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Almost $10k stuck in reserves and I am losing everything!

losingitall
Contributor

Almost $10k stuck in reserves and I am losing everything!

Two of my accounts got hit with a $5k, and a $4k manditory reserve, but 25% of each transaction held for 90+ days.  I held on for a little bit with this, but eventually lost my business.  Now I personally have no money and no business, Paypal has $9800 of my money but will not release any of it until I go 90 days with zero transactions.  I already lost a car, home is 5 months down, so in three months I will be living in a box and it should not be this way, and would not be this way if I had MY money.  I have written, called, and the same cold response. 

 

If there anything I can do??

4 REPLIES 4
lefterina
Member

Re: Almost $10k stuck in reserves and I am losing everything!

you are stuck they are doing this to everyone ...

Pay Pal stinks..

mengsta
Contributor

Re: Almost $10k stuck in reserves and I am losing everything!

I know this is an old post, but I hope Paypal reps read these threads and stop the rolling reserves. I understand rolling reserves weren't started by Paypal and has been around for awhile. However, a lot of the common and more well known merchant accounts don't do this, so why can't Paypal cancel reserves as well. I highly doubt they need to hold reserves on us, especially at this strict of a process.

 

HELLLOOO PAYPALLLL, not everybody makes 30% profit on transactions... By holding these reserves, you are killing our businesses.

highwaysong
New Community Member

Re: Almost $10k stuck in reserves and I am losing everything!

I don't have that much in my reserve but I for one think this reserve thing is rediculous. A friend of mine loaned me some emergency money and the quickest way to get it was by doing it through PayPal. I immediately went to the ATM to get it before the reserve came out and then they hit my bank account up for it. What the **bleep**??? I have three websites and I have taken PayPal off them as a means of payment because of this crap. They are all drop shipped based and after PP takes the reserve I have to dip into my pocket to pay for the items. The only way around that is to charge enormous prices which means I will lose the sale.

 

WHAT THE **bleep** WILL IT TAKE TO GET PP TO DROP THIS STUPID PRACTICE???

mengsta
Contributor

Re: Almost $10k stuck in reserves and I am losing everything!

highwaysong,

 

I was in your same situation about a month ago. I will give you my honest advice and opinion on this. After reading the forums for days and speaking to Paypal reps, I came to the conclusion that they just don't care. I have a drop-ship based business as well, so I totally understand where you are coming from. We need to pay for the items before we can ship them out. I tried speaking to reps, and they just don't have any sympathy and was told they could do nothing about the rolling reserve. Their excuse, is that this rolling reserve is a common practice. The truth is... It really isn't. Rolling reserve may be legal and may be used, BUT it is not a common practice when rolling reserve is abused. My account was hit with a rolling reserve the minute I signed up for Paypal Pro. Most merchant accounts only hit merchants with a rolling reserve after they review the history and base it on their amount of chargebacks, and of course other factors. The point is that most merchant accounts let you make a history first, then hit you with a rolling reserve as a penalty action only if they feel as it is required; NOT as a first thing basis.

 

My advice for you is to cancel Paypal or just go back to offering paypal standard and sign with an other merchant account. The only real benefit for me is that Paypal offered a shipping label program which made setting up orders super fast. However, that was not a good enough benefit to let them hold my money. I suggest just going with another payment gateway.