do not ever, ever, ever utilize paypal to purchase or sell anything you value. Be prepared to place whatever money you have in the account on a roulette wheel, with 0% odds of dropping.

 

Update: Today, they actually debited a customer's bank account for $1645. This was an inactive account, that I helped setup back in 2003 to do online commerce of boat parts, in Houston Texas. The account had not been accessed in over 2 years, and paypal just drafted $1645 from their Frost Bank account to cover- based solely on their email- as a reserve on "current transactions." Absolutely f'cking incredible these animals.

 

This is the kind of thing that less sane people will walk into a lobby and just start mowing people down about. Seriously. I don't condone violence, but it's going to push someone over the edge at some point. You steal from people who are on the verge, sometimes all it takes is a nudge.

 

 

strange, I've had many thousands of transactions both buying and selling and never had a issue.

strange, I've had many thousands of transactions both buying and selling and never had a issue.

 

I think its not the thousands of transactions that go well, it the one time something goes wrong and you have to call them and deal with them, that things start snowballing out of control.

 

I have an account with them and mainly use it to buy ebay stuff, back when ebay didn't take credit cards directly. After being prompted to read more about this at other places around the internet, I would like to close my account. My bank account is linked and I am trying to figure out the best way. I currently have no balance with them and do not use it to receive payments.

That's crazy stuff!

 

I don't use paypal for anything significant, in as much as I am poor and don't buy anything significant.

I just have a bit of money in there for when I want to buy some electronics item or some stupid thing for my bar or whatever. Never more than $1000 or so in my account.

 

 

 

 

 

I know. It seems insane. And it is. They do not give you a reason for doing it, simply "our security team has identified this account as having a very high risk of fraud, and according to the user agreement we are seizing these funds pending our investigation."

 

That is verbatim what was said. Okay, on one account - sure go ahead and perform your due diligence on us and once you are satisfied with the results either 1) Seize the account and get your ass sued by me or 2) Release the funds. But to go back to ALL of the businesses I've been associated with and just take their money? Seriously. What a bunch of low life scumbags.

 

I have heard horror stories, but I always assumed that the account holders were doing something nefarious or there were outstanding legit claims against the business. Now, seeing the position that they take- I must say that these paypal people are actually criminals and should be prosecuted for theft.

 

I will only offer a bit of advice: Do not ever, ever, ever utilize paypal to purchase or sell anything you value. Be prepared to place whatever money you have in the account on a roulette wheel, with 0% odds of dropping.

 

Update: Today, they actually debited a customer's bank account for $1645. This was an inactive account, that I helped setup back in 2003 to do online commerce of boat parts, in Houston Texas. The account had not been accessed in over 2 years, and paypal just drafted $1645 from their Frost Bank account to cover- based solely on their email- as a reserve on "current transactions." Absolutely f'cking incredible these animals.

 

This is the kind of thing that less sane people will walk into a lobby and just start mowing people down about. Seriously. I don't condone violence, but it's going to push someone over the edge at some point. You steal from people who are on the verge, sometimes all it takes is a nudge.

 

So then what are the options? I am currently migrating from a proprietary shopping cart software to magento. I feel like I'm boxed in to using PayPal. It also integrates with Authorize.net but that's only the gateway, apparently I still need a merchant account.?.? I can't seem to get a grip in layman terms on how to sidestep PayPal and still sell stuff online. If I do understand it correctly, I would constantly be paying higher transaction fees by paying a gateway, merchant account, Amex/MC/Visa instead of just PayPal.

So then what are the options? I am currently migrating from a proprietary shopping cart software to magento. I feel like I'm boxed in to using PayPal. It also integrates with Authorize.net but that's only the gateway, apparently I still need a merchant account.?.? I can't seem to get a grip in layman terms on how to sidestep PayPal and still sell stuff online. If I do understand it correctly, I would constantly be paying higher transaction fees by paying a gateway, merchant account, Amex/MC/Visa instead of just PayPal.

 

But you then run the risk of paypal locking your account, essentially shutting down your business and tying up tens of thousands of dollars? Oh and they just love to reverse transactions in favor of the customer if they are even mildly upset, and you might get an empty box in return.

 

Paypal would be more upstanding if it were run by the chicago mob.

A few years back there was a company that insisted on using Paypal to send multiple six figure payments. I crossed my fingers real hard and figured the company's owner was a nut case (he wasn't, but the companies CFO probably was.) We never had any problems.

 

The most important thing you can do is never leave a balance in your Paypal account. Secondly, consider having a secondary bank account where you only keep Paypal transaction funds so you don't have any unauthorized transfers.

Are you saying that they try to pull money out of your associated bank account without your permission?

I dont understand how they can just legally sieze all that money?!?! Thats mind boggling. Seems like grand theft to me.

Kev, that is exactly what i was wondering.

 

How much money do they put on hold while making interest on it while it sits? Seems totally illegal to me.

 

I avoid using them in any situation and will never make a large payment with them.

Are you saying that they try to pull money out of your associated bank account without your permission?

 

 

Not TRY to pull money out. DID pull money out. If it sounds like some sort of alternative universe where up is down- believe me I know how it must seem- but yes that is exactly what has happened and what is happening.

 

Just to state it again: no consumer complaints were lodged, and there was no request to cure any problems with the account. I have no idea what started the problem in the first place.

 

It's unreal.

Maybe this is a business opportunity in the making!!!

 

What would be required to establish such a payment model??

What are PayPal alternatives? Is getting a merchant account a major PITA?

 

This might be something GBGallardo can tackle?!! Come on Rob!

Not TRY to pull money out. DID pull money out...

So then folks need to have an account linked to paypal where money from paypal transfers into, and then another account (maybe at the same bank) that you transfer that money into just so the paypal nazi's can't break into it?!? As in, $$ comes into PP, money transfers to your linked account, money transfers again to account PP has nothing to do with. I'm having a hard time wrapping my brain around how they can be authorized to transfer money out of your bank account to themselves.

So then folks need to have an account linked to paypal where money from paypal transfers into, and then another account (maybe at the same bank) that you transfer that money into just so the paypal nazi's can't break into it?!? As in, $$ comes into PP, money transfers to your linked account, money transfers again to account PP has nothing to do with. I'm having a hard time wrapping my brain around how they can be authorized to transfer money out of your bank account to themselves.

 

If you read the fine print in the contract, it grants them unlimited access to the account to deposit and withdraw funds as they see fit.

 

I think putting in a holding account with a firewall would actually be a fairly good idea. consumer-->paypal-->Holding account-->Main account.

 

That would probably put an end to it.

 

If you read the fine print in the contract, it grants them unlimited access to the account to deposit and withdraw funds as they see fit.

 

I think putting in a holding account with a firewall would actually be a fairly good idea. consumer-->paypal-->Holding account-->Main account.

 

That would probably put an end to it.

 

 

I learned the special account for Paypal only about 6-7 years ago. Highly suggest it.

How does one go about getting a holding account? Or does that not exist at the moment?

How does one go about getting a holding account? Or does that not exist at the moment?

 

Go to your bank and open another account.

Go to your bank and open another account.

 

Sorry I was unclear in my post ... I was specifically meaning the 'firewall' part mentioned by Joe.

Sorry I was unclear in my post ... I was specifically meaning the 'firewall' part mentioned by Joe.

 

It was a figure of speech meaning you never link PayPal to an account with money sitting in it. They can't take your cash if it has a zero balance.