Scary PayPal Stuff!PayPal Horror Stories

There are millions of PayPal horror stories on the internet today. There are many more yet to be written -- perhaps yours. This collection of "horror stories" is here to give you a small sampling of what others have gone through when dealing with PayPal. A good tip is to read our "PayPal TOS Exposed" section first, and then read some horror stories. You'll see how PayPal really works!

You can find more recent PayPal horror stories in our FORUMS and in our LETTERS TO THE EDITOR.

If you would like to submit your PayPal horror story here, you can CONTACT US and we will place your story in this section. There are other places on this website where you can submit your experience with PayPal. First you can post your story in our FORUMS. Second, you can have your story featured in our LETTERS TO THE EDITOR section. Third, you can submit your story in full article format and we will feature it in a special section. You can submit your article by CONTACTING US.

NOTE: The following stories have NOT BEEN EDITED for spelling and grammar mistakes. To protect user privacy, we have removed names as well.

I received paypal's "parting ways" email. I don't think I deserve that. Does anyone have any experience of getting his/her account restored after receiving the "parting ways" email? I want to write an email to paypal but I don't know what I should say to convince them. Can anyone help?

Been using them for a year and a half. Sold a CD cahnger to some azzwipe in florida. My add clearly stated to check with dealer before purchase etc. A monthg later the buyer claims it did fit, quit working and cost $350 to fix and install. then he filed with paypal and of course they assumed Im guilty, froze my account. Then paypal said he would send it back(never got it) Acct still froze. After a zillion emails and phone calls. they said tough luck . I will never pay them. My bank blocked them just incase so they cant get any money from me. Then they threatened a collection agency.
Did i mention I really hate them?

My roommate and I both had ebay seller accounts, in fact I have 2 seperate ebay and paypal accounts of my own. Her account was closed, so I started listing her items on mine, allowing payments on her items to be sent to her paypal email address. Her account had a few (3) claims against it recently and it went to a $223 negative balance. They locked her account.
Now last monday paypal cancelled my debit card claiming it was a compromised number. I found this out while attempting to pay the vet. Then on this last thursday, paypal limited my account access. So I called and they told me my account had been 'linked' to another users account. They wouldn't tell me how or any specifics on it, but they told me if I wanted to disprove anything, I needed to send an email to appeal@paypal and it would be reviewed and responded to in 24-48 (yeah). I sent a long email explaining how the account I imagine they are linking to mine is probably my roommates account and that we are not a couple, married, buisness partners, nothing. And that her responsibilities are her own and we don't share income etc...Still no email back from their appeals team. They told me I should expect a envelope with a confirmation code to varify my address. Never came. When I call them, it always ends the same: "She must pay off her balance before we can re-instate you." So of course I was furious about this and she got a money order for the total amount (which was mailed next day express today), but paypal claims that it takes them 10-14 days to process a money order! And that my accounts are to remain restricted until payment is 'processed'. In the meantime I've been accumulating a lot of money, is paypal just saving up to take it all from me? Will I see my money? And what should I be expecting as one of their next steps or 'moves' regarding this? What should/could I be doing to fight this or expedite the return of my earned money? Any advice or help would be greatly appreciated (sorry for such a long read, I actually shortened it quite a bit).

Ive been flipped,fried,poached,grilled,tossed,roasted,screwed.Good old PP.Compared to some on here ive only lost £155.00,but to me its a good sum of cash that i dont have spare.My one question is this.Do they ever listen.My problem,sorry,there problem has been running now for four months,they say i never contact them.(over 40 phone calls and 30 emails).Court actions and debt collectors are the latest threat.Has anyone took this total waste of space too its limit and found out what they really do if pushed

Well the email i got said..

Dear Shelly Wride,

We have reviewed your PayPal Account, and due to the excessive risk
involved, we would like to begin parting ways in a manner that is least
disruptive to your business.

Please reply to this email by logging in to your PayPal account and filling
out the Limited Account Access web form to facilitate the disbursement of
any funds remaining in your PayPal account. You can locate the web form by
typing the following in your browser:,
choosing the topic "Limited Account Access," clicking "Continue," and
writing your instructions in the message box.

Disbursement can be handled in one of two ways:

1. Your remaining account balance can be used to provide refunds to your
buyers (if applicable).


2. Your remaining account balance will be held in your PayPal account for
180 days from the date your account was limited. After 180 days, you will
be notified via email with information on how to receive your remaining

If you choose to provide refunds to your customers, please log in to your
account and contact us with a list of transaction IDs for the buyers that
you would like to refund.

We thank you for your prompt attention to this matter and apologize for any
inconvenience this may cause.

PayPal Account Review


Is there anything i can do to receive the 600 Pounds in the account or do i have to wait the 180 days for bs reasons.. its really annoying me now.

So I login this morning and it says my account is permenantly locked and my info is blocked.

Anyone had this before? What is up with it cos I didn't do anything?

This came up in the news just recently and everyone ought to know this mans story in my opinion paypal is a disgusting excuse for a buisness. This comes directly from the source that was trying to raise money for victims of the hurricane that devestated New Orleans and the gulf coast in general, this is there story of a faceless company that would not co-operate or even agree to give the money to the hungry and homeless of the hurricane disaster, paypal I hate you for letting people die.The Paypal Fiasco: In Summary
Well what a week it's been! Let me provide a quick rundown of the exciting events for everybody out there unaware of the entire story.

1) Hurricane slams into the New Orleans area. I'm assuming most of you knew this occurred, and for those of you who didn't.

2) The Something Awful servers, hosted by the brave men at Zipa / DirectNIC, switched to emergency backup power generators to keep everything alive. They fueled these massive power sources with oil barrels collected from the faces of anime convention attendees.

3) While the generators received sufficient power, their OC3 connections (the big fat lines connecting their servers to the rest of the world) began failing one by one, as ISPs in the area either fled, flooded, or realized they weren't going to risk their lives to make sure local residents could search the Internet for "Blossom" pornography. By the way, yes, it does exist. And no, you do not want to see it.

4) Something Awful, one of Zipa / DirectNICs most bandwidth-intensive customers, had to be taken offline so their other 8,000 customers could stay up. This is comparable to shooting the morbidly obese 900-pound fat guy taking up space in a nuclear fallout shelter so 20 other people can fit into the area he was consuming. And, judging by the rescue footage of New Orleans, this is a scenario we might very well encounter in the near future.

5) All communication in the New Orleans area went down (obviously), which made it near impossible to contact our server admin who lived down there. To temporarily get SA up, I bought some crappy hosting on a Dreamhost plan, which had an absolutely painfully idiotic name like "THE ULTRA SUPER AWESOMNATOR INSANITY WEBHOSTING MEGAPLAN 2000." It made me feel intensely embarrassed, but sometimes we have to sacrifice our humility in times of crisis, not that I had any pride to begin with.

6) I decided to host a fundraiser to generate money for the victims of Hurricane Katrina, so I created a Paypal account for people to send in money, which would go to the Red Cross. The entire reason I chose to use Paypal was so I could collect the names and addresses of each donor and send them some free Something Awful merchandise for their contributions. Trust me, I would've rather had people donate directly to the Red Cross, but they would not provide me with the names and address of those who contributed.

7) The fundraiser was a blistering success, raising over $30,000 in under nine hours.

8) Paypal decided this was awfully suspicious, so they immediately locked the account without warning.

Here's where the real problem begins. Now I have absolutely no qualms with Paypal raising a red flag when $30,000 flows into an account in less than half a day, to an account created hours earlier. Instead of saying, "gee, our company is making $1,188.37 from somebody (they charge 30 cents per transaction, there were 1284 transactions total = $385.20, and they charge 2.9% per transaction, there was $27,695.41 donated = $803.17), let's close them down without any notice," perhaps they should have employed a living, breathing human being to contact us and investigate before they froze the account without warning.

Nope. Paypal decided to instantly freeze the account with no warning, no indication, no way for me to explain what was happening. You see, Paypal's outlook is that every single one of their customers is a liar, a cheat, and a thief. It's your job as their paying customer to prove them wrong. While you spend time faxing them all kinds of proof, including drivers licenses, social security cards, bank statements, and credit card statements, Paypal sits on your money and earns interest on it, making them even more cash. They can close, limit, freeze, or take money from your account whenever they like and for whatever reason they like; when you join their service, you must click a box agreeing to this policy.

So how can they get away with this? I mean, banks can't rip off customers like this, can they? No, banks can't... but Paypal isn't a bank. They aren't governed by the FDIC. They literally answer to nobody. They hide customer service email contacts, rarely offer communication with actual human beings, and place functional phone numbers behind mounds of worthless distracting garbage.

Regardless, I attempted to unfreeze my Paypal account by following their "six easy steps," which included me faxing in photos of my driver's license, recent bank statements, recent credit card statements, and a letter explaining I'm not a thief. I consider myself fortunate they did not ask for DNA samples, because the last time my wife caught me masturbating near the computer she almost divorced me. Unfortunately, the next step required made it literally impossible for me to unfreeze the $27,695.41 of donations so they could actually go to where people need them:

Paypal was asking me to provide tracking numbers for DONATIONS. What am I supposed to send out? When did I ever say I was sending anything? How am I supposed to send it on Sunday? Where am I supposed to send it to? How exactly does Paypal's "donation" system, which is the option I chose for SA's Red Cross Relief Fund, work?

I called up Paypal's customer support hotline, which I could find NOWHERE on their website and had to instead pry from the website Paypal Sucks, and was greeted by a series of automated messages informing me nobody could talk to me because it was after business hours. I guess, you know, nobody on the planet is expected to conduct business after Paypal closes for the day. And all you jerks on other, highly non-American continents: learn to stay up until 2:00 AM so you can sit on hold for half an hour and eventually talk to a customer service representative who personally hates you.

After faxing in the necessary paperwork, Paypal's servers emailed a generic form reply explaining I would receive a response from an actual human being "between 3 and 5 business days." Well, today's a holiday, so that means at the latest, somebody would get back to me next Monday, which would be a total of NINE DAYS. I guess I could fold up a bunch of paper airplanes with the message "HANG IN THERE GUYS; PAYPAL MAY OR MAY NOT LET ME SEND YOU AID" in the general direction of New Orleans, but to be honest, I'm terrible at making those things. Every time I try, the airplane goes straight down and crashes into the pavement. Sometimes I can hear tiny, hollow screams of the paper pilots trapped inside the wreckage.

I was mad. The donators were mad. Some Internet news sites picked up the fact that Paypal was generally screwing over not only contributors, but the people in New Orleans who needed the relief funds. All the negative publicity caused Paypal to cave in and physically force one of their employees to actually pick up a phone and contact me. She explained the same thing I already heard and knew: the Internet is full of thieves, they didn't know if I was planning on stealing the money and using it to purchase $27,695.41 worth of bathtub tiles, etc etc. I replied that while this logic is understandable, Paypal's entire mind set of "assume all our customers are guilty until they prove, beyond a shadow of a doubt, they're innocent" is a bit ridiculous. I mean, here it was, every hour Paypal has the account frozen was another hour the victims of the hurricane lost $3,836.92 in donations, and the kind ladies and gentlemen at Paypal were saying it could essentially be up to NINE DAYS before anybody could donate again, and any of the money MIGHT be released to the Red Cross.

I told the customer service representative that if they're so paranoid about me being a criminal, they could directly take the money from my Paypal account, completely lock me out of it, and donate it themselves to the Red Cross. Unfortunately, this too was impossible! You see, Paypal has no direct affiliation with the Red Cross, which somehow means they can't send money to them. Don't ask me how that works; last time I checked, the Red Cross accepted money from anybody anywhere. The Paypal representative said they can only donate money to the United Way; you know, the organization where the president was sued for stealing half a million dollars from them. You know, the organization with a loathsome two star rating, that spends nearly double the amount of money in "administrative overhead" (read: advertising) as Red Cross. It turns out that this is what the United Way is famous for. They weasel their way into companies and sign contracts with them, blocking the corporations from accepting donations to any other charity. I guess it's fitting Paypal chose to team up with them.

To quote the magic eight-ball, "outlook not so good." After the surprising hostility Paypal showed in my attempt to raise money for the Red Cross hurricane relief fund, I realized there was no way to get the money from point A to point B as long as Paypal was point seeing the donations. I called the Paypal representative and instructed her to refund everybody's money. Although it's taken over a day for them to do it, they are issuing complete refunds (except for foreign money orders; anybody who used Paypal to convert foreign currency to US dollars have lost money on the "conversion fees"... despite the fact NO PHYSICAL MONEY CHANGED HANDS. I guess the mere process of adding one of those stupid "£" signs to a series of virtual numbers costs a lot of money).

I had no business until today. The hurricane removed my entire source of income. I had no way to communicate with anybody near the data center, I had no way to contact my systems administrator, and I had no idea if and when our servers would be back online. All I was trying to do was raise money for the unfortunate victims of Hurricane Katrina, and SA's readers did an utterly amazing job generating nearly $4,000 an hour in contributions. Sure I was dreading having to pay postage on 1,284 envelopes full of SA merchandise, but what the heck; it was for a good cause. Then Paypal decided to step in and shut it all down.

I'm not going to tell people to close their Paypal accounts. I'm not going to say all their actions were completely unwarranted. I'm just presenting my experience with them and will allow you to draw your own conclusions. However, I harbor a fundamental disagreement with their business practice of assuming all their clients are filthy criminals who must repeatedly prove their innocence to a series of unmanned servers and computer systems. I do not support their ability to freeze entire accounts, take money from whoever they want at whatever time they want, and impose whatever arbitrary rules and regulations they deem necessary without having to answer to any organization. Every single cent in every single Paypal account is earning their company ungodly amounts of interest in their central bank account. They offer users credit cards and the chance to put your money into interest-generating accounts. So exactly why are they not under banking and FDIC rules again?

To everybody who donated: thank you, thank you from the bottom of my heart. Something Awful truly has the best community on the entire Internet, bar none. You people have raised $6,000 to buy toys for children with cancer and other fatal diseases. You donated $22,000 in armor plating for soldiers in Iraq. You even raised over $12,000 to buy a forum member a kidney when his failed and he was on critical life support. Now, when Hurricane Katrina devastated New Orleans, we raised over $30,000 in less than nine hours. Much like how the hurricane wiped out New Orleans, it's a shame Paypal wiped out your efforts to donate. I will begin another support drive shortly, once all the Paypal refunds have been sent.

It will not be through Paypal.

I sold an item for $205 and shipped it out on 9/19/05. The lady filed a claim 10 days later saying she didn't receive the item. I had the receipt showing where it was shipped and the date, along with an email showing that she declined confirmation and insurance. They ruled in her favor and are trying to refund her. So I not only lost a $451 jacket, but also the 4205 she pais for it(not even half of what I paid)...I'm irate!!

Hi! I need help! I live in -Mexico and use paypal to buy things from US.

Last month I Bought many figures collections from ebay, so I paid with my dad´s paypal account around 3,000 USd. After the account got frezzed. I sent all the documentation They asked for. The acount was verified and I got all OK.

This month I went to live to other city because of collegue. My dad sent me the money for the car,the gas, the apartment and school via paypal to MY paypal account. I recived the payment and WiTHDRAW the cash in 2 operation. . 2 days later Both accounts get limited!!

My paypal mark this operations as reversed. I go to my Father`s And it`s marked as this:

Payment from Card xxx --Completed
Payment to ALX --------Reversed
Payment to Card xxx-----Completed

I want to know if this means the money was returned to my fathers account.



My Paypal account was limited on Monday. I was asked to add and confirm a bank account, verify my telephone number, and provide tracking information for a series of transactions. I did all this immediately and then e-mailed Paypal asking for an explanation as to why my account had been limited. "Candace" from their Account Review team replied saying 1. the limitations would not be lifted on my account and 2. that my account had been linked to three others that apparently had taken part in fraudulent activity, and that issues in those Paypals had to be resolved before the limitations in my account be lifted. Needless to say, my account was in no way linked to those three.

Long story short, after numerous phone calls and e-mails to Paypal's "Customer Service" Center, the three accounts were closed, and mine was still limited. I got the "Parting Ways" e-mail and from what I've read on this board and elsewhere, once you get that, it's pretty much all over.

There's money currently held in limbo in my Paypal account. On Monday morning I had recieved a $100 payment from my roommate. The funds came from his existing Paypal account balance, not from a credit card or checking account. It's my understanding that the purpose of the 180-day thing is to protect Paypal from any potential chargebacks. Since the funds came from an existing Paypal balance, not a credit card, there isn't any chance of a chargeback. So does Paypal have a right to hold my money and if they don't, what can I do to get them to release it?

After an attempt to withdraw to our bank account we got all funds (many thousands!!!!) frozen at PP! Previous smaller transfers were OK.
Frozen on Friday, weekend spent on the numerous address confirmation faxes, our phone calls, CC 'control number' transactions etc...

The following received today:

Dear ...,

We have reviewed your PayPal Account, and due to the excessive risk
involved, we would like to begin parting ways in a manner that is least
disruptive to your business.

Disbursement can be handled in one of two ways:

1. Your remaining account balance can be used to provide refunds to your
buyers (if applicable).


2. Your remaining account balance will be held in your PayPal account for
180 days from the date your account was limited. After 180 days, you will
be notified via email with information on how to receive your remaining

PayPal Account Review

NOW we completely shocked.

Any advise on how to fight those bastards would be very appreciated?



We are high-volume PP seller since 2001. In Oct'05 we got MANY thousands 'frozen'! We'll fight for our money.

Sold and item to someone who was using a phished account. Paypal said I owed them $850(on top of the $50 I had in my paypal account) since I mailed it to an unverified address. They just took $850 out of my bank account causing me to accquire an overdraft fee of $100.


Well lets dont know where to start.
They told me that i run and own a gambling site becouse i just had a donation item called Piltram Online Gaming (This is a clan site and the donations i collect goes to the dedicated server) nothing about gambling anyway. they made me pay 500 $ (this fee is becouse i didnt follow the terms of use) they say and now my account balance is -166 $ it was -711 $ or something like that and they blocked my account its limited and they tell there is nothing you can do to restore your account acccess but i was at the hospital and wasnt be able to do anything since i was at the hospital and my account was hacked and when i try to contact paypal they never respond to my emails they get me mad and now im here i wanted the whole world wide web to know about this issue

This ones great. I click the \"ship\" button like i have for years and it prints out someones address ive never ever done business with in my life.. also it changes the \"ship from\" address to one that is not mine and also someone ive NEVER done business with--i checked the history back a few years.

I didnt even realize all this was happening till i received a complaint from a customer an hour after i printed the all my labels.. sure enough i go check all the labels i just printed and mailed and it has other peoples addresses and the incorrect info (like a 62cent package that was sent first class mail reads \'15oz\'s shipped media mail - $1.55)

When i called paypal they basically told me there is some flaw right now and thats part of the flaw--printing random peoples addresses when the \"ship to\" button is used. The interesting part is apparently this is MY FAULT THEY SAY.. because i should \"check the labels before mailing them\"

Hmmm yes, i guess i should.. but i dont know who does this.. when you click \"print\" you expect it to print the persons address that is actually on the transaction details page..not some random address of an individual you\'ve never dealt with ever..

paypal is satan.

Transferred $900 to my mothers PP account from mine.She gets an email from PP that the funds are being held for investigation.I log into my PP account to see it's been limited & have a chargeback from an auction that ended a day before that was $150.Question....if the buyer cancels the complaint will PP stop with holding the funds? Or do I have to go through all 10 steps to verify the account is mine? One of them is provide tracking #'s for all ebay auctions...

Thanks to that lady for messing up my account,can't believe it.I will not be able to verify all info they want..I have no checking account for one.I opened my account with a prepaid card.I will never use PP again!

I sold a $1400 laptop to a person on ebay using PayPal. One week later this person files a chargeback stating that she recevied an empty box, so she files an \"item not receipit complaint\". I imediately respond to pay paypal with a FedEx tracking # and signature comformation. PayPal then responds to stating that the next step is for her to file a police report within 14 days or something like that. Then 14 days pass and she never filed a police report, so PayPal ends up siding in my favor and CLOSED the case. One month later she files an another chargeback but this time as
\"Item not as described\". I imediately get pissed off becouse PayPal reopens the case and now they let her file a tottaly different claim. I then again supply PayPal with all the information they already had tracking # siganture ect.. Two weeks later I get an email stating the I am no longer eligible for seller protection becouse the complaint has been changed to an \"Item not as described\" claim and that my PayPal account is now negative $1400 plus some bullsh!t fee of like $10.90 or something like that. I talk to like five different reps at PayPal and they all say sorry guy but the claim was changed to \"Item not as described\" and therefore you no longer qualify for seller protection. How F@cki!ng convenient for PayPal!! I hate this company with a passion, I am now out of a laptop plus now these clowns say that I need to pay down my negative PayPal $1400 dollar balance. I dont give sh!t if they want to send this balance to collection ageny becouse I swear they will not see a dime from me...

My wife recently purchased an antique bottle on ebay to the tune of $4500. The bottle arrived broken and the return address on the package was not the name the seller used, but the name of a known scam artist in the antique business. I immediately filed a complaint with PayPal, and they said they would hold the funds until the investigation was finished. I supplied PayPal with documentation from the shipper that the package had been packed improperly, and they were not going to pay any insurance claim. PayPal advised us to return the item to the seller with a tracking number which we did a provided them the information. Then we found out that PayPal had not held the funds but had paid the seller after I filed the complaint. They were able to get us $500 out of the sellers account, but said that would probably be all they could do. I called and talked to a customer service person and told her that if they had just kept their word and held the funds, their wouldn\'t even be a problem now. She gave me the line about reading the PayPal agreement and that they were not liable for anything. This same seller has been kicked off Ebay numerous times, but just comes back with a new name and PayPal account and cheats more people. She is still selling stuff on Ebay, but doesn\'t use PayPal anymore so they can\'t attach any of her funds. I read in someones post about attorneys on the internet who will file suit against PayPal for a fee. Does anyone know how to find one or has anyone ever used an attorney and had any good results. Dang I hate PayPal and everything they stand for. It appears like they work hand in hand with the scam artists.

Many kiddies these days are registering Paypal accounts, especially foreign ones (as they have more lenient spending limits without CC/bank account verification needed), with fraudulent information. They then go on websites scamming people and then spending the money as soon as they get it. For example, I lost $530 paying a guy for an item that I never received. I filed a complaint and won, but Paypal told me that only about half of the funds could be recovered from the seller's account. The rest of the money I just lost. Because the guy used fake information when signing up for Paypal, nothing could be done about it. Paypal cannot track down the scammer. This is just terrible.

This is great. I sold a modded xbox on ebay and the buyer paid immediately. She gives me two days and once she doesn\'t receive it, she files a non receipt claim with PayPal. Now, $305 are currently held in PayPal. The terrible thing is I had shipped the xbox the day before the claim was filed. So, she does/will have my xbox and the claim. Stupid me didn\'t buy tracking but I did get insurance and I have both receipts. I responded and provided the insurance serial number. It now says that she has 5 days to decide to cancel the claim or continue. If she doesn\'t respond within those five days, what happens? She\'s now mad because she \"supposedly\" didn\'t know it was modded so she would still want her money. Luckily, she filed non receipt and now she can\'t change it. Anyway, will the case be found in my favor if she doesn\'t respond within the five days or does it automatically go over to PayPal for investigation? Thanks guys....I\'m finished with PayPal...

Hi there everyone, im new here

And im also another victim, like possibly over tens of thousand of paypal users, a victim to paypal's stupid temporary hold!

Well firstly, i just sold two items in value of AUS$240, the buyers used paypal when i didnt recommended it, but they still did, so i went to my account, withdrawl the complete amount, and the next day, i got two emails, saying that the transfer has been delayed, and they charged my a negative of AUS$-111 !!! WHAT THE HELL IS THIS???

Does paypal think everyone has a credit card? Not everyone has a credit card, some people use paypal to deal internationally, i do.

So now, the money i was planning to spend on new items for the home is now stopped, paypal better get their act together, if not, the whole world should stop using paypal and switch to services like moneybookers and bidpay (even moneybookers allows bank to bank transfer, and is younger than paypal, yet paypal will only take US accounts and will not do bank to bank from other countries!!!)

I hope i do get my money back from this ordeal, once i do get my money back, I WILL CLOSE MY PAYPAL ACCOUNT NO MATTER WHAT!

Someone help me?


Okay, we all know that Paypal and eBay do NOTHING to stop fraud by either sellers or buyers. They have a cookie-cutter approach to everything, which is to do whatever needed to make money for themselves, regardless of the innocent person losing out. More money is lost by either sellers sending an envelop with a tracking number that clearly can't be the item (meaning the buyer can't get money back) or a buyer reeiving something at an uconfirmed address and getting their money back, which the seller can't stop, even with e-mails.

I don't know if this is the right place for this, but it's the best. Please read the two "business moedls" below and answer the questions that follow.

**Company A**
Company A offers insurance for sellers. Sellers pay 1% of what their auction closes at. This covers their auctions for "up to $25,000." At the auction's end, Company A sends an e-mail to the winning bidder who must register with Company A to be covered under the seller's insurance should they not receive anything.

To qualify for insurance, the seller must pass a vigorous check, including home ownership, credit checks, social security, and be an eBay Power Seller with a minimum feedback of 100. It's very difficult to qualify to use this service.

If the buyer doesn't receive their item, they file an insurance claim and go through the insurance process to attempt to get their money back.

**Company B**
This company has programs for both buyers and sellers.

First, for the sellers Company B has bonds. The seller puts up a bind for ther median price of what his auctions close at, are anticipated to close at in the case of a new seller, or the median price of items on his website with a small fee to set up the account (such as $12.95 to set up a $500 account). If the seller does not deliver, or delivers something that clearly can not be the item, such as mailing an envelop with a sheet of newspaper that logically can't be an adult dress, then the money is deducted from the seller's bond to reimburse the buyer, but the trasaction is only covered up the the amount of the seller's bond. The seller has 21 days to replenish the deducted amount back to full bond or else the account is cancelled and the remaining funds sent back to the buyer.

However, if the seller decides to stop selling, he notifies Company B. 60 days after the seller's last selling day, as verified by the eBay account being closed, if no complaints come in, he gets back the full amount of his bond.

Company B also offers a bond for buyers to cover fees a seller pays in the event of a non-paying bidder. The basic buyer bond is $25, with another bond lever of $50. The Motors section of eBay has bond levels of $250 - $1000 as Motors fees are much higher. A seller can pre-qualify a buyer by entering the user ID into Company B's website before deciding to allow the bidder to bid, eliminating concerns about what to do if the bidder doesn't pay. eBay reimburses selling fees, but a seller loses the fees he payed to list. A buyer bond pays those fees. As with the seller, the buyer has 21 dsays to replenish the bond, and upon notification of no longer bidding on eBay, 60 days after the account is closed all remaining funds are returned to the buyer.

One-on-one customer service will be in effect, as will common sense. As in the example, if a buyer buys an adult dress and receives an envelope with a sheet of newspaper, but it is delivery-confirmed, Paypal will say tough luck. The buyer is out the money unless he chooses to file in small claims court where the SELLER lives (hello, $1000-"vacation" to get back $50!!). If that buyer goes to Company B, an employee will use common sense. The envelope could not contain the item. So the buyer is reimbursed from the seller's bond up to the amount of the bond. If a buyer doesn't pay, the seller informs us. If the buyer can't provide proof of payment, the seller is reimbursed from the buyer's bond.

To qualify for the services of Company B, a seller can be a new or seasoned seller. Basic identification will be checked, such as a fax of a driver's license. No credit check or Power Seller status required. A buyer has no identification checks. Both must pay their bond level and account set-up fee before the coverage takes effect.

Company A:
Seller advantages: Costs less at a time.
Seller disadvantages: Seller can not get the anthing back, ever, and will pay more than the cost of a bond with Company B in a very short time. Company A could seek reimbursement against seller's property. Extremely difficult to qualify.
Buyer advantages: Coverage up to $25,000, though sellers may increase fees in shipping to cover the premiums.
Buyer disadvantages: Must register at the end of the auction with Company A. Will be dealing with an insurance company to get reimbursment.

Company B
Seller's bond
Seller advantages: Seller gets all money back when deciding not to sell anymore. Costs less over even a short time. Easier to qualify. Can be a brand new seller and still use the services. Don't have to give up all personal information, such as a social security number. Don't have to own property. Don't have to be a Power Seller.
Seller disadvantages: Costs more upfront.
Buyer advantages: No cookie-cutter approach. Reimbursement based on common sense, not just a delivery confirmation number that could be anything. Easier to deal with than an insurance company.
Buyer disadvantages: Coverage only up to seller's bond amount.

Company B
Buyer's bond
Buyer's advantage: Sellers will trust the buyer and not hold buyer to feedback minimums. Sellers will qualify bidders for sensitive auctions, such as Motors, with little to no hesitation.
Buyer's disadvantage: None.
Seller's advantage: Seller knows that the buyer is truly serious and that fees will be covered in the event of a non-paying bidder.
Seller's disadvantage: None.

Additional comparative
As Company B reimburses from the seller's or buyer's money, and any unused money is returned, Company B has no reason to be biased since it doesn't come from Company B's pockets. As Company A is insurance and keeps all monies paid, Company A has an interest in trying to deny claims.

Which company sounds preferable? Plain and simple.

As a seller, which company would you prefer to use? Why?
As a buyer, would you prefer to buy from a seller using Company A or Company B, or does it not matter since both have something at stake?
As a seller, would you prefer a buyer to be bonded?
As a buyer, do you see a benefit to being bonded?

Any and all input on both companies, ideas, suggestions, etc., would be appreciated.

We're trying to pick up where Paypal leaves off - COMMON SENSE, not cookie-cutters.

Plus is a seller has something at stake with each company the seller is less likely to be fraudulent.


A typical early-20's woman starting a company in Palo Alto with a mission to end online fraud. And Pay"pal" is one of my enemies....

own a commercial website, and some time ago a client paid us around $600 with Paypal for our advertising services. We transacted the funds to a different Paypal account of ours, and then further - to our bank account. A short while later Paypal imposes a negative balance on the initial account the money was received at, claiming that we "might be a recepient of potentially unauthorized funds". Currently, we have forwarded our e-mail correspondence with the customer to Paypal, and there is an "investigation" of theirs taking place. The future outcome of this "investigation" is pretty clear - online advertising services do not fall under their SPP. I am certainly not going to pay a penny no matter what they decide. Hence, I would like to know what would be best to do in this situation: close the account which has a negative balance on it? or do it after the dispute is officially resolved in the buyer's favor? or just leave the account open and take some other actions instead (now or later)?
Please, advise. Any assistance would be greatly appreciated. Thank you in advance.

Paypal blows asschunks! I just got an email today that my account will be CLOSED! It is now Limited with 180days but this dictatorship ruling CANNOT be appealed. I sell an e-book and I made the mistake of trying to signup for a paypal shop to get more exposure, one week after my application for a paypal shop was denied the Sturmabteilung at the Acceptable Use Policy Department sent me an email that my account will be closed because without even reading my ebook they decided that I was selling MLM or Ponzi Scheme information (which is a complete lie) then I emailed asking for an answer, they just repeated their computer generated response with a "We regret to inform you that we cannot overturn the limitation on your account", no warning, no nothing, just account CLOSED! The stupid thing is that I wasn't even USING them as my payment processor, my CC processor uses them so the PP logo was part of my CC's logo, so for this PP decides to close my small account that I use occasionally for auctions, they forced me to immediately remove the PP logo from my site and auctions...I have 1 day left on my auction and I'm getting instant purchase notices but not payment confirmation emails, so I'm wondering what my buys are seeing! I'm forced to email them individually and send them to my CC processor for payment...I'm really pissed!

Dear Rxxxxx Bxxxxxx,

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: Sep. 28, 2005 07:18:45 PDT
Transaction Amount: $510.00 USD
Payor's Email:

If you have not delivered the goods or services related to this transaction, we ask that you delay or stop delivery until our investigation is complete as you may be liable for the amount in question.

To assist us in our investigation and to determine if you qualify for the Seller Protection Program, please send an email to with the following information:

1. The item, service or purpose of the purchase, and the associated value;
2. The name and address given to you by the sender (if an item was purchased);
3. If shipped, the company used for shipping, date of shipment, and tracking number for the shipment;
4. Details of any other transactions related to the transaction(s) in question;
5. A phone number where you can be reached during the day and evening; and
6. Insurance information, if applicable.

Any additional information you have regarding this transaction, such as email correspondence, will further help us to expedite our investigation. Solving these cases helps us continue to offer PayPal as a secure and cost-effective payment service. We appreciate your cooperation and assistance.

PayPal Account Review Team

--I replyed to the email with information, after 5 business days I called the toll free number (they were suppose to up-date me within 5 days) and was told there was "the possibility that the card used to pay for the item was stolen" and the customer service rep couldn't discuss it any further. When I mention that I spoke with the buyer of my eBay item and she married and forgot to change her name but signed other PayPal card receipts with her married name. Because of the this PayPal locked her account, she contacted PayPal and her account was unlocked. When I told the PayPal rep this, she said, "Well, that's great, put she can't release my money until the investigation is completed, even though they released her account (duh, doesn't make sense, release owners account but hold my money, am I missing something????).

My advise to others, DON'T USE PAYPAL, Seller Protection just doesn't exist, I will not use PayPal, even it means losing sales, so far I'm $510 in the hole (not including their high fees).

So this is the first problem I have had with paypal and I am sure it will last a long time to settle. Last night I had a bunch of sales that ended, I was paid by 10 customers, 2 hours later my account is limited because of suspicious activity reported by buyers of mine. The list of customers they wanted was the listings that ended just a couple hours earlier. Like they reported any suspicious activity to paypal, they just bought the stuff. They are thiefs plain and simple, they gave me a case id# that is not even valid, I typed it in thinking I was drunk but nope I got it correct so I called them 5 times today and they just gave me the run around on it, oh must be something else, what like you wanted to lift the money in my account cause your company is corrupt. I have very little complaints against me in the year I have been selling on ebay out of the 760+ positive feedback I only have a couple negs to go with it, same with paypal, the last complaint I got was some cow wanted her umbrella 2 days after I shipped it, duh read the listing fat cow it says 6-9 days to ship from canada so she filed the complaint against me so she wouldn't get screwed. That was back in july and nothing since until now so they can try this again on another person, if they don't release the funds after all the stuff that was purchased last night and shipped today I will sue those friggin morons. Good thing my dad works at a law office. Get a merchant account, the only way to shut them down is to stop using them.





Put item on Ebay. Shipped item day after recieved PayPal Payment from confirmed customer. Customer got product in good condition. Afterwards, asked for a discount (2 weeks after transaction) becuase itwas going to be to much to install onto is car (sold used JR supercharger for Civic). I explained to customer -no. It was put up at a price which he agreed to pay, other people were willing to pay a few dollars less than what he won at -no.
Customer stated fine, I will charge back my credit card. My reply, fine, but well you have them on the phone, make sure you tell them you are doing this for fraud reasons and you have the product.
Well, customer did just that. They must of spoke with credit card company, stated in full they had the product as it was advertised, shipped within reasonable time -only issue was installation cost of product were going to be to much. Credit card money gave him back the money, PayPal hit my account, and charged me ontop of it a $20 fee on the next order which I had the put money into the account.
See, I do a few transaction of $1000-3000 through PayPal, so the just waited until my next sale.
I supplied all documents showing item deleivered and signed for by card holder, and all our emails back and forth -End of story -I am out $1500 and they don't even make the customer return the product?

First off all sorry for my English, I will try to make myself clear. I really like to know if anyone ever had his/her account restored after been limited? My account has been limited since Aug. 11 and I still got over $800 in my account. I've been asked for additonal information again and again and again,

First they asked me to confirm my location, credit card, SSN etc.
then they asked for detail information (their famous 6 listed questions, those people who had the same experience should know what I am talking about) on the transaction that cause my account been limited.
then they asked for my invoices to customer.
then they asked for invoices from my supplier.
then again back to 6 famous questions on each single transaction shows on my account.

Is this an endless game or what? I know paypal has an auto email system. The emails I got are from different female names like Lisa, Rebecca, Sheryle etc. with no last names, I guess they are randomly picked up by system? It will cost them nothing but I really don't have time and efforts for this game.

I am from China, and I always had an impression that the United States is famous for its reliable system of laws. Is what paypal did to us illegal?

Definitely gonna tell everyone I know not to use them.

My account was limited since Sep. 2005 and i was not able to use the money.
It all happened when i was trying to pay for something through paypal.
Now, the system ask me for a credit card and utility bill. I have no idea how i can do this since i am not a card user nor do i know how to fax to paypal if i am not in US.

This is totally crazy. Any help or comments pls help...

I have been ripped of 3200 USD as a buyer. I have gotten 2100 refunded because I used my business credit card. The unfortunate part is that I used my business checking account to draw the funds from, for one of the transaction. The bank stopped payment and paypal had to return the money. What they did in return was freeze my account and gave me a -1100 dollar balance. They keep sending me emails telling me to replenish my account. I keep tellling them to go.......... I did recieve one email from paypal that stated the negative balance was only an accounting formality. They told me not to worry, that they would not tap into my backup funds to recover the money. I keep telling them to go after the sellers account for their money. Their excuse for the negative balance is that my bank canceled payment on the 1100. They stated that the funds never made it to paypal and they had already paid the seller. Ya right! I am not going to unfreeze my account by signing again with a new password and username. That is all I have to do to thaw out my account, according to paypal. I will leave my account in that state for eternity.
Are they going to be able to take the money from my accounts I have verified, to correct the negative balance?

Anybody who can advise- please do!!

1.Limited my account and frozen my funds( 850pounds) from which are 2 payments for 2 items which customers are expecting. Which i can neither withdraw nor refund( account limitation). It would be ok, BUT. Paypal wants proove of postage to some other customers and THE LAST 2 AS WELL!!! Whom i cant ship the items as I CANT WITHDRAW MY MONEY!! My faxes are coming back with the same point*your proove of postage shows us that some items are in delivery process so come back when they have been delivered!".
Can anyone advice how my buyers can get their money back??? ASAP?

2."As well i have to verify bank account which doesnt exist anymore( has been opened and closed later on). I ve wrote a fax to them regarding this matter but only automatic response getting bacck "pls provide us the provement of that account blah"


2 years of experience, numerous times verified. that s been a last one..

Hi, I have posted several times. I need more good ideas to fight this huge company. The dollar amount I am fighting for is $2,203.00!!! Please help me. I filed with the BBB, the Attorney General in Nebraska and California and the Federal Trade Comission. What else can I do???

I was just talking to paypal before finding this site. I was practically crying trying to get explaination on what is happening on my account. Paypal froze my account after using it to pay for a merchandise ($1226.00). After they withdrew the money from my account, they sent me an e-mail saying the funds were fraudulently used. The seller did not get paid and I cant ge't my merhandise nor my money back. I called paypal a few times, did what was told to do. My last step for getting access my account (as they say) was to email my bank account and credit card statement and drivers license. After a week, I haven't heard from them, so I called again and this time demanded to talk to a supervisor who told me nothing different from I have already been told by the agent whom I spoke with first. I have my fax confirmation that it was sent successfuly, but paypal claimed they did not receive it and I am to fax it again (I am not sure I want to fax it again). Someone in paypal now has my account info.
All my accounts that were paid thru paypal were now sending me email saying that the payments were reversed by paypal and that my account is unavailable.
Has anyone actually won their battle with paypal? If so, how did you do it. I am seriously thinking about seing my lawyer next week. Any suggestions on how to approach this mess?n I need some advise, tell me where to go, what to do. I want my money back!!! I want paypal to pay for what they do to their customers. How do we tell others what is going on. Someone like me who was not aware until I stumbled upon this web site (but was too late).

I must be missing something. I came through a link to this site out of curiosity. Any company as big as Paypal/Ebay/ (all one now) is, has to make mistakes. They have PEOPLE working for them!
I have used Paypal for over a thousand transactions since the year they started and haven't had even one problem except from the fraud spammers and their "almost" Paypal messages. They did take their number off the site for awhile, but as I had logged a complaint against another member prior to that, they emailed me a contact number. I have even had them refund several amounts , two quite large, when the seller lied and disagreed with me, just on the basis of copies of his emails to me. It's too bad everyone couldn't have had my luck I guess. Good Luck in the future!!
Ebay, well, I have done over 3000 trades and only the buyers/sellers have screwed me EXCEPT when Ebay started only counting a single feedback from each discrete user. I have a hundred or more from several repeat customers. They all dissapeared! I went in one daay from 2700+ to 600 something! THAT, I resent, otherwise I have had problems but not of Ebays making. (that I know of). is another matter. Ebay bought them (yes, they were once seperate), but didn't give them much training. I constantly have inventories lost, sell stuff and they put it back in my inventory then give me hell because I can't deliver it twice, etc., ad nausuem. Them I watch like a hawk, but the others, well, I guess I will say a couple more thank you prayers at supper tonight! Luck all!

ok its been 4 months since ive logged into paypal and i know i forgot to send a lot of people items that i owed on ebay.. and now paypal has been emailing me telling me that my account is negative and i need to pay them back

this is the email i got is it possible?

This letter confirms that we have not received a response from you to our
numerous communications relating to the negative balance in your PayPal account.
Sustaining a negative balance is a breach of PayPal's User Agreement. As of the
date of this letter, the amount due and owing of this account may include
accruing charges, attorneys' fees, and other charges as provided by the PayPal
User Agreement (the "Agreement"). Finance charges continue to accrue on this
account to the extent permitted by the Agreement, federal and/or state laws.

Please send full payment to PayPal within one week of this letter by adding
funds to your PayPal account according to the instructions below. If we do not
receive payment, we will be entitled to file a lawsuit against you for
collection of the debt. It is also possible that we will refer the matter to an
independent collection agency so that they may pursue the debt on our behalf.

As per the terms of our User Agreement, your account access has been limited due
to your negative balance. You can regain account access by adding funds to your
PayPal account, in at least the amount of your negative balance.

I sold an item on Ebay and the day the echeck cleared for the item they "limited" my account. This ahppened on the 5th of this month. There is over $2,000 in this account. I have reported to the BBB. Don't know if that will get anywhere or not. Any ideas?? The reason they gave me for limiting my account was that they needed more information to ensure the security of this account. I complied and sent them the requested info the same day. They had me confirm my location. I did this. They said they would get back to me within 3 business days. Today is the 6th business day. I am worried. How can I fight this? Please help!! I have emailed them numerous times and each time I get the same "form" letter that answers NONE of my questions. I am not suprised by what I have read here in this forum. I really need some ideas here. Especially from those who have sucessfully had the limitations removed and money returned.

So this was my first time dealing with paypal. My boyfriend was in Las Vegas and he left me his paypal card with $217.00 for food and gas. Well everything was going fine until the 3rd day. They froze the account because of suspicious activity. I found out it was frozen after eating dinner at Steak n Shake and they wouldn't take the card. So my boyfriend called them and said everything was alright with the usage but they still had it frozen. I was left with no money for 2 days. When he got back he went to transfer the funds into his bank account, but it said he had a negitive balance in his paypal account. They had double charged him for every transaction I made. He got that fixed the next day, transfered the remaining amount into his bank account and we'll never deal with Paypal again.

Been an Ebay member since 2002.
Have used paypal with great success for 2 years.
My Ebay feedback 100% positive - no complaints ever.

I am an award winning filmmaker and have been traveling all year to work on commercial shoots in Colombia South America, like MARIA FULL OF GRACE and ROSARIO TIJERAS, so I use my ATM Paypal debit card all the time for withdrawing funds from the local ATM. I keep my paypal account with funds transfering more when it gets empty.

I use paypal to make purchases on Ebay regularly. In the last six months all my customers have been wiring me the funds into my account since each item I sell is around $5000 + on average. Occasionally they will use paypal if they are okay with the fee I charge for using it. But haven\'t had a paypal payment of any large amount since March, I think.

So the only two payments I have received in the last couple months for my paypal account are from a $60 item which was paid, shipped and positive feedback already left on Ebay.

The other was from a client in Asia who sent me $208 straight from his paypal account for some parts he needed out my wharehouse.

So other than withdrawing from an ATM machine in Colombia which I have been doing all year long, what other reason do they have for locking my account? I can\'t even log into it as of now. I\'m locked out completely, so can\'t see what else is going on. They limited it first then the next day locked it. I managed to see how much I had and some other important weird stuff paypal has done that I would not have found out about had I not logged in the same day they limited me. First realized I was limited when I went to pay for some Tanita body fat weight scales at at checkout my card was denied. Logged into my paypal account and seen that I had been limited because of Unusual activity with one of my credit cards linked to my paypal account. I don\'t even use my credit card. All I use is my ATM paypal Debit card to withdraw funds from the local ATM and buy gas and groceries and things I need online.

I got the generic email about me being high risk and how they\'d like to part ways with me without being disruptive to my business. Cancelling my darn paypal use is pretty disruptive. I had about $800 in the account when they closed it plus another $250 they reversed without my authorization.

Without my authorization they reversed two payments made into my account. There were no claims or complaints made against me, so why on earth did they reverse $60 for an item that has been paid for, delivered, and positive feedback already left on Ebay. And why would they reverse the $208 to my client in Asia when not one of us has requested this. I also had $2000 in transfer scheduled to be in my paypal account by October 17. I doubt they will reverse that. Probably will hold on to it. Even though their excessively long sign up agreement states they can keep the funds for 180 days for credit chargebacks, they should have no reason to do this, since it\'s been over six months now that I last received a large payment on paypal. There is nothing to chargeback. The only two payments have already been reversed without any authorization or requests. It\'s a good job too that I have been persuading my customers to send me bank wires instead, because they automatically reversed all of the payments made within the last 6 months regardless of if they have already been shipped and positive feedback left.

So I can\'t understand why these two payments made last month were automatically reversed to the buyer. I can only imagine what a mess it would be had I been receiving many paypal purchases on these items of which I sell from $4000 to $8000 every month. Since they have automatically reversed any payments made into my account in the last 6 months. Jesus. It\'s ridiculous. Called thier customer support. Had to ask to be transfered to a supervisor since the clerk was an automoton that said nothing could be done. I had to wait six months to get my money back and that that was it. She offered no help. Nothing. In short words told me tough luck and treated me as if I had commited fraud on the account. She said they can close me down whenever they feel like it for any reason whatsover and do not have to tell me why. I got the Supervisor guy called patrick at extension 6237. They never give out last names at paypal. Wonder why.

This Patrick was much nicer and actually listened to me. Of course I was polite all the time although the first woman\'s attitude almost blew my cool. So Patrick went out of his way to make a report to the department to look into this. My sales are for big items. Even he realized what a loss it would be if I couldn\'t use paypal anymore. Since clients do ocassionaly use paypal to send funds. Patrick did not know why my account had been closed either or why the two payments were reversed. My Mom\'s paypal account was also closed. She comes to visit me and used her ATM debit card too. Other than that no activity on her card other than withdrawing from an ATM. All Patrick could say is that someone somewhere in one of their departments (that I cannot be transfered to) considered our accounts a high risk and so they have shut me down and have so far limited my Mom\'s account. Patrick said he would make them aware of my situation and remind them that I am in good standing. He still couldn\'t tell why the account was shut down. I mentioned I have been making Atm withdrawals in Colombia. That Perhaps they did it to protect me, then their automated system messed up with some bad judgement. If they don\'t want me to make ATM withdrawals when I travel to another country, then they should say so. I would be happy to comply as PAYPAL has made my life a hell of a lot easier these past two years.

Just three months ago a seller on Ebay decided to rip off 50 odd clients or maybe his account was limited. Guess I\'ll never know, but I think it was a crook since he never emailed me to explain why my item had not been shipped. And Ebay had shut his account down with 50 negs appearing all in the same week. This seller had 100 + feedback. Anyhow paypal reimbursed the $200 for a digital camera I would otherwise have lost. So I really have no complaints with them. If they could just lift the limit on my account. If the person who made the darn decision to do it could use some common sense and realize I\'m a good seller and there\'s never ever been a problem or a complaint made against me, I would be happy to return to using paypal again. Although after this experience even If I do get my priveleges back I would be afraid of using it again the way that I have. Who the hell wants thier money in paypal limbo for six months. Makes no sense really. I make plenty of money for Ebay and paypal has had a nice share of fees too. Plus all the fees they must collect from all the purchases that I make.

Have never had any problem until now. Will post here whatever happens. I have sent at least ten emails to them. It\'s hard to send them one since they tell me to send an email to yet all I get from there is the email returned asking me to email elsewhere but don\'t tell me where. So have to go through the help section on the website and click on the contact us link. Pick a problem from the list that most closely resembles my issue which is none. I sent one to Ebay detailing about how this will affect my sales since most buyers look for paypal on my listings. Even the ones that opt for a wire feel more comfortable knowing thay they can use paypal if they wish to do so. But the worst is Paypal reversing charges on items that have positive feedback already. Since paypal is owned by Ebay thier mistakes could get my Ebay account closed although I doubt that will happen. Most people who have had ebay accounts closed are because they have not shipped the items that were sent to their limited account, thus the negative feedback gets them closed. Worse case scenario I can just use a relative\'s paypal account should I need one.

Will definitely have to look into getting some kind of merchant account to take debit and credit but worried about those chargebacks someone can easily make. Plus these merchant accounts are expensive. Most payments are sent to me via wire anyways. Only the occasional credit card would be taken. Would not want to pay a monthly fee for that. Anyone know of anything that can be used to take credit and debit cards that is low cost like paypal? one that doesn\'t require current paypal users to sign up for yet another paypal type service just to send me the funds.

Paypal was just convenient. And most people have a paypal account. Really sucks what has happened. I love paypal but this just sucks.

Alright, Now I know why paypal is so hated, they make it so frustratingly hard to get help. on the 13th of october my paypal account was limited due to possible "third party access". They think someone else was in my account, and purchased some 50 dollar flash drive from newegg (which is now on its way back to the manufactury, thanks paypal!) Not only that, but they had my newegg account suspended. Ive got 700 dollars in my paypal account, that i can no longer access.

Sure all I have to do is use their 'easy steps' to gaining access back to my account, lets see here..
"Confirm your social security number" - Odd, I never remember giving it in the first place, what are they going to confirm it against? Tried my SS # anyway, didnt work.

"Enter Expanded Use Number for Visa Card XXXX-XXXX-XXXX-7209" - Yeah, I made the paypal account over 2 years ago, and i've since lost I think either 2 or 3 cards since then. Therefor i cannot confirm the number. none of my cards end with 7209.

Next, they want me to fax tons of crap to them, IE:
Valid photo ID
- Proof of address

* Utility Bill
Recent statement for the Wachovia Bank Account
Recent statement for the Visa Card

WHY? WHY SO MUCH? This is so much of a hassle to me, it honestly is.

Oh yeah, isnt it great, they want to make an automated call to my home to confirm location. Ok, great. Oh wait, I moved last month! no more old number. Even better, they have a edit/add phone number. but wow, yet again, it doesnt show up even though its added. only gives my option for my old house. sigh..

Does anyone have any advice for me to get my account back? I just want the money out of it, then no more paypal for me.

My account got limited a few weeks ago and i completed all the steps and resolved all cases filed against me but now they are saying they wont give me my account back until i fax them my supplier contact info with phone number and they also want the receipts for the items i purchased. What is this bs about? Why in the world would they need this? I dont have any receipts or supplier info becuase I purchase all my goods by cash and most of my stuff is purchased at a a flea market from a bunch of different people. How am I supposed to get around this?? I dont even have a business account for this. This is crap. What am i supposed to do?

My paypal account was recently suspended due to a number of complaints, as I was selling non-tangible goods, and buyers were trying to get their money back once they have received the items in question.

Paypal asked that I resovled all complaints against my account, and then faxed in supplier information. I resolved all the complaints that were against my account, and then explained my situation as to why I couldn't fax in supplier information for *suppliers* I didn't actually have.

Paypal then agreed I could skip the faxing in supplier information, and my account was submitted for reinstatement, but it was denied and Payapl said, its time we *parted ways.* This email comes several months after being first suspended.

I have explained to them thatI have done nothing wrong legally, but they say that i have a no-appeal suspension, as I am too risky for them.

As I have done nothing wrong, is there anyway I can threaten them legally into reinstating my account? Its hard to just *part ways* with a company that has a monopoly on the online payment industry.

On a side note, there is still 50 UK pounds in my account(just under 100 USD), which Paypal says they are going to hold for a period of 180 days, in case there are any future chargebacks. Are they allowed to do this as well? Surely the money is in my name, therefore its my say where i want it, and to be honest, I don't want it lying is a dorment Paypal account.

Any advice appreciated.

My account was limited without any reason (no disputes, no chargebacks). They want me to fax invoices for all items I was selling! This is ridiculous! I don't keep all invoices for items I bought months ago! My question is - will I get my money at least after 180 days? Or paypal will steal them forever?

I asked my sister to help me to clear out some remaining computers since my ebay account was suspended due to the use of some 3rd party photos (Even though everyone at ebay is still using them. She had been keeping the money (about $15K)for about half a month. Last week, paypal notified her of the account limitation. After completing the following required to lift the limitation according to paypal:

To Do Date Limited Required Response Status Action
Aug. 17, 2005 Fax documentation Information Submitted
Aug. 17, 2005 Confirm Location Information Submitted
Aug. 17, 2005 Update your phone number Information Submitted
Aug. 17, 2005 Provide Business Information Information Submitted
Aug. 17, 2005 Provide Proof Of Shipping Information Submitted

Paypal sent another email:

We're sorry, but your account access limitation cannot be lifted at
time. We need more information about your account before we can restore
full access to your account. Please complete the steps below so that we
review your account further:

Fax copies of the original bills of sale or invoices referencing your
purchase or acquisition of the items you are selling along with the
and telephone number of your supplier(s).

If you are faxing information, you must use the cover page provided by
PayPal. The cover page contains information specific to you and using
ensures that your documents are routed and handled in a timely manner.
print the cover page, log into your account and click on the fax
link on the "Limited Account Access Details" page.

Now I am very frustrated since it looks like endless. And paypal is acting beyond where the laws allows. The ask my sister to prove she is not guilty, otheriwse, she is. What can I do?

operate a website and had been using PayPal for a couple years so visitors of my site could give me donations... and in return I would send them (as long as they were over 18) small samples of a totally LEGAL herb called Salvia Divinorum. Seemed to be no problem -- Salvia was sold and being paid for, using PayPal, on many online vendor sites and at Ebay as well.

Then one day I used my PayPal debit card, or tried to -- but quite accidently entered a larger amount to withdraw than I had in the account. Within a day or so I noticed (online) that my PayPal account had been frozen and I was simply OUT OF LUCK! Eventually I did manage to withdraw the remaining funds from the account, but was informed I needed to take the PayPal logo off my website and was hereby forever more banned from using PayPal -- becaude according to them, I had violated the User Agreement. How it that? Because of my collecting funds for Salvia!! I didn't understand, and tried to find out why and how this would be so; after all, there had been no problem for others doing the same thing...

Even after talking to them on the phone and multiple emails, I still don't know why I was singled out for this kind of treatment. They insist it was because Salvia is in the same league with pot pipes, syringes, cocaine, dope in general, etc, I suppose -- and that if I wanted to, I could report all the other thousands of sites that do the very same things I had done (or more!) and that they would shut them down, too. Yeah, right. Salvia is STILL be auctioned on Ebay, along with a lot of other wink-and-nod drugs being touted as "incense" or "paint base"... and being paid for through PayPal. Arrrugh.

I still am using the Amazon Honor System to collect donations on my site, but also have put one of the NO PayPAL icons on my site to alert visitors that there's no love lost when it comes to PayPal and myself. If anyone has any advice/options/consolation etc, I'd be happy to hear it!

It's been about 2 years since this happened to me, but it still seems like yesterday. I wanted to share with you guys what happened.

I had just started up my small business selling computer parts on Ebay. Everything was going really really really good. I was making so much money, I was about to quit my full time job to make this my full time job. Ballpark... I was making between $5k - $10k monthly after taxes.

It was in June of 2003 when an individual sent me an e-mail requesting 35 Video Cards. He had 265 Positive Feedback's so I figured he was lagit. The only issue was... he was in the UK. I didn't ship to overseas... but considering he said he would pay twice the shipping price... I decided to do so. I mean heck... free money is free money.

So I go and purchase the 35 video cards and ship out USPS Priority mail to the UK. Now mind you... I put in the description everything about the item for customs. And not only that... I took photo's of each item, with it's description, CD's, Cables... ETC. Everything was lagit and sound... so just in case anything happened... I had my butt covered.

One week later... I go to my dealer, and when i try to use my paypal card... it was declined. I couldn't understand why when I had PLENTY of funds in the account. When I go online... My account was suspended because low-and-behold... the guy I sent the items to in the UK disputed the items saying they were not what he requested. So I sent Paypal, not only the dealer receipt of the items, but also their photo's, tracking number, etc... And I even contacted Customs in the UK and got them to write a letter saying that all items in the packages were as described. I sent all this information to Paypal... and what responce do i get? An e-mail saying they have reviewed the information that I sent them, and it was insufficient. I kept asking them what they wanted... and they would ask for the receipt from my distributor of my purchase.. So I faxed everything over to them again, and got the guys mailing address and overnighted a package to him showing the images and what not... and again... they said the information was again not sufficient.

So what happened? They closed the Paypal account and refunded the individual his money. Ever since then... I don't do paypal. My friend told me to be careful using them.... and i didn't think anything would go wrong... but low-and-behold.... It does. So now... I was out of a business... and having to still work a 9-5 job... when I would have been standing on my own two feet... making almost 100k a year being 23 y/o ... and paypal takes it away from me...

OK, I have spent all day working on this... I have read and appreciate to all of yo who have posted here. Thankyou for all your experiences!! Through my reading today I have found several wonderful ideas to fight back against PAYPAL. I have hopefully put them to good use. My complaint with PAYPAL is in the amount of $2,203!!! This is no small change to me. I will fight this tooth and nail.
Today I took the following course of action...
1. I filed complaints with 2 BBB's in California. One in LA and the other somwhere up near San Jose where Paypal's business address is listed.
2. I filed complaints with the Attorney Generals office in California and Nebraska.
3. I am preparing letters to be sent registered mail to PAYPAL demanding that my account be closed and a check sent to me via registered mail for the full amount.
4. I have changed my ebay auction lisings and no longer accept PAYPAL payments of any kind. (Not sure if I can really do that on some of them as they already had bids but I apologized for the inconvenience and stated that if any bidder did not want to pay using alternative methods I would release them of their obligation.

Have you got any more ideas to fight this??? I am open to any ideas that really work.

My experience is this: I sold a trailer on ebay. Sold for over $2000. I required paypal deposit within 24 hours. The buyer complied. Then paid the balance using an echeck. I waited excitedly for the echeck to clear which it did on Oct. 5th. Problem begins here. The same day it cleared PAYPAL limited my account stating that due to recent activities it was necessary for them to gather more information in order to ensure the safety of the account. BLAH BLAH BLAH...!!!
They said they needed the following information... To confirm bank account( which I had already done so it showed as being checked off on their little list of things to do) And the second thing was to confirm my location. I did this immediately. Within 15 minutes my location was confirmed. I was sent a message which stated that I would receive an email from their accoutn "specialist" to inform me of the decision. Today is the 6th business day and I have received nothing from them but standard form emails in response to my efforts to get more information. They answer nothing. I am bent on fighting this. I appreciate any help anyone here has to offer. I will never use them again.
I dont know what this is about because they wont tell me. I dont understand because the echeck cleared. By the way the buyer already has the trailer now so I have no money and no trailer.

My husband had an account in U.S. funds in Canada. He used this for paypal, paypal rejected it and the payments from buyers somehow disappearred. They told us they would transfer all pending payments to the new account. Opened new account in Canadian dollar and no money was transferred into this account. (The first account should of been fine (it is paypal's law which is not true, you can transfer US funds to Canada, it is only there law so they can charge you fees, they told us it was US law) I have been fighting to get my three payments from buyers for months now and nothing has been done. I have lost this money somehow, they told me it disappearred into thin air. Nice customer relations.

Hi everyone just my unfortunate story the other day while i was pulling an all nighter at my computer I got an email from paypal so naturally i went to check it out and this is the letter i recieved...........<<<<<<We are hereby notifying you that, after a recent review of your account
activity, it has been determined that you are in violation of PayPal's
Acceptable Use Policy. Therefore, your account has been closed.

You will need to remove all references to PayPal from your website(s)
and/or auction(s). This includes not only removing PayPal as a payment
option, but also the PayPal logo and/or shopping cart. We thank you in
advance for your cooperation. If you have any questions, please
the PayPal Acceptable Use Policy Department at

PayPal Acceptable Use Policy Department
PayPal, an eBay Company

I am sure lots of you have gotten this same message my complplaint of course is 1 week before this, I recieved a payment for $75.00 and it was ok at first but after a couple of hours it ame up saying it was being held for an investigation pending or whatever and to keep doing buissness as normal and like a fool i did now of course i called them and made sure everything was fine they had told me it was just a frodulent credit card most likely and all payment recieved will be held but available still when there investigation is complete and it should be wrapped up in no longer than a week so yes i keep taking payments and getting more and more in there and well just the other day i get this letter and one other one saying all those funds that where being held will not be available because of using them in violation of there terms.... now im mad and call them well mad wasent the word for it i cried most all day and the next after i got off the phone with someone thats talking to me like a robot redaing froma paper i guess , anyways after all this he sends me a email today <the guy i was talking to > and in this standerd bull crap email its saying please let me know if i answered all your questions and well i'll post this also because for me for paypal to throw it back in my face like that it was the last straw and now here i am .....

On 10/11/2005, I spoke to you regarding your PayPal account. As part
of PayPal's
commitment to excellence, I want to make sure I met your needs during
our conversation.
Would you please take a minute to answer a few questions to let me
know how
I did?;user_id=EBBA8697-A729-4435-A6D6-35D703B5A467

To respond to our survey, please click on the web address above. If
that does
not work, please cut and paste the entire web address into the address
of your browser.

NOTE: Please respond within five days so that you can provide timely
to me. After 5 days, this invitation will expire.

Thank you for your help!

PayPal Customer Support

** An important note from the survey vendor **

PayPal, as the party who controls the data collected in this survey,
may use
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BELIEVE ME IM GOING TO FILL OUT THIS SURVEY TO THEM <<<LIKE IT'LL DO ANY GOOD >>> BUT IT WILL SURE MAKE ME FEEL BETTER.. They robbed me out of alot of money that i will never see and im sure going to thank them in my own special way :)

HI all

We have detected suspicious activity regarding the receipt or withdrawal of

For your protection, we have limited access to your account until
additional security measures can be completed. We apologize for any
inconvenience this may cause

THe problem is i received a payment on 6 oct 500$ USD

Then I have sent a payment on 7 OCT of 500$ to some one else

and after 4 days my account got limited on oct 11

The question is : the guy who i have sent 500$ did he get his money? or is it hold?

My paypal says that the transactions are completed.

And have a balance of 5 euro left. That means he got his money or what?

Who can help me with my question thx



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