Our PayPal account blocked by mistake
My name is Mikhail [removed], I'm the owner of FunPay, and I would really like to see at least someone from PayPal read this page from beginning to end.
And although we have been working for a very long time, we decided to use PayPal relatively recently, October 8, 2022, when we opened our company in the UAE. It is extremely important for us to use PayPal, because absolutely all of our competitors successfully use it:
• all others
Realizing that PayPal is an unfamiliar means of payment for us, we made it available not to everyone, but only to a certain focus group of our users, which we began to expand over time. Everything was going extremely well and we fully connected PayPal not only for the control group, but for all users of our site, but then a disaster happened: on November 19, 2022, a scammer came to our site who is hacking into PayPal accounts. He did:
• 988 fraudulent payment attempts.
• Successfully passed 170 payments.
He received our services and products, and a day later, PayPal sent us information that, it turns out, all these payments were unauthorized, and the real owners of PayPal accounts are not aware of these payments.
We have a top-notch anti-fraud system (which includes both administrative staff and special algorithms), however, we were not ready for this turn of events: we initially thought that PayPal was a secure system, so all our own security systems have been disabled for PayPal payments.
We have already taken all the necessary measures at the moment, and this situation cannot happen again.
Apparently, the PayPal administration decided that we were somehow connected with this criminal, and decided to block our account without the possibility of unblocking. This is a short-sighted and unfair decision that affects thousands of people - our customers who will no longer be able to pay us.
I would like to emphasize a few points in particular:
1) It is not a problem for us at our expense to return the money for any disputes in PayPal. We are ready to bear any losses.
2) For us, any period of HOLD funds is not a problem, we are ready to expect money for 21 days or 180 days - we have large reserves and this does not matter to us.
3) We don't mind taking on PayPal losses that result from carders and other scammers. We understand that PayPal is an insecure and unreliable system, but we are ready to work with it anyway.
4) If necessary, we can deposit a security deposit of up to 500,000 USD to our PayPal account (just for the peace of mind of the PayPal administration).
5) All of our competitors (like g2g, playerauctions, and pretty much everyone else) use PayPal. Our sets of services are absolutely identical. If PayPal believes that certain services on our site do not comply with PayPal policies, then we may remove them.
PayPal is very important to us, because buyers trust PayPal and want to pay through PayPal, feeling secure. That's the only reason we need PayPal - it helps us grow our company.
We posted a link to this topic from our website so that everyone who wants to pay us through PayPal can read this message and write a comment to our support.
Reference ID: PP-L-369344468249
Just because PayPal TOS enforcement hasn't got to a specific site isn't proof that it is allowable, and as mentioned when Valve detects an account has been sold they promptly lock it down until the original owner can provide proof of ownership.
Let's also keep in mind that as you have a .ru domain presumably that would mean you are in Russia, which PayPal has terminated all commerce with due to economic sanctions due to the war. (Note: I'm a USA citizen so I can use that word)
Bfeely, thanks for your comment.
1) g2g is not just a "specific site". It is a huge platform, the most popular platform for these services. They have millions of users, and the turnover through PayPal alone is about $72 000 000 annual.
The chance that PayPal TOS enforcement team does not notice this is absolutely zero. It's absolutely incredible.
Therefore, yes, everything is reliably verified by the paypal team and is absolutely legal, 100% compliant with the rules of PayPal.
2) PayPal itself have .ru domain. Whats wrong with it? At the same time, there are many users from Russia on g2g, and they are not limited at all. And the g2g website itself works from Russia pretty well and has many customers and sellers. No problems.
(By the way, we, unlike g2g, did not accept payments from PayPal in favor of sellers from Russia, realizing that PayPal left Russia for a reason. We respect the policies of PayPal and their will, but in my opinion for them it means nothing at all - they don't give a damn about their TOS, their rules and policies. Only personal acquaintances with the management of PayPal in Singapore matter.)
Haven't Found your Answer?
It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.
- Where can I file a complaint in Suggestions for PayPal
- Our PayPal account blocked by mistake in Suggestions for PayPal
- Can I block collectors from taking money out of my PayPal account? in General Discussions
- Braintree has blocked our account for over 45 days, no responde whatsoever in General Discussions
- TAKE YOUR MONEY OUT OF PAYPAL BEFORE THEY STEAL IT in General Discussions