PayPal is STILL at it!

48 replies
Just ANOTHER PayPal horror story!

PayPal Hates Conferences – Especially OpenCamp
#paypal
  • Profile picture of the author gatekeeper1972
    May I Ask? What exactly is going on with Paypal? I have never had any problems with them except their fees being inconsisstent.
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    • Profile picture of the author Brad Gosse
      Originally Posted by gatekeeper1972 View Post

      May I Ask? What exactly is going on with Paypal? I have never had any problems with them except their fees being inconsisstent.
      When you start doing any volume they freeze you out.
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      • Profile picture of the author MikeAmbrosio
        Originally Posted by Brad Gosse View Post

        When you start doing any volume they freeze you out.

        Yes, and no.

        There are steps you can take to hedge your bets (not necessarily prevent). But the case stated for OpenCamp has nothing to do with volume it seems

        Anyway, I have had my oldest Paypal account since 2001 and I have never been frozen or limited. One easy thing to do is call them before doing a launch if you think the volume will spike.

        It's not so much the volume as the sudden increase in volume. Last year, when I opened one site, my other paypal account went from basically dormant to basically around 30k in one month and hovered at around 17k per month average since. I called them a few days before launch and no issues.

        At the end of the day, if I had multiple millions of customers, I'd probably run my business a bit differently too. It sucks being a Paypal victim, but there are ways to minimize the likelihood.

        Mike
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  • Am I the only one getting a "problem loading page" when I click the link?
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    • Profile picture of the author Richelo Killian
      Originally Posted by gatekeeper1972 View Post

      May I Ask? What exactly is going on with Paypal? I have never had any problems with them except their fees being inconsisstent.
      PayPal loves closing down accounts for no reason at all. Just go read the article, and you'll understand.

      Originally Posted by The Crazy Content Writer View Post

      Am I the only one getting a "problem loading page" when I click the link?
      Loads fine for me.
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  • Profile picture of the author seasoned
    Is there a reason you are using a Northern Mariana Islands TLD?

    It IS a US possession but STILL, it could raise red flags.

    Steve
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    • Profile picture of the author Richelo Killian
      Originally Posted by seasoned View Post

      Is there a reason you are using a Northern Mariana Islands TLD?

      It IS a US possession but STILL, it could raise red flags.

      Steve
      Hey Steve,

      NOT my site, nor do I have anything to do with them. Just another sad story.

      The site owner DOES explain the reason for the .mp domain in the comments section.
      Signature
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      • Profile picture of the author MissTerraK
        Originally Posted by Paul McQuillan View Post

        At the end of the day, what's this matter?

        Paypal is a monstrous organization that deals with loads
        and loads of problems. Scammers are everywhere.

        Taking isolated events and showcasing it does nothing.

        Paypal will never be perfect just as our own businesses
        will never be perfect.

        If anyone is feeling so pissed off they can't stand it- stop
        using paypal and hush up.
        I agree whole heartedly with Paul. He spoke my mind and there's really nothing else to add to this.

        Terra
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      • Profile picture of the author THK
        Originally Posted by Paul McQuillan View Post

        At the end of the day, what's this matter?

        Paypal is a monstrous organization that deals with loads
        and loads of problems. Scammers are everywhere.

        Taking isolated events and showcasing it does nothing.

        Paypal will never be perfect just as our own businesses
        will never be perfect.

        If anyone is feeling so pissed off they can't stand it- stop
        using paypal and hush up.
        Bet your reaction would be different if you get the sharp end of the stick. I am yet to see someone cheering for paypal (or any other company) when they get the poor treatment.

        I agree with your post partially. Rest of it doesn't make sense. Taking isolated events and showcasing them can help a lot. It help us to learn from the mistake of other people and know how to deal with these situations better. Telling people to "stop using paypal and hush up" on the other hand doesn't help too many people.

        Tanvir
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      • Profile picture of the author Sheryl Polomka
        Originally Posted by Paul McQuillan View Post

        At the end of the day, what's this matter?

        Paypal is a monstrous organization that deals with loads
        and loads of problems. Scammers are everywhere.

        Taking isolated events and showcasing it does nothing.

        Paypal will never be perfect just as our own businesses
        will never be perfect.

        If anyone is feeling so pissed off they can't stand it- stop
        using paypal and hush up.
        It does matter and many people are doing everything by the book but still lose money with Paypal putting limitations on accounts. They refuse to listen if you try to explain, they just make up their mind and that's it. I know many people that have done nothing wrong and had their accounts limited and lost all the money they've had in the account at the time.

        Stop using Paypal isn't that easy either when it is the biggest processor online and the one that most people use, if you're using another processor you might be missing out on a lot of sales.
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  • Profile picture of the author Jesus Perez
    Let's see...

    Opencamp
    Openca.mp

    The reason is Branding.
    A TLD shouldn't get you shut down.
    They clearly express a dislike for events of any type.
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    • Profile picture of the author seasoned
      Originally Posted by BlueSquares View Post

      Let's see...

      Opencamp
      Openca.mp

      The reason is Branding.
      A TLD shouldn't get you shut down.
      They clearly express a dislike for events of any type.
      opencamp may be typed opencamp. Most browsers, at least in the US, make that opencamp.com, which is what most americans will think it is. so your explanation makes NO sense unless they assume that it doesn't have a .com, and somehow figure a period must be before the last two chars. It isn't even a popular tld.

      Steve
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  • One thing I noticed in the article was that he mentioned numerous times about customer service reps only identifying themselves by their first name. Is it common to have a rep at a major corporation identify themselves with first and last names? Whenever I call someone or get a call, it is always first names.

    While I can understand the frustration that the post author has, I can also understand what Paypal is doing. You can never do too much due diligence, especially when someone is doing a lot of sales.

    If they are that frustrated with the service they are receiving, why not step up and get a merchant account? If they are doing a lot of volume, it is definitely worth it...
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    • Profile picture of the author globalpro
      Originally Posted by The Crazy Content Writer View Post

      One thing I noticed in the article was that he mentioned numerous times about customer service reps only identifying themselves by their first name. Is it common to have a rep at a major corporation identify themselves with first and last names? Whenever I call someone or get a call, it is always first names.
      They only give their first name, as it could create problems for the rep if they get an irate customer that may want to make it personal. A lot of 'special' people out there now days.

      Usually the bigger companies will have their reps give a first name (makes it a bit more personal) and an ID number for reference.

      Thanks,

      John
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  • Profile picture of the author shabit87
    It may seem paypal sucks at time, but I think for them its ALL about protection. They simply don't want to take the risk. I know I've had my outs with paypal numerous of times and I think for them to see the slightest risk, means bad days ahead for the merchant. Risky activity can mean a lot of things...things that a lot of us wouldn't even consider risky. I know one of the biggest things is people not reading the policies in its entirity. People not knowing their limits when using paypal. And as we all should know, if you're going to have a large increase in cash flow, paypal should be the first to know. Don't ever give paypal a reason to doubt your intentions.

    But as far as that story goes...well I can see where paypal might have felt the "risk" but like most cases, it wasn't even that serious, not serious enough to shut down an account at least.
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    • Profile picture of the author small forward
      What you have said is right on.
      When I had an issue once with PayPal at the end of the conversation that's exactly what I was told-Let them know in advance if your going to have an large increase in cash flow into your account. Its simple, just let them know









      http://www.internetpowerplays.com
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  • Profile picture of the author JonRyker
    There's a video about one guys encounter with paypal posted on this blog that I find very amusing, its a swear word for the site so I wont spell it out here.
    www dot f##kebay dot info
    I'm sure you can work it out.
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  • Profile picture of the author Lorren
    I lost money with Paypal before too. I was living in Italy, and they froze my account with $300 in it. Fortunately, my bank gave me the money that eBay stole out of my account... but I have never forgotten that they stole money from me. To unfreeze my account, they wanted a driver's license and utility bill. I was living in Navy housing at the time and didn't have a utility bill, so there was no way to get the money back.

    Unfortunately, some people only pay through Paypal. I try to avoid them though... and I realize that any money that is kept in my account could be randomly stolen from me, at any time, for virtually no reason at all... and there's really no way to get it back if they do decide to steal it from me.
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  • Profile picture of the author Harry Slater
    What alternatives are there to Paypal?
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  • Profile picture of the author createyouwealth
    I've never had any problem with paypal. My suggestion would be, before you are going to do a big launch or you know its going to be a lot of activity, notify paypal and let them know in advance. All the best.
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  • We can be so glib about situations that we've never experienced. Like people who tell battered women to "just leave" or tell smokers to "just stop smoking" if it were that simple there would be no need for discussion.

    Paypal's is very inconsistent with the application of policy and anyone who has been spared the sting of the cherry pick policy should consider themselves lucky and not savvy. NON-ebay sellers stand a better chance of long term survival but they eventually get everyone if you're not careful.

    I've been with them since x.com and they were giving people $5 to join (1999 or so) and I've seen some dark days. If you're a small online seller, they're a necessary evil. Like having to scoop the litter pan if you want a cat.

    They have the consumer confidence and there's no cheaper payment gateway if you're selling digital goods. I know there are ways around them but talking price and infrastructure they're the best bang for the IM'mer buck. Plus they squeeze out any competitors so most sellers are actually stuck with them.

    They're necessary but I'm not going to pretend that they're right.
    Tolerance does not automatically mean acceptance.

    - Just my 43 cents.
    In this inflationary times I've had to raise the price from 2 cents.
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    • Profile picture of the author V12
      Originally Posted by ingeniousaffiliate View Post

      We can be so glib about situations that we've never experienced. Like people who tell battered women to "just leave" or tell smokers to "just stop smoking" if it were that simple there would be no need for discussion.

      Paypal's is very inconsistent with the application of policy and anyone who has been spared the sting of the cherry pick policy should consider themselves lucky and not savvy. NON-ebay sellers stand a better chance of long term survival but they eventually get everyone if you're not careful.

      I've been with them since x.com and they were giving people $5 to join (1999 or so) and I've seen some dark days. If you're a small online seller, they're a necessary evil. Like having to scoop the litter pan if you want a cat.

      They have the consumer confidence and there's no cheaper payment gateway if you're selling digital goods. I know there are ways around them but talking price and infrastructure they're the best bang for the IM'mer buck. Plus they squeeze out any competitors so most sellers are actually stuck with them.

      They're necessary but I'm not going to pretend that they're right.
      Tolerance does not automatically mean acceptance.

      - Just my 43 cents.
      In this inflationary times I've had to raise the price from 2 cents.
      Exactly. There is a saying: "A man with an experience is never at the mercy of a man with an argument". How can those who have become innocent victims of this company's strange and inconsistent policies possibly be swayed by the arguments of those who defend it?
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    • Profile picture of the author Bruce NewMedia
      Originally Posted by ingeniousaffiliate View Post

      We can be so glib about situations that we've never experienced. Like people who tell battered women to "just leave" or tell smokers to "just stop smoking" if it were that simple there would be no need for discussion....
      Agree completely....PayPal can be sweet as candy until they decide not to be.

      I've had one bad experience that showed me how unresponsive they can be. I never leave any funds in there and always call them when I'm about to receive a lot of money.

      Even if you do everything 'right' you can still be screwed by Paypal.
      _____
      Bruce
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  • Profile picture of the author jasonl70
    I used to have my own brand of items made in china (private label), and sold them on ebay. I made anywhere from $100-$500 a day profit (5-10 sales per day, 7 days a week).

    Then I ran into some paypal problems triggered from 1 dipsute that was raised while I was away on vacation (someone wanted a refund, and was pissed that I didn't refund the shipping - which my auctions clearly stated was non-refundable - i was on vacation, so I didn't even know about this issue though).

    While jumping through all of their hoops, ebay/paypal sent emails to all of my past customers going back at least a month telling them that there were problems with my account, and then told them how to file a dispute if they hadn't receives their items.

    Well, evidently there are a lot of scumbags out there - as tons of people filed a dispute with paypal saying that they didn't recieve their items, etc. I had return receipts from the post office, as well as the fact that those same people left me positive feedback on the items. It didn't matter - paypal wanted DATED pictures of inventory I had already sold, with my ebay id visible in the pics. Um, OK - I'll just hop in my time machine and take of that!!!

    Paypal locked up my entire account for months, which meant my ebay account was locked as well.

    My business went belly-up overnight - and to make matters worse I had 30 days of inventory on hand, plus another 30 days worth being manufactured, and another 30 days worth in the queue to be manufactured (and my funds were locked up in my paypal account).

    It took a year to get everything straightened up with paypal, and in the meantime I was out of business and hiding my car from the repo man.

    I hate paypal
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    -Jason

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    • Profile picture of the author Kevin_Hutto
      Originally Posted by jasonl70 View Post


      I hate paypal

      Me too... They held $58k of my money for 180 days... Will never deal with them again.
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      • Profile picture of the author Hanz
        At what point does Paypal begin freezing accounts or become suspicious of possible illegal activity? Is there a specific figure or is it completely random? Do they suspect something iffy if there's a hundred per day coming in?
        I have a premier account, not a business account. Do you require a business account for smooth transactions and to avoid Paypal getting involved? Or do you have to contact Paypal beforehand everytime you're expecting to see money coming in, regardless of whether you have a Premier account or Business Account?
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        • Profile picture of the author THK
          Originally Posted by Hanz View Post

          At what point does Paypal begin freezing accounts or become suspicious of possible illegal activity? Is there a specific figure or is it completely random? Do they suspect something iffy if there's a hundred per day coming in?
          I have a premier account, not a business account. Do you require a business account for smooth transactions and to avoid Paypal getting involved? Or do you have to contact Paypal beforehand everytime you're expecting to see money coming in, regardless of whether you have a Premier account or Business Account?
          I don't think premier or business account will make any difference. If they want to limit your account, they can do either one and they will find their reason.

          It is not feasible to inform them every time before money comes in. But if you expect to see some big chuck of money coming in a short period of time (think product launch or something similar), it is better to inform them. It won't guarantee anything, just reduce the chance of getting limited.

          Also keep your paypal account balance as low as possible. If your balance is something you don't want to give up for an unknown period of time, it is time to transfer it to your own bank account.

          There is no black and white rule when and why paypal will limit your account. They will because they can. I guess if you are prepared to get limited any moment, you will do just fine and can avoid that.

          I hope I didn't paint an evil picture of paypal in this post. Because I am sure they are not. They are just too big of a company to handle every customer issues properly.

          My .02 cents.

          Tanvir
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        • Profile picture of the author Sheryl Polomka
          Originally Posted by Hanz View Post

          At what point does Paypal begin freezing accounts or become suspicious of possible illegal activity? Is there a specific figure or is it completely random? Do they suspect something iffy if there's a hundred per day coming in?
          I have a premier account, not a business account. Do you require a business account for smooth transactions and to avoid Paypal getting involved? Or do you have to contact Paypal beforehand everytime you're expecting to see money coming in, regardless of whether you have a Premier account or Business Account?
          I don't think there is any particular point, fairly random I think. It is often when you have a big increase in funds coming in though. I always play it safe and withdraw my money regularly, I will never leave funds sitting in my paypal account.
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        • Originally Posted by Hanz View Post

          At what point does Paypal begin freezing accounts or become suspicious of possible illegal activity? Is there a specific figure or is it completely random? Do they suspect something iffy if there's a hundred per day coming in?
          If Paypal would answer this question implicitly there would be a lot less problems and confusion. They just won't.

          Paypal could cure all their ills if they were just consistent and told you up front what was going to happen and in what time frame. Instead they tell you what they CAN do and leave you to wonder when it will happen.

          Some categories on eBay will get you flagged with a $19 sale and other categories you can sell $100's of dollars without a peep from them. But you never really know. Ebay sellers are at a particular risk because Paypal automatically knows what you sold , how much and in what categories, whereas on your private website they only know based on how you labeled the item in the cart. Of course they can always come to your site to verify what it is you're selling but they're slower to do that because private websites have more processing options than ebay sellers and It seems they tend to pick on those with the least options.

          Never Ever have them as your sole processor for important items. A download here or there is fine but beyond that I wouldn't trust them with all my money.
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      • Profile picture of the author SledgeHammer
        Originally Posted by Kevin_Hutto View Post

        Me too... They held $58k of my money for 180 days... Will never deal with them again.
        What's the reason ?
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        Mithun on the Web
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      • Profile picture of the author glennwpaul
        When paypal makes up its mind that it don't want to do business with you, they will freeze your account and start making demands for an increasing amount of documents. It happened to me with about 3K in the account. Does not matter if you send in what they ask for because they already made up their mind. You send in one thing they ask for 2 more and so on. I've read many stories with the same ending; after getting all the documents they still close the account and send you the funds in 180 days.
        No point in getting mad, its their business they can run it like they want. Its in their TOS and they are not a bank so they don't have to follow the same rules.

        You should always have a backup. Never have one vendor or supplier be absolutely essential to everything you do. Business 101.
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  • Profile picture of the author MichaelHiles
    I am using PowerPay these days. They're an information marketing, product launch friendly merch that's an authorize.net reseller.
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    • Profile picture of the author mcmahanusa
      The horror stories of PayPal's arbitrary and capricious actions are one of the reasons I got a merchant account. I still have a PayPal account, but only because of the people who, as one poster mentioned, only use PayPal. From what I've read, PayPal can be impossible to deal with, and having right on your side is not a defense or solution.

      I have a friend with a fairly normal name (Angora Balderdash)(not really, but I like the name), and he has found himsel on the "No Fly" list because another person with the same name is undesirable, according to the powers that be. Will he ever be able to get it straight? Not in this lifetime, you can bet.

      The only solution is for (a)massive quantities of PayPal customer to fly to a competitor, (b)for such a competitor to actually exist. Another reason to abhor monopolies.
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  • Profile picture of the author Robert Puddy
    Originally Posted by Richelo Killian View Post

    Just ANOTHER PayPal horror story!

    PayPal Hates Conferences - Especially OpenCamp

    Dude no merchant account will take business from seminar companies either, you have to go to very specific providers to get one, go read the tos of all the major merchant providers and you will see seminars are on their banned list

    Its a high risk business model that brings in a lot of charge backs and diputes, this isnt just a paypal thing

    Robert
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  • Profile picture of the author Adam B
    Paypal cannot be trusted full stop.
    Ive had in the past Paypal funds frozen and Kept by Paypal.
    We have also sold on Ebay only to be told that selling on Ebay is of "High Risk" and all funds kept for 6 months.
    If you havnt already got it Paypal does this for a reason. To make money for themselves and to keep peoples money.
    I called paypal once and asked them of a way that we could list items on Ebay get paid and actually be able to access those funds?

    They couldnt answer that question.

    paypalsucks.com
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    • Profile picture of the author Chris Worner
      Originally Posted by Adam B View Post

      Paypal cannot be trusted full stop.
      Ive had in the past Paypal funds frozen and Kept by Paypal.
      We have also sold on Ebay only to be told that selling on Ebay is of "High Risk" and all funds kept for 6 months.
      If you havnt already got it Paypal does this for a reason. To make money for themselves and to keep peoples money.
      I called paypal once and asked them of a way that we could list items on Ebay get paid and actually be able to access those funds?

      They couldnt answer that question.

      paypalsucks.com
      The real hypocrisy of that reasoning from PayPal is that Ebay only allows you to use PayPal for payments processing, kinda strange considering they view Ebay transactions as high risk.

      Chris
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      • Profile picture of the author Sheryl Polomka
        Originally Posted by skyfox7 View Post

        The real hypocrisy of that reasoning from PayPal is that Ebay only allows you to use PayPal for payments processing, kinda strange considering they view Ebay transactions as high risk.

        Chris
        Ebay and Paypal are owned by the same people aren't they?
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        • Profile picture of the author Chris Worner
          Originally Posted by Sheryl Polomka View Post

          Ebay and Paypal are owned by the same people aren't they?
          That is what I meant, it is set-up in such a way to squeeze the maximum amount of coin from you.

          Chris
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          • Profile picture of the author Sheryl Polomka
            Originally Posted by skyfox7 View Post

            That is what I meant, it is set-up in such a way to squeeze the maximum amount of coin from you.

            Chris
            Yep and it makes it difficult to use any other payment processor other than Paypal, so it's a no win situation really. If Paypal limit your account your in trouble.
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  • Profile picture of the author Robert Puddy
    Originally Posted by Richelo Killian View Post

    Just ANOTHER PayPal horror story!

    PayPal Hates Conferences - Especially OpenCamp
    What paypal did here was pretty consistent with all payment processors... Nothing to see here Richelo except paypals risk assesment department doing its job.

    All payment processors hate conferences, and for good reason
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  • Profile picture of the author MassiveMarketer
    Just my thoughts...
    * PayPal is also a business and protecting their own interest which is why they choose businesses they work with.
    * They are very particular with the security of their clients
    * If you're not happy with PayPal, let them go and look for something else that will suit your needs.
    * There is always a downside on everything. This just happens to be theirs.
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  • Profile picture of the author rts2271
    We've implemented a new paypal strategy I've detailed in a new thread. Remember if paypal violated their TOS aribitration goes out the window and you have the right to take them to court. Paypal has not won a court case in over 2 years. They have lost numerous class action lawsuits. Sue them and then apply pressure from the local and national media. In short do not let them bend you over.
    Our AG here is using our complaint to base another lawsuit against them and ebay based on the previous class action they lost and did not adhere to the court rulings.
    They may look like a 200# gorilla but they are taking enough hits to be on the ropes and enough pressure will force them to be either regulated or drive them out of business all together.
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  • Profile picture of the author Sparhawke
    The whole problem is that Paypal is unregulated, they can do whatever they damn well please and there are so many people who need an internet money service that they will go to them first, because they are the only ones on the block, except for alertpay but no one has ever heard of them.

    Maybe these people who have a problem with them should file a class-action or something?
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  • Profile picture of the author nykn43866
    the worst part about paypal is they have the power to hold your money for 180 days.. ridiculous.
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