My wife and I have been full-time eBay sellers since 2012. We have a successful store selling sexual wellness products. Growth has been steady over the past few years.
A few weeks ago, PayPal permanently limited our account due to a violation of PayPal's Acceptable Use Policy. We were not given any warning of an Acceptable Use Policy violation. PayPal took this action at one in the morning by closing the account and sending an email to us.
PayPal's action closed our business. Our income stopped immediately.
After numerous phone calls to PayPal, a letter to PayPal Legal, a letter to CEO Daniel Schulman, and communication through a private Twitter message, we still have not been told how we violated the Acceptable Use Policy. Our requests to allow us to correct the policy violation and have the account reinstated have either been ignored or declined. PayPal told us the specifics of how we violated the policy is considered "proprietary information."
Over the years, we have sold the same class and type of products. If our products did not violate the Acceptable Use Policy a year ago, they should not violate the policy today (the policy has not been updated).
PayPal has always known we sell sexual wellness products. So, why did they suddenly take this action?
eBay has been of little help during this situation. We requested to be added to the Managed Payments program; but that request was denied because the program is closed to new sellers until January.
My wife and I are devastated. The financial loss is substantial. The emotional toll is nearly unbearable. We worked countless hours over seven years to build a successful business. And, in the blink of an eye it is gone. Additionally, five distributors (all American small businesses) are dealing with the loss of our business.
I have often read horror stories about how PayPal treats people. Yet, we have always had positive experiences with PayPal support. Whenever an issue came up, PayPal worked with us to seek a resolution. That all changed a few weeks ago. Now, I have experienced the ugly side of PayPal that many people talk about.