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Paypal freezes accounts and this is why.. Heres the math

Discussion in 'BlackHat Lounge' started by MiLiTARYiV, Sep 19, 2010.

  1. MiLiTARYiV

    MiLiTARYiV Senior Member

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    rundown:

    1.
    Paypal is a illegal operating bank. They offer merchant account's which makes them a bank..https://merchant.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=merchant/merchant_accounts

    2/ reason paypal is not getting touched yet is they donate etc millions of dollars to politicians funds and campaigns, The same politician once elected in protects paypal. They payoff big people

    3.
    Alot of politicians also use paypal for donations which is basically tax free because Paypal dont report taxes to IRS as of yet.

    3.
    PayPal heavily protected because they pay the big wigs off and contribute money..

    4.

    Last, Paypal makes Millions of freezing accounts. Let do the math.


    As of December 2008: more than 153 million accounts worldwide. So lets say in 2010 they probably have about 180 Million by now..

    Ok, 180 million members. Lets say roughly 5% of members get there accounts frozen with average of $1,000 stuck in it.

    So 5% of 180 million is 9 million members. Okay 9 million times $1k each equals 9 billion dollars! Yes 9 billions dollars in held funds For 6 months at a time..


    So times 9 billion times interest rate of .10% equals 900 Million dollars per 6 months!!!


    Paypal is clearing almost a billion dollars every 6 months, now granted some people even have higher amounts then 1k frozen such as the dude with 750k so I assume paypal makes more then 900 million dollars every 6 months.


    Also take int o account some people dont even claim there money after 6 months for whatever reason.

    Even with 2.5% frozen rate they still make half a billion every 6 months,,

    So please when u get your account frozen now u know why.. Get a merchant account fellows. PayPal is clearing almost a Billion dollars free money every 6 months and I dont think they gonna stop


    Paypal swears the money is not making intrest but we know the truth
     
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    Last edited: Sep 19, 2010
  2. GreenGoblin

    GreenGoblin BANNED BANNED

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    Been telling people this, since day 1
     
  3. SuperBlackHat

    SuperBlackHat Power Member

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    thank you for this info bro. Its why ive been using alertpay alot lately. Not trying to have any paypal acct with more than $20 in it if i can help it.
     
  4. shudogg

    shudogg Regular Member

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    Paypal is garbage. They let anyone do a chargeback for whatever reason. This is why I refrain from using Paypal to sell products. A lot of people know that when they buy a prodcut that isn't recurring, like they buy an ebook. They pay and get the product, a few days later do a chargeback. They got the product and 99% of the time get their money back. More and more people are realizing this.

    Paypal gives the person 90 days (I think 90, maybe its 60?) to file a charge back. Almost everyone issues a 30 day refund policy. So if the person buys something, and 50 days later (out of the refund policy of the seller) they can still get their money back. This is bullshit.

    Also for those who have recurring services. Such as a membership site or something. When I first launched my membership site I had paypal as an opion. My site is 49.97 recurring every month. My terms are you have a 30day refund policy from your first payment and recurring payments are non-refundable. (It isn't my fault if you "forgot" to cancel before you got billed).

    Paypal does not care, they will let them do a chargeback on recurring payments as well. So if I have a member and he gets auto billed on month 3, he has 90days from each payment date to dispute. This is freaking retarded.

    When it gets escalated and paypal "investigates" they do not give two shits about what the terms and policy of your website. When the person paid me, they agreed to my terms. Paypal does not care. They will give them their money back every time.

    Paypal sucks! Get a real merchant like Authorize.NET

    Paypal Sucks Balls
     
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  5. GreenGoblin

    GreenGoblin BANNED BANNED

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    exactly bro, I use authorize.net currently and i don't have any issues with them at all, I get my money the same if not faster then them damn paypal transfers.
     
  6. Satan Claus

    Satan Claus Regular Member Premium Member

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    With all the bitching going around about Paypal (not saying it's not justified, because I wholeheartedly concur) it's amazing there hasn't been a group of IMs with some cash to burn to pool together and offer an alternative.
     
  7. likeskoolaid

    likeskoolaid Regular Member

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    ebay is such a cocksucking bastard company

    There are plenty of alternatives, unfortunately most everyone are sheeple and want to use the most 'reliable' and trusted company.
     
  8. shudogg

    shudogg Regular Member

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    There are a lot of headaches to be a merchant. Tons of legal issues and hoops to jump through. They probably look at it as more of a pain in their ass than it is worth.

    with Authorize.net you have to have terms and everything else before they will lift the block on your account. They look at the terms on your site and make sure that they follow guidelines set by the major CC companies before they allow you to use your account.

    First, anyone who wants a refund has to contact me. If they are within the terms, I login to 1shopping cart and click "issue a refund" and it will do so. If they are not in the terms, then I email them back stating so. And I send them the details to prove it, such as the date they paid. I also refresh their memory that it is only a 30 day refund policy and that they are outside of it and can't get a refund, and that they agreed to these terms by signing up.

    If that person wants to be a dick, they then can file a complaint or whatever. Then they will investigate and look at my terms. They will tell them tough shit. I don't lose the money over a bunch of bs like I would with paypal.

    Paypal is garbage and I hope they go belly up.
     
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  9. dillfly2000

    dillfly2000 Junior Member

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    A class action lawsuit was filed against paypal in 2002 for this very reason, paypal settled this outside of court for $3.5 million dollars, now because of those no good lawyers selling out, paypal can still continue being assholes and freeze accounts whenever they choose, if the grimy lawyers went through with the lawsuit, paypal may have changed for the better, they got away with murder and they will continue to do so.

    I may have gotten my numbers wrong as 2 different sources say 2 different numbers, but they are still in the millions none the less.
     
    Last edited: Sep 19, 2010
  10. Heineken

    Heineken BANNED BANNED

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    I got stuck on paypal with some money and can't do anything :(

    i think guys Alertpay is good alternative!
     
  11. MiLiTARYiV

    MiLiTARYiV Senior Member

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    LOl Dude 3.5 million is nothing compared to the close of a tune of 1 Billion dollars they make every 6 months....

    I would gladly pay 3.5 Mill anytime
     
  12. dillfly2000

    dillfly2000 Junior Member

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    yeah, twas a small payout for paypal standards.

    Tho i have have never had any issues with paypal, but because of all the horror stories i am paranoid as all hell, the second money reaches my pp account, i shoot that shit straight to my bank account in blind hope that PP doesn't intercept.
     
    Last edited: Sep 19, 2010
  13. verbob

    verbob Newbie

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    I had the damn paypal debit card. It was great at first, until I used it for more than 20.00.

    I sold a digicam on ebay for like 180, shipped it and the buyer was pleased and all was good - i then used the debit card to pull out 100.00. I got back home and checked the balance online... NEGATIVE 20.00 Yup thats right, they took out 200.00

    They called me 3 times a day, 6 days a week, for 6 months straight. "give us our 20.00" LOL!! They tried to tell me i had to PROVE I only took out 100.00 and not 200.00...I said - verbatim - "i dont have to prove SHIT - you stole my money and now try to scam me for more! f-- you, f'kers..CLICK" (after that, I didnt answer another long distance call for the next 6months)

    I went off! I mean really, I had to prove they were scammers??!! how the heck do I prove THEY took extra? I did try contacting the bank I used to withdraw the cash - they didnt seem to care either. So I LOST 80.00 and the account. bastards.
     
    Last edited: Sep 19, 2010
  14. Satan Claus

    Satan Claus Regular Member Premium Member

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    AFAIK there isn't a company with such a low threshold. You literally only need an e-mail address to receive funds.
     
  15. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    this thread is getting real interesting and full of information I and can't stop myself to post here as I'm also a victim of Paypal.

    I have dealt with paypal from past 3-4 years and they never did anything bad to my account (other than stopping personal payments from and to Indian accounts and sometimes getting very late in payments I hope Indian guys know abt this issue) however I got several charge backs but its normal with Gaypal.

    Lately I got a mail from Paypal saying they don't want to continue business with me and they blocked my account permanently. I called those morons several times and finally I talked with one of their superior member and he said I can't open any new account neither they are going to give access to my old account. They have no reason for it but just a freaking transaction which I got from a BHW guy here and I got several payments with him and never got any problem

    But fking gaypal said this transaction was suspicious and for it they permanently blocked my account NOT only FOR 180 days.

    as what I was doing was not something odd with my account and several other guys are doing same even many big daddy's do the same but they never got any problem dealing with such things but they just blocked me for the same. fcuk.

    Now as for merchant account I'm unsure and would like to ask OP could you focus it on more? Do you mean with merchants account we won't have any problem with Gaypal and they will allow us to sale freely without any disturbance?

    Also as for other payment processor I don't know abt authorise.net but I really like one sentence there on the site

    Do you guys think it is correct or just BS? however still I guess with the field we all IMers are jointed to each other paypal is a vastly accepted payment method and no one really want to lose it including me. But there again we have option like Plimus or 2checkout to sale things and they do accept Paypal payments.

    and I really like the idea from a poster where he said:-

    hasn't been a group of IMs with some cash to burn to pool together and offer an alternative.

    last but not least I really want a payment method which don't really care what we are selling but they just care about their fee and sending us wire..
     
  16. wpbacklinks

    wpbacklinks Jr. VIP Jr. VIP Premium Member

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    i knew this :)

    but i still use paypal & paypal is important to me :) maybe someday i will hate paypal too.. LOL
     
  17. edgematch

    edgematch Elite Member

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    Sorry but your assumptions are full of wrong directions and misleading people.

    1- Those 180M people do not have $1,000 in their accounts as an average. A complete BS.

    2- 5% account freezing? Are you dreaming? And Paypal is doing this in every 6 months? SO why mine is not freezed at all? Then in 5 years, 50% of the accounts should be freezed. Are you crazy?

    3- 10% net interest rate for 6 months? That means 20% for a year? Are you from another planet? A total lie.

    And most of the people all agree here. Actually I cannot understand why nobody objects such a fairy tale full of misleading info. Maybe it is like crowd psychology. One says something and the others follow him like a sheep following herd.

    Finally, money is the strongest media in this world. While so many powerfull banks existing, they will never let those mentioned things happen. They are much much more effective than Paypal. So calm down. They inspect each other more than we do.

    The OP is like a disguised cheerleader wasting your breath to shout at wrong team.
     
    Last edited: Sep 19, 2010
  18. edgematch

    edgematch Elite Member

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    Sorry double post...
     
    Last edited: Sep 19, 2010
  19. MiLiTARYiV

    MiLiTARYiV Senior Member

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    //////////////////
     
    Last edited: Sep 19, 2010
  20. verbob

    verbob Newbie

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    ...even just keeping daily (un)frozen funds in a standard savings acount....holy crap, the interest from that would be phenominal. they may not be a full-fledged bank persay, but a real bank somewhere has all of their funds in an account building interest...

    now THATS some huge profits...