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Mon Apr 18 2016 23:37:12

Three Calls to PayPal to Fix an Unreported Glitch

By: Reader

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Dear Ina,
Your March article about PayPal users payments seemingly lost in cyberspace struck a nerve. One reason I'm writing is because I've not seen any mention of a serious PayPal glitch in January. It had to have affected many others.

A man returned an item that he bought from me on eBay in early January of this year. I issued him a refund on Jan. 17. I had a zero balance in my PP account, but when I issued the refund it said it was complete (of course, it would take a few days to clear in order to transfer money from my bank account to cover the refund).

More than a week passed. The buyer contacted me, stating he hadn't received the refund. I checked my PP account. The refund stated "Complete" and "Pending." Curious. I called PP, and a rep advised that they needed a few more days to facilitate the transfer. I said it had been well over five business days, but he insisted that not enough time had been allowed. Give it until the following Monday, he said. I emailed the seller re: the conversation.

By the following Wednesday, the buyer said he still had not received the refund. I called PP again. A rep told me this would be looked into and resolved quickly. Once again, I advised the buyer.

A couple of days later, my frustrated customer sent me a message advising that he would file a claim against me in eBay if this was not resolved immediately.

My third call to PP had results ... and an explanation from a PP supervisor.

When I told the supervisor that my buyer was about to file a claim against me, she said PP itself would put the money in my account within a few hours. She added that the refund hanging in limbo was never going to go through (it still said "Complete" and "Pending") and to forward the buyer the money, not actually do a refund again. Within an hour, the money was deposited and I sent my buyer the money.

Here's the rest of the conversation with the supervisor: She advised that on Jan. 15 and 17, a glitch occurred that prevented the refund from ever completing. Something about the Federal Reserve, banks (like mine) and PP having issues. I asked if other sellers were affected. She said yes. What!?!

Although all my calls to PP were answered promptly and everyone was courteous, it still took three conversations over the course of a week to get it straightened out. On top of that, PayPal never issued a statement about this and, MOST IMPORTANTLY, send an email to its customers who tried to issue refunds on those two days about the glitch.

I'd like to know if any of your readers were affected.
Regards,
MA




Comments (13) | Permalink

Readers Comments

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: FeelingFroggy This user has validated their user name.

Tue Apr 19 11:04:18 2016

January = To long ago and to many unreported glitches since.

Move on.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: RCL This user has validated their user name.

Tue Apr 19 12:59:53 2016

Lesson to seller: Keep funds in Pay Pal to cover refunds

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

This user has validated their user name. by: iheartjacksparrow

Tue Apr 19 19:59:17 2016

That's why I will never accept PayPal again. I certainly don't want to keep money for 180 days in my PayPal account just in case one of the buyers decides to file for a refund.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: dasw This user has validated their user name.

Wed Apr 20 02:12:45 2016

You actually talked to a Paypal rep? I've been calling all week and keep getting a recording that says ''We are not available and to leave your number''. Of course no one calls me back.

I recently gave a refund to a buyer and they claim they never received it. At this point I have no idea whether the buyer is scamming or it is a glitch. Business as usual.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: tb This user has validated their user name.

Wed Apr 20 02:39:33 2016

"Lesson to seller: Keep funds in Pay Pal to cover refunds"

Funny. I have the exact opposite opinion. I always try and keep my PP flushed out to zero. It just gives me the willies having them holding onto my $$.  

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: GotToGetOut This user has validated their user name.

Wed Apr 20 06:16:46 2016

I had the same problem. I do usually keep a paypal balance but it was a little short so the refund was supposed to come out of my Paypal account and it never went. In the interim, I found the top to the item that had disappeared and I shipped it to the customer so this worked out in my favor since the customer got the full item. However, I still have an issue listed in my account that I didn't refund to customer. This was in January! Now I understand what happened. Surprise, surprise -- a Paypal glitch. I agree with tb -- I too, try to take out all my Paypal money. Why give them a free loan? On the occasion where I might have to give a refund wth no money in my account, my friend transfers the money in from his account so I can send an immediate refund and not wait for Paypal to pay from my checking account.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: DebraD This user has validated their user name.

Wed Apr 20 08:52:43 2016

My friend transfers money to my Paypal account, so I can do an immediate refund if necessary???? because I won't keep funds in my own account to cover the eventual- inevitable possibility of needing to issue a refund? I'm not sure what to make of that arrangement. If you are operating a business, ans selling on Ebay is a business, you need to keep funds immediately available to cover things like refunds. Paypal may have a glitch in their system, but in this situation, the seller was at fault for not having money available.  

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: Randy This user has validated their user name.

Wed Apr 20 10:41:30 2016

@tb writes "Funny. I have the exact opposite opinion. I always try and keep my PP flushed out to zero. It just gives me the willies having them holding onto my $$.  

I'm with ya on this one! About as bad as the gov't. Why let anyone hold your money at a 0% return rate?

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: methuen-web-sales This user has validated their user name.
Web Site

Wed Apr 20 11:22:34 2016

I don't keep much money in my PP account, transferring out whenever it goes over $100.00 but I also have a PP credit account to cover any shortage should it happen.  Also, I usually know a day or two before I have to give a refund so there's time to build up the funds.  At the cheap-o interest rates, leaving $20.00 in the account won't affect my life-style.  

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: TMoore This user has validated their user name.
Web Site

Wed Apr 20 13:34:06 2016

Seeing as PayPal is the only reliable payment system for small businesses this is of some concern. If you don't like the (non)response from them you can always report them to the FTC (Federal Trade Commission) for failure to follow through on their fiduciary obligations. A refusal to address the grievance is a reneg on their contractual obligation. Either way, the FTC should know about it anyway.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

This user has validated their user name. by: thehosst

Wed Apr 20 23:55:02 2016

Paypal continues with very big issues, a lot of payments show as cleared but the math does not add up, we have to call several times to ask for the funds to be put in there, we noticed because the payments were bigger than usual, just imagine how many more small payments we may not notice, do we have to call to  for every time Paypal screws it? Just because you see an email or a page that says the money is there, does not mean the money is actually there.  

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

This user has validated their user name. by: iBuyers

Thu Apr 21 08:46:44 2016

This happened to us. As bulk buyers, we double paid for over $2000 in items on Jan 15th, it was a tremendous task to be reimbursed.
In addition, as a seller, we encountered several of the exact scenario the OP mentioned where even it took a tier 3 PayPal Supervisor to step in and protect a $1000.00 refund for which the buyer was double refunded by no fault of our own.
Every Buyer and Seller needs to carefully review every transaction on those days, one by one.

Three Calls to PayPal to Fix an Unreported Glitch   Three Calls to PayPal to Fix an Unreported Glitch

by: Toledo Maude This user has validated their user name.

Thu Apr 21 12:53:20 2016

Every morning, I reconcile my Paypal and eBay accounts to the penny.  I have never had a problems with either, but they are NOT to be trusted.

Several years ago, I decided that for the few buyers who report problems with a purchase, I would instantly refund them the full amount and put the potential ugly situation behind me.  Cost of doing business on eBay.  Not right but the best way to live to sell on eBay another day.

To do this, I keep a reasonable balance with Paypal.  For years interest rates have been so low that if I am losing interest it is pennies.

Yes, sellers will beat their breasts and swear that they not let Paypal keep their money, but for sellers who rely on eBay for their income it is the SMART thing to do.  

But with only two sales on eBay this month, I am thinking of working a local intersection for handouts holding a sign: ''Long Time eBay Seller - Will Work For Food''



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