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Screwed By PayPal

By Tony Curazzato

I have an electronics store online and I used my PayPal account to accept credit cards. 

I use adropshipper to store and ship the merchandise.  Everything was going smoothly for quite a few days, then out of nowhere PayPal froze my account and told me to provide proof of shipping for all the products I sold so far.

This wouldn’t be a problem except for three things:

1) The dropshipper had not shipped yet (takes them up to 5 business days).

2) He gives tracking info to the customers, not to me, and it would take me forever to contact all those customers to get them.

3) Much of the customer’s money was still in the PayPal account, so I coudln’t give anymore to my dropshipper.

I called PayPal and after being disconnected twice and waiting for a total of 30-45 minutes, I spoke with the  Resolution Center.  I told them the situation and first off the guy was very rude (IE: said quite a few times “What do you want me to do” very rudely).  Second, he told me it was “policy” that PayPal members cannot use dropshippers and must have products on hand.  Please, I know many people who use dropshippers and also use PayPal.  Besides, there is nowhere on their site stating this “policy”.  He said “Well, we are informing you now”.  I told him that I need access to my account to finish processing the orders and ship to the customers, and he told me “There is nothing we can do”.  So I told him “Ok, I guess I have to to the Better Business Bureau”.  They did not handle this situation correctly and I will make good of my threat.

P.S.  Funny how you can still add money to your PayPal account while it is frozen, isn’t it?

Posted: May 7, 2012 at 6:32 am

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