Account Restrictions -- Abuse of Power?

[katecolleen]

Hi Everyone,

I had a high volume month. PayPal flagged my account.  I submited invoices, photos, etc, and they even called my client to verify that the charges were legit.  ALL was verified and approved.  PayPal has decided to hold $12,700 for 117 days!!!!! I have never had a complaint or chargeback!  My clinet is angry becasue this is haulting his entire job.  I tried to refund the money so he could may me via check, but PayPal said they required ALL trasnactions in the past month to be refunded, $30,000, odviusoly, this has already been spent on his jobs.  

Has this happended to anyone else?  I've called at least 5 times, no one will help me.  Is this legal??? How'd you get thru this??

I am going to report PayPal to the AG and BBB.  

[Heretohelp1]

Sounds like merchant reserves. It's placed as an insurance for PayPal. The reserves have to be on an account over 30 days for them to even consider reviewing them again. If they are not then there is no point in calling PayPal as they can't do anything. If you want your reserves review you need to email only, go to contact us selected message centre select reserves and compose message. Customer service cannot do anything

[Whac-A-Mole]

Paypal is protecting itself by placing a reserve on your account.

if you dont fulfill your order to your client,he could file chargeback or dispute ,then your account could be locked up for 180 days and then adios forever.

so if I were you,fill the order .

[Whac-A-Mole]

if your sales volume fluctuates widely from month to month,you are better off applying for a merchant account with a bank,your rate would be lower and you would get better service which you would need when there are chargebacks,your merchant account provider will defend you better than Paypal,it will also relay what you  say to the other party and come back and tell you what they said,with Paypal,they dont tell you what the other party has told his cc issuer.

[Whac-A-Mole]

if you sell mostly on Ebay,there are only 3 gateways which work with Ebay,so make sure you have one of them