How to use PayPal without getting limited
If you want to learn how to prevent getting suspended on PayPal, you’re going to have first to understand a little bit about how it works.
First off, PayPal limits account with suspicious or “high-risk” activity to prevent losses.
The way it does this is by robots that are trained to identify specific behavior – specific triggers cause them to freeze up accounts.
Now, here’s the thing – they use robots to monitor your accounts.
Since there are millions of PayPal accounts and thousands of transactions happening at every second, it is very unrealistic for them to have a big room of people monitoring every little activity.
So these are mostly what happens in a nutshell when a limitation occurs.
The suspicious activity was done –> Robot picks up on the suspicious activity and triggers limitation –> PayPal asks for additional information –> PayPal human employee reviews information to reinstate your account or permanently limit it.
But here’s the right thing about robots – they’re very predictable. If you can learn what triggers limitations, you can avoid them like landmines.
So without further delay, let’s start learning some of the types of behaviors that cause limitations.
Site Owners: Before you attach a new stealth PayPal to your website, READ THIS FIRST.
If you’ve had a PayPal attached to your website before, and it gets limited, PayPal then blacklists your domain name from ever using PayPal again. So if you try to attach a new stealth account directly to your site, you’ll get banned still. Luckily, there is a solution.
Solution: If you use a third-party checkout tool that uses PayPal you’ll be able to accept PayPal without fear of being limited. Another thing that you can use is to host the checkout on a different domain name so that the PayPal doesn’t see it. I?ve seen some people manually invoice their customers using PayPal too.
0. Always know your stealth basics
Learn how to access stealth accounts without getting limited. That means no proxies, no IP’s that change every 2 seconds (so no TOR or HMA).
Step 1 – Know your basics!
Here are some of the most common mistakes committed:
a. Use proxies, HMA, TOR, or any of those “IP hiding software.” eBay and PayPal have blacklisted these IPs’. If you use them, you will get banned, simple as that.
b. Not changing your user account between different PayPal or eBay accounts.
The exception is if you use a VPS (remote computer) as the files are separated automatically then.
a. Change your IP legitimately through your cable or DSL company. Or even more comfortable, just buy a Windows-based VPS with an IP in the same country as your PayPal or eBay.
b. Go to your control panel, create a separate user for your new PayPal or eBay account. Use your PayPal and eBay exclusively just on that user account. Even easier, just buy a Windows-based VPS with an IP in the same country as your PayPal or eBay.
1. Moving money too fast
Cause: One of the most common ways to get an account suspended is by moving money too fast. Let me give you an example.
Let’s just say that you received $200 right. Then 5 minutes later you try sending that $50 to someone else or try to buy something with it. Boom, your account gets limited.
In PayPal’s eyes, the reason why they limited you is that when you move money too fast, it looks suspicious, so they limit your account and stop you dead in the tracks.
So it applies to:
Receive money –> send money
Receive money –> withdraw money
Solution: When you receive money in your PayPal account, let it sit in there for 2-3 days before you try spending it, withdrawing it, or doing anything with your money.
2. Taking in too much money
Cause: The second most common way to get an account suspended is by taking in too much money at one time. Look at it from PayPal’s stand-point.
If a guy that doesn’t have an established history of receiving large amounts of money suddenly starts getting hundreds of dollars at one time, it looks kinda suspicious.
Don’t be the guy that receives too much money at one time, or you’ll get PayPal limiting you and asking you for personal details.
Solution: So how much money is too much? On a newer account, start off by taking payments less than or around $100 and don’t let the total balance on the account get above $500.
If the money gets near $500, wait a couple of days and withdraw it or send it to another account.
Of course, when your stealth account gets older, you can start getting more substantial amounts of money, but if you want to be safe, that’s the general guideline you should follow.
Now if you need to receive more money than that, just use multiple stealth accounts to break the payments up.
Another potential outcome, if you take in money too fast, is that they will ask you for social security information to make sure you’re properly taxed.
Now PayPal quotes that this number is something like 200 transactions of $20,000 a year, whichever comes first. However, if you come right out of the gate taking in a lot of money, they’ll ask you for social security much sooner.
Best way to combat this is just to receive money through different accounts, so the funds are more dispersed.
3. Spending/Withdrawing Exact Amounts of Money/Not leaving any money left in PayPal
Cause: Let’s just say that you have $600 in your PayPal balance. If you try to go ahead and withdraw $600, you’ll get limited.
Always try to leave some money in PayPal, at least 10% (don’t make it exact).
When you withdraw all your balance, it makes PayPal think that you’re robbing the bank and skipping town. That means it’s suspicious, so don’t do this.
Solution: Always try to leave some money in PayPal (at least 10%). So for example, if you’re withdrawing $600, leave like 60-70 dollars in there, don’t withdraw everything. You’d be surprised how many people get limited by this sort of problem.
4. Error: When you try to send money and get this message: “Add funds to your PayPal before sending money” when you do have money in the available balance
Cause: When you try to move money too fast on a relatively new PayPal account. PayPal has this filter that prevents you from sending out money.
If you have a relatively new account and get this message, your account is under a soft review. However, don’t freak out, because chances are, if you don’t do anything else that’s suspicious during this time, they’ll usually release the balance in a couple of days.
Solution: When you get this message, don’t try to send money out over and over again. Just leave the balance for a week and come back to try to send it again. It could last up to 21 days, so try again here and there. Most of the time, it’s resolved after a couple of days.
5. Ask for “identity verification” through a phone call.
If this happens, just press cancel, and they will let you confirm other information, specifically your full bank account numbers. After you enter this, your account will go back to regular status.
If you want to have your SELLING LIMIT increased, you may do two of these things:
- Call eBay after 30 days and asked them to increase your selling limits AND YOUR Selling Value as well. If you only ask for one of those, for example, you just ask them to increase your listing limits and NOT your selling value, it’ll only
complicate things for you. You should ask to have BOTH of them increased (The listing limits as well as your selling value). Not just one of them.
- It’s best if you have sold items and to have MAXED OUT your listing BEFORE you ask for an increase from an eBay rep. This increases your chances of them increasing your limitations.
Of course, there are other variables to this, like Negative Feedbacks amongst others that can determine your chances of being granted an increase in your limitations.
Also, there may be times when you may receive a message like the one below. Here below are the questions that you may receive from an eBay rep. Your answers will vary on what you sell and based on your own business. You can add your answers below the questions to have them ready when you call in.
1. What Type of Items do you want to sell on eBay (Be specific with Brands and what the items are)?
Your Answer should Be:
2. Where do you get the products that you plan to sell (Be specific with the name of your distributors and suppliers)?
Your answer should be:
3. How many items do you wish to sell on the site?
Your answer should be:
4. What is the average price for the items that you’re selling?
Your answer should be:
5. Are the items new or used?
Your answer should be:
6. Do you have any other eBay account for selling and buying?
If YES, your answer should be:
If NO, your answer should be:
And below are additional questions:
If you are a registered business, please fill out these other questions:
1. What is the name of your business?
Your answer should be:
2. Do you have a website or Brick and Mortar store? Or both? If you have a Website, please provide the website URL
Your answer to this should be:
3. Please Provide your Tax ID
Your answer to this IF you don’t have a Tax ID should be:
You can get a Tax ID by following this guide: https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-Do-You-Get-a-Business-Tax-ID-Number-/INF14837.html
For foreign users, follow this procedure: http://smallbusiness.chron.com/obtain-tax-id-number-foreign-entity-58171.html
Recently, many sellers even buyers have wondered if eBay could be rivaled in terms of popularity.
There is always a possibility to which Amazon comes to mind.
With the increasing fees, strict policies & no remorse for the sellers, many have turned to some viable eBay alternatives.
They may not be a good replacement for eBay all together, but there are many good platforms that can sure offer some benefits.
Here are the top 5 eBay alternatives
It should come as no surprise that the biggest if not the toughest rival towards becoming a better alternative would be Amazon.
Amazon got its roots with selling books then later on expanded into being a powerhouse for all sorts of products.
For sellers, it can help with sales as Amazon is seen as a trusted vendor for quality items and support.
This is also evident on how much Amazon pressures sellers into providing top notch quality and support.
One small mix-up can have a damaging effect on the seller.
The best part about selling on Amazon is for the fact of getting the double the amount of money you would otherwise get from eBay.
Ioffer is a different eBay alternative in terms of its pricing & transaction structure. The reason stems from a negotiation standpoint.
Sellers & buyers are able to negotiate a deal back & forth until they come to an agreement.
This site you can typically sell items that eBay would otherwise deemed high risk or against their policy, but lately, they have cleaned up their act a lot and removed those type of items from their site.
Is it a good alternative? Not so much, but some could find it useful for moving inventory.
This by far is the most popular classified site and is far different in terms of selling and buying compared to eBay.
For one, there is no safety net even if you decide to meet in person.
Buying online through here would be very risky.
For selling, that is a different story.
It is a good place for traffic, but for gathering good targeted traffic and sustained sales, it’s pretty average.
The only issue with selling through here is being limited demographically.
This company mainly deals with hardware, software and other computer related items. They eventually started to expand their pallet & began going into different categories.
They do offer a platform to sell on, but traffic may not be as good nor targeted if you deal in anything other than electronics.
This eBay alternative is for those who like to craft things by hand. They deal in art, clothing, jewelry, food, bath & beauty and anything else related to homemade.
For those that are into crafting and such, this eBay alternative would serve you well.
It has been a popular platform among crafters to which many have made a pretty penny from.
Sellers are at the mercy of buyers and stringent policies of eBay & PayPal.
Often, there are times in which you can never please the customer no matter what you try to do.
You can lay the red carpet down, but there is always some bad eggs out there who will take advantage of PayPal’s system.
In eBay & PayPal’s world, they could care less; well, most of the time at least.
If you Google many of the eBay buyer scams, you will see the abuse of the system.
Worst of all, eBay & PayPal allow it.
Take for example the eBay buyer protection program or the guarantee policy.
“Get the item you ordered or your money back!”
We see where eBay wants to make it safe and play like Amazon, but they are going after it the wrong way.
The program has some vulnerabilities to it:
- Buyers can make claims, keep the item and get their money back.
- Make false claims, misrepresent information, send you back bricks or anything of that nature instead of the original item.
- Buyer has the upper hand where they can literally just get their money back with little effort.
Although with eBay being the largest auction site on the net, many sellers are fleeing to other sites.
Much of the discussions & countless threads all have a speculation that many sellers are fed up and closing out their stores.
We don’t blame them either!
It is like walking with 4 tons of bricks on your back.
Eventually, something has got to give.
The only remedy to fighting these fraudulent disputes is to document everything, ship with signature confirmation and provide as much evidence as humanly possible.
If that doesn’t work, calling eBay or PayPal up and explaining your side of the story should do it.
As long as eBay has their guarantee policy in place, buyers will continue to exploit it.
See an example case here: https://www.theguardian.com/money/2016/apr/25/ebay-seller-beware-buyer-guarantee-exploited-scammers
If you have never been suspended on Amazon before, chances are, you are doing something right. Every now and then, Amazon seems to sweep the floor of sellers with suspensions, restrictions and who knows what else. But do all know the exact reasons for those suspensions? Not quite…but you can use these preventive measures to safeguard you from a future suspension.
Thanks to Chris Dunne at RepricerExpress, this infographic will teach you just that.
PayPal’s public face is very different from the private PayPal that many of us never see.
While PayPal denies publicly they have a customer service problem, they admit they have a customer service problem in private.
While PayPal denies publicly they don’t make any money off of your money, PayPal admits it in legal documents.
PayPal publicly says their buyer protection is there for buyers, but in private PayPal admits the policy is there to prevent costly chargebacks.
So take a peek and find out, Did You Know?
OK, LETS OPEN THE MASK OF PAYPAL IN FRONT OF THE WORLD:
1.PayPal: A Delaware Corporation
PayPal operates out of San Jose, California, but is a Delaware registered corporation.
Instead of supporting their home state of California, PayPal chooses to opt for Delaware’s secretive and anti-consumer corporate laws — corporate laws that favor the corporation and not the general public.
Let PayPal provide you with one: “As permitted by the Delaware General Corporation Law, we have adopted provisions that limit or eliminate the personal liability of our directors for a breach of their fiduciary duty of care as a director.”
PayPal’s IRS Employer Identification Number is: 77-0510487.
2.Two Sides of PayPal’s Mouth
PayPal tells the public they are “on your side” and offer top buyer and seller protection.
However, PayPal’s main concern is: ” Maintain low variable costs, particularly transaction losses.”
PayPal WILL NOT protect you, they want to protect their bottom line at your expense.
3.PayPal NEEDS Ebay
“We depend on online auction transactions for a significant percentage of our payment volume.
We generate a significant portion of our business on eBay…”
Those are PayPal’s own words. Should real competition be allowed on eBay (such as Google Checkout), PayPal would loose enough business to endanger PayPal’s business as a whole.
Almost 70% of PayPal’s cash flow is generated through eBay.
One of eBay’s requirements for allowing a new payment service on its auction site (according to eBay’s “Accepted Payments Policy”) is a company that does not have a “substantial historical track record” may not be used on eBay.
At the time eBay purchased PayPal and allowed its users to use its service, PayPal had already admitted: “… we have operated our business only for a short period of time and have only limited operating history upon which to evaluate our business.”
PayPal does NOT even meet eBay’s requirement to be used on its auction website. So why is eBay keeping Google Checkout banned?
5.PayPal Cannot Make a Profit…So They Take Your Money
“We have not reached profitability to date. We have accumulated net losses of $231.0 million…”.
PayPal continues to say, ” We intend to continue to make significant investments in our systems, infrastructure and customer service operations.”
So they are operating at a loss, but continue to invest funds into their company.
Where do you think that money is coming from?
Why to they hold on to YOUR money for so long?
Is it a Ponzi scheme?
Freeze millions of dollars of customer funds for 6 months, use those funds, then pay back those people by freezing the funds of other customers for another 6 months?
Let PayPal PROVE otherwise!
6.PayPal Will NOT Protect You Because it is NOT Profitable
“We face significant risks of loss due to fraud and disputes between senders and recipients…”.
PayPal continues with the following:
” When a sender pays a merchant for goods or services through PayPal using a credit card and the cardholder disputes the charge, the amount of the disputed item gets charged back to us and the credit card associations may levy fees against us.
Charge-backs may arise from the unauthorized use of a cardholder’s card number or from a cardholder’s claim that a merchant failed to perform.
Charge-backs result not only in our loss of fees earned with respect to the payment, but also leave us liable for the entire underlying transaction amount. If our charge-back rate becomes excessive, credit card associations also can require us to pay fines.”
That’s right: They DO NOT WANT ANY CHARGEBACKS.
How do they do this?
They force you in the TOS to go through their “buyer or seller protection policy” FIRST or risk account limitation.
If a buyer goes through PayPal’s system, PayPal will see to it the buyer wins the dispute just to avoid a chargeback!
The seller always looses!
Chargebacks cost PayPal money.
Chargebacks results in PayPal loosing their transaction fees.
Chargebacks cost PayPal money in terms of fines they must pay to credit card companies.
PayPal’s entire system revolves around making the buyer or seller pay for PayPal’s mistake or obligations.
You have it in PayPal’s own words!
7.PayPal Can’t Fight Fraud So They Stay In Business to Punish Everybody
PayPal wants to be the biggest and the best, but they cannot fight fraud.
So they decide to have their cake and eat it too!
Since PayPal cannot fight fraud: catch the fraud while letting us honest persons go about our business with no problems, PayPal said it must make a choice:
” In configuring our product, we face an inherent trade-off between customer convenience and security.”
Do you think they chose “customer Convenience” or do you think they chose “security”?
Yes…they chose to accept your money and business and then charge you guilty until your proved your innocence!
Millions of accounts frozen and millions and millions of dollars of other people’s money sitting in PayPal’s bank account.
PayPal says it is only “protecting you” from fraud. But who protects us from PayPal’s fraud?
8.PayPal Protects Their Own Interests While Lying to YOU!
PayPal likes to treat its customers like they are God and you are an ant. But PayPal is not God — in fact they have real fears.
Here is what PayPal had to say about this: “We incur charge-backs and other losses from merchant fraud, payment disputes and insufficient funds, and our liability from these items could have a material adverse effect on our business and result in our losing the right to accept credit cards for payment.”
Since PayPal is incapable of preventing fraud on their network (they “verify your account” and “verify your credit card” yet somehow they still cannot protect its users from unauthorized use of their cards or spot a real fraudster from a thousand miles),
PayPal lies and tells you that they can, and they offer great buyer and seller protection.
But that is a lie: PayPal makes you pay for their mistakes so their business is not “adversely effected.”
9.Fraud Can Be Committed By PayPal’s Own Employees
There is no question that PayPal employees with PayPal accounts know how to manipulate the system.
Since they are poorly trained and poorly paid, you can bet PayPal employees are out there committing fraud.
Do you know who is REALLY buying from you on eBay (could it be a PayPal employee intent on taking your product AND your money?).
PayPal fraud doesn’t stop there. PayPal says that, “The large volume of payments that we handle for our customers makes us vulnerable to employee fraud or other internal security breaches.
We cannot assure you that our internal security systems will prevent material losses from employee fraud.”
CUSTOMERS ARE VULNERABLE TO EMPLOYEE FRAUD OR OTHER INTERNAL SECURITY BREACHES.
WE CANNOT ASSURE YOU THAT OUR INTERNAL SECURITY SYSTEMS WILL PREVENT LOSSES FROM EMPLOYEE FRAUD.
I don’t recall seeing that anywhere in the PayPal User Agreement. Do you?
10.PayPal Tells US What it Would Take to Change Them
PayPal’s business model is so purposely complex to avoid having to comply with as few state and federal regulations as possible.
Here are PayPal’s own words: ” Our status under state, federal and international financial services regulation is unclear.
Violation of any present or future regulation could expose us to substantial liability, force us to change our business practices or force us to cease offering our current product.”
OUR STATUS UNDER STATE AND FEERAL LAW IS UNCLEAR.
How convenient. PayPal goes on to say, ” We currently are subject to some states’ money transmitter regulations, to federal regulations in our role as transfer agent and investment adviser to The PayPal Money Market Reserve Fund and to federal electronic fund transfer and money laundering regulations.”
Okay, so what happens, PayPal, if you are found in violation of these laws or any future regulations that might apply to you that you are found in violation of.
PayPal tells us: “If we are found to be in violation of any current or future regulations, we could be: exposed to financial liability, including substantial fines which could be imposed on a per transaction basis and disgorgement of our profits; forced to change our business practices; or forced to cease doing business altogether or with the residents of one or more states or countries.”
That would be unfortunate! So PayPal tells us the only way we are going to force them to change their evil ways is to make them change.
11.One Example: PayPal is a Hypocrite
PayPal has gone on record as saying they believe their service is subject to the Electronic Fund Transfer Act and Regulation E of the Federal Reserve Board.
Here is an official quote from PayPal:
“… we have assumed that our product is subject to the Electronic Fund Transfer Act and Regulation E of the Federal Reserve Board.”
That was before PayPal got sued. In 2004, when PayPal settled the California filed class action lawsuit against it, they admitted no wrongdoing and said the following:
“PayPal believes it did nothing wrong. In fact, PayPal disputes that the EFTA, originally passed in 1978, applies to its business.”
BEFORE PAYPAL WAS SUED: We are subject to the EFTA
AFTER PAYPAL IS SUED: We dispute the fact the EFTA applies to our business.
The EFTA is one federal regulation that protects you and me from companies that do not want to give their phone number out, that want our money but don’t like to give it back, that want our business but then limits our accounts.
PayPal you *******.
12.PayPal Claims to Protect Your Privacy, but… (IRS)
PayPal is the ultimate hypocrite.
When you experience account problems, the ask you to fix it, but then refuse to give your information citing “third party privacy concerns.”
PayPal claims to protect your privacy from third parties.
That is a lie. In fact, not only does your private information end up in the hands of other companies that are NOT PayPal (read the TOS you agreed to), PayPal reports you to the IRS!
Here are PayPal’s own words: ” We are subject to regulations that will require us to register with the Department of Treasury and to report suspicious activities involving transactions of $2,000 or more.”
There are no clear definitions as to what constitutes a “suspicious transaction.”
So PayPal reports ALL transactions over $2,000 to the Department of Treasury (which administers the IRS).
Want to try and close your PayPal account and there is more than $2,000 in it?
PayPal will report you.
I don’t remember seeing that in the PayPal User Agreement either!
13.PayPal Will Do Anything to Prevent Chargebacks…
Including screwing you. Why? Here are PayPal’s own words:
“… excessive charge-backs, could result in a termination of our ability to accept credit cards.”
So the next time you wonder why PayPal screwed you and gave a buyer his or her money back (from your account) and let the buyer keep your product too, just keep what PayPal said in mind!
PayPal Gives Us Another Tip on How to Beat Them…
“Customer complaints or negative publicity about our customer service could diminish severely consumer confidence in and use of our product.”
Thank you PayPal. So let’s get going on those complaints!
14.PayPal Comments on Frozen Accounts
Here is one thing PayPal has said about frozen customer accounts: “Measures we sometimes take to combat risks of fraud and breaches of privacy and security, such as freezing customer funds, can damage relations with our customers.”
So why do they keep doing it? First, to get your money.
They make money off of your money. Second, there are always more new customers to fleece!
That’s right, PayPal made those comments when they were trying to build their business and get more customers.
Now that they have eBay and a large and growing customer base, they can afford to “damage relations with customers” because they can always get more customers that have NOT HEARD OF YOUR PROBLEM.
You need to get out there and complain.
15.Why Does PayPal’s Customer Service Suck?
Here, let PayPal tell you why their customer service sucks: “Effective customer service requires significant personnel expense, and this expense, if not managed properly, could impact our profitability significantly.”
Good customer service costs too much.
The very customers that make you money and keep you in business are not good enough to get the care they deserve.
Is this a company you want to trust your money with?
16.From India…With Love
Ever wonder where those maddening customer service emails come from?
The ones that never answer the question that you really asked?
America made PayPal the success that it is today. How does PayPal reward America and the customers that it has? It sends jobs to India.
PayPal sends your PERSONAL CUSTOMER information to India. Here is what PayPal has written on the subject:
“Our outsourced New Delhi, India customer service team provided through Daksh eServices Private Limited, responds to the bulk of our initial email customer inquiries.”
THE BULK OF CUSTOMER SERVICE EMAILS TO PAYPAL ARE HANDLED THROUGH OUTSOURCED INDIAN COMPANIES.
When you send your private information to PayPal, along with your plea for help, PayPal does not read one word.
Some 22 year old making $300 per month is typing in what he was trained to type in.
Meanwhile, in America, PayPal claims customer complaints are resolved “quickly.”
So think twice when you write that email to “PayPal.” That email just might come back, “From India, with love…”.
17.PayPal Admits it Cannot Handle Increased Customer Transactions
Here is what PayPal says: “We cannot assure you that our infrastructure could handle a larger volume of customer transactions.”
And that is exactly what happened.
PayPal did receive large volume customer transactions that its infrastructure could not handle.
So what did they do?
They decided to freeze accounts, limit access to your money, and terminate accounts all in the name of security.
Later, when PayPal could deal with the larger customer volume, they stuck with the practice.
Because they found a way to make even more money for themselves and because they found out they could get away with it.
Plus when PayPal limits your account and denies you access to your money PayPal avoids another possible problem: “Because our customers may use our products for critical transactions, any errors, defects or other infrastructure problems could result in damage to our customers’ businesses.
These customers could seek significant compensation from us for their losses.
Even if unsuccessful, this type of claim likely would be time consuming and costly for us to address.”
So, to avoid customer lawsuits claiming PayPal made a mistake, PayPal just freezes as many accounts as possible to avoid actually having to manage those accounts.
18.PayPal Started Screwing Their Customers Because They Couldn’t Handle “Growth”
What? Let PayPal explain: “Our inability to manage growth could affect our business adversely.”
“OUR INABILITY TO MANAGE GROWTH…”
PayPal, on one side, is making promises to its customers that it KNOWS it cannot keep — on the other hand knowing they cannot manage the volume of customer transactions that come with the promises they are making to attract new customers.
To “manage” growth, PayPal freezes customers’ accounts.
Again, PayPal got away with it in the past, and now continues the practice to this day.
19.PayPal Uses Customer Funds
Your money, when with PayPal, is not YOUR money.
PayPal uses your money.
Corporate accounting allows companies to fudge their numbers and play tricks with the books.
Who knows WHAT they are really doing with your money.
PayPal tells us a little bit.
Here is a quote from PayPal: “We reinvest customer funds in the PayPal system…”.
WE REINVEST CUSTOMER FUNDS IN THE PAYPAL SYSTEM
PayPal goes on to explain that while they invest customer funds in “high grade securities,” the securities may lose value.
PayPal has your money and PayPal can gamble it all away.
And what can you do about it?
Your money is stuck with them for 6 months!
20.Investing in PayPal’s Money Market Can Wipe You Out
Here is what PayPal says about its Money Market Fund: “Customers that opt to invest their money in the PayPal Money Market Reserve Fund may lose the original principal value of their initial investment.”
MAY LOSE THE ORIGINAL PRINCIPAL VALUE OF THEIR INVESTMENT
Investing in the PayPal Money Market is dangerous. There is no risk to PayPal — they make money either way. They make money off of investing your money and then giving you some back.
But wait. What if your funds are frozen by PayPal and sudden economic factors suggest you need to get your money out right away?
You can’t do anything. Your money is frozen. You have to trust that PayPal is going to make the right decision with your money.
21.PayPal Sources of Revenue…You Guessed it!
PayPal outlined exactly what their sources of revenue are. Let PayPal tell you:
“We earn revenues from three sources: transaction fees, interest on funds held for others and investment management fees. The following describes these revenue streams.”
INTEREST ON FUNDS HELD FOR OTHERS
Still wondering why PayPal freezes customer funds for any reason they can think of?
You guessed it.
They make money off of your money to this very day.
What’s that PayPal, you have something more to say? Let’s hear it:
“We invest the balances in most of our customers’ accounts in short-term money market and money market equivalent securities..”.
PayPal also pools customer funds in bank account under PayPal’s own name.
“Interest on Funds Held for Others. Revenues from interest earned on funds held for others increased…”.
I hope the $40,000 of my money that you have helped you a little.
22.PayPal Employees Have Incentive to Freeze Your Funds
PayPal employees can participate in a PayPal stock options program. What does that mean?
It means PayPal employees get special deals on PayPal stock and reap all the benefits when the stock prices rise.
How do stock prices rise?
The more money PayPal makes, the more money a PayPal employee can make.
Since we know PayPal earns money off of your money, what better way to keep earning more money for the company than freezing customer accounts?
“…we adopted a liquidity program for the benefit of employees, designed to allow participants the opportunity to diversify some of their holdings of PayPal stock.”
Thanks PayPal, we got it.
23.PayPal Caught in Another Lie
Here are some of things PayPal says its service can be used for:
“Our business accounts conduct a wide variety of commercial transactions using PayPal, including the sale of goods online such as electronics and household items, the sale of services online such as web design and travel, and the sale of digital content.
Offline businesses, including lawyers, contractors and physicians, also increasingly receive payments online through PayPal.”
Now go to PayPal’s supposed “seller protection policy.”
If a buyer pays a seller money for designing a website via the PayPal service using a credit card, PayPal’s own system allows fraud to occur.
How? The buyer pays with a credit card. The buyer receives the web design work (through email or P2P file sharing).
The seller receives payment through the PayPal service.
Then, the buyer threatens PayPal with a chargeback claiming they never received the item.
The seller gets an email from PayPal saying he or needs to provide a tracking number for the product they sold. The buyer can’t.
He or she delivered the item using a means that doesn’t employee tracking numbers!
The seller looses.
The buyer walks away with his or her money back, plus the item or service they paid for.
PayPal’s whole system is set up for fraud. In the end, only PayPal wins.
24.PayPal Cannot Handle Customer Needs
Please do not take my word for it. Here is what PayPal says on the subject:
“Our customer service needs have not grown as quickly as our user base, and we expect this trend to continue.”
WE EXPECT THIS TREND TO CONTINUE
And it has continued.
Trying to contact PayPal is like trying to walk up a wall.
Getting an answer from PayPal is like talking to a wall.
Dealing with Paypal customer service makes you want to punch a wall.
How was your customer service experience with Paypal?
25.PayPal is licensed in the United States as a Money Transmitter in 36 US States
There are a lot of people out there who deny PayPal is licensed to operate on a state-by-state basis.
You guys are wrong.
PayPal is currently licensed and regulated by the following U.S. States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming.
PayPal was put into business by these states, they can be put out of business by these states.
Residents of all these states have been victimized and defrauded by Paypal. Go to our RESOURCES area and find out how you can file a complaint to your state’s appropriate agency for this.
26.PayPal Admits They Are Subject To Consumer Protection Laws…Then Breaks Them
That’s right. Here are PayPal’s own words:
“We are subject to state and federal consumer protection laws, including laws protecting the privacy of consumer non-public information, prohibiting unfair and deceptive practices…”.
Okay, if you are then why do you break them every chance you get? PayPal does not disclose all of the terms of doing business with them in their own User Agreement.
The User Agreement they make you agree to is one sided, contradictory, and designed to screw you out of your money.”