posted on January 11, 2002 06:28:35 PM new
HERE IS A OPEN LETTER TO OUR CUSTOMERS AND OPEN LETTER TO PAYPAL
Dear Customer
This letter is to inform you that your recent purchase with our company is pending due to developments with paypal today. Paypal has closed our account and are currently holding thousands of dollars which are for product fulfillmet. Our firm as always will deliver in full with completed payments. If you sent any cash via Paypal from Jan 1,2002 through Jan 11,2002 you will need to cancel your payment directly with paypal and if they do not cooperate, you will need to file a chargeback with your credit card company as paypal is holding your money hostage and until we are paid by other means we cannot and will not honor any pending orders.
The person who has the info on this account is Cabot Kelly. Cabots phone number is 650 251 1317. Cabot asked us to not give this number out but we feel our customers should have access to their money being returned. His email is [email protected] Mr Kelly emailed SwapSellTrade today and asked us for a ridiculous amount to be deposited to our account to cover any potential chargebacks due the volume of sales on our account. (HERE IS A COPY OF HIS EMAIL)
Dear Joe,
I have been trying to contact you the past couple days at your home number
but was unsuccessful. Please give me a good time to call and the number at
which you can be reached. Or if you like you can call me at 650 251 1317.
There are a few issues regarding your PayPal account that I would like to
discuss.
Thanks
Cabot Kelly
PayPal Merchant Review
Our company refused as we have a normal merchant account to process cards and have never been asked for a deposit. So when we refused to make this deposit and told paypal if they didnt like it that they could close our acount, Paypal froze all the money and replied with this email. :
Dear Joe,
We have recently received several complaints regarding your PayPal account
for non-delivery of products that have been paid for through our service.
Please be aware that this type of behavior may be illegal, and it is also
in violation of our Terms of Use and is not tolerated by PayPal. As we
have stated previously, your account has been locked and will not be
reopened for future use. Please reply to this email in order to facilitate
the disbursement of any funds remaining in your PayPal account.
Disbursement can be handled in one of two ways:
1. Your remaining account balance can be used to refund the buyers, or,
2. Your remaining account balance will be held within your PayPal account
for 180 days in order to minimize chargeback risks. Once the 180-day
period is completed, a check will be sent to your home address.
If you do not respond to this notification, option number two will be
selected for disbursement of any remaining balance.
PayPal reserves the right to close any account reported to be involved in
possible fraudulent behavior. In the event of a dispute, PayPal will seek
to recover the funds from you by debiting your PayPal balance and, if there
are not sufficient funds in your PayPal balance, PayPal reserves the right
to collect your debt to PayPal by any other legal means.
Sincerely,
PayPal Account Review Department
SWAPSELLTRADES POSITION IS THAT WE HAVE FILLED ALL ORDERS AND THIS CLOSURE OF OUR ACCOUNT IS BECAUSE WE AS A COMPANY WE REFUSED TO MAKE A DEPOSIT AS WE HAVE NORMAL MERCHANT ACCOUNTS THAT HAVE NEVER GIVEN US A PROBLEM AND ARE ACTIVE AND FDIC REGULATED. ITS OUR OPINION THAT PAYPAL HAS DEVELOPED THIS SCHEME TO PROP ITS OPERATION WITH CASH AT THE EXPENSE OF OTHERS. WE DO NOT NEED PAYPAL AND WOULD ADVISE OTHERS TO CLOSE THEIR ACCOUNTS AND PROCEED WITH CAUTION.
PAYPAL CLAIMS THEY WILL REFUND YOUR MONIES SO THAT YOU MAY MAKE OTHER PAYMENT ARRANGEMENTS WITH OUR FIRM TO COMPLETE YOUR ORDERS.
SWAPSELLTRADE LLC APOLIGIZES TO OUR CUSTOMERS AND WILL WORK WITH EACH OF YOU TO RECOVER THE FUNDS THIS COMPANY IS HOLDING WITHOUT MERIT.
SWAPSELLTRADE CAN STILL PROCESS YOUR ORDERS IF YOU WISH TO MAKE PAYMENT WITH CREDIT CARD, CHECK OR MONEY ORDER. EMAIL [email protected] OR CALL US 1-503-681-7901.
JOE RICHEY
posted on January 11, 2002 07:15:46 PM new
some of his customers complained to paypal about him??
dunno why??
i think if you do large volume ,merchant account is better,you get to talk to a real human being
posted on January 11, 2002 08:08:18 PM new
we have had the exact same problem with PayPal. We sent out product, even sent them a deposit to cover 2 chargebacks, tracking information, but buyers, right before xmas were complaining that they didn't receive their products in time for Xmas after they had only paid 1-3 days before, and requested Ground shipping. From personal emails we have received, PayPal did this to 19 of our vendors, and 3 of our major customers....and in our case as well, they have been holding several thousands of dollars since one week before Xmas, and refunded everyone that did complain, including those that we have verified that they received their products. We have since tried to contact them, and they keep telling us, one more week, that was 3 weeks ago.
posted on January 11, 2002 08:25:50 PM new
Been using PayPal from the beginning, although we have a Merchant's Account also, and today, never had a problem with them.
posted on January 11, 2002 08:33:59 PM new
Hi NWREBEL,
Please remove the information about the representative. They are not a general customer service representative, which means you will not be directing users to someone that can help. Every chargeback filed against you will result in another $10.00 charge that you will be liable for.
I have also advised you that advising your buyers to file chargebacks could create additional expenses for you, so I would recommend working the issue with the party you have been talking to.
posted on January 11, 2002 08:44:24 PM new
Read between the lines...sounds like the there is more to the story here than meets the eye. Why do people continue to use this forum to blow off some steam. Like we care...the majority of users are happy with PayPal and have never had a single problem. Why do people continue to express their personal problems with PayPal here? Kind of reminds me of the AW pop-up ads, their annoying and you just have to ignore them.
posted on January 11, 2002 09:27:20 PM new
This is scary. I've been a happy customer since the beginning. I've had a couple problems but for the most part I've been pretty happy. What I wonder is how many complaints NWREBEL had. If it were just a few then this is really scary and probably not worth offering paypal any more ... but on the other hand nwrebel may have had a bunch of complaints and paypal is justified.
Damon I wonder if you could let us know how many complaints would typically cause this to happen or what sort of dollar volume of complaints would cause this. I would really like to feel a little more comfortable. Right now I sort of feel that if you offer paypal you are one looney tune buyer away from big time problems
[ edited by nufsaid on Jan 11, 2002 09:36 PM ]
posted on January 11, 2002 10:33:02 PM new
From what I have read elsewhere, Paypal is attempting to make very large volume sellers keep a deposit with Paypal for POSSIBLE chargebacks.
Basically, Paypal has a potential 180 day window of liability for every credit card transaction done through Paypal.
Due to a lag time, a vendor could clear $100,000 or more of fraudulent sales through Paypal in a 30 or 60 day period (or even less), clear out the account, and leave an empty and abandoned verified bank account. Paypal would be left holding the bag. Multiply the scam by a few hundred accounts and Paypal could be dealt a knock-out financial blow in a 90 day period.
This potential fraud liability was pointed out in analysing Paypal for its IPO. In general, conventional credit card merchant accounts have dealt with B&M vendors that have an existence outside of cyberspace, and easier to police. The large credit card companies also have the resources to recover from and spot fraud in a timely manner.
Paypal's deposit scheme is an attempt quell the potential liability from large volume vendors.
posted on January 12, 2002 02:29:20 AM new
Seller refused to pay protection money to Paypal, so Paypal made up some bogus complaint and locked up the entire account. Now they're publicly threatening the seller, while offering no proof whatsoever of any fraudulent activity, etc.
posted on January 12, 2002 05:54:00 AM new
NWREBEL --
Just trying to understand this...
Paypal requested you make a large deposit with them to offset any *possible* chargebacks. You said NO, close my account. They froze your account, so you couldn't withdraw at all. Then, after requesting they close your account, you sent a payment through them?
Damon --
When a seller/buyer, to make a payment, moves money from their bank account into their paypal account (with the intention of it being forwarded to another seller), is that money treated any differently from money that is received from a buyer who is making a purchase with that same seller/buyer? Did paypal freeze that money because the system doesn't differentiate between payments into the account and bank transfers into the account?
posted on January 12, 2002 06:40:12 AM new
YES I REFUSED TO PAY PROTECTION MONEY AS THAT IS INSANE! THEN THEY CLOSED MY ACCOUNT 5 MINUTES LATER WITH ALLEGATIONS OF FRAUD. IF I WAS DOING SOMETHING WRONG WHY WOULD I BE GIVEN A CHANCE TO MAKE A DEPOSIT AND CONTINUE AS A PAYPAL MERCHANT? GO FIGURE. WHAT PAYPAL DID WITHT HIS ECHECK IS THEY COLLECTED FROM MY BANK AND THEN TOLD THE CLIENT I CANCELLED AND FROZE THE FUNDS. WE HAVE THEM REDHANDED IN THE COOKIE JAR! NOW THEY ARE TRYING TO BILL MY CLIENTS FOR MORE MONEY ON A CLOSED ACCOUNT. SEE BELOW
Dear Swap Sell Trade,
This is to notify you that Cindy Spencer's
subscription payment for Drop Ship Membership has
failed on January 12, 2002.
We will try to put the payment through again on
January 15, 2002. You will find
the details of this subscription below.
Amount: $19.95
Subscription Name: Drop Ship Membership
Subscription Number: S-4X481797R11046309
Date of payment failure: January 12, 2002
Date of next payment atttempt: January 15, 2002
------------------------------
Subscriber Information
------------------------------
Buyer Name: Buyer Email: t
Thank you for using PayPal Subscriptions!
The PayPal Subscriptions Team
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NEVER give your password to anyone. If anyone asks
you for your password, please follow the Security
Tips instructions on the PayPal.com website.
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posted on January 12, 2002 05:37:30 PM new
The heading reads PAYPAL ALERT BEWARE. Why is this being posted in the eBay outlook. Go to the proper place so it doesn't take up space. If there were AW monitors this thread would have been stopped long ago.
This is the same kind of a thread as a useless one about a week ago and that should have been somewhere else also.
The poster starts the post then sits back and watches, never to post again. Maybe just to rile up the PayPal users. When in trouble defend yourself, please don't come in here and stir trouble.
I had a problem last week with PayPal. I called them on the phone. Talked with a real live person and straightened everything out. I didn't come in here and complain.
