Another Paypal horror story

[yuuzokun]

Damn, I’ve heard a lot of stories like this and with even more money if the $7500 was the only amount you had that would be a problem especially.

Personally the biggest amount held for me was about $400 which was a minor issue but was still annoying it’s actually still held for a few more weeks.

PayPal defiantly needs to have a system to fix this because now PayPal is a gamble for big payments sometimes but I hope things work out to the best!

Thanks but I've already giving up on them, it was just for other people to warry and take their precaution .

 

[HoNeYBiRD]

I do believe Paypal is on the verge of going down, many marketers and freelancers are relying on it (yet getting dissapointed)and it's just a matter of time.

Sad story is sad, but PayPal is not going anywhere. When eBay introduced earlier this year that they will replace PayPal with Adyen as their primary payment processor, at that time PayPal's non-eBay volume was already growing faster than its eBay volume. This year PayPal signed a deal with Walt Disney, QVC and Dillard's to be a payment option on their sites. PayPal definitely doesn't strike me as a company, which could go under in the foreseeable future.

Believe it or not, high FnF payment rate can trigger account reviews, this is mentioned on this very forum countless times or if that's not enough, Google can reveal more. I haven't read anything about this lately, but it's like this since a long time and if they put more emphasis on this recently, then there's the explanation.
It can be that you were not selling any prohibited items, but you were still selling, the FnF payment option is clearly not for selling. So who is at fault?
This issue is already non-existent outside the US though, because of the recent fee increase of the FnF payments in non-US countries, so it doesn't worth it anymore to use it to send/receive payment when buying/selling.

You shouldn't have kept thousands of dollars on your PayPal balance either, that's also a big no. Leave them some money, never empty the account, but definitely don't keep thousands there for long.

Lesson learnt the hard way i guess.

 

[LightningKing]

I don't have F&F payment option in my country so they shouldn't have any reason to limit my account right?

Anyway I will withdraw money to the bank after I read this story lol.

 

[netalgo122]

That sucks, sorry for that mate.
That's why I'm always withdrawing when I have more than 100$, just to be safe.

 

[Bestindabiz]

They have literally been stealing money from people ever since they been in business that's why I don't deal with them.

 

[MisterF]

I think it might if the majority of your payments are F&F and it looks like you could be running a business.
Obviously nobody can be sure of the reason unless they have a contact at PP but I keep F&F payments just for F&F and pay fee's on everything else so my account is 100% legit.

You could just open a few other stealth accounts and just carry on, but I think lot's of people may find F&F payments a problem in future, especially if the majority of payments are made that way.

If these are also regular clients paying a set amount each month it leaves an obvious red flag. The F&F was set up I thought so when your brother was pissed up on holidy abroad and lost his wallet, you could send him £500 to help him out, that type of thing.

I don't think their intention was for people to receive 200 payments every month from the same people all for £500.

I could be wrong, as I tend not to use Paypal unless it is a last resort.

@yuuzokun , feel for you though, especially as you had all the proof of ID etc and the acount was a genuine account.

 

[ShiningWarrior]

A couple of things -
1) Did you have a registered business?
2) You said merchant PP account. Did you submit all of your biz documents to them?
3) Merchant ID and paying to freelancers is "BUSINESS ACTIVITY", so you should have paid as "services" for all payments. Because nowadays many people are abusing the F&F thing on paying and receiving payments towards doing services on prohibited, pirated and scammy things.

Don't just blame and rage towards PayPal. Understand they want you to make money. Why? Because when you make money, they make money!

And they limit accs to prevent potential scams and frauds and those occur through F&F payments.

I think they are cracking down on the abuse of friends and family payments, pretty sure I read that somewhere recently.

Absolutely correct!

 

[yuuzokun]

A couple of things -
1) Did you have a registered business?
2) You said merchant PP account. Did you submit all of your biz documents to them?
3) Merchant ID and paying to freelancers is "BUSINESS ACTIVITY", so you should have paid as "services" for all payments. Because nowadays many people are abusing the F&F thing on paying and receiving payments towards doing services on prohibited, pirated and scammy things.

Don't just blame and rage towards PayPal. Understand they want you to make money. Why? Because when you make money, they make money!

And they limit accs to prevent potential scams and frauds and those occur through F&F payments.

Absolutely correct!

I'm not raging I literally don't give a flying F*** about that money, it will be available in 6 months , Again, this post was meant to let people know about this .

Sad story is sad, but PayPal is not going anywhere. When eBay introduced earlier this year that they will replace PayPal with Adyen as their primary payment processor, at that time PayPal's non-eBay volume was already growing faster than its eBay volume. This year PayPal signed a deal with Walt Disney, QVC and Dillard's to be a payment option on their sites. PayPal definitely doesn't strike me as a company, which could go under in the foreseeable future.

Believe it or not, high FnF payment rate can trigger account reviews, this is mentioned on this very forum countless times or if that's not enough, Google can reveal more. I haven't read anything about this lately, but it's like this since a long time and if they put more emphasis on this recently, then there's the explanation.
It can be that you were not selling any prohibited items, but you were still selling, the FnF payment option is clearly not for selling. So who is at fault?
This issue is already non-existent outside the US though, because of the recent fee increase of the FnF payments in non-US countries, so it doesn't worth it anymore to use it to send/receive payment when buying/selling.

You shouldn't have kept thousands of dollars on your PayPal balance either, that's also a big no. Leave them some money, never empty the account, but definitely don't keep thousands there for long.

Lesson learnt the hard way i guess.

You're right, but I'm sending money via F&F , not getting it .

If these are also regular clients paying a set amount each month it leaves an obvious red flag. The F&F was set up I thought so when your brother was pissed up on holidy abroad and lost his wallet, you could send him £500 to help him out, that type of thing.

I don't think their intention was for people to receive 200 payments every month from the same people all for £500.

I could be wrong, as I tend not to use Paypal unless it is a last resort.

@yuuzokun , feel for you though, especially as you had all the proof of ID etc and the acount was a genuine account.

Yes, that was what suprised me the most, all the details are real and had a clean history with that account.

 

[Dillon]

Thanks but I've already giving up on them, it was just for other people to warry and take their precaution .

Yeah PayPal doesn’t realize it but soon change us to come.

I hope people take this in and don’t put all your eggs into one basket it hurts to see people suffer because of it.

 

[ShiningWarrior]

I'm not raging I literally don't give a flying F*** about that money,

Mate, everyone in the world gives F#CK about money.
We ALL work and sacrifice comfort every day to make MONEY, so yes everyone gives F#CK about MONEY. You're just saying that because you are angry now. I get it. I would have been in the same state of mind if a similar thing would have happened to me.

Just pay as "services" from the next time whenever you do any kind of business transaction to avoid unnecessary hassles!

 

[zebrahat]

Don't just blame and rage towards PayPal. Understand they want you to make money. Why? Because when you make money, they make money!

And they limit accs to prevent potential scams and frauds and those occur through F&F payments.

As opposed to the ACTUAL scam and fraud PP pulls by earning interest on funds sitting in a locked account for months, while the user makes no money? The point the OP was making was that, given an excellent history across several years, with almost no disputes, and with real documents produced upon request, there is no good reason why an account should be so swiftly and permanently closed, with the user left locked out of thousands of bucks for six months with no recourse. This is why people blame and rage against Paypal. In this case, they are to blame.

 

[hippo123]

Nothing we can do isn't it?

They can choose not to do our business.

 

[ThopHayt]

PayPal belongs in the scrap heap with AOL, and MySpace... things from the early days that have outlived their use. Mostly old farts use PayPal anymore it seems to me anyway.

-ThopHayt

 

[yuuzokun]

As opposed to the ACTUAL scam and fraud PP pulls by earning interest on funds sitting in a locked account for months, while the user makes no money? The point the OP was making was that, given an excellent history across several years, with almost no disputes, and with real documents produced upon request, there is no good reason why an account should be so swiftly and permanently closed, with the user left locked out of thousands of bucks for six months with no recourse. This is why people blame and rage against Paypal. In this case, they are to blame.

Don't mind him, I decided to ignore his replies. Just a waste of time as he's completely missing the point .

 

[yuuzokun]

Yeah PayPal doesn’t realize it but soon change us to come.

I hope people take this in and don’t put all your eggs into one basket it hurts to see people suffer because of it.

That's the moral of the story, If you're not going to pay for services or reinvesting that money then withdraw all the way.

 

[ShiningWarrior]

As opposed to the ACTUAL scam and fraud PP pulls by earning interest on funds sitting in a locked account for months, while the user makes no money? The point the OP was making was that, given an excellent history across several years, with almost no disputes, and with real documents produced upon request, there is no good reason why an account should be so swiftly closed, with the user left locked out of thousands of bucks for six months with no recourse. This is why people blame and rage against Paypal. In this case, they are to blame.

Nope, they are NOT to blame.

The way I (A NEWBIE into IM) see it, a BUSINESS PERSON should ALWAYS pay as "SERVICES" for any kind of business transaction whatsoever!
That is the rule. You have to oblige to the rule when you are using a service from anyone else. If someone doesn't want to comply with the other person/company's rules, he/she should make their own payment system or service. Not following the rules and blaming and raging towards the company when he/she gets put down is absolute silliness.

You have to understand F&F payments are HIGHLY abused for -
1) Scams and Frauds.
2) Doing and providing services on prohibited and pirated contents.

I would have done the same if I was working at PayPal.

And PP and STRIPE are the WORLD'S most famous payment gateway. No other payment system will ever overtake them. Mark my words.

Don't mind him, I decided to ignore his replies. Just a waste of time as he's completely missing the point .

Yes please ignore me mate. I would love to see you changing the online payment system and bringing all of us a new revolutionary online payment system.

 

[HoNeYBiRD]

You're right, but I'm sending money via F&F , not getting it .

Yea, i was focusing on the "i'm not selling any prohibited items" part. Anyway, sending or receiving doesn't matter much, those freelancer deals are business ones too, which aren't supposed to be paid via FnF all the more so, because you have no buyer protection.

 

[zebrahat]

PP is to blame, because they have done these kinds of limitations whether the user was abusing F&F or not.

 

[yuuzokun]

PayPal belongs in the scrap heap with AOL, and MySpace... things from the early days that have outlived their use. Mostly old farts use PayPal anymore it seems to me anyway.

-ThopHayt

Just a matter of time my friend.

 

[yuuzokun]

PP is to blame, because they have done these kinds of limitations whether the user was abusing F&F or not.

What the most of replies here are missing is the fact that the account was closed (not only limited) after uploading all the real required documents. I still don't think F&F was the only issue since that method wasn't only using to pay for services but to actually send money to friends & family.

I'm still standing on my point to inform others of what happend, I do have a stripe, bluesnap, fastspring and authorize accounts, The money on this paypal account was meant to pay for my ads, I'm already working on funding a new account or something .

Guys, I'm not looking to find a reason on why Paypal did this, again. A simple google search will show you the number of similar cases and sometimes without even having the option to send using F&F.

Take this post as you want (not to you @zebrahat), I'm not imposing it on anyone.