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.

SELLER PROTECTION POLICY: I don't think you guys at Paypal are adhereing 100% to the policy rules statement and are 'rubber stamping' many false claims by buyers at the sellers expense. Bad buisness, after all aren't the ebay sellers who use your service footing the bills?

PayPal is evil. Get out before you get this and they hold your funds for 180 days like mine:

Your account access has been limited for the following reason(s):

Jan. 20, 2007: As part of a standard account review, we obtained a business and consumer credit report from the agency listed below. The results of the report contributed to the decision for account closure. The credit reporting agency played no part in the decision, however, and will not be able to provide you with specific account closure reasons.

You have a right under the Fair Credit Reporting Act to know the information contained in your credit file and to dispute with the credit reporting agency the accuracy or completeness of the information. You can obtain a free copy of your credit report by contacting the agency within 60 days after receipt of this notice at the address below:

P.O. Box 740241
Atlanta, GA 30374-0241

1= Why isn't there more options than the two listed for buyers requesting chargebacks? Too generic of explanation for Sellers. There should be a way for buyers to input personal notes of why they are charging back in addition to the two, or have more options.

2= Why isn't there a way for a Seller to dispute a buyer? The only way a Seller can dispute a chargeback is to disagree with the chargeback, and if the "investigation" is closed by payapl, when the seller contacts to repopen? It isn't reopened and does not show up as being disputed in the resolution center, seller just keeps getting generic emails about a 75 day process, but no explanation of what is being done, who is being contacted, the progress or anything.

These things MUST be changed.

If anyone is in San Diego, East County area within the East County Regional Court jurisdiction, please contact me if you feel you have been wronged by paypal, NOT EBAY, just paypal, and you have all documentation. ASAP.

Ok here is my beef with Paypal. I have only filed a claim once or twice before. When did they start this $25.00 processing fee??? I bought a coat on Dec 13 and total was 30.75. About 5 other people purchased things from this seller on the same day. None of us recieved our purchases. Now they are an unregistered user and we are out our money cuz if we escalate the claim they are gonna take $25.00 out for doing it. Its totally unfair that we have to lose our money cuz this guy ripped us off. The seller openly states he never sent items but just won't return money. I think if there is proof seller didn't send items we should not have to pay the fee. Not that anyone should anyways.
I'm afraid to buy anything now cuz there really is no protection anymore.

to whom it concerns...tiring of the generic, pointless emails that pay pal sends, I contacted them on the phone. When an honest seller, like me, takes a risk and sends an item to an unconfirmed address...when the scammer receiving my goods makes a claim, not only do they get their money back, but I also get charged an extra $10 by pay pal. Ain't that sweet?

High volume PayPal merchants should have a personal contact person who is responsible for them. Also, customer service at PayPal presently has a wide reputation of being regularly rude and unhelpful. Attention is sorely necessary in this area. I personally was this past week mocked by a supervisor when simply asking for a shipping refund for a mistake that was PayPal's. After losing hundreds of dollars this month to PayPal on multiple errors on their part I have decided that becoming a MasterCard and Visa merchant directly is not only wise but necessary. I still have been unable after hours and hours of phone and email correspondence to remedy the latest mistakes and am unable to continue to chase after a few hundred dollars that no one seems to care about but me. I am writing off our losses, and moving on. I look forward to the day when eBay begins to step into the management of PayPal in a more direct way and the present ineptitude and arrogance at PayPal are brought more into line with what generally eBay has been about, namely a concern for the customer and excellence.

You people need to straighten up and start to level with people. You cannot continue to exploit the naivete of young Americans (I am old, I know when this is happening... so take this as my word of caution).

Your practices of deliberate and wilfull non-disclosure of risks accepted by either buyer or seller agreeing to your "service" have been intentionally deceptive.
Straighten up, or it will come to haunt you!

It would sure be nice to know if Pay Pal really does something about the complaints or just comes up with a big LOL. Another thing that would be nice is a seller revolt against Pay Pal because of their off center rules. At least make it fair for everybody and don't just yank the money from the seller because a buyer is crying, they most likely didn't even read the listing correctly. I got so ratteled because this happened to me this week ($400+)that I pulled my listings, except for the ones with bids, and I am going to re-list without Pay Pal on most of them. Why pay them to screw me?

I am no longer using paypal as my bank account was wipe out today ... one reason I was told it was a fraud that could of been set up long ago and just now hit .. and it takes 10 business to do a fraud invistation .. even though i notified them as soon as I saw a charge on my account and saw many other charges ready to hit in my history that was not mine ... I did everything i was told to avoid hitting my bank and it did any way . I have used paypal for 6 years but when someone takes all my money what little i have and then i am told takes 10 days to correct how am I suppose to live eat and pay bills ... where is the customer service in that ... I consider to be a good customer I buy and sell i was using paypal alot but not any more ...paypal you have lost this customer and I feel I have been robbed mugged and neglected ,,, not happy customer

Well, since someone finally brought up the paypal agreement, here are some questions I brought up to the CA when I received Paypals generic response as to how I am not entitled to anything since my claim for over 6 grand my buyer is taking from me didn't fall within their "policies":

RE: Paypal’s chargeback “policies” and Merchant advertisements

Paypal misleads Merchants, has lied to me several times, has impeded me the opportunity to fairly defend myself against a fraudulent chargeback, has breached the contract, stated misleading information in the “policies”, has breached an implied representation, has changed their website several times over the last couple of months, has tried to extort money from me, has caused unfair credit collections, and utilizes unfair business practice.

Since Paypal keeps quoting the “policy‘s”, let’s address them.

= Why is Paypal offering Merchant services to Merchants it will never defend against chargeback disputes? No matter the company involved, per the very confusing and impossible to utilize User Agreement, if one reads the back and forth’s, the referring paragraphs, and follow all the statements, what it boils down to is when a customer files a chargeback through their own credit card company, Paypal has absolutely no obligation to assist the seller, or follow the policy guidelines they quote, the entire User Agreement becomes invalid. The buyer time limits and guidelines do not apply, and everything that happens is based on the buyers credit card company? If that be the case, per the documented emails I have received from Paypal, how can I fairly, and honestly fully fight ANY chargeback? I have no representation, no fair due process, and am not privy to any information per Paypal.

= Why did Paypal deny me a phone number and contact person, and Bank name in order for me to fairly fight on my own behalf against the chargebacks? Paypal stated I am a third party to my own transaction in several documented and printed emails, however in their own policy guidelines and I quote per the Privacy Policy, Disclosures to third parties other than Paypal Customers, Paragraph 3: “We disclose information that we in good faith believe is appropriate to cooperate in investigations of fraud or other illegal activity, or to conduct investigations of violations of our User Agreement. For example, this means that if we conduct a fraud investigation and conclude that one side has engaged in deceptive practices, we can give that person or entity's contact information (but not bank account or credit card information) to victims who request it.” So if I AM a third party like they have told me now several times via email, and I have proven with documents I am being frauded, why have I not been given the information I have requested? If I am NOT a third party, why am I entitled to less than a third party would be as a direct party to this action?

Paypal defines third parties several times throughout the Privacy Policy and the User Agreement as being one who ISN’T involved in the immediate transaction. How did I become a third party to my own transaction to the point that I had no rights to defend myself in a credit transaction MY company initiated?

= If Paypal uses an outside Merchant for processing, why am I not privy to that information? And who exactly then is “fighting“ for me in my chargeback situation?

= Per the User Agreement, In the event of a Chargeback, “Paypal will determine whether they should dispute it or not“? Then the final sentence is that the Buyers credit card company will determine who wins the chargeback? How is this fair for a Merchant who has signed documentation, but the buyers credit card company has final say if the bill gets paid or not? Then why is Paypal even involved? Why is paypal even offering to represent Merchants in any way shape or form if in the end the Seller/Merchant has to abide by the Buyers credit card company regardless of documentation? Why does Paypal have access and the right to MY money if it claims to have no responsibility in the end?

= How can paypal state claims of restricting activities to members as in paragraph #9 Restricted Activities, section 9.1 , sub paragraphs e, g, and h, if it will not do so? I proved without a doubt our customer made false inaccurate statements, and mislead, that he has and continued to refuse to cooperate, and he still is continuing to attempt to “double dip” with going to other agencies to collect money from us he still has not paid. Clearly against paypals User Agreement policy, yet I am being sought after for money my customer owes? OH yea, that’s right, Paypals policies don’t apply here either, he filed directly with his credit card company, all policies do not apply.

= Per paragraph m of this same section: A user will not “Use your Account or the Services in a manner that PayPal, Visa, MasterCard, American Express or Discover reasonably believe to be an abuse of the credit card system or a violation of credit card association rules” which I proved without a doubt that this person filed these claims 99 days and 90 days after paying clearly in retaliation for a bad check he wrote us and we sued for. This person filed these claims fraudulently. OH yea again, Paypals policies don’t apply.

= Section 10, paragraph 10.1 of the same agreement: “Your Liability. You are responsible for all Reversals, Chargebacks, Claims, fees, fines, penalties and other liability incurred by PayPal, a PayPal User, or a third party caused by or arising out of your breach of this Agreement, and/or your use of the Services. You agree to reimburse PayPal, a User, or a third party for any and all such liability.” Our customer, is clearly in breach of this rule, among others, yet we are being pursued unfairly by credit collectors? The answer I got in return by Paypal in writing, is because the buyers credit card company denied our dispute? Then how can Paypal make statements threatening to hold people accountable, like what happened in my case, and then turn around and say they aren‘t responsible now and does not fall in their policies? Why does Paypal even have policies if they don’t have to adhere to them? When I read the policies, I thought “great, I am an ethical business operator, I shouldn’t have any problems”. I was wrong. The only policy paypal proposes and uses when it comes down to it, is your mercy in the hands of the buyer and their credit card company, paypal is not responsible, however will handle your money.

= Section 10.3 states: Account Closure and Limited Access. If we close your Account, we will provide you with notice of Account closure and the ability to withdraw any undisputed funds that we are not holding. If we limit access to your Account, we will provide you with notice and opportunity to request restoration of access if appropriate. I have asked repeatedly for information in order to fight the Limitations and withdraw of my money by Paypal and have been denied due to me being a “third party”. I have been told I have no way to fight this unless I take legal action. The only notice I received from paypal was a notice of chargeback, and a demand to pay paypal back over $6000.00 that they refunded my customer. How was I given due process for this clause when I was denied all constitutional rights?

= Per section 11. 11.2 of the same policy: “A Chargeback is covered if it was due to non-receipt of merchandise, or an unauthorized payment. A Reversal is covered if it was due to an unauthorized payment. The Seller Protection Policy does not cover claims for Significantly Not as Described, or sales of intangible goods, services, or licenses for digital content.” If Paypal is not going to “cover” or fight for the Seller/Merchant, or give the Merchant a true real way to fight a chargeback, per the above statement, then why is Paypal involved with my money? Why is it not then referred to the buyer to take his action to court or other means for resolution before MY money is just handed over, declared guilty without due process. If paypal is not capable of fighting for me, that is not my problem, it is the buyers problem. Paypal has left me in a no win situation with them per their policies, and that is against my Constitutional Rights as an American Citizen to have such rights as to have fair representation!!!!!!!!

= Per section 12. 12.3 of the same Agreement: “At the end of our investigation, we will advise you of the results within 3 Business Days. If we determine that there was no error, we will send you a written explanation and we may debit any provisional credit that we previously credited to you in relation to the alleged error. You may ask for copies of the documents that we used in our investigation.” I have asked several times for documents used in paypals “investigation” and have been denied every single time!!!!!

= I have asked for a copy of the User Agreement as of the date I opened my Merchant Account, since it has changed a couple times already throughout this process, and have been sent a link to the current Agreement. Poor Poor generic customer service.

= Per 13. 13.1 Buyer protection program, buyers are to begin with disputes, and if those are not satisfied, then the dispute is escalated into a claim. This never happened in my case. Why? The Buyer went directly to the credit card company, so Paypals policies do not apply, AGAIN.

= Per 13.5 section e. of the same Agreement: “Dispute auto-closure after 20 Days. We will automatically close Disputes 20 Days after initiation if the buyer has not escalated it to a Claim within that time period. Once we close a Dispute in this way, we will not allow the buyer to re-open the Dispute or file a Claim relating to the transaction. In certain circumstances, we may escalate a Dispute into a Claim (for example, where a number of other buyers have opened Disputes against a seller who has failed to respond to the notices of Dispute). “ In my resolutions center no response was ever received by the Buyer after the initial complaint, yet the claim kept going? OH yea, AGAIN, the Buyer went to his own credit card company, Paypals merchant processor, Buyers employer, and filed the claim, so once again, Paypals policies do not apply?

= Section 13.10, and 13.11 If Paypal will not allow claims under conditions set out in this policy as promised, and if Paypal is going to “grant a claim under the buyer Complaint Policy” which they did initially with my customer, if Paypal feels compelled to take my money based on their own findings, if Paypal is going to outline several times in their policy how it decides “if the seller clearly misrepresented the details of an item in a way that affects its value or usability”, or for Paypal to judge cases “where the buyer is merely disappointed with the item or where the item did not meet the buyers expectations, then Paypal must be forced to adhere to their own guidelines, provide protection and proper representation from start to finish with a Merchant. Not have rights to even open a “claim”, say they are helping and investigating, but do nothing, provide no documentation to the Merchant, and offer no information to the Merchant so the Merchant has a fair shake, UNTIL and IF paypal decides to do so, “well the credit card company said so, so we aren’t going to continue the battle and you owe us the money”. This is contradictory in nature to begin a process, promise a process, then not follow through or offer alternate paths for the Merchants other than sue the very person that owes money in the first place, but pay Paypal back in the mean time so we are double reamed! Paypal should never have started the process if they knew right off the bat their “policies/agreements“ do not cover such claims, should have directed the buyer to the appropriate agency/agencies, and said so from the beginning, AND waited for the outcome of such court order or other before attempting to extort money from me. OH, yea, right, Paypal has a contract with Wells Fargo, the bank my customer works for, and they don’t follow their policies when the customer files a complaint from their own credit card company, and I wouldn’t know what those policies are in order to protect myself, and due to my “merchant provider” not protecting me, I GOT SCREWED!! But Paypal is in the clear.

= Section 13.16 States: “We will cancel claims of buyers who do not respond to inquiries regarding the claim within the time specified” , also states “you agree to provide to any requesting party on a timely basis any documentation necessary to resolve the Dispute, Claim or Chargeback.” But Paypal again, denied me this documentation, and did not cancel the claim, “did not fall within the Sellers Protection Policy guidelines“. So when does Paypal take responsibility and protect a Merchant?

= If the buyers credit card company is the one who refunded the customer, and Paypal took on the task of “representing me” in the dispute in the beginning, then Paypal needs to be retrained. With signed confirmation of receipt of goods, and the billing process being done through paypal, there is absolutely no reason for my customer to be given a refund. I am being ripped off. Paypal keeps sending ME demands for money my customer owes, sent ME to collections based on a decision they made because of their policies or lack of, not because ANYONE LEGALLY claimed or court ordered I owed.

= Per the Fair Credit Reporting Act, “You may seek damages from violators. If a consumer credit reporting agency, or, in some cases, a user of consumer reports or furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in State or Federal Court.” Paypal violated the FCRA by not allowing me due process, denying me to know contact information in order to fight the chargeback properly.

= Paypal doesn’t know their head from their ____. I received “We initially attempted to dispute the chargeback on your behalf as of 06. The buyer's credit card declined our dispute. We had no
further recourse to dispute the chargeback on your behalf, therefore, you were not contacted for additional information.” This was in response to me asking what was going on in regards to many other emails I received that made no sense, and not received until 07? This information was NOT in my resolutions center, nor was I contacted further for more information as they confirmed in the email, until after demanding to know what was going on and emailing Paypal AGAIN. It wasn’t until Paypal noted my account recently that they were looking into this again, and then they closed it two days later!!!! THEY had no further recourse in fighting MY chargeback, and yet I was NOT provided much needed information to fight this myself, NOR was I even told anything was in progress, IF it was?

= Again, I received this response when requesting a phone number, contact name, and bank name in order to attempt to fight this myself: “For copies of chargeback documentation, we would need to be presented with a legal subpoena by an attorney or a law enforcement officer. Subpoenas relating to civil matters must be served or sent to our corporate headquarters at:

Attn: Legal Dept./Civil
2211 North First Street
San Jose, CA 95131
Please note that we are unable to accept to civil subpoenas via electronic means at this time. “

AGAIN, I am not entitled to documents I requested when requesting them per THEIR own policy??

Keep in mind, in the mean time I am being pursued by Paypal for thousands of dollars they determined I owed because they lack the capacity to “fight” for me? Because my case didn’t fall within their “Sellers protection policy”? I find it hard to see anywhere in this situation where they would hold themselves accountable to their policies as they have taken the easy out and left me hanging and screwed.

Does Paypal have any idea at all the stress this has caused, the credit harassment by sending us to collections for their lack of policies? Not because we did anything wrong, but because they can’t stand by their merchants? The fact that I was input into the checks system for owing a bank money and cannot open a bank account, AND I WAS THE ONE RIPPED OFF!!!!??? But Paypal is washing their hands of this? It was very misleading to read how paypal fights and protects it’s merchants only to find out the very hard way that is not the case. I do not see how anyone can be protected by their policies and agreements if when a buyer goes directly to their own credit card company and disputes charges Paypal automatically has no responsibility to protect? Paypal uses phrases such as “Paypal does not tolerate fraudulent use of our payment service. If a users actions are deemed to be fraudulent, Paypal will take appropriate action to prevent further continuance of such action.” This is just one of many statements I received via email and my question is this: Who is qualified to review cases to determine fraud? My case is so obvious a completely uneducated person could determine our customer is frauding us. It does not appear Paypal does anything at all other than passing the buck.

This is unbelievable that an Agency, or Company as Paypal has been given rights to handle money at whim, with no guidelines, doesn’t have to be federally insured or even have their employees trained and/or insured as with a Bank? Paypal is acting as a bank in a sense, yet when it comes down to it, conveniently has no responsibility.

It is against my constitutional rights and fair credit rights to have been treated this way. I will NOT go down without a fight, and Paypal WILL lose this one. My next step? I WILL sue, and it will not be for a small amount. At this point, I have nothing left to lose thanks to them.


My experience of Paypal protection, I bought 100 roman coins from a seller in Spain and paid £98 via Paypal, a week later I received from this seller a sealed empty jiffy bag, I reported to Paypal who then insisted I get a police crime report, when I tried this I was laughed out of the police station as they said " its no crime to send a empty jiffy bag" so you now know what happened the seller kept my money and I kept the empty jiffy bag, that turned out to be some damn expensive jiffy bag.
Paypal handy for international payments but thats it.

Here is a payscam suggestion...


I am a new ebay buyer and was not aware that there was a $2000 limit on my ability to use my credit card. I hit the I agree button without reading the document. After four calls to customers service they told me this would be taken care of if I would verify my account by giving them my bank information. I finally agreed to do so and became VERIFIED today. As I started paying merchants again today, the small amounts went thru with no problems. When I got to the ones of $600 and up, they RANDOMLY blocked those charges. I checked with my card company and they had not refused any charges. Having been a merchant taking charge cards for over 27 years, I feel sure they are playing the game of not wanting to pay the fee to the credit card company. EVEN THOUGH I'M SURE THEY ARE CHARGING EBAY MERCHANTS A FEE! I refuse to have them tell me I can't use my credit card when the merchant says papal is acceptable. I have written to two merchants affected and explained what has happened. I'm sure they will probably rate me down, but all merchants should refuse to allow ebay to do this. You are paying a fee so you get paid promptly and they do not want to pay a fee to allow one to use their card on all purchases.

I WILL MOST LIKELY CANCEL MY ACCOUNT BECAUSE OF THIS. I had been buying $3000 to $4000 of coins per month from other sources and thought I had found access to a larger universe of quality merchandise. Sorry for rambling so but papal has greatly upset me and will not respond!

Paypal royally sucks! They make you, as a seller, dot your I's and cross your T's in order to qualify for the so-called "Seller Protection Policy", yet there is actually no such thing. If a buyer even contacts them, they are quickly holding the funds and eventually reversing the payments in favor of the buyer. I've had buyers return the wrong item, I've had buyers return an empty box, and Paypal still refunds them their money. We will not be accepting Paypal any longer.

A general comment about security...

Pay Pal is not secure. The latest scam is when clicking on pay now from an eBay auction and logging in to Pay Pal, a different email address appears for the seller and the funds are redirected to another account.

Also, Pay Pal has doubled the ammount of a payment and then charges a generous fee for refunding the amount.

I suggest you close PayPal. I read the complaints of sellers and while I seldom sell I do purchase items. Since I send my payments quickly I expect to recieve the items and seeing the banner that my purchase is protected leads me to believe that if the seller does not send it I will get a refund. Now that I am having to deal with a seller that did not send when I paid with PayPal I am finding there is no protection unless the seller is honest. What bothers me even more is the way PayPal avoids refunding the funds they so clearly state they are protecting. The only backing up PayPal has done is to back away. After telling me to WAIT and let them clear the problem I see the seller has packed up his funds and left town. Now I am reading in other places; the common method of PayPal is to refund ONLY when there are funds in the sellers account. Since I waited as PayPAl requested I am left out on the cold. Pay Pal stated they e-mailed the seller and are waiting for a reply. The seller had until 03/15/07 to reply or the matter would be resolved in my favor. Today is the ninteenth and I have not even been able to get PayPal to respond to my e-mails requesting status. The resolution center still list my request as waiting for response. I am ready to send letters to the BBB and attorney general asking for Pay Pal to be banned from transacting any type of business in our state since they boldy post the PROTECTED BY PAYPAL on the auction site as if it was valid. So you can delet this is you want but if you want to improve your service then stop giving page after page of things that are needed to qualify for the promised protection and then hiding when someone wants a simple answer.

Hey paypal ! I want my money and i want it NOW !!!!!!!!!!!!! 285.00 !!!!!!! You rip off artists ! + the money you ripped me off on 4 years ago ! I had 165 positives in sales before some one said they got a box of rocks instead of what i had sent. BULLSHIT ! something happened to the package in route beyond my control and i am the one to be punished ? i bet that bastard even filed a claim with the postal service and got double paid on this, from you and from usps, fraudster ! you must think you are you're own little communist country there at payapl, do as you please to anyone so long as you're the on gettin PAID as the end result. Screw everyone else. and you stole that money from me that you could back then . now you have done it again. and i do make the point that too much time has gone by , you are illegally witholding my money and i want it transfered into my bank account NOW ! you have 3 days. ! I have been in contact with the attorney generals office here and they are eagerly awaiting me writtin letter to get the ball rolling, i am also seeking legal counsel at this time. how do you wish to proceed ? I think it in you're best intrest to pay me my money right away, close my paypal account and my s......88 ebay account, by the way you think you are being slick by not allowing me the put any items in my watched section of both my ebay accounts so that i cannot buy anything, i still have the right to buy with a money order ! You know what, F you !

Ok you paypal jerks ! I did not authorize you to withdraw ANY money out of my bank account ! Now my account is in the negative and you WILL PAY the overdraft fee my bank charges when an account goes into the neg. ! You illegal CRIMINAL asshats ! X-

I would like to know why Paypal charges fees on the FULL amount a seller receives when ebay has taken it's share before the buyer even pays. Paypal is double dipping.

I said I would return to these threads if and when paypal ever paid me the money they froze in my account. They have. It took at least 3 months and it is at least 10 dollars short. I ended up closing my account with them altogether because not only did they freeze my own money from me with no buyer dispute, customer support was practically non existent. I don't guess I ever would have seen a penny of this money had I left my paypal account open. While my money was frozen by them someone attempted to retreave it for me to no success. I can only assume that when I told this discussion thread that I had 80 dollars into an account that was frozen that someone thought they might be able to set up the proper bank account and steal that. I caution any of you posting on this thread to not only be aware of the evils of paypal but also those who would seem sympathetic, and would capitalize on the information. I won't be back here. I tried paypal and lost money and put my finances into the hands of an institution that does not protect me or my interests. Life is too short to have that sort of thing happen. Paypal is a sinking ship. Get off of it while you still have a bank account is my advice.

Paypal needs to change it's name as no pal of mine would ever treat me this bad. And after you do that, grow a backbone and tell the credit card companies you are not their bitch.

eBay and PayPal seem to be so concerned about fraud, yet they support it by letting Sellers list and sell inoperative, misrepresented, broken or otherwise defective merchandise and then, even if the Buyer files a dispute with PayPal and wins the Seller is required to pay to ship the junk back to the Seller. So in the end the Buyer, who upheld his part of the purchase by paying the auction amount and shipping charge, ends up having a financial loss by having to pay the return shipping cost also, while the unscrupulous Seller loses nothing and can just continue doing the same thing (or even relisting and reselling the defective item). This may not be a significant problem with small, light items that cost little to ship, but it is significant with larger items that can incur substantial shipping costs. I think it's time that the Seller be responsible for these return shipping costs (if they actually want the junk items back), rather than the Buyer.

We are a business, billed a customer via paypal, customer paid via paypal, both of us were/are verified, this is a first time customer (we have an automotive shop) 3 months later customer got pissed off at us and reversed the charges when we tried to collect on a bad check for other repair work.

Sued customer for bad check and won, then sued for credit card charge backs and won that last week. Check judgement $1421.69 plus court costs.

Credit card judgement $6100.00 (not a typo it is six thousand +) for the charges, $200 in additional fees, court costs and 10% simple interest on $6300.00.

Court case numbers are : SEA025736 for the $1421.68 check, and SE025736 for the $6100.00 credit card transactions (2=2700+3400) seen on April 11, 2007, San Diego County Superior Court East County Division, 250 E. Main Street, El Cajon Ca 92020 for any Attorney that wants to verify the validity.

The Judge did not award additional fees we encountered to be paid by the defendant, as he stated we need to pursue Paypal and/or Wells Fargo bank (Paypal's processor AND our customer's card company AND the employer of the defendant/customer) as they should never have given our customer his money back in the first place.

I would also like to inform you that when we went to court we filed in small claims due to the cost of going civil, however, we refused a pro-tem and were sent to a civil Judge anyway, so any statements made were made by a civil Judge, not a small claims Judge.

Paypal sent us to collections, sent us several letters/emails requesting us to reimburse them for the money they refunded even after I told them to go after our customer for the money they ripped us off of, and the collection company continued to call after I verbally demanded they stop. The collection company DID stop calling after receiving my brief letter with a copy of the first judgement against the defendant for the check and threatening to sue for unfair credit collections and fraud. Paypal however did not stop, up to 2/24/2007. I since have received several emails,not sure if they are phishing or real, threatening to suspend my Paypal account, and etc... LOL

In every email to Paypal I requested much needed information in order to contact the credit card company,and was denied. I simply asked for a phone number and contact person handling the chargeback on my customers card issuing side, and was told that is confidential information that I have no rights to. I read the user agreement after all this crap happened, and actually per Payapls user agreement I DO have the right to that information, per several paragraphs.

I have been harassed financially and emotionally, Wells Fargo Employee maliciously caused harm to my business and myself, he was deceitful with his chargeback actions, and in my opinion committed fraud in the manner he processed the chargebacks and the cause, Wells Fargo assisted the fraud, and committed negligence by not following up with investigating the chargeback to me via Paypal, and Paypal did nothing too, both by refusing documentation, and refusing to be neutral due to the initiator being a Wells Fargo Employee, Wells Fargo allowed unfair credit collections and credit practices by reporting and/or allowing an Employee to report an untrue fraud, causing me to be sent to collections and admitted into the checksystem for being overdrawn with Paypal, and this issue being reported to other agencies, Wells Fargo additionaly breached an implied contract with the proper processing of chargeback requests by allowing the Employee to "open and shut" the "case" without my due process.

To date, I am still out a minimum of $9000 because of this, plus many other fees, that are a direct result of actions, lack of actions, or assistance/lack of assistance of Paypal and Wells Fargo Bank and/or it's Employees.

One more time:

I am pursuing compensatory damages, liquidated damages AND punitive damages for all infractions mentioned, and more I am sure the Attorney's will find, plus all other miscellaneous fees that have not been reimbursed, loss of income due to court appearances, and whatever else there is. If there is an Attorney anywhere that would like to pursue this case, Pro Bono, we are a real company, with all paperwork to back up all statements, the court appearances are public record, and the transcripts can be easily ordered. I am serious about this, and fed up with Paypal and Wells Fargo.

Paypal screwed us, now we want to sue!


OK, to all people thinking of using Paypal, be warned, even if you sue and win in court against a person who files chargebacks fraudulant AND YOU WIN, it does not mean Paypal will do shit about it. Not only that, since you have no information in order to fight the chargeback because Paypal consders you not a party and does not follow their own policies, the following is what will happen, I AM PROOF!!!!!! CALLING ALL ATTORNEYS!

I won in court against the person who filed chargebacks against me, and I sent the court order to Paypal, this is what I got in response....

Dear Tammy Scott,

Thank you for contacting PayPal regarding the following transaction:

Buyer's Name:Zepeda
Transaction Date:Aug 27, 2006
Your Transaction ID: 7CS63031XU012613E
Buyer's Transaction ID: 4AM153688V9145632
Transaction Amount:-$2,400.00 USDCase #:PP-221-256-818
Your Transaction ID: 40564202K6379170R
Buyer's Transaction ID: 16G994032F5552458
Transaction Amount:-$3,700.00 USDCase #:PP-221-256-801

We apologize for the inconvenience. PayPal did not win the dispute of the
chargeback with the buyers credit card company. PayPal was unable to
dispute this further on your behalf. At this point, we suggest that you
contact the buyer directly to request reimbursement.

Complaints can also be submitted to local law enforcement, and the IFCC
(Internet Fraud Complaint Center) and the ISP (Internet Service Provider)
can also be notified of the charges and claims filed.

The buyers credit card company states the buyer maintains that the
merchandise was never received.

To protect yourself from such claims in the future, we recommend that you
follow the guidelines of the PayPal Seller Protection Policy. This policy
covers sellers against chargebacks that result from unauthorized use of a
buyer's credit card and false claims of non-shipment of goods. Complete
details of our Seller Protection Policy can be found on the following page:

Because a chargeback involves the confidential information of both the
buyer and seller's accounts, there is simply no information that we can
release regarding a chargeback beyond what we have already provided. The
only exception to this policy is in the presence of a binding court order
or subpoena.

PayPal Chargeback Division
PayPal, an eBay Company

Once upon a time, I thought to come here with some honest interest in helping PP with suggestions but after reading all the problems everyone has faced/is facing and my own individual gripe with them,I think not. #1)It WILL fall on deaf ears. #2)PP is now like a bank for eBay and as a bank, MUST make money with any and every transaction, PERIOD.

Been a long time since I sold anything on eBay and decided to do so Saturday. Had to download TL 2 as I had the old version. Made out the listings and clicked on "Accept PP for Payment", put them on eBay and checked for errors while revising. Lo and behold, under "Payment Methods Accepted", with the correct email address, it tells me to give another or upgrade my acct. (have personal). When nothing I put there worked, I left it alone and it accepted my revisions and was ready for bids but decided to check it out with LC. Both Reps told me I had to upgrade my PP acct. to accept CCs or end my listings, redo TL listing w/o PP and then be ok. WHAT??? I said. Since when? 500 FB with 90% of them selling and keeping under the $500/month limit worked so WELL!! Well, now that eBay owns PP, eBay has its "bank" and it wants money from every transaction PP handles no matter who it hurts or how much it hurts them.

Called PP to verify and yup, Reps weren't lying. If I want to sell something or a few things every 3, 4, 6 months and you want your buyers to be able to pay with PP, you MUST accept CCs so you MUST upgrade your acct. And if you DO upgrade to a Premier acct., you MUST do a minimum of $3000 in sales per month, every month.

Well hey. That means PP is no longer a service associated with eBay to help sellers and buyers alike but is instead, the dreaded bank. And like all banks, the small fish pay for the big ones because otherwise, the big ones pull their accts and go where the services are free or at least reasonable. When eBay took over PP, they knew they were going to do this to us 'small personal acct holders' sometime down the line. Was there an office memo about this? I never got one.

And as far as TL is concerned, eBay should have put in the FACTS surrounding accepting PP for listings instead of just a check box, letting it get all the way to a listing and run its course only to the trials/tribulations a lot of you have voiced here. Maybe that was their intention. Hmm. Fortunate for me I caught it before any bids on the items or I'd be howling like a banshee to deaf ears.

Anyway, will immediately close my PP acct. Of no use to this "small fish" anymore.

A suggestion? Why yes, I do! STICK IT!!!

Hey PP! Just closed my account and you send me this email! Ha!

"PayPal is the world's leading online money transaction service for individuals, businesses and merchants. From customized shopping carts and ATM debit cards to one-click purchases and a leading high-yield Money Market Fund, PayPal offers individual and business solutions that are time-saving, secure, cost-effective and easy-to-use."

Not for this individual. Not anymore. Believe me when I say all of you with a Personal PP Accts. are going to be forced to upgrade or do without if you want to sell anything on eBay. You heard it here first.

I only except MO and personal checks because of all these problems here. however my personal beef is how pay pal advertises making the customer feel they will no be safe not using there product. over and over and in different ways.

Personally I think Paypal's promise of buyer protection is a joke. I recently was the victim of a fraudulent sale on ebay. According to ebay someone hacked into the seller's site and listed items unknown to him. It actually generated a real ebay invoice. It was also a buy it now transaction. I paid after receiving the invoice through paypal. 30 minutes after concluding the sale I received a notice from ebay that it was fraudulent. I contacted paypal, no help. I stopped the transaction through my bank, paypal dropped my bank account, then next day paid the fraudulent auction using my back up credit card...4 phone calls later, disputes that were closed with no response and nothing else was done. I contacted my credit card company and got my money back. I find it interesting with all the technology that there is no communication between ebay and pay pal when something like this happens. They can sure generate an invoice in a hurry but cannot notify paypal when a fraudulent transaction is caught. From now on it's money order or certified check or my credit card directly to the seller...I do not trust pay pal or ebay to adequately live up to what they say.

Paypal should be more responsive to member complaints and concerns. It is very difficult to get a live representative on the phone without running through 5 minutes of automated nonsense. Paypal representatives demonstrate a dismissive and cavalier attitude when their mistakes cost members money. What alternative payment options would other members recommend?

Inadvertently paid a seller via Paypal using a credit card. My bad as seller only has a personal account. I tried to cancel payment; Paypal would not let me but said seller had to deny payment. Seller tried but Paypal would not let her. Tried to force her to upgrade her account which she chooses not to do. I then spoke with a supervisor at Paypal who confirmed that neither the seller nor the buyer could cancel the transaction but the money would stay with Paypal for 30 days and then would automatically be credited back to me. Explained that I could call my credit card company and get immediate credit which would cost Paypal more in processing fees which is poor business practice. If this transaction had been worth a significant amount of money, Paypal would be using that money interest-free for 30 days. My credit card company, as always responsive, is taking care of the problem. Paypal, not permitting either the seller or the buyer to resolve is poor business. Somebody in management needs to pay attention.

I use PayPal (business account) to accept credit cards. I sold an item for about $2200 (Canadian funds). Buyer tried to pay with her credit card but was told "You cannot use this card for this transactrion. Use a different card." She called VISA, who informed her that no charge attempt was made (PayPal itself was declining the card!). This is the bookkeeper for a national organization, and the card was good and had plenty of room.

So she complained to me, and I called PayPal. (Which is a pain in itself - give all your info to the phone computer, then wait on hold for several minutes, then give all the same info again to the Customer Disservice Rep (why???))

The PayPal rep told me there was a limit of $2000 per transaction for someone without a PayPal account. (Why wasn't that ever disclosed?) So I made two new invoices, $1990 and balance. Same problem.

Tried three invoices, $990, $980, balance. Took the $990, but then back to the same problem with the $980. Called PayPal again. Got a vague explanation about the system calculating limits based on risk factors, and the customer must have used her card for transactions in the past (huh? What, card numbers wear out?).

The rep cheerfully told me the solution was to have the customer sign up for a PayPal account and get verified to lift their spending limit. I explained that my customers don't want to sign up for PayPal, jump through hoops and wait for verification, they just want to pay me with their credit card - just like they pay normal vendors. So he said it was for my protection. I said I didn't want to be protected from making sales. He asked "what if the customer makes a chargeback?" I tried to explain that chargebacks had nothing to do with the issue, and that preventing a sale is not a smart way to prevent a potential chargeback. He didn't get it; just kept trying to use potential chargeback as an excuse to limit the sale amount; babbled about risks... So I asked him why PayPal was at so much more risk than the other credit card processors. He didn't have a reply for that.

Fortunately the customer was understanding and didn't cancel the sale, demand a refund of the first $990, and trash my name with the rest of their organization. She's sending me a cheque for the balance.

So as soon as I get a competent credit card processor, I'll be able to make more sales to that group.

No more PayPal for me. What a joke. A very sick joke.

I would like Paypal to credit my account as quickly as they debit it! I did a buy it now on an Ipod the other day and 30 minutes later got a TKO notice from Ebay about a fraudulent item that I supposedly "bid" on (my Ipod) and they had removed my "bid". Well, since it was a BIN they supposedly couldn't stop it from going through. Now I have to file a claim and wade through the red tape and wait weeks for my refund when they already know the friggin outcome and could just credit my account. These guys are bloodsuckers. Worse than any government org.

I sold over a hundred dollars item. After Three months the buyer claim it is an unauthorized charge.
This is the ID travel3557.
1. I shipped To Paypal Confirmed Address
2. I ship within 7 days.
3. I have online tracking information that show the item was delivered.

But yet my account was being reverse and extra charge for chargeback settlement fee. PAYPAL did not give any explanation, they close the case and simply say the credit card company reverse the charge, if the credit card company found favor in seller, we will credit back your account, What The?.


I would like to suggest you restore my confidence in the Pay Pal system. My confidence has been shattered to the point, I don't even care if I loose my account with Pay Pal or Ebay. Time, after time, Pay Pay resolves a case in favor of the buyer. NEVER, EVER, Has a case been decided in my favor. The last case was handed to the buyer, even after I had demonstrated with pictures, the buyer was a lying. The buyer no longer has to even be specific. Any generality will do. Doing the right thing, playing by the rules, means nothing anymore. Why even fight a claim if Pay Pal can take money from your account without your permission and hand it over to a scammer. Pay Pal has to be on drugs or be on a death wish to maintain this insane policy of always kissing up to the so called "buyer".
*******"Reputation is what other people know about you. Honor is what you know about yourself".******************************************************

I have been a member of Paypal for many years now. I have run THOUSANDS of dollars through my account, but no more...I'm finished with them. I received an email from PayPal stating that my account had been moved to a restricted account (meaning I could no longer access the funds in the account) and that until I went through their resolution procedure, the account would remain essentially LOCKED. The reason given was that they believed a third party was making an attempt to access my account without my authorization. At first I thought this was another lame attempt at fraud, but when I logged into my account (not via a link in the email), I found out it was true. That's when my nightmare began.

Folks, all that I can say is that PayPal goes WAY OVERBOARD on revalidating your account once this happens. Be prepared not only to change your password, but also you better be close to your home phone so that they can call you, and if they don't get ahold of you the first try, then you have to wait for them to snail mail you a letter with a code that has to be entered at their website. In addition to all this hassle, you will be required to FAX them a copy of your drivers license or military ID along with a copy of one of your utility bills. After you have finally complied with all of their requirements, you sit back and WAIT...and the wait can be as long as 3 - 5 business days! Meanwhile, you cannot touch your account balance AT ALL.

My wife recently purchased a couple of items on our Citicorp card and for what-ever reason a flag went up and Citicorp called us and left a message on our machine with a phone number to call them back. When we returned their call, we answered one simple "secret" question and our account was immediately restored. Why can't Paypal do the same? Because the longer they can hold your money, the more money they make on it. If you think this is a bunch of bull hockey, check out how long it takes them to move money from or to your bank account from your paypal account. It takes a minimum of 3 business days either way. My bank confirmed the transfer on numerous occasions within MINUTES of the transaction request...but Paypal held the funds for days. Funny though, when it comes to covering a payment how quickly they can extract those funds from your bank account!!

Paypal doesn't protect against fraud, their actions border on fraud itself. I look forward to the day when a person with more financial resources decides to go after them in a public way...perhaps a class action lawsuit.

In the meantime, I am in the process of closing my account. Had Paypal of locked down my account at a critical time when I needed the funds and I was not at home to be able to comply with all their "overdone" verification process, I could have been placed in a very difficult if not dangerous position.

So the bottom line is this. If you USE your PayPal account (e.g. via your PayPal debit card or ATM) and you depend on those funds being available 24/7 (such as a vacation) may be setting yourself up for some serious trouble.

The problem is Paypal is governing their own entity and answer to no one but themselves. They make their policies and guidelines so tricky with weaves in and out of each section that most people cannot follow them and/or think that maybe Paypal will be honest with their dealings like they "promise". If anyone is in Cali and has issues, email me your story I have accumulated quite a few people from many States, including Cali, until SOMEONE, meaning all of us who have been ripped off, does something to make Paypal regulated one way or another, they will manage OUR money as they see fit. $300 or $6000 as in my case, it is the principle of the act, and each person has their own amount that is alot to them so the amount shouldn't matter.

How about ways to prevent unethical restrictive practices by eBay and PayPal in terms of market monopoly controls on payment methods? I am never going to use PayPal again. The whole thing is just wrong, eBay sucks in fees, then double ends the deal with the PaypPal fees and forces behavior if you use PayPal. Total conflict of interest in my mind. Thats where the line is crossed and one starts to consider class action lawsuit against eBay and PayPal for the questionable practices.

I've been using Paypal for years, biggest transaction was 1000, smallest was 2 bucks. Never had a problem. Recently my account went to unverified since I no longer have credit cards, I instead use my Premier Paypal card and have 2 bank accounts linked to the account.

Well recently the account was locked due to suspected fraud. I sent in everything they require, Copies of bank statements, verified all my personal information, the whole nine yards. Spends hours on the phone, hungup when asking for managers. Finally had a rep tell me he had a solution that he would email to me, when I never got the email I called and they said theres nothing they can do.

So I have 40 bucks sitting in my Paypal account that I have no way of gaining access to. Arbitration fees are like 300 bucks from what I see to dispute this. Seems like Paypal thinks they are holding all the cards, I don't understand how they get away with this..

We had experienced a minor problem with Paypal as sellers on eBay two or three years ago and stopped using them. After reading that most buyers like Paypal and often mistrust sellers who will not use it, we decided to start offering Paypal again.

We had a large sale. One buyer bought multiple items, so the total was quite large. This person has bought from us before, and has about 1900 positive feedbacks on eBay. Paypal processed the transaction and we transferred the payment to our bank account. A day or two later we discovered an account message stating the payment was on "temporary hold" and they deducted the payment from our account leaving us with a huge negative balance! After two or three days I wrote to the buyer, thinking he had put the payment on hold for some reason. He had not. I called Paypal and they said "Didn't you get an email from us?" I told them we had not. At that point they sent an email saying that the buyer was being investigated for possible fraudulent funds.

It seemed to both the buyer and us that Paypal simply froze the payment since it was a large sum of money and they get the use of the money while they "investigate." We know of other people who have had similar things happen.

The buyer was upset and tried calling his bank and credit card company to resolve the matter. In the meantime I sent in to Paypal all the required documentation to show that we had followed their rules: had a verified buyer, mailed to a confirmed address, he signed for the package, it was insured and traceable to his confirmed address. The buyer provided me with a phone number and Case number to the credit card fraud division of his bank and allowed me to talk to the rep there. She assured me that he did indeed have an account, the funds had been withdrawn legally, and they had verified that he was the cardholder, etc.

Last night we got an email from Paypal that they had finished their investigation and had decided it was appropriate to reverse the payment to the sender (the buyer). WHAT!?? This was an outcome we had never for a moment considered. Why on earth would they send the money to the buyer? If the payment was fraudulent, they should return it to whoever the money belonged to, and Paypal should stand behind their Seller Protection Plan and give us the payment out of whatever funds they use for such cases (insurance?) as their policy states. If it was not fraudulent, the payment was ours for the merchandise. In no scenario can I think of would they return the money to the buyer. Now the buyer has our merchadise, and his money, and we have nothing! This is an absolute nightmare!! The person I spoke to last night seemed perplexed, too, but all she could do was send a message off to some other Paypal dept. to look into it.

All I can say at this point is that I hope this is ultimately resolved and we get our money. This is extremely stressful and I curse the day we ever started using Paypal again.


I am also a victim of Paypal - they snatched $1400 from me and cost me thousands more in sales, by ruining my reputation as a seller on Ebay in terms of feedback & angry buyers.

They also did this to my mother, who just had 2 strokes since Thanksgiving of this year. I Couldn't even afford a plane ticket home to go be with her (while she was completely alone in an ICU unit) all b/c Paypal had my funds locked for NO reason whatsoever, which they still have.

Plane tickets from AZ to NC are very expensive esp. around Xmas!! Made my bank account go into the negative twice as well. It has been a nightmare, and to think that I thought it was only me that this was happening to! I really want to take part in the suit or anything else I possibly can - I hate to feel so powerless. If I can help then I will feel like I am doing SOMETHING at least to warn others who might be in my financial situation or worse.

I started up a new business as a merchant (ie a Premier account). Sales were going way better than I had ever hoped and I had got $17,000 in my account and hundreds of happy customers. Unfortunately 1 (yes only one!) guy was not happy and instead of coming to me, he filed a complaint. I responded to his complaint within 4 hours and gave him a full refund and thought that was the end of the matter but NOOOOOOOOO.

Paypal sent me an email saying my account was now limited and I wouldn't be able to send or receive funds or close my account so I called them and they said "we have received one or more complaints against you". I said about the 1 complaint which I had fully refunded and they said they would look into it (a common phrase you will hear from them!!!!!!)

Well they didn't get back to me, instead I got an email saying that they want to cease my account but that they're gonna keep my money for 180 days in case anyone wants a refund!

Now apart from the obvious damage to my business and reputation, does this not strike anyone as odd???
What the hell did I do wrong? Oops, maybe they don't want me to have my money in there, but they're still happy keeping it for 6 months and pocketing the interest!!!

As far as I'm aware, people can only ask for a refund in the first 60 days so what the hell do they need it for another 120 days for????

I sold lots of items on Ebay and recieved the money into my paypal account. However, one day i get a message from paypal saying that my account has been frozen i have yet to unerstand why after contacting paypal several times i cannot get any direct answer. The only answer i got was that there has been more tham one reports about supious behaviour on my account. i contacted everyone i had sold items to throught paypal and everyone was happy with the items they had bought and left me positive feedback on ebay. So why on earth has my paypal account been frozen with ?120.00 in it which i cannot touch. I have sent lots of messages to paypal all hte messages i have recieved back and indirect to my case and just say sorry for the inconvience and to supply paypal with more personal information. i am very uncomfortable with faxing sensitive documents from credit card bills to passports to utiliy bills to a company with a bad rep. they then said once they looked at these documents they would take 30 days to resolve the issue. This is all Crap. They have really bad customer service.

I dont know WHY my account has been frozen(surely if any of my customers were not happy they would have contacted me first and given me negative feedback on ebay)

I cant get my money back and I dont know when this will ever be possible. Paypal is suppose to be an ebay company. I think paypal should be closed down and all ebay customers warning of what could happen to your honest money.

I am lucky that I didnt have more money kept by paypal, some people have lost thousands.

The consequences of your account being frozen are dire. Becasue paypal is heavily linked with ebay as they are the same company it is very hard to sell things on ebay as a consequence.

Also when you try to write a message to paypal it times out very quickly if you want to write a lengthy message therefore you lose the message and have to start all over again make sure you copy your message and then paste it in

I recently sold about $1800 worth of OTC Pharmaceutical Items (tylenol, advil, pepcid...etc) to a person who I have been doing business w/ regularly (we are both verified w/ premiere accounts).  Well this person paid me via Paypal and I shipped the items.  I withdrew the funds via transfer to my bank account. 

Three days later, when I realized that the funds didn't make it to my bank account, I checked my Paypal account to find that the transaction had been reversed and my account access was limited for 180 days.  I couldn't get paid for these items for 6 months.  I immediately called Paypal to find out what was up...the answer that I received was..."we no longer deal w/ online pharmacies...and you will have to wait 180 to get your money"  What the hell is wrong with these people? 

I will never....ever use paypal again as long as I live.  I will certainly be closing that account in 6 months when I can access my money. The real pisser here is that they took their fee of around $55. upfront. Notice that they didn't wait 180 days for their money.  Buyer beware...Paypal is a scam.



Hello Everyone, I just wanted everyone to know that I have found paypal to be one of my worst experiences so far. I am a 100% positve feedback seller on Ebay where I have sold hundeds and hundreds of items. I was coerced very early in my Ebay career by Paypal to upgrade my account with to include higher fees only to later lean how much it would hurt me later.

I sold a guitar ($215.00) and in my Ebay description included: "sold AS-IS" , "No Warranty" , "Does Not Work", "Well used and Plenty of Scratches". I was paid thru Paypal and when the buyer received the item he complains that it does not sound right.....? Could I have downgraded my item any further??? I offerd the person a 20% refund wich was above and beyond my obligation since I declared no warranty ect. He did not responde and went on to file a claim thru Paypal for a refund. This locked my Paypal for weeks while they "investigated" and eventually Paypal found in his favor and without any rebutal or dignity they removed the monies from my account and granted the buyer a refund!

Now, even though I will never use Paypal again I cannot cancel my account with them without going thru a multitude of leaps and bounds! "Whatever", I say. I will just blindly change my password so that even I dont know what it is and move on.


RE: PayPal - upset about frozen account - can't access money

Thank you for responding. As you can see from the web that I am one of thousands with the same problem. They claimed they froze my account because I canceled an old email address of mine. It doesn't make any sense. They asked me to fax documentation including a credit card statement, bank statement, utility bill, and driver's license.

After they got this they then asked to fax another part of the credit card statement(the part that you send in as your bill) for whatever reason. That was done. They asked for a copy of an old credit card statement. That was done.

This fax game seems to be quite common. I heard theat they try to hold your money as long as possible because they gain interset on your account. Then they claimed they never got the additional faxed document's but I have proof that they received it and I faxed it two more additional times. With the account still frozen they encouraged me to continue to sell on ebay and that I could have money going into the account.

With more than ten transactions and accumulating nearly $1000. I can't access the money, it is being held hostage. I wanted them to stop accepting money as payment from my buyers because I kept losing out and on top of that I have to pay shipping charges. I didn't want any nefative feedback on my ebay record so I continued to ship the items and not have access to any of the money.

I have faxed and done everything possible more than once. It's always an excuse with them. As soon as I asked to speak to a manager on the phone they refused, they also wouldn't give me the number to their legal department, they just hung up on me. I realized from my internet research (including websites such as (which Forbes magazine rated as top 5 complaint sites) that thousands of others are in the exact same situation down to the precise details.

Please help me! Beginning the legal process may be the only option but it takes time and I really need my money. I appreciate your help and I believe (from what others have told me) that a contact to paypal from you may get them to release my funds and come clean.


I am treasurer of an organization that runs an annual scientific conference
called Precise Time and Time Interval. We tried to use PayPal for our
conference last year as a means of taking in registration fees.

Almost immediately we ran into trouble when PayPal accused several
prospective attendees of using credit cards fraudulently. We tried to explain
that the last people you would suspect of committing fraud would be eminent
scientists making advance payments to attend a conference! We told PayPal we'd
even take the loss if any fraud occurred.

Since we couldn't have our attendees insulted in this manner, we attempted
to sever our connection with PayPal and withdraw our money, whereupon PayPal
froze our account, holding $3200 hostage. E-mail and snail-mail complaints went
unanswered. Phone calls never elicted any information other than the fact that
"investigations were ongoing."

Finally, after five months, PayPal finally released our funds without a
word of apology. Needless to say, no fraud was ever detected. It turned out
that our $250 registration fee was just over the limit at which PayPal,
apparently randomly, challenges a large fraction of payments just to discourage
credit card scammers.

"SomethingAwful's forum denizens, on the call of site admin Richard "Lowtax" Kyanka, raised over $20,000 dollars to be donated to the Hurricane Katrina relief efforts. This was done via a PayPal donation link, and PayPal has now frozen the account on a twofold basis: one, that there have been reports of "suspicious behavior" from the "buyers," and two, that no shipping records have been provided for the donations."

Our paypal account funds FROZEN! PLEASE help!!

Could anyone please advise us? Moderators also respond if possible(??)
We do NOT know what we will do.. We do not even understand this.

We shipped this customer's (high priced) order insured.. Feedback has been
given & received..(ebay)
What do we do? They have frozen these funds!
PLEASE help us. I know it does not apply, but I am severely disabled and Lana & I
do this (and she works another job!) for our living..Our 3 auction sites are a very large
part of our living/income..
(This sale was from our ebay site...)

Below as recd. from paypal with some personal & customer info removed.

We will be withdrawing as much money as we are able from paypal immediately.

We received this information just a few short minutes ago..(Thursday, April,21).

Subject: PayPal Notification: Temporary Hold Pending Investigation (Routing Code: C840-L001-Q----

Dear ------

It has come to our attention
Subject: PayPal Notification: Temporary Hold Pending Investigation (Routing
Code: C840-L001-Q-----

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: Apr. 8, 2005 14:51:56 PDT

Transaction Amount: $266.78 USD

Payor's Email:(removed)

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
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
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

PayPal Account Review Team



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