Wednesday, March 20, 2013
Paypal Doesn't Care
I have been using Paypal to buy and sell stuff on Ebay since... practically forever. I believe my sign-up date was in 2001. So let's say 12 years, for good measure. During that time, I have had zero complaints. Zero. No returns, no requested refunds, no negative feedback on Ebay. I have, however, credited money back to clients with a note that shipping cost less than anticipated. You know what all that means to Paypal? Nothing. Not a darn thing. 2 years ago, due to a loan modification gone awry, I lost my house and had to file bankruptcy to protect myself. My perfect credit went right down the drain. I have been struggling to claw my way back into a decent looking score ever since. Paypal doesn't care that I have never had a single problem with transactions through them. They don't care that although my credit score is below the national average, I make all of my bill payments on time. All they care about is the word: Bankruptcy. When I opened my webstore this year, I had to upgrade from a simple Paypal account to a merchant account - so that I could accept credit card payments securely as a business. I have to PAY Paypal a monthly fee to use this service. They took it upon themselves to check my credit report and decided that since I had a bankruptcy, TWO YEARS AGO, I was a liability to their other clients. They assumed that a bankruptcy in my past made me a common criminal, out to steal money from unsuspecting internet shoppers. And because of that, they placed what's called a "Rolling Reserve" on my account. They hold 20% of every transaction in an account I can't touch, for 90 days. EVERY. SINGLE. TRANSACTION. Let's recap. They're charging me $15 a month to use their merchant services. They charge 3.5% of all transactions to keep for themselves. And they're holding 20% of each of MY sales in their account, gathering interest THAT THEY KEEP, for 90 days at a time. I have called and raised holy hell several times. Once, I even got a rep to release half of the money they were holding. They still have over $200 locked up that I can't use, even in an emergency situation. I just got off the phone with one of the top-line supervisors at Paypal. I told him (in some not-very-nice words) exactly how I felt about the entire situation. I expressed to him that I have had over 300 transactions through Paypal since January 1 of this year - all of which resulted in positive feedback and happy customers. He agreed that I had performed above the average seller, and agreed to see if there was anything he could do to eliminate the rolling reserve hold. After 30 minutes on hold, he returned to the line and told me that he was 'very sorry, but Paypal will not stop holding 20% of my funds until at least June'. In June, he claims my account will be re-evaluated, at which time they will check my credit score again and determine whether or not I am still a 'liability to their clients'. I am stuck at this point, but I can tell you that if they don't knock this crap off by the time I am re-evaluated, I will get in the car and drive to Paypal headquarters and refuse to leave until they either give me all of the funds they're holding, plus interest, or take me to jail. Frustrated doesn't begin to describe my feelings right now.