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30K hold causing cash flow problems

Used Paypal for years now, and this is the second time they have decided to hold funds even though I have a track record this time of selling $30,000 or more a month over the last 6 months. I have already sent them bank statements along with company info so they knew we had the capitol to handle refunds when they arise. We have a small company and if they are holding close to $30,000 at a time, this will put us in a cash flow problem stunting the growth of the company. There are laws on how long a processor can hold funds and I know there is a class action suite in California on Paypal for this reason. I hope we can get a class action suite for the US against Paypal.

Posted: December 13, 2012 at 5:44 pm

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One thought on “30K hold causing cash flow problems
  1. Pete on

    The problem is that paypal is not a registered processor, they just act like one. In most states license PayPal is listed as a money service. This means that they dont have to follow the rules real legit processors have to follow. instead paypal pretends to act as a bank/processor but don’t have to follow any of the rules implemented to protect the users of real merchant account which paypal is not. So paypal is more or less licensed to screw you. Check with your state to see what type of business paypal is registered as.