PayPal needs a Fail Whale

By , ITworld |  Business, paypal, Philip Kaplan

fail whale

flickr/IsaacMao

Philip Kaplan added a special page to his website so vendors will know why he can't use PayPal to buy their product or service.

Kaplan's problem is the $10,000 spending limit PayPal imposes on those who do not link their PayPal account to their bank account, or use a PayPal MasterCard. When Kaplan has tried to link his credit card to PayPal, he's told his card details are linked to another PayPal account, so he can't. But none of his PayPal accounts show that credit card. Catch 22 for customer service equals Fail Whale.

PayPal placed the $10,000 lifetime spending limit on "unverified" accounts, and has never changed. To verify an account, you must give your PayPal account details about a bank account, take out a PayPal credit card, or use PayPal Smart Connect. Many are wary of giving PayPal access to their bank accounts, so the lifetime spending limit is impacting more and more people. Married couples with separate PayPal accounts but with a joint bank account often have trouble verifying PayPal, since a bank account can only be linked to a single PayPal account.

Aggravation

to do business on eBay, be that buying or selling being Verified is necessary evil.
artie-chicago on forums.ebay.com

I'm married. We trust each other. We have a joint bank account. We are both computer literate. We both like to buy things online. Guess what? Only ONE of us is allowed (by PayPal) to link OUR JOINT ACCOUNT to a PayPal account.
Ruth Marker on pud.com

I'm in the UK, here on Ebay UK we have a limit of £1,900 per year whether were spending or selling!! unless we attach out bank account to Paypal
1blueflower on forums.ebay.com

PayPal sucks

I want to set every single person who works for PayPal on fire.
Dannohung on news.ycombinator.com

This person said they guess their days of buying on ebay are over. I suppose if I reach the limit, so will mine.
rsto3129 on forums.ebay.com

Yes, it may be in the recent fine print but I consider this to be very unethical.....
nick2002 on forums.ebay.com

We have but one bank account. You know... a joint account... like I'm sure a vast majority of married people have. What a stupid rule.
jack-r-abbit on news.ycombinator.com

Alternatives

Stripe is outstanding. Developer friendly, easy to use, quick to pay, clear terms...
Karol Wolveri on pud.com

WePay. What Stripe is missing is a marketplace feature (allowing other people to sell stuff via your website).
John Scott Stevens on pud.com

I’ve heard good things about Stripe and Braintree. Sorry PayPal.
Phillip Kaplan on pud.com

Seems that a service used to send and receive money would strive to make the sending and receiving of money as simple as possible. Guess PayPal owes some people an explanation.

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