We have a small Fine Jewelry business and have been a PayPal client since 2008. Prior to this week, most of our sales transactions that required Credit or Debit cards were through Square, with the exception of some small random internet sales, most of which occurring from October through December each year.
While speaking with a representative of PayPal regarding the many benefits of using their other products, I was convinced to try PayPal’s Chip Card Reader, and related phone app.
PayPal’s representative indicated that they were sending the Chip Card Reader right away; however, if I wanted to process transactions through their phone app manually, I could do so immediately.
On January 10, 2018, a very good, long term client made a purchase of $400. Since I was eager to see how fast the transaction would be completed through PayPal, I decided to try their app that I had just installed. I was extremely pleased to see the funds immediately posted to my account in minutes.
Today, January 12, 2018, the same client returned to pay for the remainder of their order, which totaled another $600.
After my client left with the merchandise, I went online to confirm the transaction was as smooth and swift as the first one two days ago, only to find out that the bulk of that transaction had a “HOLD” placed on it.
After contacting PayPal, it was determined that their agent failed to disclose some very important details to me regarding the use of their app. Specifically, in the absence of having their chip reader, manually keyed transactions through PayPal had strict limitations; therefore, I would not have access the bulk of the funds from that transaction for 30 days.
I spent almost an hour on the telephone with PayPal. It was concluded that since I had two transactions in two days totaling $1,000, it exceeded the amount that could be manually keyed in, and as a result nothing could or would be done about releasing the money from that transaction.
The fact that I have been a PayPal member in good standing for 10 years, or the fact that their agent did not properly explain the strict limitations of their policy made no difference.
My client has the merchandise they purchased.
To rub salt in the wound, even though the funds from that transaction have been placed on “HOLD”, PayPal has already taken their FEES from that transaction from my account. At the very least, one would think that since the transaction was on “HOLD”, any deduction from my account for their FEEs would be on “HOLD” as well.
Both PayPal and my client have enjoyed the fruits of that transaction immediately. Our business, however, is being punished for being sold, “a pig in a poke”, due to the incomplete disclosure of their products from their representative.
Those two transactions in two days using, what I feel are, PayPal’s “Not So Business Friendly” products have actually cost me money. That is, at least until the 30 day “HOLD” period is up.
Since PayPal decided that they cannot and will not do anything to make this situation right, I am currently exploring all options on what I can do to make it right on my end of the table.
I would be very interested in hearing others who have run into similar situations, such as incomplete verbal disclosure when offering products, having FEES deducted from an account while the related funds from that transaction are placed on “HOLD”, or any other occurrence that is similar to my experience.
