PayPal $200k+ Hold

[Dr. Tomahawk]

Hey,

Just want to give you another example that shows that you should avoid PayPal at any cost if possible.



$200k+ on Hold. Thank you. Reasons:

1. Reserve Hold
2. 25% Rolling Reserve for every transaction
3. 100% Hold for every monthly income above $XXX.XXX

I have to pay VAT, taxes, business expenses, etc. Is that even legal what they are doing?

 

[proxygo]

i was about to say who leaves 200k in pp

 

[Dr. Tomahawk]

i was about to say who leaves 200k in pp

This is a rolling reserve of 25% which means 25% of every transaction is put on hold for 45 days. The other big part is that they put a 100% hold on every transaction if you pass, let's say, $100k in sales every month. So at the end of the month, every new transaction is on Hold. Should I just stop accepting orders then? I have not mentioned that this is a sudden hold. But the money on hold is always getting bigger when the business grows.

 

[C63]

This is a rolling reserve of 25% which means 25% of every transaction is put on hold for 45 days. The other big part is that they put a 100% hold on every transaction if you pass, let's say, $100k in sales every month. So at the end of the month, every new transaction is on Hold. Should I just stop accepting orders then? I have not mentioned that this is a sudden hold. But the money on hold is always getting bigger when the business grows.

I think you should use WISE or another payment processor instead of PayPal.

 

[ivo1017]

You need to give some more info about the money, and you will receive better advices. What do you selling? Good, services, etc.

 

[Castamir]

At this point, you should probably change a payment processor.

 

[Rajorib]

u r biggest fool sorry to say that to use paypal .... just use cypto dude

 

[Chris Newman]

Sorry to know that you've got such a huge amount on hold in (by) PayPal. Hope all the amounts due to you are eventually released.
If you are selling digital non-physical products, then nowadays just avoid accepting PayPal, as in that case, accepting PayPal is equivalent to doing free charity work.
Accept crypto : Gone are the days when many people are (were) skeptical about paying with crypto. If your services and products are trustworthy, then nowadays buyers will have absolutely no issues paying with crypto (atleast that is my experience).
However, better to do business instead of free charity (as far as internet marketing goes).

 

[Zeff]

AHHHHHH the joys of leaving your money in an entity that is not regulated or insured by the FDIC. Any money in PayPal, Square and the 100 others rippers out there….. that’s “their“ money the second it‘s deposited there. So be nice nice and willing to give your DNA to have it back. Good Luck!

 

[TheKingSlayer]

Keep calm and Use Crypto.

Am thinking if things would get easier with Paypal's adoption of a stablecoin (rumoured news). Only time with tell

 

[shop]

https://www.blackhatworld.com/seo/paypal-scammed-me.1360586/

 

[Rollfic]

You did not mention what type of business you do?

They don't block/hold that much for no reason.

 

[Dr. Tomahawk]

Thanks for your replies.

u r biggest fool sorry to say that to use paypal .... just use cypto dude

It seems you have no clue either. I'm also accepting Crypto (not only BTC but a few more coins). Across all my sites, only about 5% of the total revenue comes from Crypto payments. And I think that is not very low compared to other niches. Most people do not use Crypto for regular purchases.

If you do not offer PayPal/ Credit Card, most people will not convert. Easy as that. I have enough experience with E-Commerce to know that.

At this point, you should probably change a payment processor.

Yep, definitely. My business has been accepted by a big payment processor (for credit card payments), and I will start offering card payments in the following weeks. But I don't know if I should completely stop with PayPal. Unfortunately, it is still a major payment platform for many buyers.

BTW: I'm selling digital services, a high-risk business with chargeback rates of ~2%. I'm using PayPal for 3 years now. Maybe they earn too much from the fees so they can not disable the account.

What I'm asking here: I do not understand if that is even legal. For example, if they hold such big amounts of money, I'm unable to pay the taxes. What should a business do then?

 

[Dr. Tomahawk]

Another thing to mention is:
I had a few fraudulent customers in the past who abused my system. Every year, I deal with a 1-10 customers placing an excessive amount of orders and then disputing ALL orders. Even if all orders were properly(!) delivered. And I also had to deal with a few fraudsters using stolen PayPal accounts and placing massive orders. A few days later, when there are 50-100 disputes in 1-2 days, PayPal's security system will be triggered. That resulted in all of that.

Few customers are really abusing the dispute system. That is very frustrating. I have no solution for that.

 

[BassTrackerBoats]

They did that to us about 10 years ago where they held a % of the revenue rolling just like you.

I do not remember the % but I do think it was 45 days.

We were selling SEO services (I'm not going to share the $ amount but it was quite healthy) and had no chargebacks that I can remember.

After 6 or 8 months or so they stopped the hold so maybe they will do the same with you once they see you are running a clean business.

 

[MisterF]

This is a rolling reserve of 25% which means 25% of every transaction is put on hold for 45 days. The other big part is that they put a 100% hold on every transaction if you pass, let's say, $100k in sales every month. So at the end of the month, every new transaction is on Hold. Should I just stop accepting orders then? I have not mentioned that this is a sudden hold. But the money on hold is always getting bigger when the business grows.

I wouldn't wish Paypal on my worst enemy.

Stripe, Wise, WorldPay in fact any processor other than Paypal is the way forward.

 

[ss1180]

This is a rolling reserve of 25% which means 25% of every transaction is put on hold for 45 days. The other big part is that they put a 100% hold on every transaction if you pass, let's say, $100k in sales every month. So at the end of the month, every new transaction is on Hold. Should I just stop accepting orders then? I have not mentioned that this is a sudden hold. But the money on hold is always getting bigger when the business grows.

Hello one of my friend also facing same issue but after month they release the payment and he got it successfully in his account. It's happened with new accounts or the account where some charge-back or dispute done.

 

[Starblazer]

This is scary. If we hold 100% of the amount, then you're putting entire business at stake. Regardless of whether they improve or not, it's better to switch to a better payment processor. They are clearly not prepared to deal with huge businesses.

 

[Shinichi Izumi]

Tips : CHANGE YOUR PAYMENT PROCESSOR
answer : it's legal only because they can do it , and few are people who think about suing them

 

[Intofantasy]

Damn, i had simular issue.
Over 40K usd locked.
Took me about 1 year 4 months and over 47 diffrent paypal emails to email, but over 200 messages sent, over 150 emails sent.
They can eat bag of dlcks