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

Wishing Them Bad Luck

By C. Scott

First off, let me say that this account is 100% true lest my penis fall off after I submit it…

My business has been a long time user of PayPal and has paid thousands of dollars in fees.  Over 5 years worth. The red flag went up a long time ago, after an early buyer dispute did not go my way.  I had plenty of evidence to support my side, but it did not matter.  I lost.  It was a relatively small amount, but it was the principal of the matter and proved to me that PayPal did not value it’s long time users.  My defenses were up!  (Or so I thought…)

Sometime last year, I received the email from PayPal that their policy was changing to allow for investigations into “not as described” claims.  Additionally, they extended the claim window from 30 to 45 days.  Knowing that any buyer could make this type of claim, justified or not, without any way of fighting it as a seller, was unacceptable.  It was frustrating enough having to deal with fraudulent “non-receipt” claims, especially with non-US customers where tracking packages is usually cost prohibitive.  I decided to end my long time business relationship with PayPal when the policy was to go into effect.
(Shame on me for not following through!)

I discovered, however, that by not accepting PayPal, my sales dropped significantly.  The naive, general buying public has been so brainwashed by eBay that they either don’t trust any seller not accepting PayPal, or they are simply too lazy to get a money order.  Regretfully I had no choice but to continue accepting PayPal and accept the occasional loss of funds due to a dispute that would not go my way, or face a significant drop in sales.  I mistakenly chose the former.

The straw that broke the camel’s back began on March 10 of this year.  I attempted to withdraw $400 from the ATM machine on my debit card.  To my utter disgust and horror, the machine door opened and shut (6 times) but [b]nothing came out[/b].  Immediately checked the balance and lo and behold, it was now $400 less!  Barely able to contain my frustration, I ran into the bank demanding an explanation.  The teller led me to the manager who was sympathetic to my situation.  I swear on my life, this is one of the things he said during our discussion, “that’s really strange, there was a guy yesterday with a PayPal card who tried withdrawing the same amount and the same thing happened to him”.  Outraged, I returned home and immediately checked my balance to see if the funds (that I had not received) were really withdrawn.  Indeed it was.

Immediatly, I phoned PayPal customer service and after the usual run-around, was finally able to speak with someone in dispute resolution who told me I needed to file an affadavit to recover the funds.  Frustrated, I sent out an affadavit a day demanding the funds returned that were stolen from me.  Amazingly, the funds were returned!  (13 days later).

At this point, I was itching to end my ties to Paypal…however the returned funds were in the account and I was afraid to use the debit card at an ATM (my usual method of fund removal from the account to thwart fund reversals en route – yes, they do that).  I decided to purchase something online from Staples I needed for my business.  That should get the funds out without problems…right?

Wrong!  Less than 30 minutes after placing the order with Staples, I get an email from Staples saying the order had been cancelled.  Please call (insert Staples number) to find out why.  I’ll give you 1 guess why the order was cancelled.  That’s right…problem with the card.  At this point, I was ready to explode…probably gave myself an ulcer on that day.

Here we go again.  Called PayPal.  Run around.  File affadavit.  Again.  Of course the funds are gone from my PayPal account in a “pending” status.  Have to wait 10 days for funds to go from pending to released.  Finally on the 11th day, the funds are released!  I’ve got to get out…now!  How do I get the funds out? How about a PayPal initiated investigation for a transaction that occured on March 20?

Yep, the unreal happened.  After this huge financial nightmare they just put me through and juggling my funds around like clown’s balls, they send me this:

[i]It has come to our att
Subject: PayPal Notification: Temporary Hold Pending Investigation (Routing Code: ####-####-####-#####)

Dear ##### Scott,

It has come to our attention that you may be the recipient of potentially unauthorized funds. We have initiated an investigation into this event. In the meantime, we have placed a temporary hold on the funds in question until the investigation is complete. This temporary hold will show as a deduction in your available balance. In the meantime, you are free to continue transacting using your PayPal account.

Transaction Date: Mar. 20, 2005 15:24:48 PST

Transaction Amount: $460.01 USD[/i]

And now here I am, posting this story, breaking out from stress & frustration, giving myself an ulcer, and who knows what other ailments from my now constant anger and resentment for this godawful company known as PayPal.

May everyone who works for PayPal or blindly supports the company get cancer of the testicles or ovaries.  You certainly deserve it.

Posted: May 8, 2012 at 11:01 am

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