New PayPal "Security Filter" limits payment options

[jasonpearson]

In the past week, I have had trouble paying for eBay auctions using my PayPal account.

I prefer to use a credit card for PayPal transactions, and I do not keep a balance in my PayPal account.

I was informed by PayPal Customer Service that a (new?) "security filter" is automatically restricting my account to only allow payment using my PayPal balance. 

My credit card and bank account are in good standing, and there have been no disputes or problems with my account.

PayPal admitted that the security filter includes a number of possible factors, including "Presence of multiple payment options, some of which are underutilized."  In my case, the representative noted that, while I have four payment options in my account (PayPal balance, PayPal credit card, non-PayPal credit card, and bank account), I only ever use my non-PayPal credit card.  This was noted as a possible reason for the "security filter."

In other words, because I don't keep money in my PayPal account or use my PayPal credit card (and therefore don't generate profits for PayPal by letting them hold onto my money or charge credit card fees to sellers), I am being prevented from using my non-PayPal credit card.

This sounds a heck of a lot like non-competitive monopoly-style behavior to me.

The representative noted that they are receiving lots of complaints about this, but I haven't seen any chatter about it yet on the forums...

[profdata]

Are you sure the credit cards expiration date hs not expired or near its expiration date

[surplusdealdude]

Do you have a bank account attached to your account and is it verified?

[jn108]

Know that you are not alone! I'm having the same issue, and customer service is completly worthless in this matter! I called them because for a month now all these transactions that used to clear just fine won't clear at all. When i called i was told it was due to thier "internal security model." It had deemed these transactions unsafe for my card/bank account to be used for this. What was i trying to buy? a .99 itunes purchase! Wow, really paypal? iTunes is unsafe? I'm furious because now the only way i can pay for things with paypal is by first transferring funds from my account (which takes 3-5 days) then paying through my available funds. Stop trying to protect me when I don't need it. I'm perfectly capable of deciding where i'm ok with my financial informatioin going. Instead i now have to set up my info on websites individually instead of nice easy paypal. I plan on closing my paypal account in the next few days, it's not worth having anymore, it is now worthless. Good job, your overprotection is hurting your legitamate customers!

[Brettsmi]

Same problem here. Seems to be an Apple problem... Maybe? They'll address it when their revenue begins to fall. Haha. Serioulsy though, it's getting irritating.

[msmyoplex]

Ok, I'm new here, so please bare with me....I just posted something very similiar.....I purchased a plane ticket on Southwest.com on 7/21, and the money still has not been taken out of my bank account via my Visa/Debit card.  It was showing on my bank account as pending since the purchase, but today I looked at my bank account and the transaction is completely gone!  ? I haven't received an emails from Pay Pal or Southwest stating that they're not puting it through. 

Does this fall under what ya'll are saying here?

I purchased a couple of books online a few months ago and everything went smoothly. 

Thanks for your input.  🙂

[surplusdealdude]

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@msmyoplex wrote:

Ok, I'm new here, so please bare with me....I just posted something very similiar.....I purchased a plane ticket on Southwest.com on 7/21, and the money still has not been taken out of my bank account via my Visa/Debit card.  It was showing on my bank account as pending since the purchase, but today I looked at my bank account and the transaction is completely gone!  ? I haven't received an emails from Pay Pal or Southwest stating that they're not puting it through. 

Does this fall under what ya'll are saying here?

I purchased a couple of books online a few months ago and everything went smoothly. 

Thanks for your input.  🙂

---

In your case, the initial 'pending' payment disappeared because Paypal didn't confirm it in time, so it dropped off your bank account.

Paypal takes 3-5 days to chear an echeck (  what you likely paid with), and it's the weekend, so they missed by a day or so.

I wouldn't worry at this point - the payment's likely just delayed.

[msmyoplex]

Ok great!! Thanks for the info!! 🙂

[KGreenberg]

Sorry your are having trouble with making payment.

I'm a merchant, and my customers are having trouble paying their email invoices too.

I've got $10,000.00 USD in outstanding invoices, but PayPal's new Internal Security Program is blocking my clients from paying with their credit cards.

PayPal Customer Support has given me inconsistent feedback regarding why this is so. They are suggesting I buy a Virtual Terminal, but we find that customers feel more secure with processing their own payment, without having to disclose their credit card information. I I get the virtual terminal, customers will have to give us their credit card number, exp date, code etc. It just seems less secure to me.

I've tried everything from reducung the amount on invoices and splitting the payments into two separate invoices, but that doesn't work either. None of these attempts have been successful. I'm losing money and customers because of this.

Unless there is a solution to this problem, I will be cancelling my PayPal account as soon as I find another merchant processor.

Feel free to make suggestions.

-Regards

[davidsgt1]

Your comment sounds like what I am receiving--a lot of red tape . Frankly Pay Pal is a lot more trouble than it's worth ifr you cannot use your own credit card to make a payment.  I agree with you that Pay Pal is just jerking you around.