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Wed Oct 29 2008 16:09:26

AuctionBytes' PayPal, eBay Glitch Report

By: Ina Steiner

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An eBay seller wrote to say he's gotten two buyers complaining that they were unable to pay for items using their credit cards. "The common denominator is they don't have Paypal accounts," the seller wrote, and wanted to know if there were other sellers hearing the same problem from buyers. (Not that I'm aware.)

PayPal experienced a problem on October 24th affecting holders of its debit card. For a short window of time on Friday, according to PayPal spokesperson Michael Oldenburg, PayPal debit card transactions showed that they went through for twice the purchase amount. It takes no more than 4 calendar days for transactions to be captured, at which time it's only posted once, he said, so all problems should be resolved by today.

One of the PayPal debit-card users who contacted me said she got different answers from the store from which she made her purchase and PayPal, and, she said, "every time I call PayPal I get a different answer. Thank God there was money there to cover their over $200.00 mistake." (Debit cards affect your bank account balance, unlike credit cards.) I followed up with her this afternoon, and she said that PayPal wouldn't acknowledge that there was a problem until Monday 10/27, and she said the money has not yet been returned to her account.

The "double-dipping" problem sounds a lot like the one that occurred a month earlier, on September 26th.

Users are also reporting problems with PayPal eChecks. Apparently PayPal sent a notice to recipients of its eChecks to log in to paypal and claim their funds, initially causing people to wonder if it was a scam. PayPal's Oldenburg said it is a known issue and would have more information about it tomorrow. Complained one seller, "Holding money even a day with a small percentage of sellers can result in thousands of dollars of interest they make off their glitch."

Michael Oldenburg also responded to my inquiry about an article in the Industry Standard:

"It appears that there is a recurring billing issue in the integration between Skype and PayPal and we are actively working to fix it. PayPal protects all of our customers against unauthorized charges to their accounts so they are not responsible for any fraudulent charges. If PayPal customers feel that they have received unauthorized Skype charges to their PayPal accounts, they can initiate an unauthorized transaction claim from within PayPal.com by visiting our Security Center and clicking on the "Start an unauthorized transaction claim" link."

And just as I was about to post this report, someone wrote me about a problem eBay buyers are having redeeming a 10-percent off coupon (up to $100) There are several threads about it on the Checkout discussion board, including this one and this one. PayPal responded with an explanation in a post of its own.

 




Comments (34) | Permalink

Readers Comments

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: zeak

Wed Oct 29 16:30:52 2008

last two days i have not been able to use the shipping calculator on any multi purchases it comes up as error or only gives usps postage for 13 ounces no ups at all

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: greyson

Wed Oct 29 17:15:51 2008

Let's just end this nonsense and get rid of Donahoe!!!  ebay & Paypal employees, users & shareholders are begging for the change!

http://www.petitiononline.com/jdonohoe/petition.html>
"Ebay
Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO"

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: NB

Wed Oct 29 18:23:24 2008

I second that! I signed.

http://www.petitiononline.com/jdonohoe/petition.html

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Rich

Wed Oct 29 18:49:06 2008

Shocking!

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Tired

Wed Oct 29 19:48:09 2008

Oh and this is a surprise????

You can count on at least one glitch per week.

If there was a picture under "GLITCH" in the dictionary it would be "EBAY'S"

Garbage in..... Garbage out....

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: eBuyer Feedback

Wed Oct 29 20:36:28 2008

Today some buyer wandered onto my site and was complaining about how there was some problem between his seller and PayPal and he wasn't happy.  I told him to not take it out on his seller.

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: OZ powerseller

Wed Oct 29 22:20:01 2008

Ebay have withheld a total of 15 sizeable echecks from us over the last week and a half, and today there are more. The buyers can't get their money back on their end and sellers can't claim the funds (there is no button to do so).

Papal has not contacted buyers to explain what has happened to their money. There is a hotline to call, but reports are that waiting times to get through are 2 hours plus. No customer will go through that.For our part, we have emailed paypal with all the details, but there is no response.

We have no idea if we'll see these payments, or whether the customer will get their money back. Paypal aren't helping us.



AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: PAYPAL IS NOT INSURED BY FDIC

Wed Oct 29 22:42:39 2008

ATTENTION: PAYPAL IS NOT A BANK! IT IS NOT COVERED BY FDIC INSURANCE. YOUR MONEY IS NOT SAFE WITH IT.  THEY DO NOT PAY INTEREST, AS THEY SHOULD, FOR YOUR MONEY HELD.  sorry to shout it, but...
                  Before you read any further, you must completely understand that fact!  I sympathize completely with all of you sellers who have been robbed by dishonest buyers who've taken your merchandise and then also taken back their payment for it...and all of you buyers who've had your personal financial information taken by dishonest sellers.  All of these illegal acts have been enabled and facilitated by Paypal and eBay.  
                 Paypal holds your money for days and weeks - yet it doesn't pay you interest. A bank must pay interest by law, as regulated by the Federal banking authorities.  Paypal can take money out of your personal checking/banking account.  Banks can only do this with a Court order.  When 'threatened' in the UK, as well as in Australia, to be regulated under those countries' banking laws, Paypal turned tail and ran, registering their 'service' in Luxembourg.
                You may post messages on these great and informative blogs, a public service in themselves.  This is all well and good and serves to help one somewhat feel better over your losses at the hands of the Paypal and eBay thieves.  But afterwards, and it only takes a few minutes, write your congressman, or write the banking authorities.  Regardless of your partyaffiliation - we're all Americans and we need this to be done for all of our good,  you can write Senator Charles Schumer from New York State (he's already received more than a few) or write Representative Barney Frank of Massachusetts.  Write and ask why is it that Paypal can operate as a bank without being regulated as a banking institution.  You can always write the SEC and the federal banking authorities and ask them to look into it.  Demand that Paypal be regulated by United States banking laws.   All of this thievery perpetrated by this now-bogus service will then all be held accountable.  It's simple and would immediately cause a beneficial change.  Just write that note.  It only takes a minute and will accomplish so much!   Remember:  PAYPAL IS NOT A BANK - UNDERSTAND THAT FACT - it can be corrected!
         

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Robert

Thu Oct 30 02:06:02 2008

And to think PayPal was forced on all eBay members in the name of SAFETY?? It was sure to improve the ''buyer experience'' and provide protection to everyone.  What a bunch of crooks!!!

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Tired

Thu Oct 30 06:42:25 2008

@ by: OZ powerseller
Wed Oct 29 22:20:01 2008

Didn't you hear...... NO PAPER PAYMENTS LOL!!!!!

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Tired

Thu Oct 30 06:44:44 2008

@ by: PAYPAL IS NOT INSURED BY FDIC

Great idea....

Do you have some contact information?

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Stan

Thu Oct 30 11:50:54 2008

That certainly is something that paypal isn't covered by the FDIC and all of it's protection.  If there is a lawsuit against paypal, all monies there, including YOURS, can be frozen/held/taken by creditors.  You would have no legal recourse.  Paypal should be required to adhere to US banking laws and regulations.  Write Schumer in New York, Henry Waxman, congressman from California, your state Attorney General.  The recent ongoing banking/economic crisis has brought all of this into the news and investigations are welcome into all irregularities...paypal is definitely a sham with NO protection for it's users.  Complain to any of the above, do not believe that nothing will be done - it will!

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Jeff S

Thu Oct 30 13:39:23 2008

Thursday morning: I gave a buyer a 50 cent S&H refund- and paypal deducted the refund twice!!

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: TIRED

Thu Oct 30 17:42:48 2008

HOW ABOUT SOME CONTACT INFORMATION!

EVERYONE IS SO QUICK TO SAY THINGS WITHOUT SUBSTANCE.

EBAY SUCKS AND SO DOES PAYPAL.

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Scott

Thu Oct 30 23:33:37 2008

I got one emails about needing to claim an echeck payment. I got the notice yesterday that the echeck cleared but I can't print a label or claim the money. It is really noticing since the buyer has waited a week for me to ship. I am very annoyed.

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Phebe

Thu Oct 30 23:56:47 2008

Has it ever occurred to anyone that the money they hold may be invested and drawing interest for these crooks?

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Moi

Fri Oct 31 00:26:21 2008

It is really SAD that a "paypal/ebay glitch report" exists.

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Tim

Fri Oct 31 01:25:31 2008

I use PayPal Web Site Payments Pro... and 3 of 4 CC transaction in a 24 hour period failed.  I can get no answers from them.  My web site operator says the error codes all refer to a problem on the PP end - NOT my customers.  I've occasionally had a costumer who couldn't figure out the CC stuff... but never three out of four.  AND... all go through fine when I use virtual terminal (which conveniently costs me more!).

What is PP doing with all that money and all those people??

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: Mechelle

Fri Oct 31 04:26:48 2008

Has it ever occurred to anyone that the money they hold may be invested and drawing interest for these crooks?

It isn't a MAY they absolutely do and they have us waive our rights to any interest they earn off our money too.  Seems like a conflict of interest - no pun intended

AuctionBytes' PayPal, eBay Glitch Report   AuctionBytes' PayPal, eBay Glitch Report

by: cookios

Fri Oct 31 08:39:05 2008

Its a sad, sad world we live in. I have an unclaimed echeck still waiting to be entered into my account. The first time I called I was told that it will be entered into the system and when all is fixed I will get my money.
Then I get an email stating that I have an unclaimed echeck that I need to claim. So I call back the next day and was told that I should not reply to that email as they are working on the problem. She then told me she willenter me into the system so that I will get my money. I told her I was already entered into the system yesterday. She said I wasn't. Now what is this? She then said I must have called a wrond number, nope I didn't. She had no answer so I stated to her how will I know that I have been entered in as not receiving my money, her reply! I have entered you in. Man how frustrating this is. It is not even the amount of the echeck but the principle of their attitudes and their not giving a hoot about anyone.

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