HORRIBLE IDEA TO HOLD FUNDS FOR 21 DAYS!!!

[gearhed78]

  Holding funds from sellers until the buyer leaves feedback is the worst idea EVER! Since when does Paypal become an authority on buyer satisfaction?? A smooth transaction is all that I wanted from Paypal. If they are going to hold funds, then they should make it very clear BEFORE you use them!  Keeping my money in their account for 21 days is a HUGE disadvantage of using Paypal. Stick to transferring funds,not trying to be a satisfaction authority!

[SherriK]

Thanks, guys.  You just convinced me to not use paypal for my business!

[redpower]

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@tru_gritt02 wrote:

So.... what your saying, Paypal_Andy, is that paypal believes that its customers are unable to run their own businesses, save their own money in their SAVINGS ACCOUNTS, and bail themselves out of a jam, should that day ever arrive.

I believe my mother used to take a percentage of my babysitting money, and "hold it" for me.... "just in case".

WOW.

thanks for filling us all in.......

---

Wow you are a smart one, that is exactly what he was trying to say...

[drkurtz]

PayPal's excuse for holding our money--that rot about how they do us a favor by keeping it to bail us out of a jam--is an argument in reverse: PayPal keeps our money to bail PayPal out of a jam. Re-read PayPal Pal's response and reverse the object of his explanation; it's not US, the banking customers, he refers to--it's PayPal. 

That said, I don't know how anyone can do business with PayPal for more than one-month's trial--right up to the point when you realize that all the money you made is held at their whim and when the whim-time ends for PayPal to release your funds, you don't get ALL your money, just as much as PayPal can afford to give you without undermining the reserves PayPal set for itself (with your money). Think about how much interest they're making with OUR money! We should be entitled to interest payments. This is worse than any commercial bank, worse than taxes even. At least wuth taxes we know how much and that only death will alleviate the burden. But with PayPal, the extottion never ends, along with the lies and coddling.

THIS HAS GOT TO BE ILLEGAL! CLASS ACTION SUIT? 

[arehart4]

in a class action  ,, it takes years   lawyers make millions   we get  maybe $21.00 each

so

FILE A SMALL CLAIMS SUIT IN YOUR LOCAL COURT  FOR UNDER 5000.00   OR YOUR STATE LIMIT .

NEED MORE INFO   JUST GOOGLE  YOUR STATE LAWS    NOW  THIS CAN BE INTERESTING

IF YOU DO   EMAIL THIS MAN    IT WAS ONE OF HIS IDEALS   

[Kenshin6321]

THAT only makes half sense.  Majority (if not all of us) have not only had the minimum reserve, but ALSO a rolling reserve as well!  If you are gonna hold $15,000 from us, then why on earth are you holding 10 to 50% of all our future transactions for 180 days!  That's why it's thievery, that's why it's stealing.  It doesn't make sense to say "Paypal is doing this for your benefit" because if they were, they wouldn't be doing both a minimum reserve AND a rolling reserve.  The minimum reserve is already enough.  In fact it's WAY MORE THAN ENOUGH, yet Paypal still imposing a rolling reserve, ON TOP of the minimum reserve!  I can dare say that's it's actually not the minimum reserve that is killing most of us, it's the combination of both the minimum and the rolling reserve which cripples our cash flow.  How can you operate a business when your payment processor is like, "Ok, well first we are gonna hold $20,000 then we'll be holding 30% of all your transactions for 180 days.  So we know you would like to order more merchandise and we know you have business cost, but we are gonna make sure that our end is taken care of first".

Thank you Paypal for helping the small business fail =).  

[chipsdigital]

I don't think anyone buys the crap Pay Pal shovels anymore PPA.   Sorry, but THIS is what it boils down to. .. .

Pay Pal, much like a bank, has very large sources of cash which earns them a steady supply of interest.  Even at a very safe, very low interest rate, Pay Pal can generate huge profits by holding a small to modest portion of our funds.  This ensures that they have access to OUR money, and that we cannot take it for ourselves.  Right now, I have 4K in reserves, and cannot close my account---I don't use ebay or pay pal anymore, but have not been granted access to my money.

BTW, who the F does Pay Pal think they are to do this?  This is illegal, and is grand theft.   But, fear not.  I i wlll  be going to court soon, AND will be filing criminal complaints for grand theft w/ the San JOse police dept.  nOT Sure how it will turn out, but I think it will be interesting--especailly if more people do it  You can dress it up all you want, but WHAT IT BOILS DOWN TO IS THAT Y'ALLS SOME STRAIGHT UP CROOKS. 

[arinthia28]

So paypal expects us to fail great we're being **bleep**ed on so many levels. no more ebay selling for with paypal its money bookers and money orders only from now on even though they have made it much harder to sell with anything other than paypal because ebay owns paypal. seems like more antitrust suits coming their way

[Cheshire]

I agree, they hold my money so I cannot ship items, they actually hold the shipping payment so I cannot ship. Crooks is an understatement. When I call them its like talking to a ex wife on a bad day. They say I should be more responsible and have enough money to ship the item without using the shipping amount my customer sent me. HUH? Look up hate in the dictonary and there is PayPal. With a noose around its customers necks. I dont understand how a company can operate like this. Who is the CEO of paypal? Who runs this company?

[iCell]

Hi there Andy, thankyou for clarifying the reserves issues that other users have been aggressive about. I have a question with real figures just so you see the predicament I may be in (potenially):

I have just started (in April) selling iPhones on eBay. The most popular is one priced at £249.99.

Having paid my wholesale supplier, eBay final value fees and Paypal transaction fee, I have £15 leftover which is my own profit per £249.99 sale.

I received a call from one of your colleagues today as regards implementing some kind of reserve on my account.

I will start by saying that I completely value this service as it is a protection for a business, like insurance is the one time you may need it.

However, if we take the minimum 10% rolling reserve on every £249.99 transaction (just for argument's sake).

That would mean of every £249.99 transaction, £25 would be transferred to the reserve balance immediately.

Also, the 3.4% +0.20GBP Paypal transaction fee will be taken off immediately also.

After paying my eBay final value fee on every transaction like this I will have a grand total of £200 left.

This I would need to pay my supplier with in order to get the phone sent to buyer.

The problem is that the phone costs me £216, not the £200 that I have left in my Paypal balance.

This presents a predicament.

I would have to pay my supplier the £200 from my Paypal balance along with £16 out of my own bank account on every single transaction like this.

If I have no reserve at all on my Paypal  account then I could get my £15 per transaction which was of course the whole point of setting up this side business.

By having even the minimum reserve on my account you can see this would not benefit me in the least, because instead of me gaining £15 on every transaction like this, I am losing £16 instead with no profit to show.

How can I ensure that I can keep on trading with no reserve applied to my account?

I await your answer, Thankyou.

Kind regards,

Matthew C.

[PayPal_Andy]

iCell-  I can absolutely understand your concern here and agree that looking at it from a profit standpoint, a reserve would absolutely be a bad thing for your business.  But while PayPal has great protection for sellers, we also must assess the risks associated with different business models. 

In your case, from what you're explaining, it seems like you're using a drop-shipper for your iPhones.  So from a risk standpoint, those are two concerning things right there.  What happens if your drop-shipper runs out of supplies, or it turns out that they start selling cheap knockoff copies?  You start getting large amounts of disputes and/or chargebacks, but it's not your drop-shipper that would have to financially cover those losses, it would be you.  And that's where the point of the reserves come in.  Rather than your credit be affected or you have to scramble to come up with those funds (if they, including your profit, have been spent), potentially the reserves could be utilized for that.

Hopefully from this you can see where we would be coming from in applying reserves.  It seems like there's some risk to your business model for everyone (including PayPal).  As far as your profits, I’m thinking you have a very high overhead that's cutting into your profit margin, so I would maybe look at ways to lower your cost of doing business, especially if the reserves make it so you wind up owning money on transactions.

I hope that addresses some of your concerns.

Andy