This is one of the many reports about how awful PayPal is. There are so many awful things this company does that it makes me wonder how they are legal in the US. Here are examples of what PayPal has done to me as a seller and as a buyer.
1.) As a seller, I experienced the following. PayPal holds funds for 21 days or longer, and you have to ship the item first. When the funds for the items you are selling are $800-900 and you have to ship internationally, and you are shipping more than one item, shipping fees get very high. $35 shipping for 5 items equals $175. I had to pay that out of pocket while PayPal held 100% of the funds these buyers paid for my items. Then, if there is no positive feedback, they hold your funds for 21 days!
2.) A dress of mine was up for auction on eBay and sold, but unfortunately the item was later damaged. I could not refund the buyer because PayPal had the funds she paid me on hold, and PayPal told me to ship the item. I could not, because the item was damaged, so I emailed PayPal and got no response. I told the buyer to email PayPal, and no luck; the only reply we both got was an automated one. Therefore I asked the buyer to file a dispute, and in the dispute I would write and ask PayPal to refund the buyer. How complicated is this? After everything was resolved and the buyer received her refund, PayPal put a hold on my account because they now suspected suspicious activity. I called to ask why, and they said it was because of that dispute about the dress. But I asked the buyer to dispute because I could not refund her any other way. I was out the eBay listing fees and the final insertion fee, I had a confused, angry buyer and strikes against me, when I just wanted to refund the buyer.
3.) As a buyer, I experienced the following. PayPal states you can buy safely on eBay, and that is completely false. I recently bought a Moncler coat, size 1, a Quincy coat, from an eBay member. I never received the item, and this person suddenly is not an eBay member anymore. I filed a dispute and still got no response from the seller. PayPal sent me this letter as a resolution:
Dear customer,
After careful review, we have concluded our investigation of the Buyer Complaint described below.
We have decided in your favor, however, we were unable to recover any funds from the seller's account. As stated in the PayPal User Agreement, recovery of funds associated with a Buyer Complaint cannot be guaranteed.
Please know that we will make our best effort to recover the funds in question if they become available in the seller's account in the future and will take appropriate action against the seller. Such action may include issuing a warning, a temporary restriction, or terminating the account. Keep in mind that PayPal uses a number of factors to determine when to take action, including member complaints. Due to privacy laws, we cannot discuss the details of any action taken. We hope you understand our policy and that it assures you that you are safe using PayPal.
Transaction Amount: -$500.00 USD
What to Do Next: This case is now closed. No further action is required by you at this time.
Other Details: To make sure future transactions proceed smoothly, we suggest you visit the PayPal site and click the Security Center link located at the bottom of any page. There you will find tips on how to avoid fraudulent sellers in the "Fraud Prevention Tips for Buyers" section.
Sincerely,
PayPal
Protection Services Department
Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.
I was at a $500.00 loss and no item was ever shipped to me! And they say they hold funds for 21 days, for what if not to protect the buyer in situations like this?
My seller account is also on hold due to suspicious activity, and their reason is that I have too many buyer complaints. My feedback score is 100% as a buyer, and yet they have $867.00 of my money on hold. Now they are stating they want to end the relationship between me and PayPal and eBay, but they are holding on to the $867.00 for 180 days or longer!
Below is eBay's letter to me. It makes no sense why they hold your money!
MC008 SNPD NOTICE: Restricted Account
Hello,
We regret to inform you that your eBay account has been restricted from selling on eBay for violation of our Seller Non-Performance policy.
Our records show that you generate an unacceptably high level of buyer dissatisfaction in transactions in this account. Based upon input from the buyers who have transacted with you, this account falls into the bottom 1 percent of all eBay sellers with regard to buyer satisfaction.
But here is my current feedback score: Positive Feedback (last 12 months): 100%. Please check eBay if you want proof!
...
Then I got this letter from PayPal:
Dear customer,
Every business must balance its exposure to risk with its business goals. At this time, we are not comfortable with the amount of risk your business exposes itself to. We would like to begin the process of ending our relationship in a manner that is least disruptive to your business.
In addition, your related eBay account will remain closed due to this current PayPal action.
Please log in to your PayPal account and fill out the Limited Account Access form to let us know what to do with the funds remaining in your PayPal account.
Disbursement Options
1. Your remaining account balance can be used to provide refunds to your buyers (if applicable). If you choose to provide refunds to your buyers, please provide a list of transaction IDs for the buyers that you would like to refund.
Or
2. Your remaining funds will be held in your PayPal account for 180 days from the date your account was limited. After 180 days, you will be notified via email about how to receive your remaining funds.
We thank you for your prompt attention to this matter and regret any inconvenience this may cause.
Sincerely,
Jacob
PayPal Account Review
They are not giving me my remaining funds. They are holding them for 180 days, and maybe I will get them back? I encourage everyone to review and educate yourselves about this greedy company that acts as if it is above the law.
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