This is a warning to anyone who relies on paypal to process transactions for their business.
Get a backup processor (or 2) if you plan to do any volume.
I started with Paypal in the year 2000. One of their executives, a director business development named Tyler Hoffman asked me to join when they were a startup and I did. In that time I have done a huge volume of business with them and never had any problems.
Long story short.
- My paypal volume has increased slightly over the last 6 months.
- Monday October 19th I receive an email stating my account has been “limited” until further review. Essentially they froze my account until further notice. I contacted them and got it sorted out. They never explained the problem
- That night when they “unfroze” my account I did what any logical person would do. I withdrew most of my money to my bank account.
- Thursday October 22nd I got an email saying that my account is closed without the option to appeal. Turns out my account had a “suspicious withdraw” which was me clearing funds after they unfroze my account.
If you don’t have a paypal account imagine this. You have thousands in your checking account and your bank freezes it for no reason. When you call them they tell you they can’t put you through to anyone in charge. You will get your money in 6 months with no interest payments. Thanks for choosing _____________.
I am not suggesting that you leave paypal. I am recommending it! I will tell anyone who will listen.
The sad part is I have read no shortage of horror stories in forums about this and always thought “It will never happen to me”. Then it did.
Paypal has seen the light and re-opened my account (after some badgering from me and maybe even this blog post). Not before I migrated most of my business elsewhere. They won’t get them back but they are a necessary evil in my business. I am still suggesting you use someone else.