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I have been selling digital goods on my account for about 18 months now. The items are for use on my various websites and everything has been running smoothly. Customers are happy, there are of course the occasional refund as with any business and confused customer. However, I am also careful to make sure all complaints are handled and most of the time things are sorted out in less than 48 hours.
Today I wake up to find that my account has essentially be locked. I can not take payment or remove the $3000 sat in my account.
Calling PayPal I was told that I would have to email PayPal in order to find out what is happening and why and I could not be transferred to the department that would be handling the issue.
This is the message I received:
When I click the notification it cycles me back around to the same warning message.
Needless to say, I am rather annoyed.
Solved! Go to Solution.
Ok, so a little update on my situation. I have been a doing a little research and it turns out that Paypal can ban (permanently limit) your account as and when they feel like it, but it is essentially a full ban and they are highly unlikely to remove the ban. However, hold funds for any longer than 10 days is actually illegal in many states, but needless to say, Paypal seems to willingly ignore the law in favor of profiting from held funds. And just last year a class action lawsuit won in favor of the people and Paypal was fined $4million - https://topclassactions.com/lawsuit-settlements/closed-settlements/306260-paypal-account-hold-class-...
This means that with a little bit of pressure in the right direction, the funds should be unlocked in a timely fashion. Failure do so with an email shot off to the right authority will result in another fine for Paypal. With that in mind, I sent the following letter to as many high ranking Paypal employees as I could find emails for:
I am respectfully requesting that the hold on my funds/account be lifted. I am not necessarily requesting that my account is re-opened or allowed to continue to use the PayPal service, as I have already taken my business to your largest competitor and I am no longer in need of PayPal’s services.
I have previously requested a review/appeal of my case which was denied. Although I still disagree with the decision to deny my appeal I will abide by it – however because I feel that holding my funds for 180 days for a non-fraudulent violation of PayPal’s Acceptable Use Policy is excessive, and perhaps a punitive abuse of power.
In light of the recent class action lawsuit: Zepeda v. PayPal Inc., Case No. 5:10-cv-02500 SBA, I will be filing complaints with the appropriate agencies on Friday morning, December 7th, 2018 if I am not satisfied with PayPal’s response to this request to release my funds:
I understand PayPal’s need for holding funds for credit card chargeback purposes, however, a review of my account history for the last year will reveal a very low chargeback rate as well as a very high customer satisfaction rate. I feel that any reasonable person would conclude that holding my entire balance for 180 days is excessive and may be viewed by some as punitive or as already stated, an unnecessary abuse of power and perhaps even contrary to the law. That being said I have no problem with and agree to leave a balance of $200 for credit card chargeback purposes for the duration of the 180 days. I feel that this is a fair resolution while still leaving PayPal with the means to charge back any future credit card disputes to my account.
Please be aware that replying with the standard “this is part of the terms of service that you agreed to” will not satisfy my request, or deter me from filing my complaints on the morning of Friday, December 7th. It will be up to those agencies to determine if PayPal is operating within the law, abusing power, etc. I am simply seeking a resolution that is fair and in the best interest of both parties.
Thank you for your time again in looking into this matter.
And now I wait 🙂
Fair enough, but honestly there are much better ways to deal with it. They could have given me some warning.
Although, I have spoken to a member of the PayPal team and started the appeal process. It seems to me that someone has decided I have broken some rules without ever fully understanding how the products I sell actually work.
I will keep this thread up to date with how that appeal goes.
Well, I got the expected reply from a number of people at PayPal, but I also managed to get someone to review my account again in 30 days to ascertain if funds can be unlocked. I basically didn't even wait a week before sending off my various emails, so I expected there would a small waiting period.
I will wait until Jan 2019 and email PayPal again and let you know what happens.
However, if you have already waited 30+ days, then just keep emailing different people at PayPal. Aim high, managers and directors. Someone will eventually release the funds as PayPal.com is under American jurisdiction and must obey American laws. And in all but 2 states it is illegal for a non-banking entity to withhold funds for extended periods of time.
Click on the words "Help / Contact" at the bottom of paypals pages and use the phone option in the blue band at the top OR very bottom of page dependent on what country you are in. Scroll down past the list of help questions and click on 'Call us' bottom of that page. Log in and get the code.
Freephone from a UK landline or UK mobile number.
have you considered contacting Customer Service via Facebook or Twitter?
You can send them a personal message from their facebook or twitter pages.
It's: https://www.facebook.com/PayPalUK and @AskPayPal for Twitter.