Reserves are for PayPay silly!

[Jerrich]

Looking for anyone else who PayPal denied a refund to the buyer. I recently had a sale on eBay and the customer had requested a refund because they used the wrong credit card. This item was kinda expensive in the ballpark of $13,000. I'm sure you can imagine the interest on some credit cards for something that $$$$$. So I put the refund in with eBay and they submitted it and it was denied by Pay-u-later-Pal. Then the customer asked to change the shipping address. I asked eBay what to do because the buyer/seller protection would be void for not shipping to the buyers registered address. Ebay told me to refund him, tell him to change the address on the account and purchase it again. So I put in the refund request with eBay and PayPal. It was denied. They said I didn't have enough funds in my account?? Side note, my PP account at this point is conveniently limited with $23,000 in at as PP was requesting business info from me. So I go ahead and front the $800 for shipping.  PayPal needed to borrow the shipping fee the buyer paid on top of the payment for the item. After a couple days I get 5 emails from PayPal "your funds are available'. And then right after those another email saying "your account is restored. Then another email "we have put your balance in a reserve to cover any risk blah blah blah. This all happened in a matter of 20 minutes. The big ticket item was not even delivered yet but they released the payment for me early. The money was never available come to find out.  I put another request in for a refund, it was denied. I reach out to PP and ask why they released all those payments at one time. This set an alert for the extreme uptick in money to my account and that's why the reserve was set. I got all the blanket reasons like my payment processing history, possible disputes or returns in my industry and so on.  PP claimed those were eBay holds? I asked eBay and one item, the big ticket, had a 21 day hold for obvious reasons. This was to be up on Feb 25. The funds were all "available" on the 22nd of Feb. I reached out to eBay about the releases and the denied it.  They gave me some references numbers to show PP that the holds were indeed PP holds. Again and again PP denied it. Finally after weeks of fighting with all the  drones in customer service, an agent admits to me that only one of the holds was eBay. Also PP has no control over eBay holds, right. So they basically planned the payment release that would set the alert to put the money in a reserve so if the buyers have a dispute or NEED A REFUND, the money will be there. Finally two days ago they finally fessed up and told me that they released the holds early and held the money to set up the reserve. They apologized for giving me the wrong information for weeks. Thanks for the honesty PP.  Now I know this is a topic gets discussed often but I am going to clear this up right now. PayPal is in the business of holding peoples money so they can invest it and lend it to other PP users to make interest off it. They take peoples money and borrow it to make a profit. That's the business model. They also wait until users have made some transactions and have a balance in the account before they verify the users identity. Its not profitable for them to verify users with empty accounts. Pretty much all financial institutions make sure they know who you are before you can use their service. But not PayPal. Their vetting is a bit behind. They could easily verify everything before you start using the services. But like I said above, holding empty accounts doesn't make any money. They have quite a hustle going here. Furthermore they team up with Bancorp who provides prepaid debit cards. Those are the favorite bank accounts for scammers and fraudsters. They start up accounts with minimal information and what do you know, it works for PP bank account. Then after  the balance increases, "we need to verify your identity." Most junior scammers or people desperate to get another account because they **bleep** up their own, can't verify any more information and ooopps, you lose your account and all funds that are in it. And most of it is basically legal, barely, or the user agreement shields them  from any wrong doing. But here's the but, and the whole reason I just wrote this novel. It is against state and federal law to refuse a refund and it MUST be given within 10 days of the request. If you have ever requested a refund and were denied, please speak up. Contact the state Attorney General, BBB, Federal Trade Commission and anybody else who will listen.  Hopefully you will see this story on several other websites because I going to spread it far and wide in search of others who PP has burned. I know some of you might think this is a little far fetched but this is what is really going on. They aren't doing you any favors. They are looking out for shareholders and PP Holdings. They just hold your money.  They figured out how to take money from people legally. They took $23,000 from me with no release date in sight.  I have no charge backs, one dispute in almost 100 transactions and a defect rate thats half of the top rated seller thresh hold. The only risk on my account is  PP.