Is refunding security deposits okay on an ongoing basis?

MisterMe369
New Community Member

I am a coach/consultant and offer free consults.

 

However, sometimes I get people that flake out on me and I need to put a stop to this.

 

So I want to take "security deposits" that would be refunded.

 

However, I have heard (in the past) that PayPal frowns on accounts with lots of refunds.

 

That my account would look suspicious if I was doing a bunch of refunds.

 

1. Is that true? Does PayPal frown on accounts with a lot of refunds?

 

2. If yes, do they have a feature that manages refundable security deposits?

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