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PayPal holding a percentage of sales?

Discussion in 'Ebay' started by phluid, Feb 27, 2011.

  1. phluid

    phluid Power Member

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    PayPal keeps something like 2-3% of every transaction for 180 days, this is complete BS IMO. They have been doing this to me for over a year now and are currently holding just over 5k that I could be using for other things. When contacting them they have always told me that this is for every account but that the percentages can vary. Does anyone have experience with this or know if it is true? I was going to open a knew account but if they really do this for all accounts that will not do me any good.
     
  2. phluid

    phluid Power Member

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    Just FYI, my account and the items I sell are 100% legit and I have over 200% feedbacks, right now I am only 98.6% positive but for the last 3 months my lowest average score is a 4.92 out of 5 and the rest range up to 4.99 and I haven't had a negative feedback for almost 3 months.
     
  3. itos84

    itos84 Power Member

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    Paypal gets a % fee for every transaction you make about selling. Think of it as you are paying them for their services. I think the fee must be 1% like a bank but sometimes they ask for a higher fee. It´s completely normal read their rules and policy. But I think they keep that money and not going to give it to you in 180 days.
     
  4. jetti789

    jetti789 Junior Member

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    Paypal takes a percentage from every sale.
    They don't give that back to you in 180 days.

    They do this with everybody. It's how they make money.

    I think you are confusing the 180 days with something else.
     
  5. wannabie

    wannabie Elite Member

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    You run a business and you don't know about paypal transaction fees?

    That's Wierd is it not, surely?
     
  6. phluid

    phluid Power Member

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    lol, I am not talking about transaction fees. I obviously know about those. The standard on that is 2.9% +.30 per transaction but my account is charged 2.2% +.30 per transaction. This is aside from the transaction fees, they take a percentage of every transaction I make and hold it for 180 days. Apparently they are not really doing this to everyone or I would of received different replies. Either that or you have to do a certain amount of volume for this to come into play?
     
  7. Sugirl

    Sugirl Regular Member

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    It's pretty normal.. Various others do the same! Hold percentage of your total money - Because of the Creditcard Chargeback risks., You can chargeback from your CC for up to 6months after transaction have been done So they just take small cut in reserve to cover those chargebacks.
     
  8. Monrox

    Monrox Power Member

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    Never got that with my commercial account and never heard about it. But they are a pain when lots of cash becomes involved. Just get a merchant account, it's light years more flexible and fasterrr. Most buyers are using a CC to pay with PP anywayz so it's one less login and approx. 30 clicks easier for them as well.
     
  9. xTOOKTAx

    xTOOKTAx Newbie

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    I trade through ebay and the percentage taken by ebay and paypal combined really puts a dent in my profits; but hey thats business so get on with it.
     
  10. phluid

    phluid Power Member

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    I wish they would develop an option for the percentage to be reevaluated, someone at PayPal told me that they take up to 5% from some accounts. They said it is based on feedbacks, claims, negatives, etc.. I guess they hope for mistakes off the start and they jack the percentage up based on that and never allow it to be lowered.
     
  11. ShadeDream

    ShadeDream Elite Member

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    PayPal suck!

    Take a look at this:

    Code:
    http://www.escapistmagazine.com/news/view/103385-PayPal-Freezes-750K-in-MineCraft-Devs-Account
     
  12. eBayMafia

    eBayMafia BANNED BANNED

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    The OP is talking about the reserve funds placed on certain accounts. Really popular among people who earn money through eCommerce sites instead of eBay.

    PayPal held $10,000 of my money saying they weren't going to give it to me, as they needed it to sit with PayPal in case something ever happened to where I closed down my business and my customers weren't getting orders. I told them "eh, it's about time I go to another merchant" and PayPal held the $10,000 for 6 months before returning it to me.

    They did something similar to me again, I had an eBay selling account I used to test the value of items I couldn't research, and I had a couple thousand just sitting in a PayPal account. What happens? They freeze the funds, half of which went to a "reserve account" minutes before that literally disappeared, and the rest, about $2,000, is being held for 6 months.

    Most merchants do this too, but they have the decency to contact you and tell you what they want/need in order to protect themselves, not just take it from you.
     
  13. rover747

    rover747 Newbie

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    Paypal is total crap ,they are not real merchant .So if you running e-commerce website never use them as merchant ,you will be sorry .For ebay it is not much choice what to use ,but for regular website ,big NO to paypal. Friend of mine try do this for 4 month ,and he can't get his money till today ...5 month later .Someone file dispute ,and were is all started .
     
  14. jhardy

    jhardy Newbie

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    Check out the Guy selling the "Profit Siege" Says he used to work for Paypal and wrote the Software that goes in and grabs Money and Freezes accounts. Watch the Video for his product, he explains it all in their. Don't think I would buy his product either!! Unless I got my hands on a free copy!



    John
     
  15. phluid

    phluid Power Member

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    Yep, this is it exactly what I was talking about. Sounds like I am just SOL and will have to deal with it, still wish they would have a reevaluation process, even once a year would be very helpful.

    I don't plan to use them for e-commerce, I am going to use the company I use for my retail shop for that. I hate Ebay and PayPal both but at the end of the day I currently need to use them both so I won't bitch too much.
     
  16. jstover77

    jstover77 Executive VIP Jr. VIP Premium Member

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    This is pretty common with merchant accounts and Paypal, but seems to only happen to certain people. Anytime you start making more money then usual they will start to question your account.

    Another thing someone told me who worked for a big merchant account is companies do this intentionally because the more money they have sitting there the cheaper the interest rates are for them.
     
  17. ShadeDream

    ShadeDream Elite Member

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    I've heard that somewhere too. They are just using the money to profit.
     
  18. eBayMafia

    eBayMafia BANNED BANNED

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    Yep, PayPal has 150 million users. If just 10% of people use PayPal actively for business, thats 15,000,000 avid users. Now, say you want to freeze funds in order to gain an interest for your bottom line, you can probably just freeze JUST 2.5% of that 15,000,000 and you have 375,000 users. Say that each person has about $14 on average (although most stories you hear, involve about $300+) but this alone is over $5 million. With this $5 million, I bet less than 10% of users will track down that $14 to get it back, so in 180 days... thats at least $3 million. Now include a 1.8% interest rate, and keep rolling over the funds that aren't returned to the customers. Keep doing this wave of freezing 375,000 users every week or biweekly, along with all of their fees... its not too hard to see why PayPal is worth so much money. (about 80 BILLION)
     
  19. KeepRunning

    KeepRunning Newbie

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    All I can say is use Paypal alternatives, at least you'll get your money.


    Paymate & MoneyBookers
     
  20. privateop

    privateop Newbie

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    What other options do we have if using Ebay? I've been reading a bunch of your posts over the past couple of days and you obviously know Ebay very well. Was this a well established Ebay account?

    One of the options I'm researching is to dropship or buy the right products myself at good prices and sell on sites like Ebay, but I keep reading about all the problems people are having. I do have an Ebay and Paypal account that I've had for several years, but I've just sold a few things here and there.

    I'm now looking to make a living from the internet.

    My job and career left me during the recession, so I need to get something going and have to make it work!!!

    So much information, it's information overload. So many online options, yet so many pitfalls and way too much BS. I don't know which way is up right now.