paypaluserbb
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posted on October 29, 2001 03:12:01 PM new
Hi,
I found this site while looking up complaints about paypal. I never dreamed i would find so many.
Today i received an email from paypal that they have locked my account due to a complaint. They did not even include the complaint for overview, Just the users email address.
Locking an account is bad enough but they took it one step further, Saturday i used the withdraw function to deposit $1000 into my checking account from my paypal balance. When i got the notice today i logged into my paypal account and they canceled that transaction. That money was going to be used to may my house payment now i don't know what i will do.
They did include the customer email address that issued a complaint so i locked up the payment it was only $50, just under. So why did they cancel my $1000 deposit. Paypal is sick.
They offer business accounts which i have but how can anyone conduct business with people that act this way. Back to check by phone orders now.
If you are a INTERNET based business i would not recommend accepting credit cards in any form through ANY merchant. I have learned the hard way from consumers and their credit card fraud (saying they never authorized it but they did). Credit cards are not cash and the fraud rate by consumers go up everyday as they learn this loophole about internet transactions. The credit cards companies are doing little and even offering 100% fraud protection when buying on the internet. At this rate, paypal, visa, MasterCard, etc... will have no merchants soon.
Hope noboday else is placed in such as position by this paypal service. Paypal needs to take a business ethics course.
[ edited by paypaluserbb on Oct 29, 2001 03:13 PM ]
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roofguy
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posted on October 29, 2001 04:03:13 PM new
Well, you know, we've met this kind of story before. Poster claims account was locked for no reason.
Always turns out there was a reason.
About half the time, I'd say, it turns out that poster had a pretty good idea as to why the account was locked. The other half, poster just hadn't considered all the possibilities.
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paypaluserbb
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posted on October 29, 2001 04:16:13 PM new
Hi Roofguy,
I did not say for no reason. All paypal included in their email was that is was locked and asked for the order records for the customer in question. I am assuming it is a complaint by the subject an reply to address which has complaint in the email address.
There is still no reason to lock $1000 of my money and my hole paypal account. Proper business ethics would be to hold maybe the $50.00 only for a complaint of $50 which again i assume since the email address they provided was from a payment of $50. They provided no other reasons no other information, nothing. Paypal is sick and in the wrong.
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Retired2late
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posted on October 29, 2001 05:26:22 PM new
PayPal representatives on this board have consistently said that locked accounts are rare, and that when they occur, only the amount involved in the complaint is locked, not the entire account. I guess they are not telling it like it is?
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roofguy
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posted on October 29, 2001 06:12:11 PM new
When there is a need to eliminate the possibility of fraud, the entire account must be locked. This is clearly stated in the TOU, and has been explained by Damon here.
There may be more to the story than just this one buyer complaint. This complaint may be a hum dinger.
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paypaluserbb
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posted on October 29, 2001 06:17:25 PM new
Hi R2L,
When i say locked i mean i can log in but i can not do anything money wise such as transferring money, sending money, etc...
This is the first time i have every been in contact with paypal and never had any chargebacks, disputes or anything along that line.
Yes i agree the amount of the dispute should be frozen which is fair and nothing more, but "that is not the case". They have frozen my balance and also "canceled" all pending transactions.
It would seem this is not rare as this is the first complaint i every had and i have been using them for 2+ years. Again i assume it is a complaint since paypal really provided no information on the subject other then basically notifying me that my account has been lock and asking about an email address from a buyer and their order and until an investigation is over.
I am a business member with verified bank and credit card so this treatment is really pathetic to say the least. It appears they have accused me of doing something wrong but yet provided no way for me to respond to my accuser.
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paypaluserbb
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posted on October 29, 2001 06:29:27 PM new
roofguy,
I have contacted the buyer by phone since paypal did provide the email address of the buyer so i could produce the order. The buyer is a repeated customer for over a year and denies placing any paypal complaint or disputes.
My only guess is he used a stolen credit card for paypal to act this way. Again this is my first ever issue with paypal and i never had any other complaints. Assuming i am committing fraud because of one complaint or dispute is just plain stupid.
I would never commit fraud and if anything it was done by the buyer not me. I use paypal because they require the cardholder (buyer) to enter the 3 numbers on the back of the card which means it is obviously the cardholder and they make it seam like they have really good fraud detection systems. Apparently not.
With everything said and done there is still no reason to hold $1000 on a $50 transaction dispute.
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roofguy
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posted on October 29, 2001 06:55:37 PM new
With everything said and done there is still no reason to hold $1000 on a $50 transaction dispute.
Agreed, but this isn't what seems to be happening. The buyer reported that no dispute existed, right?
Somehow you've set off the fraud detector. That isn't at all the same as assuming you have committed fraud. It means that an investigation must be done.
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bburd51
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posted on October 29, 2001 07:30:39 PM new
I also wonder about PayPal's fraud detection. I have been with PayPal for over a year and use my PayPal account exclusively to receive small payments. These payments were $50.00 or less. I received two or three payments a month. I then would transfer the payments to my checking account. Never during this time did I ever use my PayPal account to send a payment. Along comes someone who without my authorization, makes six ACH transfers for large sums of money out of my account(taken from my bank account without my knowledge). All within a period of minutes. Seems that some red flags would of (should of)went off somewhere in PayPals system.
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paypaluserbb
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posted on October 29, 2001 07:58:59 PM new
roofguy,
I have no problem with any paypal investigations. It's the way the conduct them that is the problem.
All the purchases from this buyer are no where close to $1000 maybe $100 over the past year. I still see no reasoning to be treated like this and paypal holding my WHOLE balance and canceling all pending transactions.
They need a better investigation system for one and if they are going to accuse me of fraud they have a moral obligation to allow me to respond. Transactions occur between two parities not one, a concept paypal seems unaware of. It would only take a phone call or an email with some dialog in it to correct any disputes or complaints. *I would have even refunded the buyer in question their money but i have not been given any opportunity.* Just your account is locked send us any order info which pertains with such an such email address. That's it.
It's just not right what they are doing and how the conduct themselves. I have been told that this activity by paypal is fraud no matter what their web site states and i believe it, as do many others i have found.
[ edited by paypaluserbb on Oct 29, 2001 08:01 PM ]
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paypaldamon
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posted on October 29, 2001 08:16:29 PM new
Hi paypaluserbb,
Please send me the information to [email protected]. I will see if I can get account management to expedite this issue.
I apologize for any inconvenience this is creating for you.
Hi retired2late,
Account restrictions are rare. There has to be some serious fraud indicators for one to occur. They also don't happen over one dispute or chargeback without these flags.
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paypaluserbb
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posted on October 30, 2001 02:57:47 PM new
UPDATE!
My account was restricted because of an outdated phone number listed in my profile and apparently not because of any disputes, chargebacks or complaints which is what their email implied to me. I addressed my concerns to Damon about no warnings, etc.. and the actions taken because of any outdated phone number seems to be very harsh considered i have verified just about everything and am a business member.
So their it is! Keep your profiles updated.
Damon, did try to help after sending him an email and would like to thanks him publicly for that. Misty the account rep that actually did the unlocking was very helpful and i was happy to be dealing with a professional person like her.
In the end to avoid a situation like mine keep your profile info updated.
Good luck!
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paypaldamon
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posted on October 30, 2001 03:05:27 PM new
Hi,
Thank you for posting that the matter has been resolved. I also appreciate the fact that you mentioned the reason why there was an issue (I have taken note of the concerns about notification).
Thank you for your patience.
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Retired2late
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posted on October 30, 2001 05:41:20 PM new
Thank you for telling us what the "serious fraud indicators" were that caused your account to be restricted.
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acpaulley
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posted on November 13, 2001 11:25:48 PM new
Well, that story prompted me to go in and update my profile.
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wowwow85
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posted on November 14, 2001 06:20:11 AM new
i would not keep my house payment money in a paypal account.
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LaneFamily
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posted on November 14, 2001 01:08:03 PM new
I do not keep any money in my paypal account. I transfer daily. I am glad to poster followed up.
Another fine rare account lock by PayPal. Over a phone number.
I have got to about 85% payments away from paypal now. It is so nice not to have to worry about that.
Jim
Come on roofguy, put your paypal credit card on file and come on back. We miss your blind posts.
[ edited by LaneFamily on Nov 14, 2001 02:34 PM ]
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wowwow85
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posted on November 14, 2001 04:54:26 PM new
soon they will charge you for transferring fund ,may be so many free transfer per month,over that you pay a fee.
with bank saving account,it is three freebies,more than that it is 3.00 per withdrawal.
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wowwow85
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posted on November 14, 2001 04:54:27 PM new
soon they will charge you for transferring fund ,may be so many free transfer per month,over that you pay a fee.
with bank saving account,it is three freebies,more than that it is 3.00 per withdrawal.
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