Fuck Paypal... Any advice?

scottspfd82

scottspfd82

New member
Dec 29, 2006
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So, about 5 months ago Paypal froze my account with a few grand in it...

I'd been a customer for 6 years with zero issues... Thousands of dollars a month going through the account for years with no problems.

Never did anything illegal, never broke their TOS.

I've been "doing without" but honestly even with a merchant account and other alternatives like Google Checkout, there are certain things that are a pain in the ass without Paypal.

Their explanation is that my account is linked to an "evil" account. I paid a guy from Pakistan for a script, that's about the only thing I think it could be.

I've spent countless hours on the phone with them, I've had more than one of the "Executive Escalations" managers review my account, tell me I look like a model customer, but "Our legal team won't allow us to reverse the decision at this time."

I've gone as high up in the chain as possible, I've written professional emails showing my side of the argument, bottom line is they're saying I'm fucked, and I'm never allowed to use Paypal again in my life.

I used to think that people who had their accounts shut down did "something" wrong... But that's not the case. So if you don't think it can happen to you don't bet on it.

Anyone have any suggestions on getting a new, usable account? I'd be running 5 figures or more through it a month, so I'm not sure how well I'd fly under the radar.

I was thinking of forming a new LLC and opening an account under the business name, could that work?

Any other suggestions?

Personally I'd be just fine telling Paypal to fuck off and never use them again, but some things I buy and sell make it a necessary evil.

Any advice?

Much appreciated.

-Scott
 


Your best bet is to setup a new LLC and go from there.

There's also lots of "paypal sucks" kind of sites out there maybe ask at one of them.
 
I have a client in Europe who hates it so much he refuses to use it. We tried another site, but ran into problems with it (Moneybookers), so we finally just settled on him wiring me the funds internationally. That doesn't help you, though. Do you have a trusted significant other or spouse you can open an account through? Maybe your mother or father would help? The LLC would probably work so long as you get an EIN and a new bank account, I'd imagine.
 
These stories always give me an uneasy feeling in my stomach...

With that said, I had an account get frozen a few years ago, for no explanation, but it was re-opened after I talked to a manager. So I really don't know...
 
Yup just start an LLC or s-corp, get an EIN and a bank account. Then you can just
start dba's within the llc, s-corp, etc.

I used to have SEVERAL paypal accounts back in my CS days(or is that now, I forget ?), works a charm.

Also, be sure and login with different ip's if you'll be maintaining multiple accounts.
 
I don't think you'll have a problem with creating another account - I currently have two accounts, one for personal stuff and one for business stuff I do with my partner.

That said - depending on how much you have in your old account a small claims court case could possibly get their attention enough to get your issues resolved with your current account.
 
I quit using paypal awhile back after I had money stolen. They always shut down account and put accounts on hold for no reasoning. They are not regulated like a regular bank so your money isn't protected at all other than by their basic terms of use which they do not follow. There websites have a 128bit encryption instead of the now normal 256. Also by knowing your cell phone number/business number I can get into the account and reset the password. There security is terrible and their "security team" didn't even know what encryption was when I called about having my money stolen out of my account. I just use Google checkout now and have never had problems.
 
What internet author and parrot head said works. Business name + EIN number +bank account.

We've recently had ours frozen for transferring money to another paypal account. They're making us jump through about 30 PITA hoops to get it unfrozen but it looks like it's working.

But we're pretty much done with them. We'll be using our business bank accounts direct deposit from now on.
 
airforcematt said:
I don't think you'll have a problem with creating another account - I currently have two accounts, one for personal stuff and one for business stuff I do with my partner.
Click to expand...

thats exactly their TOS though - you can have two accounts - one for business, one for personal use, but no more and not two for the same type of usage... having said that I've had 3 for a while now. and not for any good reason.
 
Ask a good friend (or mexican) to open a new bank account, then open paypal. Proceed to pay him $200 for his time.
 
My Paypal account was frozen as well, just because they considered it a "High Risk" or some bullshit like that.
I refused to do business with Paypal for a long time, but the problem is that most service providers (content writers, link builders, social bookmarks, etc) only take paypal...
So yeah it's a necessary evil, and the worst part is that they know it.
If they were not necessary, I would never use Paypal, Skype or Ebay ever again!
2cents
 
When I was 17 my paypal account was frozen due to a few fraudulant payments (back when I was in the webhosting game, LOL)... Anyways, I had that lifted when they realized I was under 18 and therefor the agreement they used was nullified in the United States. The account is about 8 years old still currently in good standing.. Good advice I read earlier about starting an LLC and using that info for account creation if you absolutely need to use them..
 
phatm1ke said:
When I was 17 my paypal account was frozen due to a few fraudulant payments (back when I was in the webhosting game, LOL)...
Click to expand...

I know what you mean. I've had a ton of paying hosting customers charge back or open paypal disputes (after I ban their account for hosting CP) claiming that they should've been refunded.
 
Get a new FREE bank acct with Wamu (Now Chase) online. Opening deposit is $0 and you get a checking acct, debit card and optional savings. Another one is Bank Of America. Opening deposit is $25, you get a checking, savings and debit card. There is also Wachovia, same deal. (Sign up thru me and get $25 in your acct lol) Once you have a new acct, go in and switch it to where you get online statements only, then change your address where you get statements. (I use my hubby's work address) Sign back up for a business Paypal acct using your new info, including the new address. Also, add a new phone number if you can. I got a free phone # from J-Connect so all it does is ring, ring, ring. Clean your acct out every chance you get! I clean my acct with each payment I receive because I don't want fucking Paypal to have control over my hard earned cash. I use an IP hider, and I never use my real first name, only my initial. (J) - this way I can be Julie, Janie, June, or whoever I wanna be so they don't connnect the dots that they are dealing with the same person who's 5 other accts were frozen.

As far as the frozen funds currently being held, have you gone to the BBB yet? I did that once and it worked. I only had $66 dollars in Paypal, but still! I wanted MY money.

Paypal treats people like criminals, so you have to think like one in order to do business with them. They screw with people because they can, plain and simple. As someone else mentioned, Paypal is not regulated like a normal bank would be. They have their own rules and TOS, so they can pretty much do whatever they please and all we can do is piss and moan and jump thru their firey hoops in the hopes of having our money released.

This has been going on for a long time now:

PayPal hit by class-action suit - CNET News

snopes.com: PayPal Class Action Lawsuit


And finally, here are some Paypal Sucks links:

Welcome to PayPalSucks.com, PayPal Lawsuit, PayPal Alternative, PayPal Complaints, Fraud & Evil behind the PayPal system!

PayPalSucks.ORG Forums - Powered by vBulletin
 
I also wanted to point out that Amazon Payments can pull the same crap as far as freezing your acct. At least they DO release your funds after 90 days. I have been through this more times than I can count, so if you accept Amazon payments, clean out your acct.

Google Checkout closed an acct of mine one time, but they didn't hold my money. I signed right back up with new banking info and knock wood, haven't encountered any other problems.
 
Jenny70 said:
Paypal treats people like criminals, so you have to think like one in order to do business with them. They screw with people because they can, plain and simple. As someone else mentioned, Paypal is not regulated like a normal bank would be. They have their own rules and TOS, so they can pretty much do whatever they please and all we can do is piss and moan and jump thru their firey hoops in the hopes of having our money released.
Click to expand...
You're not obligated to deal with Paypal. If you don't like them, their model, their fees, their processes, service or conditions, DON'T DO BUSINESS WITH THEM.

You are the regulator. You are the customer. But you have no right to force anyone to treat you a certain way nor does any company have a right to force you to be their customer.

Again, you choose to deal with Paypal, then you must be ready for the consequences of that. No different than dealing with MySpace, Facebook or Google. If you don't like it, don't do it.
 
You're not obligated to deal with Paypal. If you don't like them, their model, their fees, their processes, service or conditions, DON'T DO BUSINESS WITH THEM.
Click to expand...

I actually am obligated to deal with Paypal because I sell on ebay from time-to-time. I'm sure I'm not the only one on here that has a PP acct tied into an ebay acct.

You are the regulator. You are the customer. But you have no right to force anyone to treat you a certain way nor does any company have a right to force you to be their customer.
Click to expand...

True, but some of us aren't aware of what they are capable of until it's too late. (And NO, you do not have to be doing something shady for PP to screw with your acct.)

Anyway, the OP was asking for advice and I gave some based on my own dealings with Paypal.

Just because I'm new here doesn't mean I don't know shit about shit.
 
Jenny70 said:
I actually am obligated to deal with Paypal because I sell on ebay from time-to-time. I'm sure I'm not the only one on here that has a PP acct tied into an ebay acct.
Click to expand...
You're not obligated to sell on ebay. It is not a public service. It is a private firm offering a private service.

Jenny70 said:
Just because I'm new here doesn't mean I don't know shit about shit.
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No, but since you are new here, you are going to get judged by the shit you post. It's a good idea at WF, to spend 6 months reading and not posting, and when you post, make sure you are adding value. Not what you think is value, value that gets you rep and thanks back from others. We're judged by our contributions, not our egoes.
 
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