highwaysong, I was in your same situation about a month ago. I will give you my honest advice and opinion on this. After reading the forums for days and speaking to Paypal reps, I came to the conclusion that they just don't care. I have a drop-ship based business as well, so I totally understand where you are coming from. We need to pay for the items before we can ship them out. I tried speaking to reps, and they just don't have any sympathy and was told they could do nothing about the rolling reserve. Their excuse, is that this rolling reserve is a common practice. The truth is... It really isn't. Rolling reserve may be legal and may be used, BUT it is not a common practice when rolling reserve is abused. My account was hit with a rolling reserve the minute I signed up for Paypal Pro. Most merchant accounts only hit merchants with a rolling reserve after they review the history and base it on their amount of chargebacks, and of course other factors. The point is that most merchant accounts let you make a history first, then hit you with a rolling reserve as a penalty action only if they feel as it is required; NOT as a first thing basis. My advice for you is to cancel Paypal or just go back to offering paypal standard and sign with an other merchant account. The only real benefit for me is that Paypal offered a shipping label program which made setting up orders super fast. However, that was not a good enough benefit to let them hold my money. I suggest just going with another payment gateway.
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