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Sun Apr 11 2021 13:43:27

PayPal Holds Funds after Seller Enrolled in eBay Payments

By: Reader

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Dear Ina,
I have been a long time follower of your EcommerceBytes and I want to notify you of a problem with PayPal. 

PayPal froze my business account after I signed up with eBay Managed Payments. I had over $5000.00 in the account. The money was frozen for 180 days. 

Today, as everyday, I looked at my PayPal Account to see if I could transfer my balance into my bank account. My balance show 0000.00. PayPal had taken my funds, my hard earned money and paid themselves, citing Acceptable Use Policy Violation:

"PayPal's damages caused by Acceptable Use Policy violation; PayPal's damages caused by Acceptable Use Policy violation".

They have also done this to 3 other accounts that moved to eBay Managed Payments. As soon as the eBay Seller signed up for Managed Payments, then PayPal froze their assets and stated that they would be released in 180 days.

I am upset that I have waited for 6 months to receive my funds that were frozen for NO REASON GIVEN, NO POLICY VIOLATION, NO FRAUD - my only sin was to sign up for eBay Managed Payments.

Is it possible for you to look into this problem? This is a lot of money for me, and I am wondering if any of your readers have had this same problem with PayPal. Thanks for your help.
Sue



Comments (16) | Permalink

Readers Comments

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: pace306 This user has validated their user name.

Sun Apr 11 14:16:09 2021

1-800 impeach newsome

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: Carl

Sun Apr 11 20:44:15 2021

Wow. After just doing an internet search, I can't believe how widespread this is.
They took almost $450,000 dollars from one account. Not a typo: four hundred and fifty thousand.
There are threads on Paypal, (most being edited by the powers that be), this one also off paypal
https://www.aspkin.com/forums/paypal-talk/129258-paypals-dam
ages-caused-acceptable-use-policy-violation-22.html
There
are web links galore to this problem.
Join the class action if serious enough?
https://discord.com/invite/8hkgBwFrvu

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: Ladygray This user has validated their user name.

Mon Apr 12 00:16:32 2021

Class action suit time. Someone told me to never leave much of a balance  in PayPal because of corporate theft like this. It's as if a large balance signals/flags opportunities for a money grab.  

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: ByeByeEbay This user has validated their user name.

Mon Apr 12 01:05:06 2021

I would always move my money over from Paypal.  While they can legally take it back after it moves, it would make sense to move over as much as you can on a daily basis. I just wonder why someone would want to leave money with Paypal when they have shown past bad deeds and where you get no interest.

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: Working It

Mon Apr 12 01:17:42 2021

I have not experienced this issue. I have been in Managed Payments since January 1. Maybe it is because we also use our PayPal account for income from other sources?  

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: Marie

Mon Apr 12 02:16:45 2021

That policy, as I read it, is for if you use PP to process an illegal transaction.

Have you asked PP specifically what you did wrong and how it violates that rule?  I'd say time for a lawyer.  Do as much leg work for them as you can to save you time and money.  Print out any articles about this from other sellers and print out the policy from PP.  

I hope you will keep us updated.  And good luck, I sincerely hope you and the others get this resolved quickly.

Have you contacted Ebay to see if they will help you with this.  Maybe on Facebook or Twitter?

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: Vigilant Eye On eBay This user has validated their user name.

Mon Apr 12 02:37:11 2021

Not impacted by any of this because I never signed up for eBay Managed Payments, I am wondering if the Sue and the other affected sellers have/had outstanding PayPal Working Capital loans?

Signing up for Managed Payments can be deemed a violation of the Working Capital contract and could lead to a demand for immediate loan balance repayment.

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: angryllama This user has validated their user name.

Mon Apr 12 03:22:14 2021

Vigilant Eye....  YOUR Educated Guess that a Customer / PayPal Working Capital Loan Relationship is the Most Reasonable explanation / cause that I've seen to account for this.  I can forsee that even if such a LOAN were fully paid back to a ZERO dollar value then PayPal MIGHT have a "leg to stand on" to freeze $$$ balances.  

I had such a loan arrangement with PayPal for a few years, but have STOPPED using it something like 4 years ago, BUT never formally SEVERED  or CANCELED the situation. TODAY I will rush to move the Vast Majority of my Running Balance at PayPal to our Brick and Mortar Bank account.
No, I'm not ENROLLED in Mangled Payments and I still intend to RESIST until I"m DRAGGED, Kicking and Screaming into that Morass of Moronity. PayPal has always and I do mean ALWAYS been a "Loyal Partner" for me and eBay has been Exactly the Opposite.  

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: Silver Ice King This user has validated their user name.

Mon Apr 12 03:52:27 2021

I do not know if this is the situation for ANY of the Sellers above or on the Paypal link that was listed, but in the FB groups I was in, many Sellers had their accounts frozen and money taken for Policy Violations and almost every last one of them was accepting payments for Goods using Friends and Family so they would not have to pay the 2.96% fees on the sales and then also would not get a 1099 for it and have to pay taxes on their sales.  Many of these Sellers were doing over $100K per year on 2 accounts and woke up one day to all accounts being frozen and funds withheld for liquidated damages.  Paypal also would not discuss these account closures with any of the Sellers so I am gathering that if they decided what was withheld was worth it then they would have gone to an attorney.  

The biggest problem that most of these sellers ran into was that buyers are a lot more hesitant to pay thru the other cash apps for their goods than they did through Paypal even though there was no protection when paying F & F.  I have always sold my goods via G & S so have not worried but I have transferred money to my kids using F & F so I was concerned that I might wake up one morning to this same issue, but a few months later now and still no problems at all.  Like others have said though, I never leave a large balance in Paypal as I want to control when things get paid and how they get paid, not just suddenly see a charge through Paypal that comes out of my balance.  I am currently  in a dispute with Ebay over billing me for an extra month of store costs when my store had been closed.  They also charged me for Terapeak and Seller Manager which would have been included in the store for free.  I contacted them and it was supposed to have been refunded in a couple of days and we are now at 2 weeks.  Luckily though that went through my CC so if they do not refund it I will be doing a Chargeback on Ebay through my Credit Card company and I already know they have zero personnel who know how to handle chargebacks, just look at how many cases are won through Mangled Payments.  Once again Ebay tries to steal from a long time Seller because they are not joining Mangled Payments where they can openly steal unless you know what they are supposed to be taking because they still will not produce reports with proper information as to what they are supposed to withhold and payout as most companies do.  Iannone is no different that Wenig as a CEO - they both fully support stealing from their customers and doing all they can to hide what they are supposed to withhold from their customers through lack of adequate reports.  I hope Iannone is ready for when the DOJ starts knocking on their door under his regime and the indictments start rolling out.  By law he has to sign that the Financial Statements that are provided to the SEC and shareholders are correct or they can prosecute him for violating the Sarbanes-Oxley Act that was put in place for just these types of situations.  It may be a cushy prison vs what he should be in, but the Feds do not let you off due to overcrowding so if you get 10-15 years you are going to serve at least 10 of them and no matter how cushy it is, its not as cushy as sleeping at home and then going to work at Walkers West.

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: ssusannss This user has validated their user name.

Mon Apr 12 08:19:28 2021

I've heard horror stories of people leaving huge balances in PayPal as well as other selling venues. These are not banks, and have no FDIC protections. They can do what they do according to their terms of service.

Your best bet when signing up is to have a dedicated account to transfer your PayPal payments to, and then another account to transfer THOSE payments to, leaving the PayPal attached account with little or no funds. I don't sell on eBay any longer, but that was what I did. I didn't want them digging into my bank account or freezing my PayPal account.  

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: Trish This user has validated their user name.

Mon Apr 12 08:56:03 2021

Hello!  I had the same thing happen to me 6 months ago.  Paypal Froze my account and I had a balance of $2750.19.  I looked regularly to find out when I could transfer my balance to my bank account.  I looked on April 9 and discovered that Paypal had stolen my funds and left me a zero balance in my account.  I don't know what to do, that is my money, I earned it legally and I did not abuse the paypal user laws.
Everything I sell on Ebay is accompanied by a Receipt.
I am devastated by this.  Can anyone do anything about this Giant Tech Company robbing American Citizens?

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: Trish This user has validated their user name.

Mon Apr 12 09:01:50 2021

To Marie:
There is no way to contact PP.  They have left me on hold for hours on end. They do Not answer their phones and they make no attempt to explain their theft.  I will soon contact my Senator and Congressman to report this Big Tech Theft Scheme.  Anyone who has over $100.00 in Paypal is in danger of loosing every cent of their hard earned money.  Paypal does what it wants to and confiscates what it wants to.  Congress needs to step in since Paypal does not operate under the laws of Banking.

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: toolguy

Mon Apr 12 09:45:59 2021

@pace306

Impeach Newsom

A High School friend Randy Economy is the driving force behind the recall.

Newsom trying to buy his way out of impeachment by giving every Californian $600

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

by: ssusannss This user has validated their user name.

Mon Apr 12 11:29:43 2021

Anyone with funds being held can try the Better Business Bureau in California. I had an issue with PP years ago not having to do with eBay, and once BBB got involved I was provided with the executive office email address and my money was returned within 45 days. This can all be done online.  

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: iheartjacksparrow

Mon Apr 12 13:22:02 2021

@Trish - Immediately file a complaint with the California Attorney General's Office (forms are completed and submitted online). Also file a complaint with the Federal Trade Commission for bad business practices. I guarantee PayPal will resolve the issue fast if they start getting communications from government entities.

Perminate Link for PayPal Holds Funds after Seller Enrolled in eBay P   PayPal Holds Funds after Seller Enrolled in eBay P

This user has validated their user name. by: Marie

Mon Apr 12 14:57:42 2021

Trish

Here are some links to make filing reports and other information to make it a bit easier on you.  This is NOT all inclusive.  I don't know what state you are in, so you need to look up the proper website for your state's Attorney General and file a claim there.

https://www.fdic.gov/about/

https://www.usacops.c
om/

https://www.ftc.gov/about-ftc

https://www.bbb.org/

https://www.consumerfinance.gov/about-us/

This
one is a link to what the state I am in suggests you do.  Maybe you can find something like this for the state you are in.  Or maybe this info can help you in some way.

https://dfi.wa.gov/consumers/money-services-complaint
<
BR>



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