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Thread: Account frozen with over 6500 balance. Business ending. Thanks Paypal.

  1. #1
    touge Guest

    Thumbs down Account frozen with over 6500 balance. Business ending. Thanks Paypal.

    My business has had a paypal account for 3 years.

    In that time its had half a dozen buyer disputes. Nearly every one a thick customer who didn't see the "normally dispatched within 21-28 days due to item being made to order".

    No disputes for over 20 months now.

    I moved suppliers (in Japan) and moved into a new office (In the UK).
    I pay suppliers directly with paypal (I take in Yen, and pay in Yen) so im not left open to exchange rate movements.

    I updated my address on my paypal account on the 3rd of April and since then my account has been under review.

    I sent all the information they requested (bank statements against my better judgement) and today they have told me:

    After reviewing your PayPal account, we have determined there to be excessive risk involved and would like to begin parting ways in a manner that is least disruptive to your business.

    If your PayPal account balance is zero, and you have no outstanding issues such as unresolved Buyer Complaints or chargebacks, your account will remain limited.
    If there are funds in your account, the remaining account balance will be held for a period of 180 days in order to minimize charge back risks. Any Buyer Complaints or chargebacks received against your account during this time will be paid from your account balance. After the 180-day period has elapsed, you may withdraw the funds from your account. You may also request that a check for the remaining balance be sent to the address registered on your PayPal account.

    If there are outstanding Buyer Complaints or chargebacks, and you choose to refund your customers, please log into your account and respond to each Buyer Complaint or chargeback in order to resolve each issue.

    To view the status of a transaction dispute:
    1. Go to the PayPal website and log in to your account.
    2. Click Resolution Center on your Account Overview page.
    3. In the drop down box on the Transaction Disputes page, select "Open Cases"
    4. Click the "Details" link of the transaction in question to view the status

    PayPal reserves the right to close any account reported to be involved in possible high-risk behavior. In the event of a dispute, PayPal will seek to recover the funds from you by debiting your PayPal balance first and, if there are insufficient funds in your PayPal balance, PayPal reserves the right to collect your debt to PayPal by any other legal means

    For any queries regarding this matter, please contact us at 0870 7301 884, Monday to Friday from 9am to 5:30pm.
    Now, the margins in my industry are poor at best but volume is high. Paypal have deemed my industry "too higher risk" when all my competition take paypal!

    Its going to take around 35,000 turnover now to generate the profit needed to cover this shortfall taken by paypal.

    I certainly won't be able to pay my staff at the end of this month!

    The number 0870 7301 884 is useless, I've been on hold for 80 minutes and counting.

    When I login to my account i see this message:

    We recently reviewed your account, and we need more information about your business to allow us to provide uninterrupted service. Until we can collect this information, your access to sensitive account features will be limited. We would like to restore your access as soon as possible. We apologise for the inconvenience.

    Why is my account access limited?

    Your account access has been limited for the following reason(s):

    19 Apr 2010: A recent review of your account detected suspicious activity regarding the receipt or withdrawal of funds. While we investigate this matter, access to your account is limited.
    I really don't know what to do or where to go with this. Having this money tied up could seriously damage by cashflow and it will be the customers that suffer all because Paypal just decide that its too higher risk.

    I've contacted my solicitor and he is checking through all email transcripts between us and Paypal and the Paypal terms.

    Any help of guidance appreciated.


  2. #2
    touge Guest


    Solved. I refunded trusted customers all but 61p and got them to repay using our card services.

    I have emailed the CEO of Paypal and relevant department heads outlining their crazy policy and criteria for account holders.

    As of yet, no reply.


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