posted on March 21, 2002 11:08:04 AM new
Hello, recently, I have just moved to Hong Kong to Canada, I already had a paypal account ([email protected]) in Canada before I moved, and I had around $40000 USD of funds in that paypal account. So when I have moved back to Hong Kong, I created another paypal account based in Hong Kong, [email protected], after I verified everything with paypal and set up my hong kong account, I transferred 4 payments of $10000 from [email protected] to [email protected] . Then when I tried to transfer the funds into my bank account, paypal restricted both of my account. I then faxed all the required documents to paypal immediately, and a couple days later paypal asks me to fax them tracking information for the 4 payments of $10000 that I have received from [email protected], I dont have the tracking number for the payments as I was just transferring the funds from one account to another. Please help me settle this situation as the I really need the funds to continue my business, if I dont have the funds by next week, my business would be forced to close down, please advice, thanks!
posted on March 26, 2002 07:12:35 AM new
i thought one person cannot have more than one paypal account?
question-if so,and in this case this gentleman is moving to a different country and will be using a different ISP,how do you resolve this??
hindsight-may be before you left canada,ask paypal to remit a cashier check to you and then take that check to hong kong ,at least you have your money.
posted on March 26, 2002 10:01:52 PM new
That's illegal in some states. If money is being held "in escrow" they are required to give you interest. Check it out with a lawyer... and be sure that you get your interest! (If people force this issue... it will force Paypal to resolve frozen accounts quicker... otherwise they only benefit from it!)
posted on March 27, 2002 06:16:27 AM new
i think you only get interest if you opt for a money market fund.if you choose to have the money sitting idle in your account,paypal has no right to invest for you.
posted on March 27, 2002 09:22:06 AM new
I wasn't referring to money just sitting in your account that you have access to. I meant money that was frozen as a result of the account being on restriction. If the money is being held, it should get interest. Currently, Paypal is investing that money and getting interest. They're making money on the money frozen in that account. What is their incentive to resolve a problem when they are getting rich off of it?? Paying the customer interest is not only fair to the customer, but it's an incentive for Paypal to deal with the problem.
posted on March 27, 2002 09:59:43 AM new
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if I dont have the funds by next week, my business would be forced to close down,
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Sorry to hear that you're going to have to shut down the shop. PayPal will waste your time for months before you see a penny of this money back. You'll be lucky to get ONE worthless form-letter e-mail back in only a week's time.
posted on March 27, 2002 09:19:53 PM new
Stopwhining, yes, I do believe that if your account is restricted and it is enrolled in the Money Market fund, you gain interest. However, I don't think most people have their money there, and it doesn't benefit the people who get it restricted before they switch to Money Market. If PayPal is holding your money, the least they should do is pay interest. However they don't even take this small step.
posted on March 28, 2002 08:33:04 AM new
what happens if the money is locked up for good reasons,like chargebacks or fraud,does paypal pay interest then?
lets say i have 1000 in my account and my account became restricted due to chargeback,eventually i lost the case and that 1000 was returned to the cardholder cc issuer,does paypal pay me interest on that 1000 dollars for the days it was restricted??
you almost have to prove that paypal was using that money for its own operations and instead of borrowing money from the bank,it is tapping this fund .
if paypal said we dont use it to pay our bills,it just sit in account pending resolution,it does not mean it is someway invested as all investments bear risk,it could be a commercial checking account which bears no interest?
dont forget to invest these funds,you need a person in treasury to oversee that,then you are talking expenses and decisions,money market fund is not risk free ,anyone who promises you he can turn your 100 dollars into 100 dollars plus could also turn your 100 dollars into 100 dolLARS MINUS.
How do you feel if paypal said your account has become unrestricted and the fund is now available for withdrawl,however we regret to inform you that in our efforts to please you ,we have invested your fund in commerical papers of ENRON and GE and has suffered some losses?you are now X dollars poorer,have a nice day.
posted on March 28, 2002 12:04:58 PM new
From Paypal's SEC filing...
"We use the terms "balance" and "account balance" to refer to funds that our customers hold until they decide to withdraw the
funds, transfer the funds to others through PayPal or invest the funds in the PayPal Money Market Reserve Fund. We pool
these customer funds and, as agent for our customers, we deposit the funds in bank accounts or invest the funds in short-term
investment grade securities. Beginning in October 2001, we plan to deposit all customer funds not transferred to the PayPal
Money Market Reserve Fund into bank accounts. We believe that, in handling customer funds, we act solely as an agent and
custodian and not as a depositary."
In otherwords... they are already making money from the money deposited into our accounts. If they decide to put a hold on that money, they should pay the holder of that account interest. I have no problem with them making money when it's there our choice. It's when they get the whim to freeze your assets that the problem. You have to incent them to make progress in resolving the problem.
posted on March 28, 2002 01:13:55 PM new
not so,the way i read it,they are now placing all customer fund which is not invested in money market account into bank account(s).
they did not say this (these) bank accounts pay interest,commercial checking account usually does not pay interest.
i think the focus should be (1) resolve the issue as soon as possible (2) make sure there is no loss in principal.
posted on March 28, 2002 09:36:55 PM new
Maybe you need to start reading: "... or invest the funds in short-term investment grade securities." A focus on no loss in principal.. are you kidding... that's a given! And what incentive do you suggest that Paypal should have in resolving these problems quickly? A good grade on their report card?
posted on March 29, 2002 08:09:26 AM new
please read what you copied from sec filing-
Beginning in October 2001, we plan to deposit all customer funds not transferred to the PayPal
Money Market Reserve Fund into bank accounts. We believe that, in handling customer funds, we act solely as an agent and
custodian and not as a depository.
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
what i interpret is that the customer fund,if not in money market fund,then it is in bank accounts.
then the question is do these bank accounts pay interest??
i dont beleive they open a new bank account everytime a paypal account is restricted,so there must be one or more than one bank account where they aggregate these restricted paypal accounts.
if it does pay interest,then paypal will have to have a way of allocating such interest income to different paypal accounts based on number of days ,and i doubt paypal has that feature in place.
also read the part which said paypal is acting as an agent,not depositary which i interpret to say,they have no rights to use the fund in these accounts.
i think paypal has more incentives to resolve these restricted accounts as it is now a publicly traded company,the high balance shown in these accounts is a testimony of customer DISSATISFACTION and the INABILITY OF THE COMPANY TO RESOLVE ISSUES .
i think all the postings on this board on paypal really reveal there is some fundamental flaw in paypal business model-
coat tailing ebay which allows anyone to sell on its venue,allowing members to withdraw fund immediately after payment is received and biting off too big a piece of cyber business which its customer service cannot handle.
i know some banks which provides merchant accounts to cyber business is taking upto 13 days to deposit sales proceeds due to the chargebacks and fraud and yet paypal allows their members to withdraw fund immediately after deposit.
posted on March 29, 2002 07:53:49 PM new
stopwhining... you make about as much sense as Damon. Maybe you should apply for a job at Paypal! (If you're not already an employee)
posted on March 29, 2002 09:12:08 PM new
frustrated guy.
may be you and dealerjim and mrfoxy76 etc should work for paypal,you folks seem to know more about paypal than many of their employess.
just think we can call you and have our problem resolved.
or you tip us off when this fdic pass thru insurance roof is about to cave in.
i dont have any problem with paypal,no one sends me BIG BUCKS,and i dont have big bucks to send anyone.i dont keep much of a balance in my paypal account.
i dont work for paypal,i think it is crazy to stand between the buyer's credit card issuer and the seller and take all the hits
posted on March 30, 2002 12:47:16 PM new
Work for PayPal? I could only wish. If they were to hire me they definately wouldn't make it. It would take a really dumb person to hire me at PayPal, but there are a lot of those running around PayPal.
posted on March 30, 2002 11:10:25 PM new
This is what Damon is talking about when he talks about the combative nature of these forums. While some of the agressiveness in posts might be reasonable and justified based on the problems they are having with PayPal, some of the agressiveness just doesn't serve a purpose. Dealerjim, you have lost money with PayPal. I saw your original posts. I think most people know this. But now you are responding to the majority of threads saying every problem is always PayPal's fault. If you find something in their TOS that would help the user make a case to PayPal that they are right, then you should post it. If you have factual information that might help the user, than you should post it.
But just saying "this is PayPal's fault" or "it is amazing this company is still in business" to the majority of threads here doesn't help the user, and alienates people from this forum that might help other users. While I certainly believe you have the right to your money back posting generic posts like "PayPal is at fault" for months on end probably won't solve the problem.
I wonder why one online payment service can create so many complaints and hostile responses from so many users. In my opinion a company that creates this situation needs to rethink its business practices. But posting personal attacks or hostile messages doesn't solve many problems.
[ edited by andrew123s on Mar 30, 2002 11:13 PM ]
posted on March 31, 2002 08:30:33 AM new
andrew said,
I wonder why one online payment service can create so many complaints and hostile responses from so many users. In my opinion a company that creates this situation needs to rethink its business practices. But posting personal attacks or hostile messages doesn't solve many problems.
/////////////////////////////////
according to damon,majority of the paypal transactions went smoothly and most memebers are happy??
but with so much fraud in cyberspace,i doubt if this is true??the ones which went smoothly are those of smaller amounts and the ones which have problems involved thousands of dollars.
somone complains paypal keeps changing and creating new rules,this is a sign paypal has not anticipated some of the scenarios which unfold as it aims to expand market and register more members.
you have to wonder why banks operate in such a rigid manner-for good reason,i bet!!
posted on April 1, 2002 05:32:52 AM new
the problems only seem to arise that get posted anyway when largish sums of $$$ are involved. I would never want to work for Paypal I am sure the terms of your contract of employment would change daily like their TOS for its customers!.
Paypal is an awesome concept but it dont protect buyers from fraudulent sellers they only harbour them.
posted on April 4, 2002 11:34:03 AM new
stopwhining it doesn't matter what the value is as he tries to deceive the issue. My chargebacks were valued at around 1000$ total. My business through them totalled around 750,000$ for the year. These are extremely small yet I just got served notice they are increasing my fees to 3.9%, holding a rolling reserve of 5% (no interest) based on 6 months transactions, calculated daily, for 6 months. If I close my account they get to hold that for 6 months! So none of it makes sense. I am dropping them as a method of payment so they are loosing a hell of a lot of revenue based on the fact it cost them oh-so-much to service my account on the chargebacks. bu!!-sh!t.
They change policy whenever they feel like it and then insult you with the excuses.
posted on April 4, 2002 12:59:19 PM new
Maybe when PayPal loses enough big sellers like yourself, they will feel it. I doubt they will ever change though. They Suck!!!
posted on April 4, 2002 02:23:05 PM new
i want all of you to know I AM KEEPING MY MOUTH SHUT on paypal/
i started selling under a different ebay user id and i feature checkout,quite a few people pay me with billpoint,in fact the numbers seem to be growing??
