I use Paypal for many personal transactions. The idea that Paypal can, without any justification, withhold funds from a seller is shocking.
I ordered this full and well knowing it was a pre-order. It says so on the website. If I did not see the seller's video explaining this, I would have had no explanation for any delays that may occur do to the bad practices of Paypal. This could damage the reputation of small business owners through no fault of their own. This is very bad for any small business that is considering using paypal.
A seller's ability to use paypal allows them to have the ease and security of large vendors for payments. That is Paypal's value-add to sellers. If this is how Paypal wishes to do business, they can expect to be replaced by alternatives. Paypal's ability to work with larger customers and partners comes from their marketshare of smaller businesses. This market is already becoming more competitive. If nothing is done to fix this, and not just this "one off mistake", but the stench it puts on Paypal's reputation, this will hurt their bottom line. If that does happen, I hope the shareholders rediscover this thread to understand how Paypal hobbled themselves while competing against Google and Apple.
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