From a "little guy" this one takes the cake. I have been subjected to a 25% rolling reserve on my account for the last six months. Payments received each month never exceed $2000 in my account. I have ZERO chargebacks against my account and have a great seller rating on Ebay. I understand why the rolling reserve is necessary, although I have to argue that 90 days is excessive. On November 17th I was in the process of working out a deal with a client. I sent the client an invoice and never heard back from him. For some reason I got an odd feeling dealing with this person and decided to cancel the invoice prior to payment being made. I cancelled the invoice in Paypal on November 18th and sent the user an email explaining why. Four days later I receive a payment from an email address that is completely different than the client's email adddress. Other than putting a note on the payment indicating what it was for, there was no other information it was related to the negotiated sale with said client. Within 10 MINUTES I sent a total refund to party B and explained that I had cancelled the invoice 4 days prior with party A. Now here is the kicker: PAYAL applied the 25% reserve to the payment received even though it was immediately refunded. After seeing this I contacted customer service immediately to ask how can you apply a reserve to a payment that was immediately refunded? I spent an hour bouncing between customer reps. and specialists and getting the canned responses of "it is what it is." Truly unbelievable. I now have money taken from my account that is my personal money and not from proceeds of a sale.
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