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edzwoo United States. Dec 15 2011 15:45. Posts 5911 | | |
Our account randomly got limited and they forced us to give them documentation about our business and our supplier contact information, otherwise they would restrict our account and prevent us from withdrawing money. They gave us a deadline of 7 days.
I sent in the documentation the day after I received the warning, and I called in to double check that they were going to get it taken care of. They ended up not getting back to us in time and our account got restricted today and we weren't allowed to withdraw or send money. I called in again and got the contact info for a guy named Vincent, who is in charge of our case.
I'm talking to Vincent and basically he says congratulations for having such tremendous growth, we're going to put you on a rolling reserve with a rate up to 9%. He actually called it a "sidepot" which made me chuckle a bit.
http://www.studio1c.com/blog/29-busin...paypal-rolling-reserve-irks-many.html
tl;dr
PayPal is going to force us to loan them up to 9% of every transaction we make for 90 days and there's nothing we can do about it. They're also trying to play it off as though it's for our safety.
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exalted United States. Dec 15 2011 16:17. Posts 2918 | | |
| | On December 15 2011 14:48 DustySwedeDude wrote:
LOL That sucks. |
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| exalted from teamliquid :o | |
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K40Cheddar United States. Dec 15 2011 16:17. Posts 2202 | | |
Bummer. Pay Pal's gotta get their cut somehow if it's your main method of price transfer though. |
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Silver_nz New Zealand. Dec 15 2011 16:32. Posts 5647 | | |
sick beat.
for real.
time to switch to buttcoins or moneybookers or something. |
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Garfed Malta. Dec 15 2011 16:42. Posts 4818 | | |
I have no idea how the hell Paypal still exists, this thing is a one big scam. |
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PuertoRican United States. Dec 15 2011 16:54. Posts 13047 | | |
^ It only exists cuz Ebay exists. |
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Highcard Canada. Dec 15 2011 17:04. Posts 5428 | | |
Man, paypal isone huge fucking scam company that exists because of all the loopholes of online transactions, they aren't defined as a real bank, more of a wallet, so your money has no Fed guarantee if it ever were closed/stolen/hacked etc. Basically using Paypal is an endless gamble with zero rights as the business owner, everyone gets fucked by them eventually and it sucks you guys just got loan sharked, I would seriously report them to Better business (not that it will do anything) but by sitting there taking their shit is the reason why they are still able to do this after ~10 years of business to every seller that uses their site.
I hope you guys are working on ways to limit your Paypal exposure and attempting to offer better payment solutions. Hacker News has tons of info if you search that, but really, I expect you guys know all this. Hope you guys keep up the baller success! |
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| I have learned from poker that being at the table is not a grind, the grind is living and poker is how I pass the time | |
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edzwoo United States. Dec 15 2011 17:43. Posts 5911 | | |
UPDATE:
Just got off the phone with Vincent. We had two choices
1. 9% rolling reserve over 90 days
2. 3% rolling reserve over 90 days + have 5k pending basically indefinitely as "emergency backup funds".
We chose the latter. |
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TheTrees United States. Dec 15 2011 17:52. Posts 1592 | | |
kinda random...haven't posted on LP.net in years. Anyways, I work for DHL here in the U.S. and I focus on international sales. Does your company ship a lot internationally? |
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Jas0n United States. Dec 15 2011 17:54. Posts 1866 | | |
No, we don't ship too many products internationally, somewhere under 5% of overall sales. PayPal really screwed us over on this one. 5k reserve + 3% means they will basically hold 20k of our money at all time. This is on top of the 5k-7k rake we pay them each month and the 25k a month we pay eBay (eBay and PayPal are owned by the same company). So now we're out another 20k which is essentially an entire year's worth of warehousing rent that we're never going to see unless we just stop using PayPal, which we can't do since we sell primarily on eBay. |
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| | Last edit: 15/12/2011 18:05 |
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| | On December 15 2011 15:42 Defrag wrote:
I have no idea how the hell Paypal still exists, this thing is a one big scam. |
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| there are no facts only interpretations | |
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TheTrees United States. Dec 15 2011 18:06. Posts 1592 | | |
using the postal service for intl shipments right now? |
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Jas0n United States. Dec 15 2011 18:09. Posts 1866 | | |
Yes, the items we sell are pretty small & lightweight so we're using either USPS Priority Mail International Flat Rate Envelopes or First Class International. |
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whamm! Albania. Dec 15 2011 18:11. Posts 11625 | | |
paypal does whatever the fuck the want and i think there should be anti-trust laws they are breaking just by existing. |
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TheTrees United States. Dec 15 2011 18:16. Posts 1592 | | |
Let a fellow BWer and LP.netter earn some of your business haha.
shoot me a PM if you're ever interested...we're very competitive with the postal service and it's door-to-door shipping, express, full tracking. I have quite a few clients that are powersellers on ebay
/end sales rant |
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NewbSaibot United States. Dec 15 2011 19:14. Posts 4943 | | |
I guess they finally realized how banks afford all those huge lobbies and ridiculous salaries. You just skim a little off the top. |
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Jas0n United States. Dec 15 2011 19:37. Posts 1866 | | | |
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Spicy United States. Dec 15 2011 19:46. Posts 1027 | | |
Also banks don't just "skim a little off the top" that's not how they work |
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aCa_ . Dec 15 2011 20:28. Posts 470 | | |
paypal is scam, but its used by so many business you have no choice to have one really |
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