PayPal
Spa Gift Certificate Payments Withheld for Up to 18 Months

If you are thinking of using PayPal as a gateway to collect money for Spa Gift Certificate services you sell on your website, beware! If you choose PayPal for your customers to purchase Gift Certificates, you will not receive your money for up to 18 months.

PayPal has an internal policy, which is in their "Terms" that nobody ever reads, that says they will not remit money to you for Gift Certificate purchases until the sooner of 18 months or until the Gift Certificate is used. When it is used, you still will not receive the money until the Gift Certificate user logs in to PayPal and registers with them. Isn't that ludicrous, ridiculous and fraudulent! Suppose the Gift Certificate user does not log in with PayPal? Then how do you get your money?

I have written to PayPal about this several times, even to their CEO, and their attitude is "go away, don't bother us, you signed up for it and now you are stuck with it. We can't (i.e. won't) help you."

Company: PayPal
Country: USA

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