PayPal Making Up Fees

PayPal Warning

While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day. The main subject of the majority of these horror stories is the following:

Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months (if not forever), and there isn't much you can do about it.If you would like to submit your own PayPal horror story, we would be more than happy to post it for everyone to read, providing that it is truthful and void of inappropriate language. Please feel free to submit your story by clicking Here

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How Does PayPal Make Money With My Money?

According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:

U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!

Writer Wishes To Remain Anonymous

Over the Christmas season I had an incident in which an item I sold was damaged by the courier (FedEx Ground). The item was ruined, and I was waiting until I got the item back, (required to file a claim), and process the refund (via the convienent “Refund” tab). Well, the Buyer didn’t want to wait, and initiated a “chargeback”. Note that the Buyer Protection Policy only protects against false claims of non-reciept (if you meet certain conditions). The Buyer claimed “not as decribed” and their chargeback went though. At no point was I allowed to offer my side of the story. In fact, I was given bogus emails to send information to. I was harassed and insulted by PayPal “Customer Svc” reps. And to add insult to injury, I was charged an additional $10 “service fee” for the chargeback! No where in the Terms of Service does it describe this $10 fee! Now PayPal is making up fees as it goes along!

The other case involved a scammer who recieved the item, and then claimed non-reciept. It was sent First Class, and was not tracked. Well, since you at least get 3-7 days to “respond” with a tracking number (which must be verifed online), I immediatly sent off an empty envelope with Deliveyr Confirmation. It arrived in 3 days, I was able to enter the number, and the chargeback was denied! I spent $4 to save $12, add the fees and I was charged 50% of the transaction! 5% my azz!

This brings up a flaw in the service, has anyone can “confirmed” delivery of anything by this method. I could have falsly confirmed the delivery of a $500 laptop, even with signature verification as required, for only about $15.

Anyone else got any similar happenings?

Similar Complaints

Awaiting ResolutionBy Holly I sell mostly through ebay. My first (and last) experience with Paypal involved a chargeback due to a seller who asked me to hold off on shipping out the item due to they...

PayPal And Legal ActionBy Sean Recently Payal contacted me about an item I had despatched, apparently it had not been recieved by the payee and Paypal wanted to verify that the item had been sent. When they contacted...

Posted: May 9, 2012 at 8:33 am