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We're a small business in Idaho. We had been selling on eBay for well over 10 years. We only accepted PayPal during this time. We've done millions in business through eBay and PayPal. In October of 2019 we received a closure email for violating PayPal's AUP policy. After hours of trying to figure out what or how we violated the policy we finally gave in and accepted our fate.
Our account had a positive balance which would be help for 180 days. That date came up. I received an email requesting I change the password on the account, which I did. While logged in I checked on the status of the balance. I was horrified to see the following transaction: $8,345.76 USD;PayPal Posting Date:Mar 18, 2020;Payment to:Paypal;PayPal's damages caused by Acceptable Use Policy violation;.
PayPal, without even sending an email or any sort of correspondence (no transaction receipt email) simply took the money. After numerous numbers of emails trying to understand how this worked. I received this message through the message center:
"Thank you for contacting PayPal.
PayPal maintains an Acceptable Use Policy to identify the types of products and services that are prohibited and those that require pre-approval.
Ultimately, it is the responsibility of the buyers and sellers to ensure they are compliant with all applicable laws. All customers are required to conduct transactions in accordance with the Acceptable Use Policy. Sellers should also carefully read both the eBay Prohibited and Restricted Items Policy and the PayPal Acceptable Use Policy if they plan to use PayPal as their payment processor for eBay auctions, storefronts, and websites. Failure to comply with these policies may result in limitations placed on your ability to use the PayPal system.
For further information, please go to the 'Legal Agreements" link located at the bottom of any PayPal webpage and click the "Acceptable Use Policy" link.
If you violate the Acceptable Use Policy, we may hold your funds up to 180 Days, may debit your PayPal account up to $2,500.00 USD for each such violation and may take legal action against you to recover additional losses we incur.
When you accepted the PayPal User Agreement you agreed that $2,500.00 USD per AUP violation is a reasonable minimum estimate of PayPal's actual damages, considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate . PayPal may deduct such damages directly from any existing PayPal balance in any PayPal Account you created, own and or control.
The specific activities that may subject you to fines by PayPal can be found in the Acceptable Use Policy"
Now, PayPal does NOT actually provide their complete AUP. If you've ever read the AUP they link you to it's so incredibly vague that anyone and anything could violate it at any time.
I have filed claims with the BBB, CA AG, ID AG, and pretty much everyone else I can think of.
P.S. Stop using PayPal. They do not care about you. They will not help you. When they decide you're no longer an asset they will cancel your account and confiscate your money guised under the vague language in their AUP.