Bad Paypal and eBay Experience


I have been unemployed for one year. In OCT, I was trying to find a way to earn some money to pay my ever accumulating debt ... particularly my lease/mortgage payment and Christmas funds for my children. In the past, I have made a little money on eBay as a seller utilizing Paypal. During this month, I realized that my former employee had allowed my employee discount to remain active on the GMCR website ... so I decided to offer a few coffee brewers for sale at a little below regular retail price. With eBay and Paypal fees, I profited $12.00-$15.00 per sale. I listed the brewers and within 6 days, I had received more than $5000.00 in gross sales. As soon as I accepted an offer and the buyer paid, I processed that order thru GMCR who in turned shipped the brewer directly to the buyer. Buyers were thrilled to get a new brewer and I was actually making enough money to catch up!!! I would have thought that Paypal/eBay would be happy with my success, since they were making about the same amount as my profit in fees. However, my success was too much for them I guess, because Paypal felt the need to limit my account to prevent any withdrawal of funds while the unusually high volume of sales was investigated. Even though my Paypal funds were limited - Paypal requested that I continue to ship the Brewers to buyers (which meant at my expenses). I was not overly concerned about that since Paypal's email stated that the funds would be held for 21 days or until positive feedback was left or confirmed shipment & delivery was provided. I continued selling brewers and changed the payment address to my adult daughter's account. I was sure that the limits would be lifted from my account within days - but I also knew that I needed my profits to pay for a roof over our head. I continued to pay & ship the brewers from my own pocket while the funds accumulated in my daughter's account. At the end of the next week, I transferred $1400+ from her account to her bank account (and yes, all of this was with her approval and knowledge). At the same time, I mailed a check for my lease/mortgage payment. The next morning I found that PAYPAL had reversed the transfer and limited her account as well. My daughter and I proceeded to supply all of the documentation requested - copies of our DL & utility statements to verify identity and address, bank & credit card statements to verify proof of purchase of the brewers, and fed ex tracking #'s to verify shipment and delivery. Much to my surprise, instead of reinstating my account as I expected ... I received emails from Paypal that they decided to close both accounts. I called Paypal for an explanation and was told that they determined that I COULD be a POTENTIAL security risk. I requested further info regarding the POTENTIAL security risk and was told that they do not have to provide any further info to me. In addition, they would be holding on to my funds ($2100+) for 180 days (so now I am out the personal funds I used to purchase the brewers, my mortgage check has been returned and Paypal is holding the funds I earned to pay it for 6 months!). Oh, AND the reversed the payment I made thru Paypal to KMART for a Christmas toy for my daughter and a deposit for LayAway. These two payments equaled less than $200 - and were made PRIOR to any account being limited ... so they were legit transactions. They had those funds redeposit to the Paypal account so they could hold those for 6 months as well. I am sure KMART will be coming after me soon for fraud or something because they had already sent out the toy to my house. A few hours after the Paypal notification, eBay canceled my active auctions and restricted my seller account to prevent me from listing any auctions - although I am still welcomed as a BUYER! Please keep in mind that I have been using my eBay account since 2007 with no disputes, 100% positive feedback, and provided them with EVERY piece of documentation that was requested. Included in the email from eBay was that they would not provide any further information regarding this final decision AND that any further emails from me would not be answered. So to this moment, I have no earthly idea as to the reason I am being considered a security risk. I did cancel many of the ended auctions and refunded about $1000+ to buyers so that Paypal is now only holding about $1100. I have found other ways to list the brewers including my own website However, AMAZON has been a much more successful tool - but due to the 14-day PAYOUT POLICY for new merchants, I am having difficulties coming up with the funds for the amount of orders that I have received. To date, I need to front about $2000 to order brewers and have them delivered so that I can confirm shipment to get paid!!! UGH!!! PAYPAL/eBay has really put me in a super bind over something that could have been easy and fun!!!!

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