This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

PayPal Ruined My Business

By James Garner

I am an example of what has been explained on this web-site.  What is being explained is true. My PayPal account was frozen. I was a Powerseller on Ebay. They froze my account because the volume of my sales were going up which created a flag for some reason. During that Time I had over $3000.00 in the account. 

I was in the middle of refunding a customer through PayPal for $2000.00 I was sending back when the customer and I decided to process his TV order in a different manner. When they froze my account I did not have access to it or any decision making power.  So, I called them and asked them to process the refund for named customer. Over the course of three weeks they promised me four times that he would receive his refund the very next day. PayPal states they protect you also against fraud transactions.

I had shipped a computer to a customer from my website which was linked to PayPal.  This person paid with a credit card, but because PayPal does not check the validity of the card, they approved it, and then did a chargeback.

Here is the problem.  They never resolved the refund and even tried to process it through my bank even though I had the funds in the PayPal account.  After three weeks of promises to both me and my customer, they decided to process the chargeback before the refund I intended.  In the terms they state, first come first served and even told that to my customer.
That would have been great if they did it.  But they are at the mercy of the credit card companies and took the money to refund the chargeback ahead of refunding the money to my customer after over three weeks and over 15 calls from me and my customer (each time a promise was made that they would return his money from my PayPal account)  I had no protection over the fraudulent purchase stating the customer did not give his address, however my web-site had his address and we shipped.

Anyway the net result is that they protected themselves and ruined my reputation, my funds, and ultimately was able to suspend my ebay account.  That was the way I made money.  No protection, no longer a way to produce revenue, and the promises turned out to be a stall tactic. I do not know where $900.00 in the account went, I had multible bank fees they promised to pay for acknowledging a mistake in trying to withdraw funds from my bank without  uthorization, and my customer received only a small remainder of the money after four promises he would receive it all.  The result is my total loss. Another Fraudulent transaction from Ebay resulted in an $11,000.00 loss from a bidder who purchased a big screen TV and 5 notebooks but paid with counterfeit money orders from Citicorp. I am bankrupt now.  There was and is no protection from either Ebay or PayPal.

And now with phishing emails, (I still receive two or three per day) I really feel bad for those that think they are real Ebay or PayPal emails and give up their information. Again there is not one thing that either Ebay or PayPal will do to protect you.  I hope this gets out.  People are getting ripped off daily and you the consumer will be the one who pays and will be the one to blame. On the front page you will see exactly what happens when PayPal freezes your account.

Posted: May 7, 2012 at 7:54 am


Leave a Reply

Your email address will not be published. Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>