PayPal fraudulent activity?

[June0227]

PayPal has accepted a $40,000 payment from our customer, but they won't release the money. We've done everything they have asked for regarding verification. At what point do I contact our state bank fraud department? After six days, PayPal continues to come up with reasons to continue to hold the payment.

And our customer has called American Express to complain. And now Amex is threatening to pull our merchant services agreement because their customer is angry that his order is not being processed!

This is a endless loop from hell! It looks like we will lose the order, but at least I can ask this group if anyone has had this issue before with large sales? Is PayPal using large sales as a float?

[June0227]

Funny how after I posted this, the money cleared within eight hours. Again, security problems with verifying identity was the main culprit here. Be sure you have your phone numbers and personal information verified! If in doubt, call PayPal!

In my case, the money did clear, but even today, I'm still waiting for the funds to be completely transferred. This is another example of PayPal using customer funds for float. It really angers me, but there is nothing we can do about it, short of reporting this activity to our state consumer protection agency. But that's a lot of work...so I guess we'll hope for a more ethical PayPal organization in the future.