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.

Ok, if you read my previous thread, some italian guy made a dispute and paypal locked my main account. I have other sub accounts and one of them have 250usd in it...I wanted to move it out but I didnt have a chance. Now that the account is limited, I had asked the buyer who bought something from me (the $250) to make a paypal dispute, and I will issue a refund to him and get the money sent to me in other ways. Does that work? I am still waiting for the dispute email from paypal for the $250 complaint. Should I bother verifying? it seems if I verify, they are going to take $$ out of my account to cover the losses in my main account. I am also thinking of cancelling my bank account associated with the account that got locked now...

Hi, I've never had a problem with paypal until recently. Here's what happened:

A friend of mine owned a company that built/refurbished phones. He recently moved onto real estate and knew I was short on cash so gave me a box of phones. It was just some plain phones, no battery, manual, or anything else. I put these on ebay and for a few days everything was going ok, sales were going good, and shipments were being delayed.

First ebay banned me, for "unauthorized 3rd party" account use. They closed all my listings and sent everyone that bought from me emails saying I was fraudulent and to open a dispute. I called them and got it resolved. The next day, the same thing. All listings were removed again, and everyone was emailed again that I was fraudulent. This caused quite a headache because I was getting people sending me threatening emails and talking about getting legal help. I got that resolved again, and this time they made sure it wouldn't happen again.

I started selling again. A guy wanted to buy 12 phones from me at once. I didn't want to do the transaction without a listing because I wanted there to be proof in case something went wrong. I made a listing for the 12 phones for $1300. About two days later, my account access became limited.

The same day, I got all the information together and faxed it to paypal. After about 3 days, I got a response saying that they now wanted an invoice showing proof that I owned the phones. How am I supposed to have an invoice for something that was given to me? I had him print me up an invoice with the old company letterhead and faxed it to them. Waited another 3 days and they responded saying that this time they wanted a better scan of the license and to end my disputes. The disputes were because I didn't refund people that I had promised to refund. I COULDN'T refund them because my limited access wouldn't allow me to. WTF?

I faxed them the better scan, as well as all the information about the disputes and told them I wanted to refund them. After another three days they sent a message that I needed to end my disputes. I called and explained everything to someone at paypal and they transferred me to a supervisor. He ended one of the disputes, it was being "reviewed" for almost 5 days even though the tracking number showed it was delivered and he signed for it. It showed all that before it even went into review, so why did it's status change to in review and why wasn't it settled after 5 days? The supervisor said that's the only one he could close and that I would have to email the rest of the information to As soon as I hung up I emailed the information. He said it should be resolved in 12 hours, but they have to say "24-48" just to be safe.

The next day I hadn't heard anything, so called paypal and asked about it's status. She told me to give it another day.

I waited another day and called again. I asked to speak with a supervisor, and they told me to send the information again. I told him that it was already sent twice, and he apologized and said that the information wasn't added to my report. He said he added it and to expect a response within 24 hours.

I waited another day, nothing. I called again. This time a woman spoke with me. She said I needed to email them the information. I told her I had sent it 3 times already, and she said there wasn't any record of it, so to send it again. She said it would be resolved in 24-48 hours and she would be looking for it. I sent it a FOURTH time!!! I made sure to attach the previous two emails as proof that it's been sent numerous times.

There started out with $5000 in the paypal account, and now it's down to $3600 because people are all disputing. I now have a lot of disputes on ebay because I'm unable to pay them. I was supposed to make a downpayment on a house 2 weeks ago but couldn't because paypal locked up some of the money I was going to use, so there's money and a chance I lost. My ebay feedback is going down the toilet because I am unable to refund or make payments like I should. I'm tired of "waiting one more day," so what should I do???

I had 2 Paypal accounts tied to 2 bank accounts.

Paypal has limited both. I have NO IDEA WHY. They keep sending the stupid requests for more information and do the check box to get restored emails, and I have complied with EACH and EVERYONE of their requests, only to be met with senseless more emails from them stating that I need to do it all over again. Especially exasperating are the "you need to clear up disputes on your accounts" emails being sent almost daily when I have no disputes to clear up and I never did!

What the hell is wrong with these people? Why would they randomly limit accounts with no reason or basis? WHy do t hey keep running you around and around with information requests that are just repeats and get you nowhere?

Why would they want to put a hold on my accounts for no good reason?

I hate these people.

There seems to be nothing that I can do about any of it.

Why did paypla freeze my account for the 2nd time..

I was lucky the first time and got my account unfrozen after 2 months. They froze my account the first time after I shipped out all the merchaindise and provided them with a tracking numbers and they decided to keep my account frozen and kept my money. So I waited and called 2 months later and they unfroze my account.

Now here we go again 1 month later with $1500 in my account and they decided to freeze it again (stupid bastards). At first they wanted my supplier plus my tracking numbers for the items I sold before they would think about unfreezing my account.

Call me a fool once but call me dumb the 2nd time. I aint giving them nothing! i ddint do anything wrong. Now why would I ship out the products and give them tracking numbers so that they can say well we are still goin gto keep your account frozen! I told them to kiss my A88 and to refund all the buyers and that i wasnt going to business with them anymore..

paypal is shady as heck...i cant wait until a lawsuit hits them.

Can they do this?

I had sold with them for years, had a rating of over 400, but due to numerous chargeback problems I've had with buyers through Paypal, (plus the regular Paypal costs eating away at my small margins) i decided to not take it anymore, so i put in my descriptions "Sorry i don't take Diners, Amex or Paypal"

For this i had ebay close all my auctions and my account stating "circumventing ebay fees".

my account has been frozen since febuary 8th... they have asked me to do numerous things such as fax driver licence , bank statements, credit card statements etc and ive done all and after they said sorry we cant unlock your money... it must stay here for 180 days... so im waiting for it to expire but i see times my paypal balance jumps up and down like one week the balance will be 490... then the week after like 482... then week after like 485... wtf is going on and am i going to get my money back... i live in canada :S

I am a member of forums at, and imagine my surprise when I log onto the disussion forums and found out that PayPal had limited his account because he apparently "violat[es] PayPal's Acceptable Use Policy regarding Offensive Material. Under the Acceptable Use Policy, PayPal may not be used to send or receive payments for items or in support
of organizations that promote hate, violence, or racial intolerance. PayPal also prohibits a person convicted of a violent felony, or his relatives or associates, from using PayPal to benefit financially from the convicted criminal's notoriety or crime."

Papaskin is a Skinhead site, and apparently this gets PayPal's knickers in a twist. Of course if they would bother to read the site, the would find that it's not a Nazi Skin site, that there are two anti-racist disclaimers right on the front page, and Papaskin makes sure to keep that sort of crap off his site. He does post news stories about racist skins(many of which come from the Southern Poverty Law Center "Intelligence Report"), so as to keep us all informed of what's going on in that line.

Now Papaskin was only using Pay Pal to solicit contributions to defray his site expenses. He wasn't selling anything, or pushing a political agenda, just affording those of us who go to the site a means to help support it. I don't know how any of this violates the PayPal TOS.

Hi People,

I had a small hosting company .. we were doing well 200 members about 80 paying at any 1 time.
All my customers paid monthly life was ok then all hell broke.

Another hosting company from turkey seeing us do well decided to hack my forums database and stole all my members info.

He then sent payal a mail to say I was hosting child porn and sent the same mail to all my members.

I have never hosted porn of anykind my server was open to inspection yet PAYPAL closed my account.

You may think that was bad but worse was to come... they have slowly closed any paypal accounts that ever paid me for hosting.

I feel so sorry for those people... the hacker made up a false legal looking mail and sent it out and nobody seems to have checked to see if it was real.

Payal is just closing everybodys account that i ever did biz with.

I have phoned them did everthing even said send the cops to my home to check me out but no go they refuse to give back my account status.

I feel sick and even more sick that its childporn the hacker told them :( what do I do now??
My biz its gone .. I had my account years without even 1 complaint... they have no faith or turst.



How do I close my PayPal account when I haven't got access to it.

Around two months ago my password and security questions were changed without my authorization. I have since then tried to regain access by calling, faxing and emailing paypal, but all I have received in return is a big phone bill (making US calls) and a lot of canned replies.

I know it's possible to close my account if I can login, but how do I do it when I can't login? Any ideas?

There is around $500 on my account that I would like to get my hands on when the account is closed.

I sold a Nintendo Wii around January and received about 420 dollars via paypal.
Paypal said that due to a sudden increase in transaction volume, they need additional verification info. I followed all 4 of the steps they wanted and waited for the response.
Later, I got an e-mail saying that they needed the shipping info for the wii and that the one I provided was invalid but obviously it was invalid because they checked it 2 months after I shipped it. After I sent few e-mails telling them that it is their problem and that I still have the shipping receipt/proof, they didn't mention it again and now told me I was linked to numerous accounts with the domain: didnt even give me an account name or anything. They said I was linked to I sent them an e-mail asking for what account I was exactly linked to and they are not responding now. Can you please tell me if I will be able to get my money sooner or later?
This is the most recent e-mail they sent me and after I replied, they are not responding....

Dear ______,

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:

- Based on a review of your account and the information received, we
that you have or are related to multiple accounts that have unresolved
issues. Before we can lift the limited access on your account, you will
need to resolve all outstanding issues with these linked accounts,
including bringing any negative balances to zero and resolving all
complaints for all linked accounts. The domain names for these accounts

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.

PayPal Account Review Department

Please do not reply to this email. This mailbox is not monitored and
will not receive a response. For assistance, log in to your PayPal
and click the Help link located in the top right corner of any page. If
your inquiry is regarding a claim, log in to your PayPal account and go
the Resolution Center.

03/20/07 PAYPAL INST XFER $135.98
03/20/07 PAYPAL TRANSFER +$135.98

They put it in like I wanted, then they took it back out and it never ended back up into my paypal account. So they decided they didn't want me to keep the money and took it back? Right now it's too late to call my attorny, but first thing in the morning that is exactly what I am going to do. Wth were they thinking?


Hi, I got into a sticky problem with PAYPAL and I was wondering if someone could give me some insights into the matter.

I originally had a PAYPAL account which is registered in a country outside of the USA, which I closed to open the US account.

I plan to move part of my business into the USA in October this year, so I made some enquiries as to how I could change my address on PAYPAL to a US based address. Apparently, I had to close my existing account and open a new one with the new address.

Bear in mind the following :

1. I only plan to register a business this October.
2. Since I am not in the USA at the moment, I don't have a US based credit card
3. I only have a USA bank account with a statement address outside, well, since I haven't moved to the USA yet, it did not make sense to me to change the statement address until I actually move into the US.
4. Since I'm not in the USA, I obviously do not have a utility bill
5. Of course, I do not have a social security number. I plan to be a non-resident alien for the time being (for tax purposes)

What happened was stupid, I admit I should have made further enquiries before closing my original account. I logged on to PAYPAL and started to create a new account with the new address based in the USA. Registration went well with a USA address (it is my boyfriend's residential address, we plan to move in together), there was a S$500.00 withdrawal limit - ok, it's not a problem, I was planning to get that lifted when I get a US credit card with a US address later in the year. I confirmed my US bank account. All went well.

Then, I directed 2 payments from my store sales in RubyLane to that particular PAYPAL account, amounting to about US$261. Then the problem started. Within 12 hours, I received a message from PAYPAL telling me that my account is restricted and I have to comply with the checklist given in their resolution centres.

I had already shipped the 2 items as I was enroute to my local post office. So I am in a fix. I logged on, followed instructions:

1. Set Credit Check Address
2. Provide Proof Of Shipping
3. Provide Business Information
4. Update phone number

What I couldn't do was :
1. Confirm location ( I couldn't confirm location as I don't have a US based credit / debit card yet)
2. Confirm your social security number (well I'm not naturalised so I don't have a social security number)
3. Proof that I have sufficient inventory.

I called up PAYPAL, the person answering the call (Cheryl) advised me to fax in as much identification papers as possible and proof of inventory and to enclose a letter stating that I do not have a social security number and that I am only setting up my business registration later this year, etc. I did up the letter as she had instructed.

So I did. Faxed in my local identification papers, my local credit card number, the bank statement which had my confirmed bank account, and supporting bank statements, utility bills, credit card bills to show I am one and the same person. I also pointed to them my closed PAYPAL account for further verification.

Then the kicker reply comes in:

"We're sorry, but your account access limitation cannot be lifted at this
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 may
review your account further:

The information that was faxed in did not match the information that we
have on your PayPal account.
- Fax a copy of your monthly statement for the bank account ending in XXXX.
The statement must show your name, address and account number exactly as
they appear in your PayPal account.
- Fax a copy of a current utility bill. The bill must show your name and
address exactly as they appear in your PayPal account.
- Fax a copy of your driver's license/passport. Please make the copy of
this as large and as light as possible.
- Fax copies of the original bills of sale or invoices referencing your
purchase or acquisition of the items you are selling along with the name
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 it
ensures that your documents are routed and handled in a timely manner. To
print the cover page, log into your account and click on the fax documents
link on the "Limited Account Access Details" page.

PayPal Account Review Department"

That is the background.

Here are my concerns :

1. I was looking through the PAYPAL terms of use - there was nothing in the terms that directly allows PAYPAL to request for copies of my invoices together with my supplier telephone numbers. I could give them the purchases I made for some of the components from ebay - but i sure as hell do not know their phone numbers. Some of the components were made from things that I had accumulated over the years - no receipts. Can PAYPAL insist on holding onto the money when it was not stated clearly in their terms that anyone receiving monies from sales have to show them the invoices? It feels like they are accumulating a directory of info - than a reason for restriction.

2. Is it ever possible under these circumstances to recover the monies retained by PAYPAL? I know that the items I sold have been delivered - they are all trackable online.

3. If that is possible, how do I go about doing it?

4. Are there any reliable non-PAYPAL merchant services that I can look at that provides services outside of the USA? I'm currently based in Singapore.

Any help would be appreciated. Thank you in advance.

I am having trouble with a situation with eBay and PayPal. Let me know if I have any basis in this, or if it's my fault.

On February 12, I purchased an item on eBay from a seller for $500. Shortly after I purchased it, eBay sent an email that said the item had been removed, and "Because the listing was ended, you no longer have any obligation to purchase this item." I did not want to pay for an item that was removed, and was no longer obligated to as stated in the email. PayPal, however, would not refund the money, even through dispute resolution. They said that eBay had "TKOed" the item and it was their job to reimburse me. I spoke with SIX PayPal employees in the 31 days it took to process this claim, and five of the six gave me their personal insurance that because the item was removed, I had no obligation. After the dispute was made in the seller's favor, I called and wasted some time arguing with a PayPal respresentative who avoided questions worse than a politician.

The problem is that eBay needs to contact PayPal in the event of an item cancellation, and if it is already paid for, eBay should notify PayPal to refund the payment. Secondary to the first situation, the item did arrive, but in terrible condition. I would normally be able to see a Return Policy or give proof based on an item's description that the items arrived "Not As Described", but since the item has been removed from eBay, I had no backing with PayPal, or any ability to prove the magazines were sold with any sort of guarantee of condition. I spoke with an eBay representative who said that she was unable to provide me with the original listing without a lawyer requesting it.

It just makes sense to me that if eBay sends an email that says I am no longer obligated to purchase the item, the transaction should go no farther than that. That's that.

Am I way off course? I have an attorney, but should I be going after eBay, PayPal, or the seller?

Well paypal got me last week.....
So Ive had paypal for over 4 years with 607 verified status probably around 50k I took in all together and probably half of that paid out to other paypal accounts, so last week on thursday I get an email my account is limited so I call in to find out they say because Ive had 3 complaints against me this month my account looks risky all claims ive ever had against me were either decided in my favor or we fixed the problem, so the guy tells me he cant do anything about it, so I say send me to someone who can, well an hour later and 2 people finally a guy says ok heres what Ill do I will mark this and send it over to the review team for you so they will decide within 24 hours. So whatever I still sent them in everything they wanted, and 3 days later I get the email that they will not open my account and I can only refund people or wait the 180 days for my money, Now I only had 1500 dollars but right now that was my only means of income, incase anyone doesnt know the economy in michigan is pretty bad right now. So yeah that was most of my money. Well anyways I have filed a complaint with the BBB and IC3. I see some people say they sent in a complaint to the Attorney General should I do that too?

Hello all,

Curious on how I should proceed. About 3 weeks ago I received an email saying 2 of my txns were being investigated. I logged in to find my Account -300.00 and the 2 txns were payments from a long time customer of mine since 2001 ( I am a WebHost and PHP Developer). So I filled in the resolution requests stating I am a webhost and my customer states he didnt file a complaint. I dont hear from them within 24 hours so I call them.

They tell me they put the funds on hold not because of a complaint against me but for a complaint against my customer. I tell them I dont believe this is a fair business practice. If I overdraw my account at a bank my account goes negative the bank doesnt go and take funds from other people I have paid with my money. Their response was "We're sorry sir we are investigating Fraudulant funds that you were paid with. This process can take 30 to 60 days"

I kept stopping them in mid sentance because the rebuttals she was reading kept stating I was being investigated. Her last remark was "because you are a service you are not covered under buyer protection so maybe PayPal is not right for you". Unfortunatly I had to fund my account due to business bills I have coming out of PayPal. So now I sit and wait to get my $400 back :(

Spoke to my customer and he said he doesnt understand. He had 4 complaints on $30.00 products ($120). He provided me & paypal proof that he resent new packages to the customers 2.5 weeks ago. Yet they still hold 400.00 of my money not his money

This is one time I wish the govt. would step in and shut them down.


Paypal limited my account because it was connected to my cousin's account (he logged on to his account once using my computer) who has a negative balance on his account. This was two years ago and I sell and buy through ebay. For a year and a half I 've tried to clear this up but they were not cooperative. Then I asked them to close my account because they have all of my sensitive personal information. Their answer was a "I need to put this account up to review" and an email back to me stating that this account is connected to other accounts with the domains (My cousin's account) which I can't get in contact with.
So deparate I made a new ebay account. Then a few days later they limit that account. I call to clear this up and mention that I will be moving out anyways and I would like to change the address. The guy actually actually told me that if I move out and confirm a new location with a new account that it would not be limited.

So I end up making a new account with my new address. I pay for $700+ worth of things to three sellers via one instant bank transfer and two debit card uses. The sellers got paid, paypal limits my account again and TAKES BACK the fund from the sellers and put MY MONEY on hold. The money is deducted from my banking statement. Paypal has put my funds on hold without paying the seller nor returning that money to my bank account where it originated from. I contacted paypal's csr and they were babbling! They could NOT give me a soild confident answer. And as to when the funds would clear the hold... "I can't give you that answer." Then I mentioned my first original account and the worse thing was "oh this account has never been up for review." NEVER been up for reivew??? Thats ridiculous. I've called several times in two years and they ALWAYS says it will be up for review. ITS BEEN TWO YEARS NOW! They also only sent me an email saying that the seller recieved the money but they never sent me an email saying the money was placed on hold in limbo and neither you nor the sellers have it.

Now is that not considered theft? Fraud? Swindling? Stealing? The government is letting paypal set the precedence for other places to make an online transfering business and steal money without consenquences!

I don't know what to do because $700+ is an extremely large amount of money for me who is a sick student. I reported them to the BBS in CA and Nebraska. To the ICF complaint site. I will be going around looking for any means to get this solved and cleared up. I will be making a complaint to the FBI soon too. I am trying to find information online about suing them also. Does anybody know anything? I want them to close my accounts but they won't. I find that somewhat of an invasion of my privacy, safety and security on my information.

get this, after starting as an ebay seller and using paypal to complete these transactions, low and behold one day a buyer paid me a large amount (a touch over 1,000) for a product they won from my auction 20 minutes later my account was limited, my account was verified with an confirmed address as well, with a HUGE list of things i must complete before my account could regain access luckily the first thing i done was refund the buyers money and contacted them as to why and worked out a differant payment arrangement, they wanted me to fax documentation, confirm my location (after it was already done by my credit card), confirm my social security number, buisness and inventory information, information of a supplier and all kinds of stupid shit, so i contact paypal and they said it was redflagged for 'high risk' after i talked to them they were saying 'well when you list something as new obviously you have a supplier', when in reality i had listed nothing as new and told them, what i sold were personal belongings and used. so after hours and hours of run around, i told them i wanted my balance and my refund that was coming to me (from an unauthorized use claim)sent by check to my confirmed address and my account closed, that i no longer wanted the service, days later no response, the so called 'resolution agents' give me NO help, one of the agents had spouted off to me, that there are different departments in paypal and any of them can ask to reverify your information at any point, so now my account has funds that i can't do anything with send/withdraw NOTHING, i can't even recieve funds anymore.. i thought it was extremely funny on the limitation how they put 'what you can do while your account is limited 1. add funds via bank 2. update your account information and.. THE BEST ONE!!! 3. put the logo's on your auction'... now why the **** would i want to support paypal when i can't even get my damn money from them. im getting really fed up with them, and emailed them for the last time before i escalate this to a legal claim... ive used paypal from a friend before and didnt have any problems but it seems now it's everything but 'a fast easy way to pay online' paypal is the most ignorant money trasmiting company ive ever worked with, and i can't wait to clear this up get my balance and move on, never again will i turn to paypal to recieve payments... after viewing this forum, i thought it was just me but geez, paypal seems to get around, and not in a good way...

He was done with his 90days jail time for a fraud by paypal. Which he did not do it at all. #1 the buyer won auction from him a seller for laptop DELL. #2 He send laptop to the buyer...the ship was arrived in 4 days. #3 Buyer not happy with laptop and had filed claim. #4 He asked buyer to return to him a laptop. #5 Laptop returned to him #6 the claim awarded to buyer and put my friend blance negitave $889. #7 he called paypal that laptop was returned to him and he tried refund to the buyer which paypal limited his account. #8 paypal report local police #9 the night cops came to pick him up and leave his wife and a baby at home. #10 Judge send him to jail for 90days and a year probation for a criminal fraud on paypal & he lose his job. #11 He filled claim small class lawsuit against paypal which he dont do crime things. and request paypal to pay his worth of life 90days and lose job value at $13millions dollars. He is out of jail and he is reallly pissed off at paypal!

Why paypal report local polices if there was a large negitave of balance? Will they do that to people by report police from paypal and said there is a fraud and left the balance neigtave (red)? wil they going to report police if our balance are in (red) negtiave value more than $700??

I sighed up for paypal used it for awhile but there is alot of things about paypal that the user agreement does not make clear.They are a rip off.They will freeze ur account for any reason if anyone makes a complaint or says that ur running a differnt sort of company then u actully our. They have very very bad customer service and they dont clearly care about there customers. Customer supprt told me when i said i was gonna find another company they said they had like 20 somin million people and that have a great day.There so rich with confidence that they dumb ass and they will hang up on u....

MoneyBookers. Ive used them i was sent 230$ money bookers said they sent me the check According to them it got lost in the mail so there would be a 25 $ check cancel fee. They make u pay it and then the check bounces back to your account. So after paying 5$ to send a check to my house im now - 30$ then they charged me another 5$ to resend the money im now at - 35$ plus there taxes and the money they take off as well.. i got my check i was at 170$ ... clearly wont use that company again they cant be said there illigal but they will rip u off... dont use them...

Gbuy... They dont let u send money directly to a friend so they are useless...

( Alertpay ) Looks cool there a canadian site They have good tec support so far Impressed. I love how they have 3 differnt account types and they have more options for the seller instead of always supporting the buyer... two things i dont like about They Dont support Credit cards And they dont have a better way for the person getting the money other then bank transfer or check..

Ive asked them when they will accept credit cards to fund there account they always say in two weeks and that there trying to get it in the works.personally right now this company is useless but if they can get it to work i bet they could really give paypal ago...

They say: PayPal. Your fast, secure way to pay and get paid online.
Yes, it is fast and secure but beware!!!! If you receive money from someone via credit card and that person places a chargeback after 4 months!!! Paypal will take your money and give it back to the Credit card holder. No matter what you do!!! You will never see that money again plus you will get charged again. It sucks!!!!
Paypal doesn't care about you and they will not do appeal. Even if the other party doesn't respond to the appeal.
Beware, I lost big $$$$. Paypal is definitely not to be trusted.
They told me to wait 75 days for the appeal and to ignore the emails about my neagtive balance on my account. Guess what!! I am on collection and collection agency doesn't believe that paypal told me to wait. I offer to send the emails from Paypal to prove that Paypal was "fighting very hard for my money". They don't care!!! It all makes sense now...The Collection Agency knew very well that I was not getting my money back thru the FAKE Paypal appeal.

I sold a item on ebay, the buyer sent the $ to my paypal acct and they said i have to verify that I was actually who I was. So I gave them what they asked for, my bank acct, and credit card info. They said it was still limited, because it was related to a other acct that had a negative balance. I dont have any other paypal acct so I have no idea what theyre taking about. Can someone please help me?!

I JUST had my account limited, and I have no idea what for, or how to find out how--since I'm relatively new to Paypal.

Also, in order to remove the limitations, they say I must fax the following:

- Contact information (phone number, email, etc.) for your supplier or suppliers
- Proof of sufficient inventory for the following transaction:14C171534N4855xxx ( <>- Feb. 27, 2007 )
- Proof of sufficient inventory for the following transaction:4JL92947YC0537xxx ( <>- Feb. 27, 2007 )

HOWEVER, those two items sold were DIGITAL items created by ME, so how exactly would I get "Proof of Sufficient Inventory", or "Contact Info for Suppliers"?

I'm really at a loss here. Help would be much appreciated. =(

So a while back I sold a wii on paypal, didn't verify the adress or anything because i honestly didnt know that I had to do that. Well the credit card was reported stolen, 500$ was taken from me...etc..etc. i know you've all heard the story.

Now paypal's debt collectors are talking to me, of course paypal isnt wishing to divulge any information on the situation and the police department told me I'm ****ed

Now, to be honest what paypal is doing is completely legal here....

their debt collectors have started to call me, after talking with them i found out that they will only handle the account for 5 months then it will be transfered back to paypal. My question is, can this go onto a credit report, and if so, what will it go on there as, also what is paypals policy if the debt collectors send this back to them.

thanks for the info in advance.

I did have a very profitable eBay business...netting me an average of $3000 per week profit. That is until PayPal did it's thing this week!

I sold phones requiring service contracts on eBay. As everyone knows, when someone buys a phone at a discount price requiring a service contract, they have to complete the contract to get the phone, right? The same goes for phones requiring contracts online...the contract has to be completed before the customer can get the phone. This means it is not shipped until the contract is completed. Well, as a result of all the idiots on eBay who bid without reading auctions, then filing PayPal complaints against me for their own failure to read. PayPal gave credence to these bidder's complaints and found against me in all of these claims because I didn't already ship the phones. They didn't care if there was a contract required to get the phone shipped, they even told me I should just ship the phones without the contracts at one point. Eventually, there were enough of these complaints from idiot bidders, PayPal have now "limited" my account, which means they basically suspended it on me. I have no access to the money in there and am being told to refund everyone who filed a dispute and jump through a bunch of hoops and then they will "evaluate" whether to reinstate my account.

Paypal offers buyer and seller protection to users of following countries:
USA, UK, Canada

Sales made on ebay may be quality for buyer protection up to certain amount of money.

As long as buyer and seller adhere to the paypal rules, both will be eligible for their respective protection.

Consider this situation:
-A Seller has a verified paypal account with confirmed address and things sold by the seller is eligible for buyer protection of US$2000.
-A buyer has a premium account with verified and confirmed address.
-Both seller and buyer locates in the US/UK/Canada
-The seller made a listing on ebay for an item for 2000USD and buyer is eligible for that amount
-The buyer made a buy-it-now purchase and made the payment via paypal prompty and is eligible for $2000 protection
-Seller sent the item to the confirmed address with a trackable shipping method and requires signature confirmation
-Seler moved all the funds from paypal to the bank
-Buyer received the item and filed a dispute on paypal saying that the item is significantly not as described.
-Because buyer is eligible for protection, and seller is eligible for protection, paypal automatically credit the amount back to the buyer on their own expense
-Buyer launched a dispute on ebay for item significantly not as describe
-Then they decided that they resolved the issue and will close the dispute
-ebay refunded the seller the insertion fee and FVF

At the end of the day
-seller got the $$
-buyer got the item and refund
-paypal loss the $$ due to its policy

This is a totally fictional situation...but does this rings a bell?

I have had a few problems with paypal too. A credit card payment was made in Texas, USA to pay me in the UK. I managed to transfer that into a bank account, and thought it was all good. Then I had an email from paypal saying something is wrong, and a few days later, they emailed again telling me that £280 is owing as they have reversed the transaction. Why? - I was on the phone to paypal for 30 mins on a national call no, told not to worry about it.

Next, I get a phone call from a debt collector (yes - NCO Europe Ltd) a few months later. Then letters, then collectors.I phoned paypal again. They said they wont discuss this credit card fraud to me, but only to the police. I saw Uxbridge Police station, discussed my problem. They said that the transaction was done in the States, and I am protected by English Law. They can whistle for the money but will loose when they get to court.

After a few more letters from debt collector, that they must not contact me regarding this fraud and this dispute unless they are taking me to court.

TWO years later, I am getting more letters. So I have decided to play their game. As of today (27/2/07) I have counter-claimed for the disputed money and charged them £120 for admin costs of my letter. They have to pay within 7 days. More letters will attract costs of £120, and I think after the 4th one - I will take them to small claims court. So - What do you think ?

If you buy an item on eBay and pay w/ Paypal and there is a problem Paypal is no help- you as the buyer will have to prove the item does not match it's description- my case a sax that was listed as a French made horn was actually chinese and badly damaged. Paypal denied my claim 3 times finally I had to get an expert to write a letter ( cost $40) and I had to pay the return shipping the seller bore no costs related to the fraud. As a retired claims manager I can tell you their "claims handling" does not conform to any standards. Total loss to me was almost $100- and Paypal insists you insure and pay for tracking on the return-Of course they get no $$ is a sale is cancelled- built in conflict

2 years after paypal froze both my account and my wife's, (citing fraud even after we faxed and mailed notarized copies of EVERYTHING they asked for, we even entertained their RIDICULOUS request to send receipts of every single shipping we had done, and a list of suppliers we buy from (last time I checked the latter would have been a request only a communist state would have asked for)... (over 200) they never un-froze the accounts... so we gave up and left over $3000 in paypal...
two years later, about a month ago I happen to stumble into paypal from a link somewhere, and i figure I'd try and sign in if I could to again read about how my account was frozen and so no... apparently paypal must've had some kind of glitch in their infalible system because although there were "issues" this time I could request to have money transferred, but since I had closed the bank accounts linked to paypal fearing some dipping of the cookie jar by paypal, I requested a check sent to my address... I went ahead and requested a check in an amount which left 10.97 in the account on purpose, I finally got the check, cashed it, but when I tried to return to sign into paypal, I got this very flat out, in in your face yellow screen saying that all information regarding this account was locked and no longer accesible by anyone, (not even GOD) so Im wondering, what happens when you multiply 10.97 x 100,000 (all the people who have their accounts frozen with at least some money in it)??? and who gets to keep that "STOLEN" money??? because the check I got clearly reflected a loss of exactly $10.97 now, not even customer service can tell me about that 10 bucks... what do I say? KEEP IT paypal, buy yourself a new shirt and some anal lube, because someday your end will come, and it wont be a nice end, I hope you crumble and fall as far down into the depths of hell as possible, and take all those who have made up the rules inside your company with you and burn and choke and suffer for the rest of your miserable deaths beyond eternity....

First let me start by saying that I too, like everyone else here, thinks that PayPal sucks.
I have been screwed just recently by them because of a chargeback of some kind?
I can also supply any of you with links to the auction, and copies of all the emails about this situation if any of you doubt it.
At the same time I was being screwed by PayPal, one of my best friends was also getting shafted by them, but for a different reason.
But is there truly an alternative for someone selling on eBay?
I ask this for many reasons:

1) While it is true that PayPal is not perfect, and because of this there are thousands of people all over the world that have been screwed by PayPal, the fact remains that there are MILLIONS of people all over the world that use, and have been using for a long while, PayPal with no problems. Yes, it is a fact that PayPal screws people, but it can not be denied by any one, even those here reading this post, that the people that get screwed are a VERY SMALL percentage of the total PayPal users.
I guess it just falls into an “odds” category. Meaning, the more transactions you do on PayPal, the more likely you are to get screwed. Now this is not to say that the occasional user, or even a “first-time” user can not get screwed, but again, the “odds” come into play here.
The old saying, “You can not please ALL the people ALL the time” is VERY TRUE. While all of us here on these forums all have problems with PayPal, there is only less than 24,829 registered users here. That may seem like a lot, but there are over 100 MILLION registered PayPal users (both individuals and businesses). That is LESS THAN .004%. So even if you argue that not ALL people who have been screwed by PayPal post here (which is true), you probably couldn’t come even close to coming up with 10 MILLION people who have had any major problem with PayPal, which would only be 10%. Even having the 10 million people, that still leaves 90 MILLION HAPPY PAYPAL CUSTOMERS. That is A LOT of buyers on eBay.

2) I personally know 12 people that have PayPal/eBay accounts. I gave them all the following hypothetical question: “There is an item that you want to bid on ending soon on eBay. There are also multiple auctions for this same item also going on. Now the one ending soonest for this item, the seller DOES NOT accept PayPal as a payment option. While all the other sellers of this same item DO accept PayPal. Would you still bid on the item ending soonest? NINE out of the 12 people said that they would not ever bid on an item if PayPal was NOT listed as a payment option AS LONG AS there were other auctions going that did. That would show us that on an AVERAGE, the seller who is NOT accepting PayPal is loosing 75% of his bidders. And I would be willing to bet that those numbers would be REAL CLOSE to being accurate if it was actually possible to poll the entire eBay buyer population.
Now this seller may still sell his item to some one. But any of you sellers out there know that the more bids you have, the more likely you are to sell your item for a premium price. (Unless you use “Buy It Now” or have a reserve. But those are another subject.)

3) Can any of you remember back to when PayPal was first really getting started on eBay?? Be honest here: Didn’t you have reservations about signing up with them, even though it was free??
I remember seeing those little “Pay with PayPal” thingies starting to pop up all over the place, and thinking to myself, “I will NEVER give my CC and bank info to anyone over the internet.” Well, there were other concerns as well, but that was the main one. And I am sure that most of us all had the same kind of stuff going through our heads when PayPal first started showing up on the scene.
Now, while internet security is tighter than ever nowdays, most people are comfortable with PayPal because either they are already users or have heard about it (Isn’t name recognition a wonderful selling tool), but those same people may not be as willing to sign up with some other payment company for the SAME reasons we had when PayPal first started.
Also look at it this way: “JoeBlow” is wanting to bid on my auction and has a PayPal account. I do NOT accept PayPal, but I do accept “PayMeNow” (not real, just using for this example). This “PayMeNow” is JUST LIKE and is JUST AS secure as PayPal, but what do you think the chances are of “JoeBlow” going and signing up for his free “PayMeNow” account just to bid on my item?? ESPECIALLY if there are multiple auctions going for the same thing I am trying to sell where the sellers DO accept PayPal, which he already has, and is familiar with??

What I am trying to get at is this:
I would DAERLY LOVE to get rid of PayPal. But, as an eBay seller, can I really afford to do so??
I could just say “to hell with PayPal”, drop them, and just accept checks and MO only. But I would be taking a very big chance in cutting my sales down drastically.
I could try to sign up with some other company like PayPal. But they all suck as well. Just look right here at your own forums. Go read through the “Other Companies - Alternatives” section and you will not find a solid company among them. (again the old saying rings true: “You can not please ALL the people ALL the time”).
Even if you COULD find a viable alternative, you still fall into what was mentioned in #’s 2 and 3 above.

So what can I, as someone who wants to get away from PayPal so bad I can almost taste it, do about my situation??
I came to these forums looking for help or answers.
So I humbly ask for any advice or suggestions on this dilemma. I lost $140 (or my items, which ever way you want to look at it) because of PayPal. But I just do not see a way to NOT use them and still keep as high a selling and profit margin as I currently have.

Do not misunderstand this post. I am writing my post this way to kind of play the “devil’s advocate” here. By doing this, I hope I can spark some very constructive info from you guys (and gals).

This whole PayPal thing is just like Microsoft. (If any of you out there are computer geeks, you will know what I am talking about)
But, we still have to use them. Sure, we have other options: Mac, Linux, ect.. But, if you are a gamer, work with photos, or pretty much use your PC for much more than a word processor/internet machine, you know that you HAVE to have Windows. A Linux PC or Mac just doesn’t have the games or software of Microsuck Windows. Not only that, but also just like PayPal, most people are familiar with Windows so will not buy a Mac or install Linux. So, if you want to dance, you have to dance with the Devil.

I apologize that this is so long. And I hope that this doesn’t turn into a “flame job” on me.
I am a real eBay seller (KHLBRZ) with almost 180 feedback, 100% positive. Which, by the way, is the reason that I am here. You sellers out there with high feedback know how hard we have to work to keep that 100% positive feedback (remember the saying above about pleasing people). When I had a “potentially fraudulent payment” (as PayPal called it) come through, PayPal froze my account from being able to send money out of it. This ALMOST screwed me because while all this was going on, I had 7 auctions end that I won and needed to pay for. Well, because PayPal said that it “shouldn’t take more than a couple of days to resolve” I just emailed the sellers and told them it would be a few days before I could pay them. Well, lucky for me I know so many people with PayPal accounts, because 5 days after one of my auctions ended I received an email from the buyer threatening to leave me negative feedback and/or hit me with a non-payment strike. Well, I tried calling PayPal, and they couldn’t tell me SQUAT about what was going on. They just kept saying that they could not release any information about the investigation to me and that it “should only be another couple of days”. YEAH….RIGHT !! So, I just gave the money to a friend who paid for everything with his PayPal account. By this time I had ANOTHER friend who started having problems with PayPal as well.

Anyways, what I am getting at is I do not want anyone to read this post and think I am some kind of PayPal fan just here to cause trouble.

Thanks for sticking around long enough to read this friggin’ novel I just wrote.
I also thank those of you who reply to this in advance.

About nine months ago I had a negative paypal balance from the use of my paypal debit card totalling less than $200 with fees. My wife and I have split, but prior to the split we filed for bankrupcy protection and it has since been dischared for four months or so. I included paypals debt in the bankruptcy and it was uncontested.

A month after I moved out, my wife started her own ebay/paypal account to sell of some items (including her ring). She verified all of her information and has been using her PayPal debit card and account for a few months now. She sold an item on Ebay today and the buyer tried to pay via paypal, but was given an error message stating that the paypal customer could not accept payments at this time.

Upon logging into her account she was told that due to recent activity on her account she had to reconfirm her information, which she did. Curious about this "recent activity" she decided to call them. They went ahead and allowed payments to be made to her account, however they will not let any funds be taken from her account due to my previously negative account.

They are telling her unless either she, or myself pays my bill that she cannot have her money.

Keep in mind, she was never on my account, nor was I ever on hers. But, they are telling her because we share the same last name and used the same computer (IP Address) that they can freeze her funds until I pay.

They are also stating that even though the debt was cleared/discharged due to the bankruptcy that they still have a right to attempt to collect the debt.

In my eyes, I can appreciate them wanting to make sure it was her that opened the account and not me. However, how can you strong arm someone into paying a debt that is not theirs. We never shared accounts...ever. I have documentation with my new address and offered it to my wife, however they say that does not matter.

I told my ex to contact our bankruptcy attorney to see if she could get any info from him, and also advised her to check with the consumer protection agency and anything in regard to "The Fair Debt Collection Act" to see if she has anything she can throw at them.

I filed bankruptcy for protection. I didn't file it just so I could still have to pay the debts owed. Hopefully she can get it resolved because it isn't fair for her to not have access to her money because of something I did on a totally different account that she wasn't even part of.

I do not buy and sell on eBay often, but during this holiday season I decided I'd make a few bucks by reselling a few products. I bought some TMX Elmos and some PS3's and started selling them on eBay. I sold about 10 TMX and 1 ps3 and suddenly my PayPal account is frozen. Now I can't receive or send money and I have a feeling I'm in for a nightmarish ride to get this fixed. I have more items to sell before christmas and PayPal is the only way a lot of eBay members like to use so I'm really upset about this. What is the easiest way to get this resolved?

About 2 weeks ago i put all my money into my bank account from my paypal account, today i went to luch and when i went to pay for it, i got the messege insaficant funds. So i went to the bank and looked at my account. "Account ballance is at 0.00" WTF i screamed (i realy did scream). So i went inside and talked to my bank and they showed me a peice of papper stating paypal took out 3489.49$ WTF, i only took out 400$ from paypal and put it in my bank account, and they take out all my money that i saved up for years??? WHY! what can i do. I have to live off that money and now im frikin broke!... i was so mad that when i walked outside i accuwaly threw up. Is there anything i can do, im willing to do anything! Pleas help me.

Okay, lets just say I've been overly stressed for the last couple of weeks.

Okay I run a online game that gives me pretty good extra spending money.

Heres my story.

Basically I had 1 account to start off with; - which had 1000 $ + on it from payments from people on my game finally I decided to withdraw and realized I had put fake info years ago :P I WAS ****ED :@ so I decided to make a new account and transfer the money and withdraw right away. Before paypal realized I had it put in my bank and took it out. Success right? Well my accounts get limited and as anyone has tried to do I decide i'll try to fix the problem. So I send my medicare card (canadian issued) and fax a bank statement and tell them the entire story for about 2 weeks WAITING for 24-78 hours for them to reply each time, and waiting for them to get the documents etc.) Fiannly I make a big mistake I reopened a new account basically my second as a merchant account my first was personal and my customers send me 1200 $ + BIG MISTAKE. NOW IM PISSED AND STRESSED MY GAME IS all stressed and every customer is ready to do anything they can. Paypal then calls them all and still nothing can be done. Paypal then call's me to tell me I ow them 50 $ + on my first account and because I want me 1200 back I write an email allowing them to transfer funds, I talk about 10 hours within that week to them on the phone and usually talking to ****'s and ****ers. I get 2-3 nice paypal out of maybe the 40 that are either indian/****'s etc.. Fiannlly I start quiting and I tell all my customers to file claims. Then I change my mind and and decide to sue. Then I get an email on my first account saying they will hold it for 180 days blah blah (remember this is a fake name) so I'm decided to sue now. At the same time about 1 hour later I get a letter from the BBB stating they've sent a letter to paypal based on the information I sent them. Later that night I'm super pissed/sad etc.. And I see that my second account limit status got lifted so I decide to close it and take bank etc off it. Then I tell all my customers to remove claims and all but 1 do (lol) I call for hours and still nothing can be done fiannlly after 5 weeks I'm done one night I call and a guy laughs at me and I ask him for his address so we can see if he'll laugh in the face of a guy who's losing 1000's of dollars in business and is currently waiting for his 1200 $ dollars he transfers me to his supervisor. I talk with him and explain how my first account got limited for 180 days and I'm told he doesn't understand why the lifted the lift of the second and it wasn't probably linked and I tell him that hes ****ing stupid because I talked to about 50 agents and EACH told me all 3 were so Fiannly I'm fed up. I call my lawyer and I take an appointment with her. The next day as I'm going through my emails I see this beautiful email..

Dear **** ******,

Our review is complete and we have restored your account.

We appreciate your patience and thank you for your help in making PayPal
the safest and most trusted online payment solution.


Please do not reply to this email. This mailbox is not monitored and you
will not receive a response. For assistance, log in to your PayPal account
and click the Help link located in the top right corner of any page. If
your inquiry is regarding a claim, log in to your PayPal account and go to
the Resolution Center.

PayPal Email ID *****

So I go to my account and withdraw the money, hehe currently I'm a little less stressed as the status is completed and has been for 2 days. Hah hopefully paypal won't reverse it somehow :P.. And when it goes through my bank I am taking it out and I'm gonna call them and ask them exactly wtf happened and I'm never doing business with them again.

I'll get you all posted.

**** paypal.

I started an E-Bay and a Pay pal account because I am disabled and in need of money to pay my bills, I am selling my personal items on E-Bay and having the sellers pay with Pay Pal because I thought it was secure and fast.

I sold several items including a train set that I built, and there was close to $1,100 or so deposited in my account, I Paid the shipping on one item and shipped it, them I transferred money two times $140.00 and $360.00 that is the amount I am allowed to transfer in one month, I was waiting to verify my account with a small deduction from my credit card when I found out that my pay pal account had limited status, I was allowed to put money into the account but not to remove or pay any shipping on items that I had sold.

I tried to contact Pay Pal several times and continued to give them all the information they requested, at no time did I give any false information, I did have a past Pay Pal account that I owed $153.00 on and before my account was limited, I contacted Pay Pal explaining that I wanted to pay the old account. They will not let me pay the old account with money that is in the new account and they are making increasingly impossible for me to rectify the situation, every time I try to resolve the issues they want 10 more things for me to do, Name Social Security number, bank statements, utility bills, tracking numbers on items that I cannot pay for because they will not even allow me to pay shipping from the accounts.

I told them several times that I am disabled and cannot afford to pay these shipping items by myself, I have managed to pay the one big item the train set the shipping was $180.00 that I put on my credit card. At this point I do not have any more money, my bills are enormous, and Pay Pal continues to make it impossible for me to rectify the situation.

Hey guys, like many of you I have experienced paypal's awful customer service and dealt with their shady practices. Well, enough is enough, but first I'd like to tell my story and see what your opinions are.

On November 17, 2006 I was lucky enough to get my hands on 2 PS3's. I sold one on ebay with no problems, while i privately emailed an interested buyer to see if he was willing to purchase. He was, and he sent a paypal payment of $1000. I shipped both PS3's out the next day, thinking nothing of it. Of course I kept all receipts and records. 3 weeks later, he files a "not as described" chargeback against me and paypal automatically refunds him the money, putting me in debt about $1000. I withdrew all the money out of my paypal account before they withdrew the money though, so my account is in debt. I was not planning on paying paypal unlesmy PS3 was returned. As I expected, no PS3, and now paypal wants me to refund them $1000! Haha yeah right, I am not going to refund them unless i receive my PS3 back which isn't going to happen. The biggest bullshit in all this is the guy who bought the PS3 say said the PS3 was "not as described" but i claimed it was new and unopened and I have proof of that. I sold the PS3 the next day, how could i possibly tamper with it? Also, the PS3 comes with a 1-year warranty and that idiot had a receipt, he could have exchanged it at any local target and i explained this to him.

Nonetheless, I have been ingoring my paypal account and now NCO has called me today. I have researched this issue and followed other's recommended instructions. I asked for a valid proof of debt which I read they could not supply, but the woman was quick to reply with "that is no problem sir, we can mail that to you in a few days" I also asked not to be contacted by phone again, but the lady abruptly said "sorry sir, we will be contacting you in 3 days no matter what. There's nothing you can do" and then hung up on me.

Now to the questions I have. Should i be worried? I have already closed my bank account but I am not sure if paypal has my ssn or not, is there any possible way to check? When i registered for my paypal account, I cannot recall if i entered my ssn or not as it was a while ago. Now I am worried that they have my ssn and can destroy my credit. Please give me any advice, as I would greatly appreciate it. I am not planning on paying back paypal at this time, they can screw themselves unless a brand new PS3 decides to magically deliver itself to my doorstep. Thanks for reading my story, and any help would be greatly appreciated. Thanks in advance.

I thought after losing the lawsuit Paypal could not froze accounts with no limits. I had over $ 10,000.00 that are being held and limited.
They said that my account is linked through a phone number to a criminal with a negative balance. They then linked all my relatives accounts because we live in the same house and use the same computer.
I have nothing to do with this criminal.
Is there something I can do?
I want to sue them. They affected my Ebay business and my cashflow.
Please help me.

I thought paypal was a very legitimate company until I received an email from the administrators telling me that my email, security question, answer and password has been changed. However, I never authorized any of these changes, so I knew that they tried to steal some money from my bank account. Luckily, my money is intact. I coulnd't log in with my email or anything. I tried to contact them, but I couldn't go through. a bunch of phonies and thieves.

I just got this email from paypal. I threatened a lawsuit if they dont do something about what they have done to me. to see what they have done you will have to look at my other posts. I feel like i may be getting somewhere.

Dear Derek,

My name is Doris and I work for the office of Executive Escalations.
Your concerns were recently forwarded to our office for review in the
hope that we might be able to assist you further. I sincerely apologize
for the difficulties you have encountered while using PayPal.

A review of the claim filed against your account on 01/10/2007, case
PP-239-612-903, shows that over the course of the next 10 days, three
emails were sent to your primary email address requesting more
information from you. After the tenth day, the claim closed
automatically in the buyers favor since we had received no reply from
you in that time. As stated in the Legal agreement, if a buyer escalate
a Dispute into a Claim, we will gather information from you and the
seller and determine eligibility for reimbursement under the programs
identified in section 13.1. of our Legal Agreement.

If you fail to respond to PayPal's request for more information, you
forfeit your right to appeal and the refund will be paid to the buyer
from your PayPal account.

Please understand that PayPal is user initiated and a buyer may file a
claim against a payment sent to you. In such situations, PayPal will
request additional information from you before the case is investigated
and the outcome decided. In this case, the case automatically closed due
to no response on your end. In the future, please make sure to respond
to PayPal's inquiries within the specified timeframe.

If you have any further questions, please feel free to contact us again

Executive Escalations
PayPal, an eBay Company

I email them every day. Threatened lawsuit multiple times. which i will do if i dont get results soon.
My reply went something like this.
In my reply to this email i asked her why would i reply when its against their own policy to cover vehicles under buyer protection. I asked her what other info would she possibly need? Its your own policy that vehicles are not covered. Why would you need any more info?

I have always heard ebay and paypal are totally seperate, eventhough Ebay owns Paypal, which I was told was the only connection. But despite my 800 credit rating, sending Paypal my ID, tracking numbers for everything I sent out 9 times. They still froze my account, and then so did Ebay, eventhough I went with an alternative, which I liked much more ( It was

This is my experience...

First Paypal finally froze my account after limiting 9 times, which greatly effected my business on Ebay. Then they finally close it for the last time, and said that the dicision cannot be appealed, even though I had no charge backs. In fact to my surprise they released my 3000.00 to me.

The reason they gave me, which came from someone in executive escaltions, was that there is too much risk in the type of items that I was selling online, which were video games, xboxs, electronics, and 1000.00 Zenith along with other Plasma TVs.

So after calling them over and over again I decided to switch to which worked out pretty well, except that many ebay users after winning auctions decided that auctioncheckout was a scam to get they're credit card number, or they would assume that I accepted paypal. But all in all, I was still making money.

Then last month, I got this email from Ebay... It was saying that because my Paypal account was suspended they suspended my ebay account. Naturally I emailed them back saying there must be some mistake, since there are no disputes in my Paypal account ( In fact to this day, there is 75.00 sitting in there.) but they replied to me with this email

This email is in response to your recent inquiry regarding the
suspension of your eBay account.

Your account was suspended under Section 9 of the eBay User Agreement.
Per this section, we may immediately issue a warning, a temporary or
indefinite suspension of your eBay account, or a termination of your
membership. We may also refuse to provide our services to you if we
believe that your actions may cause financial loss or legal liability
for you, our users or us.

Your eBay registration was suspended in part due to unresolved issues
with your PayPal account. In order to bring your account in good
standing, please contact PayPal directly for more information and to
resolve any outstanding issues.

You can contact PayPal by taking the following steps:

1. Open a new Web browser.
2. Go to the PayPal home page (
3. Log in to your PayPal account.
4. Locate and select the "Contact Us" link at the bottom of the page.
5. Under the "Help by email" section, select "Contact Customer

Once you have resolved all outstanding PayPal issues, please reply to
this email for further assistance with your eBay account suspension.

Thank you for your time and cooperation.


Fraud Prevention Group
eBay Trust & Safety

I was dumbfounded. There was nothing to resolve in my Paypal account, no disputes, no chargebacks, in fact it has been more than 6 months past my last transaction using that service. It says take the following steps to lift the limit in the account, but it does not list any steps. I called Paypal again, and asked them why they have done this, and pretty much all they said was, "sorry, they decided that there was too much risk in the types of items you were selling online, and I said, well how about I never use you guys again, and you lift the limit off of my account." and they said " It cannot be appealed once again.

I then contacted the bbb on Ebay and waited, The lady from the BBB office had to call, and they game me a response the very last day, on they're deadline that the BBB gives they're members.

This is the actual reply..

eBay Inc 2145 Hamilton San Jose, CA 95125-9855 www.ebay.comDecember 14th, 2005 610 South Main St. #212 Los Angeles, CA 90013Re: BBB Complaint Hello Mr. Adair, I received your recent message via the BBB, and am happy to respond to your concerns. Your account has shown characteristics that have concerned our Safe Harbor group. These characteristics are common among accounts that have been a cause of fraud on eBay. Based on Section 9 of our user agreement, which all members accept, we do have the right to suspend or terminate an account if we feel it has the potential to endanger the eBay community. With this in mind we're unable to offer any sort of refund or compensation for the actions we've taken.I have reviewed the status of your eBay account and the first step you need to take is to resolve any and all Paypal restrictions you have. Once this is done you can contact our Safe Harbor group and they can continue to assist you with your eBay account.Thank you, David FeilOffice of the PresidenteBay Inc.

Why Would my account have characteristics of one that is common with commited fraud on ebay, if they are saying that the first steps to the solution of the problem is resolving my Paypal account? Not to mention that I had 97% positive feedback on ebay, and the only negatives were customer complaints that I did not accept paypal.. here are some of the comments.

seller's merchant acct doesnt work nor does paypal...he's NOT REAL!!!

Im being threatened/bullied to pay.i changed my mind after reading feedback!!!!!

under investigation by paypal, and BBB. Lied about item and lied again shipping - This one was very strange...

Anyway, you get the point...

So based on that, the BBB said that they could not help me, but gave me the number for the Santa Clarita DA who listened to what I had to say, and is sending me a complaint form, I will let everyone know how it goes. I am fighting this to the grave. My next project is even my own payment service.. More on that later.

If you are using paypal and selling anything on ebay, I strongly suggest that you cancel you paypal account, and sign up for another auction, or if you get to big, like I did. I was selling Plasmas at least 3 times a week, they will cancel it for you. This also goes with games. The first time they limited my account, the lady I talked to from Paypal said that "Well most people don't just have xboxes laying around they're house." - I was shocked..

Hello all,

Just thought i'd share with you my story...

I am a web marketer and received a payment of aprox 3 000$ thru paypal via one of my clients.
Two months later Paypal decided it to suspend it as it was potentially "Fraudulent" !!

It turns out that with that money I had paid suppliers, paid myself and bought some goods and hence I had a negative balance of 3 000$

but that's not all...

Today, 2 weeks after the suspension Paypal decide to cancel that payment leaving me with a negative account AND decide to suspend all payments that were made with this balance... I had about 50 people call me and email me telling me that the money I sent them a few weeks ago had been suspended from their account... Really not good for business as Paypal state in the email that it is potentially "Fraudulent" money ! To put it clear they've mentionned to about 50 of people I work with that i'm a thief...

So I loose a few clients because of this, I apparently owe Paypal 3K$ and I owe 50 people what I had allready initially paid them...

Fun no ?

On top of that I call them everyday and they promise a supervisor will get back to me, however no call as of this day...

What do you guys recommend ? What is going to happen now ?

Thanks for your help,

I had a paypal account for a couple years without much trouble. Then they gave me the boot for some vague drug related TOS violation. When I asked them to specify the exact violation, they refused (repeatedly).

Anyway, it sounds like from the horror stories here, I should not feel too bad. Problem is, a lot of vendors on ebay only accept paypal. Without an acct, I am seriously handicapped (not to mention my business). For example, Circuit City has a ebay company (Trading Circuit) that sells their store-returns and broken boxes for great prices. What can I do?

A lawyer once told me I might have a chance to fight their termination because their TOS do not state that they can terminate business relations with anyone without reason. Since they explicitly state that the only way to get booted is thru a violation, they must prove the violation. Any wisdom here on that?

I just want to add my voice to the many horror stories of paypal. I've always used ebay & paypal as a buyer & seller and just had my first bad experience which will definitley put me off paypal forever.

I had a buyer purchase an item and request it be sent USPS Media Mail to their address in Hawaii. I always purchase delivery confirmation to have a tracking number and provided the number to the buyer and advised them both before and after shipment to be aware of the shipping times (which is 6 weeks or longer) if they chose Media Mail.

The item was shipping within two days of purchase. After 2 weeks, they buyer filed a complaint and requested refund from paypal, without ever contacting me. I once again provided both paypal and the buyer the shipping info with tracking number and referred them to the USPS website, which clearly showed the item was enroute. When my account with paypal was still frozen after 6 days, I sent a follow up email, repeating the information. The same day, I received notice paypal had taken money from my account to refund the buyer (again the item was still enroute, per the USPS website).

I finally got ahold of paypal via phone. They finally looked at and saw the item was still enroute. When I requested my account be reinstated, since the complaint should never have even been taken, since the buyer & paypal knew the item was enroute, I was told they would not do anything until the item is delivered.

What kind of company operates that way, that the seller should not receive payment until the item is delivered?

Also,I always advise buyers to purchase shipping insurance to cover lost or damaged items. The buyer refused to purchase insurance and now paypal tells me that even if the buyer refuses to purchase shipping insurance, PAYPAL STILL HOLDS THE SELLER RESPONSIBLE FOR ANYTHING THAT HAPPENS DURING SHIPMENT!! When I said that's b.s., a seller cannot be responsible if the shipping agent damages or loses an item, especially when the buyer specifically declined to purchase insurance, paypal responded that's just the way they do things and it is stated in their user agreement. I've read the user agreement and I don't see that stated anywhere. In any case, that is just bad business practice, to expect a seller to not receive payment until delivery and to be responsible for the shipping agent.

It is just unbelievable to me that paypal would even allow this complaint to be initiated, when the item was still in transit. When they actually paid money out on the complaint, when they knew the item was still in transit is just plain fraudulent. I guess I know now if I ever want an item for free, just pay with paypal and file for a refund while its in the mail & you can get the item and keep your money!!

received an email , which states:

You have 15 days from now to send us requested documents by fax,
as well as send sipping receipts, for non ebay transactions,

else your account is closed, and the money (500 Euro) is ours, Har, Harrrr Harr

I hate this damn company, like no other.

Do I have to ship everything, I get paid with paypal, by a shipping company, with onlinetracking.
These aXXes are worse than the Camorra, or Russian Mafia.

I am a VERFIED paypal User for 2 years,
never had any complaints, nothing was wrong, and suddenly paypal wants to 'help' me for 'security reasons'.

If I am on holiday for two weeks or I can't access my mail, the money is theirs - for security reasons???

They only try to get money from the accounts, and do everything that you can't resolve the non existing problems they generate.



I had a few paypal accounts (a few business) and a personal. I would use the business for ebay and then occasionally switch money to my personal. Well, I woke up Sunday morning and all my accounts were frozen saying there was suspicious activity and that I needed to verify some information. I did all the steps they asked and my accounts still remained frozen. Then yesterday I got an email all my accounts were closed and they are holding my funds for 180 days (Bullsh**).

My husband also has an account and now that's been closed. They state his is closed because of my activity and because they show the same IP address for all accounts.

Does paypal look at your IP address when registering for a paypal account or everytime you access your paypal account from any computer?

They have caused me a major headache and now I have lots of Ebay items to sell and no paypal account. I was thinking of opening a new one on a different computer. Would that work?

Also just because my paypal account was limited and closed, does this mean that my ebay will be suspended?

I've been on paypal since day one... I've received over 25,000 payments - had my share of common paypal problems like the rest, then this one hits me this year.. I sell on ebay 365 days a year, every Christmas season my sales jump, I thought they did for all full time sellers but according to paypal I *must* be the only one (I say this sarcastically). October I received about 3K in payments. November 8K, then in December 16K. I log in the other day to find my account has been "limited" and I must report to paypal about the "suspicious account activity". Apparently I am the only one whose sales jump 5 fold during the holiday season, so they limitingly froze my account. When I called, they said it was suspicious and they were afraid I was selling fake merchandise and wouldn't deliver and clean the money out of my account and run with the money, leaving them to refund all my customers. I told them to look at my ebay sales for the last 30 days and look at the 1400+ positives I received but they said that wasn't good enough. They wanted to run a credit report on me so in case I did something wrong they could hit my credit with a charge for the money I was "about to possibly steal". I asked how come they didn't do this to me last year. October 2004 sales = 5K, november = 16K, December = 40K. MUCH higher numbers. I didn't get a good reason.. MORONS! Apparently being a member since day one and 25,000 successfule paypal transactions wasn't good enough, they had to access my credit and lower my score. Guess someone was bored that day and decided to pick on me....


Join our class action lawsuit against Paypal at The following is my own opinion and not intended to be legal advise:

Stop thinking Paypal can do whatever they want to and get away with it due to their "User Agreement". If it's against the law, it's illegal. Period! You just have to know what to look for.

I'll give you a solid example how a class action lawsuit can sound like against Paypal at this time:


on eBay, "Fraudsters" are either "Buyers" or "sellers". How do you determine who is a fraudster? Through an "INVESTIGATION". The lack of a proper investigation procedure is where Paypal is liable, and where they not only have been "aiding and assiting" the fraudsters; but have caused innocent parties to suffer additional harm by their own conduct. For this reason, we charge Paypal with:



Many people who are committing fraud via Paypal realized that they can buy items from eBay sellers and pay for them through Paypal, which makes it look incredibly legal and causes the sellers to mail them the products. Then when they get the products, the buyer initiates a "Charge back". Paypal may refund the buyer's money back and charge the seller with the refund amount, without the return of the seller's product. Now the seller doesn't have his product and his account is frozen by Paypal because there is an assumption that the seller is a fraudster. So, the seller, who maybe a "dropshipper", can't meet his orders because he can't access his Paypal account to pay for the products and have them shipped to the buyers. Now these other buyers don't get their products and they are now initiating additional "charge backs". The seller really looks like a fraudster now. Now if the seller is selling subscriptions from his website, quess what? His subscribers are now cancelling their subscriptions because their payments are being rejected and new subscribers are seeing a message in the subscription page that this seller can't accept on-line payments.

What harm. What harm Paypal has done, and this is exactly what has been happening. I'll tell you where I see Paypal at fault and liable.


Paypal's User Agreement claims to have the right to freeze your account upon the suspicion of fraud. However, they must "reasonably" freeze accounts with "Good Cause".

"Reasonably" meaning they suspect your committing "fraud".

"Good Cause" Is obtained by conducting an "investigation" prior to freezing your account to determine whether your committing fraud.

"Holding Paypal liable for damaging you" can be found within their "investigation procedures" of a possible fraud that you may have committed. It can be claimed that Paypal has been "negligent" in failing to properly conduct a proper investigation prior to freezing your account. Paypal should be investigating both the buyer and seller prior to freezing any Paypal account. To choose to investigate one and not the other is "prejudicial" and a "descrimatory" practice against that individual being investigated due to the fact that a "fraudster" can be a "buyer" or a "seller". Paypal's failure to investigate both prior to freezing an account can be used as evidence to establish their negligent investigation procedures that has been "aiding and assisting" fraudsters in "charge back" schemes and damaging innocent parties further via Paypals "intentional" conduct.

In fact, due to Paypals negligent investigations, Paypal has actually been "aiding and assisting" fraudsters in the commission of a crime through "charge back" scams. charges Paypal with:

"Criminal Negligence"

Definition: Recklessly acting without reasonable caution and putting another person at risk of injury.

So, after reading the 1000's of horror stories, I've just pulled plug on paypal today. I think I'm a bit safe now. Since I don't have Ebay/Net business, I don't have too much money in paypal, so here's what I did.

1. I closed my checking acccount tied to the paypal account, so they can't draft a single penny. Just opened a new one. (No grievance with wasted checks, as I've only written 5-6 checks in 3 year period).
2. Bought postal money order for the entire amount of my paypal account using PP debit card. Since I had the PP debit card, that has $3000 purchase ($400 ATM was too less) limit.
3. Cashed the money order on the spot.
4. Paypal account will be closed by me, when the debit transaction is completed.

So, I should be clean right? There's no way Paypal can touch anything I have now, since they only have a closed bank account. I think this is a good way for anyone who wants to avoid paypal. I didn't want to do electronic withdrawl for all my money, because that raises their stupid flags, and it'll give them time to freeze my account and "undo" my withdrawl.



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