Author Topic: Bad experience with PayPal - take heed  (Read 8617 times)

Offline Howard Wallace

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Bad experience with PayPal - take heed
« on: October 12, 2010, 09:44:48 AM »
I logged onto PayPal from China to send some money to an online vendor I have interacted with for many years.  I immediately got a message that my PayPal account had been restricted due to suspicious activity and I should go to the resolution center to straighten things out.  I did so and they had me input my credit card number, a new password, and some security questions.  Then there was a notice that they would review the information and take action in a few days. 

I did get a note a day or so later that the account restriction was lifted.  However, when I again tried to send money to the vendor I was still locked out.   I called PayPal and was informed that the account restriction had been lifted but it might take a few days till my account would work, and to keep trying.  She said that there was no way to just turn on my account and the only thing to do was to wait. 

I continued to try my account every few days and was always locked out.

When I returned to the states I tried to send money again.  Still locked out so I called PayPal again.    This time I was informed that although my account restriction had been lifted, a lock had been placed preventing me from sending money to the particular vendor I had been trying to pay.  I asked them to lift the lock but they said that could not be done and suggested I contact the vendor and have them provide another e-mail account for me to send the funds to.  The PayPal representative did say that I was free to pay other entities through PayPal but that there was just no way I was going to be able to send money to the address I had tried to send money to from China.

I figured I would just take care of that business with a paper check and snail mail, and logged onto e-bay to try to make a purchase from another vendor.  I used the buy-it-now option to buy something, and everything worked fine.   However, 15 seconds after my purchase I got another e-mail from PayPal saying that my account had been restricted again, and again directing me to the resolution center.  There I was instructed to again change my password and input new security questions, however this time when I tried it said I took too long and the page had expired, so try again.  I tried again a couple of times, typing fast, but still got the same error message.

At this point, rather than call PayPal for a third time, I decided to Google “PayPal account restriction”.  When I did I got page after page of horror stories of people having their accounts locked down and being unable to access their funds for long periods of time.  Many of these people had been asked to provide multiple sensitive financial documents like bank statements, credit card statements, etc., and after doing that told that their accounts would still be in lockdown. 

Fortunately I had never linked my PayPal account to my bank account, and I never kept a balance in PayPal so they don’t have any of my money under their lockdown.  I’ve already spent enough hours trying to straighten this out.  Now I will simply cease doing business through PayPal until such time as they can get their act together.  I’ve been using PayPal for a long time and had no idea of such problems.  I post this here as a warning to my friends of the possible hazards of using PayPal, especially if you maintain a balance of funds in your account.

Offline radiomacgyver

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Re: Bad experience with PayPal - take heed
« Reply #1 on: October 12, 2010, 12:59:51 PM »
I've had trouble getting PayPal to cooperate when some fraudulent charges showed up with my banks online statement. They wouldn't release the ip address from where the fraud originated or the address to where the items that were attempted to be purchased were going to be sent.

I learned not to link your paypal to a debit card since that ties up all your money. I had to wait a month to see if the false charges went through. Nothing went through since I put a fraud alert on my credit card.
But it's nice to know PayPal wouldn't help me.   SCREW THEM!!

Offline Perfesser

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Re: Bad experience with PayPal - take heed
« Reply #2 on: October 13, 2010, 08:19:56 AM »
We used to use Paypal for forum and dues payment but they screwed a couple of folks so our motto became "never again".
http://www.paypalsucks.com/

1. According to PayPal accepting their ToS (Terms of Service) in effect means you waive your rights to credit card consumer protection laws if you want to use their service, and that you may not issue a chargeback for unauthorized use of your credit card and PayPal account, or if you do, then they have the right to limit your account. Is this legal? We don't know. But it's how Paypal operates. See my credit card waiver page for more information.

3. Their terms of service are not completely disclosed upon signup and some key "conditions" are not disclosed. They fail to mention their total lack of security to prevent your account from being compromised by phishing & spoof sites. That if your account is accessed by a criminal using one of these methods, PayPal will hold YOU monetarily & legally responsible!

Offline Bee man

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Re: Bad experience with PayPal - take heed
« Reply #3 on: December 17, 2011, 07:40:22 PM »
All I can say is  Pay Pal SUCKS!!!!!!!

I have had numerous problems with them and no longer use them.
My son sold a $250.00 item on ebay. The buyer paid with pay pal. My son printed the shipping lablel straight from the pay pal web site with tracking numbers. The USPS lost the package and the buyer opened a claim against him with pay pal. Even though we provided active tracking numbers pay pal refunded the buyers money and placed a strike on my sons account. They told my son "sorry you are just out of luck". Now I do understand that this was not the buyers fault but pay pal treated my son like he was some kind of scammer or con artist.

Offline JLMissouri

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Re: Bad experience with PayPal - take heed
« Reply #4 on: January 12, 2012, 10:17:44 AM »
PayPal has problems, but it is the best way to get paid instantly for Ebay and other items. I have had some problems in the past with bad buyers who reversed their PayPal payments, it took some doing but PayPal did eventually pay out of their pocket for the dishonest buyer. When I first started selling I had a guy in England buy something and then he went crazy, it takes some time for a package to get to England from the US, but he wasn't smart enough to understand. He filed a claim and won, and I learned a valuable lesson about doing business online.

Offline Outdoorfury

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Re: Bad experience with PayPal - take heed
« Reply #5 on: January 12, 2012, 10:37:34 AM »
I had someone rip me off on Ebay and paypal made me eat the $250 dollar cost. I hate em.

Offline ncjeeper

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Re: Bad experience with PayPal - take heed
« Reply #6 on: January 12, 2012, 11:16:04 AM »
So far no issues using them. I send funds more than I receive funds so that may come into play.

Offline American Redoubt

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Re: Bad experience with PayPal - take heed
« Reply #7 on: August 19, 2012, 05:08:44 PM »
As a non-profit, I have used PayPal now since 2002 with more than 1000+ transactions with people and businesses from all over the world (both receiving money and sending-donating funds) for a substantial overall sum of money and have had only 1 minor problem with a person asking for a refund, but PayPal solved it in a day. 

Perhaps my lack of PayPal lockdowns-lockouts while traveling or transacting with foreigners, even though I have logged in from not only the USA, but also Europe and Asia, was due to the fact that I use the security token generator from PayPal; and now from 3rd party YubiKey:

YubiKey 2 with VIP (support for PayPal and eBay): The YubiKey is an innovative USB-key that simplifies the process of logging in with strong two factor authentication. With a simple touch on the device it generates a One-Time Password (OTP) on any computer and platform without any client software needed. YubiKey 2 in Black configured for Symantec VIP:
https://store.yubico.com/store/catalog/product_info.php?products_id=42&osCsid=600d5b5587b1a8c417dfb3d9784aa837 

I love this Yubikey, it works great with LastPass.com

Offline SheepdogSurvival

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Re: Bad experience with PayPal - take heed
« Reply #8 on: August 19, 2012, 06:36:17 PM »
I have not had any problems with paypal but I've been looking into bitcoin as an alternative. I'm not totally up on how to use it etc and I'm a bit apprehensive about owning a sizable amount of bitcoin because I'm worried that the govt might shut it down due to being unable to regulate it.

What I really wish would happen is that the trusted vendors in our community (like jack's sponsors) would just due business in bitcoin or in AOCS currency so I could start to move away from purchasing things with US dollars. I also do alot of purchasing/selling online through forums (ar15.com, s12.com, and here when I get enough posts...) and I would really like it if more people would trade in silver or bit coin. Right now unfortunately it's kinda a pipe dream....

Offline Dainty

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Re: Bad experience with PayPal - take heed
« Reply #9 on: November 15, 2012, 01:47:08 PM »
My Paypal experience is posted in this thread.

Offline The Professor

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Re: Bad experience with PayPal - take heed
« Reply #10 on: November 15, 2012, 02:47:00 PM »
We had an online business that utilized Paypal as our primary method of payment.  It worked fine for about 2 years until one of our competitors intentionally made a large number of individual purchases, waited a week until the items were delivered and then filed individual claims on each one of them, stating they had not been received (we had the tracking numbers on all transactions that showed they were delivered, but Paypal "customer service" stated that Delivery Confirmation from USPS was not acceptable proof of either shipment or receipt, only Signature Confirmation.)

Paypal immediately locked our account, holding over $15k worth of funds and preventing any further transactions on our site.  It took over 6 months to get that money back from them and, in the meantime, we ended up having to pay someone to swap to another shopping cart/payment system.

Paypal never apologized and never compensated us for the lost revenue, etc.  We know it was an intentional act because about two years later, the person who did it bragged about what he did to us, and other people who competed with him, to a mutual acquaintance at a national event over adult beverages.

I now only use Paypal to transfer money to people who will only accept that form of payment.  If at all possible, I try to simply not purchase anything from a Paypal vendor unless I have to.

The Professor


Offline pokeshell

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Re: Bad experience with PayPal - take heed
« Reply #11 on: February 24, 2013, 08:30:48 PM »
We had an online business that utilized Paypal as our primary method of payment.  It worked fine for about 2 years until one of our competitors intentionally made a large number of individual purchases, waited a week until the items were delivered and then filed individual claims on each one of them, stating they had not been received (we had the tracking numbers on all transactions that showed they were delivered, but Paypal "customer service" stated that Delivery Confirmation from USPS was not acceptable proof of either shipment or receipt, only Signature Confirmation.)

Paypal immediately locked our account, holding over $15k worth of funds and preventing any further transactions on our site.  It took over 6 months to get that money back from them and, in the meantime, we ended up having to pay someone to swap to another shopping cart/payment system.

Paypal never apologized and never compensated us for the lost revenue, etc.  We know it was an intentional act because about two years later, the person who did it bragged about what he did to us, and other people who competed with him, to a mutual acquaintance at a national event over adult beverages.

I now only use Paypal to transfer money to people who will only accept that form of payment.  If at all possible, I try to simply not purchase anything from a Paypal vendor unless I have to.

The Professor

I know of 3 businesess killed by paypal (killed to the point of unemployment of regular people that hard no idea.) Do not put your eggs in one basket. I use paypal for single items, but will not for my business. Do not work for an employer that even seems to reliy on paypal.

PayPal can be great for onetime items, and recurring like Jack does. If you sell "stuff", make sure you have multiple bank accounts. They will lock up 40K at the blink of an eye.  I say $40K from personal PalPal abuse, it could be WAY more.

At $40K there is no customer service. I had an issue over a $5 dollar cable part!

If you can, please set up an account with multiple vendors.
 

Offline Howard Wallace

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Re: Bad experience with PayPal - take heed
« Reply #12 on: February 26, 2013, 05:51:35 AM »
Curious that this post should bubble up when I am once again overseas in China.

A few months after I made the original post I checked my PayPal and it worked again.  I still use my account occasionally.  I never allow a balance to remain in the account.  I have not, and will not, link it to my bank account.  I also refrain from using PayPal when overseas. 

Offline ModernNaamah

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Re: Bad experience with PayPal - take heed
« Reply #13 on: February 27, 2013, 06:51:43 PM »
I signed up with PayPal early in it's beginnings, 1999 to be exact. I've made numerous transactions. I am very careful to only send money to verified customers and do not use it for my personal business. I have never had an issue or a problem.