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Thread: 10% rr

  1. #1
    Unregistered Guest

    Thumbs down 10% rr

    Ok so my account isnt to the point of suspension YET but it minus well be. I have been a power seller for longer than I can remember. I donít even want to crunch the numbers to see how much money Iíve paid out in fees and whatnot to paypal. My business really started booming this past year, I donít know what it is that made it take off but boy did it. I really thought paypal/ebay would be thrilled about my higher volume but they started to panelize me.
    I was put on a ten percent reserve and my money wonít begin to be released until October. This is completely unacceptable in my book. I am banking upwards of $100k and operate on a profit margin of 5-15%, the way I make money is by sheer volume, not up selling. I spoke with a special account manager and he assures me this policy has been put in place to protect me, thatís a tough pill to swallow. What are my options here? Everyday Iím having orders placed and Iím sitting back watching paypal bank my profits.

  2. #2
    Mikey 1007 Guest


    Wow 10% hold can be steep when youíre on such a slim profit margin. I would look around for alternate credit card processing companies. Ebay works with a few of them out there. Iím in the application process with a company now. From what I understand some places will impose a rolling reserve but thatís BEFORE you agree to setup shop with them. From what I understand itís usually only for high risk businesses but it could be because your volume is really high they are afraid of chargeback or fraud. It sounds like you have some homework to do before figuring out what works best for you. You might be indebted to work with paypal for a while since they will only begin to release funds within the next few months. I would slowly pull my business from them, just so they donít spook and slap you with a suspended account or limitation.

  3. #3
    Join Date
    Oct 2011


    Chances are if youíre a high risk company you will be faced with a rolling reserve at one point or another no matter who you hitch your wagon to. I would much rather work with a reputable company then deal with Paypal. They held my funds and put me through the ringer to get them released. I vowed to never work with them again. It took a little research but I found a processing solution that fit beautifully with our company. The main thing is being able to communicate with the people who hold your funds. If you are going to have a reserve then you will need a company who answers your questions and gets back to you in a timely fashion. You may need to jack up your prices to make a profit.


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