Funds Frozen For 180 Days


I received an email one morning from Paypal indicating that my account was being temporarily frozen and that, in order to remove the limitation, I needed to provide several different documents. These documents included a copy of my drivers license, invoice copies showing that I owned the merchandise I was selling, proof that I was selling the items on eBay and proof that I had shipped the items and that they had been delivered.

I spent several hours gathering this information for nearly 100 eBay transactions. I uploaded these files to Paypal, per their request and received a message to allow 24-48 hours to review the documentation.

Two days later, I received an email indicating that my 'claim' had been denied and that they were freezing all funds in my account for up to 180 days. Their reasoning? That I was selling my products for too low of a price! So, apparently Paypal is now in the business of deciding how much you should sell your products for.

The only thing they allowed me to do was to issue refunds to my customers.

I have a 100% feedback rating on more than 200 scores to this point. I have never had a complaint with eBay or Paypal and this was unwarranted from all directions.

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