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Tue May 20 2008 10:55:24

Pleas for Fix on PayPal Glitches

By: Ina Steiner

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I blogged on Sunday about the challenges of dealing with PayPal echecks, and eBay and PayPal executives addressed the issue during yesterday's Town Hall Meeting. They provided a more articulate explanation of why it is taking away sellers' ability to block PayPal echecks. However, they failed to address the current glitch that is preventing echecks from clearing.

It's difficult to believe executives are unaware of the glitch. Sellers are discussing the problem on the boards and Answer Center, and one of our readers sent me (before the event) a copy of an email he had sent in to the Town Hall Meeting:

I just got off of the phone with a Paypal supervisor. EChecks from payment of Ebay purchases have not been clearing for at least a week. Paypal has no idea what is wrong and is working on a fix, with no specific time schedule to resolve this issue. Paypal has not and has no plan to contact buyers with uncleared eChecks to notify them of this problem. Their answer was that they sent an email to all Paypal users on May 1, letting them know of the systems updates and that there might be some problems. We contacted our buyers and let them know what is happening. They had not heard from Paypal and were unaware of any eCheck difficulties. Since we are rated on ship times and these ship times are affected by the prompt clearing of eChecks, what is eBay going to do to protect the sellers from lower DSR's directly caused by Paypal (an Ebay Company) ? Since this is a site wide problem, it would make an excellent topic for the Town Hall Meeting.

Another reader wrote in this morning, "None of the eCheck payments I've received since May 9 have cleared. Consequently, as a seller, I cannot ship, making for unhappy buyers." She also said, "Buyers are reporting the money is long gone from their bank accounts and yet the sellers don't have their payments and can't ship (eBay took it's fees for the sale though). eBay doesn't seem to understand (or learn, after countless opportunities) that customers would be much more forgiving of a "glitch" if the company was upfront about it and kept their users informed instead of trying to hide the problem."

A third reader wrote about another known glitch. "The failure to send email payment notices to ebay sellers continues intermittently. Not a day goes by that at least one of them never arrives which has caused some shipping delays. When I complained for the fourth time in four weeks Monday to my PayPal rep, she continued to say that it is "known issue" and the PayPal continues to "work" on solving the problem which has been affecting me for more than four weeks. It seems to me that ebay should suspend a buyer's ability to leave shipping time DSRs until PayPal finally resolves this ongoing problem which they seem in no hurry to fix. Neither ebay nor PayPal shows any sense of urgency to fix anything that negatively impacts sellers, but I suspect they break necks if the problem affects their revenues."

The glitches come as Australian regulators review eBay's request to make all transactions on eBay Australia be processed through PayPal, as eBay UK requires all sellers to accept PayPal, and as the US requires new users and sellers in certain situations to offer PayPal.

Update 5/20/08

Received from yet another reader: I read your post this morning about PayPal glitches and I wanted to let you know about one I haven't seen reported. People who use PayPal shipping to print labels are finding that the PayPal print label screen indicates the buyer has purchased insurance when in fact they have not. I've attached two screenshots from my account where you can clearly see on the item details page that the buyer did not pay for insurance while the print label page shows in text and numerically that they have. The screenshots are from a few days ago but I just experienced this today as well. Here's a link to the discussion on the PowerSellers board (accessible only to eBay PowerSellers):

http://forums.ebay.com/db1/thread.jspa?forumID=76&threadID=1000699592




Comments (19) | Permalink

Readers Comments

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Tue May 20 11:21:46 2008

The failure to send sellers and email when a paymnent gets posted or clears still happens regularly.

We now have a standard message to our buyers explaing that Paypal is failing to fulfill their commitment. Many buyers respond very understandingly and tell their own Paypal horror stories.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Laura

Tue May 20 11:33:46 2008

Ebay has never acted quickly to assist sellers/buyers, why would they now?  

Ebay continues on with its LAZYS ways of never actually dealing with a thing. The difference with this issue is that they can't just hand off the responsibility to the buyer or seller.

Don't hold your breath waiting for an answer, or for them to make it right.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Boycott Ebay/Paypal

Tue May 20 11:35:09 2008

Sellers, when you take control and set up shop elsewhere, DO NOT take Paypal with you. You will never have complete control of your own business as long as you use Paypal as a payment processor.

Do not let Paypal con you into thinking that everyone loves and uses Paypal and will not use other payment processors or prefer Paypal. That is bull.

Google Checkout has cheaper merchant fees and I have never had a customer complain about it or refuse to use it. I've also never had a buyer ask for Paypal instead.

Don't fall for the Paypal lies. As there is life after Ebay, there is also life after Paypal.

Boycott Paypal permanently.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: drew11

Tue May 20 12:25:20 2008

This bumbling crew is going to take on Amazon? They must be LOL in Seattle!!!

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: tj

Tue May 20 12:43:59 2008

Paypal love computers ...so why is it so difficult for an email to be sent to the buyer saying payment has not cleared say after 7 days ?????? 14 days etc etc...and when payment does finally clear send a BIG RED ONE SAYING PAYMENT HAS FINALLY CLEARED..seller will now dispatch item

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Chris

Tue May 20 12:56:10 2008

Think yourselves lucky that you're not in the UK where echecks take 7-9 working days (or in real time 10-14 days) to clear :-(

It does nothing to enhance the buyer experience or the sellers DSR scores

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Kal

Tue May 20 13:22:26 2008

Ina: If you're not a Powerseller, which I'm NOT, you cannot view that link. That doesn't help very much. Please make a note, or just remove it.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

This user has validated their user name. by: Ina

Tue May 20 15:57:46 2008

@Kal - done, thanks for the suggestion.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: george

Tue May 20 21:40:39 2008

The Feds are aware and interested as now PayPal has broken "money transmitters" laws that require funds to be disbursed in a timely manner. Excuses or no excuse, there is no excuse when it comes to the law.

I personally have filed complaints with my state's Office Of Financial Regulation, "MONEY TRANSMITTERS' division and with The Federal Trade Commision. Tomorrow I am contacting the U.S. Dept. of the Treasury, although my state is actively pursuing this already.

It is said best here that most of us would have been forgiving if we hadn't had to be made fools of by calling and spending all day on the phone to be told bold faced lies that even went as far as blaming the Federal Reserve and I was sure to mention it all to the Feds!

And lets not forget the embarassement caused by buyers and sellers alike because before even pointing the finger at PayPal, we all started pointing it at each other from insufficient Funds claims to not shipping in a timely manner, ALL which could have been avoided with a simple upfrontness and message on the homepage of both Ebay(complicit for certain) and PayPal.

I hope they enjoy the audits as much as we all have enjoyed(not) this snowballing fiasco!

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Tue May 20 23:32:43 2008

Just had a buyer from just a few towns away from here having her echeck money held by Ebay/Paypal for 9 days!

In the end I advised here to cancel and pay us thriough our card gateway provider, which she did and she was very undesrtanding.

Many of my other Paypal echeck buyers still have not had their payments cleared and Paypal is also rarely sending any emails anymore on cleared payments. What a mess.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Tue May 20 23:35:55 2008

What Ebay/Paypal doe snot seem to realize is that they jeopardize entire operations, because they have become the 'red lantern' so the hodl up in the cash flow stream of companies and individuals. Of those do not get their meoney on t ime, they cannot pay their vendors, etc. So neither can they pay Ebay fees then.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Jen

Tue May 20 23:42:21 2008

I am also having the same problem, but as a buyer whose money is being held I was and am worried that I will be given a negative rating for slow payment that would affect my 100% good rating that I have worked so hard for.  Hopefully buyers and sellers can be understanding during this time and realize that it is paypal's fault and not the buyer or seller.  

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: John

Tue May 20 23:49:19 2008

No need to worry about your 100% rating. Sellers can no longer leave buyers negative or neutral feedback.

With all the changes that eBay/PayPal is making, it must be tough on their systems people.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Phebe Martin

Wed May 21 00:17:46 2008

Do you REALLY think its a ''glitch''? Or have you considered the fact that the more thousands or millions they hold for seven to twenty one days could be called a ''financial glitch'' to accumulate interest on what is held...and its not just a few people it this happens to. Think about it! Steer clear of PayPal! AND eBay if possible. Their fun can't last forever if you just stay away.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: jackie

Wed May 21 04:45:49 2008

Makes me wonder if they are having issues with borrowing from Peter to pay Paul so to speak.  Another words,  are they short on funds, losing on investments, etc?  So,  they hold onto funds longer than they should,  in order to juggle their funds?  

Perhaps they are in a deep hole financially,  and juggling to keep afloat.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: BeBopDeluxe

Wed May 21 06:11:02 2008

In reading all the Auction Bytes posts over the past few months what I cannot understand is WHY IS ANYONE STILL USING EBAY OR PAYPAL????????  No matter what protests are made, eBay pays no mind, and does not improve, but instead gets worse all the time.  Give it up and stop beating a dead horse.  Find an online venue that appreciates it's sellers and work to make them as big as ebay once was.

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Nickmate

Wed May 21 13:41:36 2008

I'm having a nightmare with Paypal, but in a different way. It's sending me an automatic receipt for the same transaction every half an hour or so. This has seen me get a few hundred e-mails every day! Problem is the website isn't accepting technical queries, so I'm stuck with a swamped inbox...

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: JOanna

Thu May 22 08:58:08 2008

I'm in the same boat as Nickmate - I was receiving notifications EVERY 5-10 MINUTES for a single transaction - I had to check with my card issuer that I was only being charged the once. The email notification flood still continues, albeit one now every fifteen minutes to an hour. I've received 280 so far!

I emailed PayPal customer services and they confirmed the payment had only been made once, and said ''I do apologise for the inconvenience but we are currently experiencing issue (sic) when it comes to email notifications.  But I can assure you that we are fixing the problem. I do suggest to disregard other
duplicate email notifications from PayPal.''

Pleas for Fix on PayPal Glitches   Pleas for Fix on PayPal Glitches

by: Phebe Martin

Thu May 22 14:11:34 2008

FOR JACKIE.

No,Jackie they are not borrowing from Peter to Pay Paul. They are using money from stupid sellers like myself to accrue interest. In other words, they do not need Peter's money as long as they have ours to play with.



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