Paypal causes businesses to lose money. My problem is also the reserve issue but a bit different. I got a Virtual Terminal and also had a couple of charge backs. Because Paypal decided to keep 40% (!!!! Yes, 40%!!!) of EVERY payment because "there might be the need to cover refunds or chargebacks", I now am unable to cover refunds and the three invalid chragebcks in my account. I'd be really grateful if my reserve was only 10%; I might be able to stay in buisness then just barely. I would totally understand if Paypal put funds in reserve for the sole purpose of my covering any refunds or charge backs, but that is NOT what they do. In fact, I have begun to think, after reading about many others who have problems with these rolling reserves, that Paypal just uses these millions of dollars to invest and increase their wealth, as if it were not enough already. If I could access the funds in reserve, I could cover everything I need to as far as the few refunds and, if I lose on the charge backs (I have voice recordings of the customer authorizing the payment so it can't legally end up being considered as " unauthorized payment") I could cover them also. As it is, I'm being forced out of a profitable business that was generating lots of transaction fees for Paypal. I guess it won't matter since my internet is about to be turned off since I can't pay that either due to my profits also being tied up in the reserve. I talked to Paypal Merchant Services representative andget a different answer each time. One told me that my payment would no longer be put in reserves since I'd had a product problem due to testing a product and finding it perfect only to learn upon delivering it to customers that the code had been changed slightly and the product no longer did what it was supposed to. I had done due diligence but since the product was bad when opened for download, I was gladly refunding money to buyers until this reserve hit and 40% of my money went away . I'm not a large business; just an elderly disabled person trying to make a little extra money to survive since my retirement won't make ends meet. Now I'm worse off than ever since my balance here is negative. I'm so stressed I've had to speak to my doctor about this problem. I also have not been able to pay my internet (cable company) bill since my small profit is also tied up in reserve. It's MY MONEY not Paypal's! I was given no notice about the reserve; in fact I wasn't even notified after the process had begun. It just appeared. How rude is that? I feel that Paypal is abusing me mentally (stress and hard to underst and policy), physically (unable to purchase food and other items I need because Paypal has taken my money away from me), and financially (obviously). What is a little old lady to do when this sort of abuse happens? I think it is illegal to abuse the elderly in fact, maybe it is even a felony! There was some talk at one time of getting together a class action suit against Paypal for these types of actions. Is anyone pursuing that? If so, please contact me! I truly feel that Paypal has unfair terms of service in these areas and perhaps even illegal TOS. Who else is having rolling reserve problems currently? Anyone?
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