PayPal: dictator of e-commerce?

By , ITworld |  Cloud Computing, e-commerce, fraud

Complaints about PayPal customer service, or lack of it, abound. Frozen accounts compounded by huge fees and lack of response to questions infuriate customers.

Elliot Jay Stocks suffered for two years with PayPal before finally being able to write, “Good riddance, PayPal,” in his blog. Stocks complains that has all the power of a bank yet none of the responsibility, such as when they told him on the phone they needed to hold a reserve, then sent an email the next day informing him the reserve would be 100 percent of his account balance.

Christian Owens documents, “My recent experience with PayPal Customer Service.” After using their “Mass Pay” API multiple times, suddenly he was told his account “isn't currently eligible to send mass payments.” Owens was told by several customer service reps, “that feature doesn't exist” while looking at the Mass Payment page on the PayPal site.

Putrid PayPal deserves to die

Absolute bunch of crooks… My dad’s recently been having problems with them, just for selling a few things on ebay.
Sam on elliotjaystocks.com

I had my first business destroyed by paypal, everything was great and I woke up one morning and boom, no more account
Kris Bolton on christianowens.com

There are countless tales of eBay parties having their funds frozen. I've personally had around a dozen influxes of a couple hundred dollars at a time be frozen for 4-6 weeks before I had access to their full balances.
bradddd on news.ycombinator.com

Warnings with the voice of experience

Do not use PayPal for anything digital as their user agreement does not cover you!
Simon Leedham on elliotjaystocks.com

Paypal regulary freeze my account and get me to send the same old docs in.
Liam Acton on christianowens.com

banks can and do have the exact same policy regarding terminating merchant services accounts. They can terminate you at any time, without reason, and when they do so, hold any undisbursed funds in a reserve account for exactly 180 days.
dangrossman on news.ycombinator.com

Not bashing today

ironicly the only good things i’ve ever heard anybody praise PayPal for has been their fraud prevention. I guess this is the ugly flipside.
ryan on elliotjaystocks.com

If PayPal wasn't as aggressive with their fraud prevention, they'd be skinned alive.
reitzensteinm on news.ycombinator.com

Luckily, Paypal is an anti-fraud AI company which also happens to run credit cards sometimes. When in doubt, they will always come down on the conservative side. This is why they still exist.
patio11 on news.ycombinator.com

Do you have a PayPal account? Have you had an issue? Free free to tell your story in a comment.

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