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  1. #1
    Outsourced Program Manager paladin's Avatar
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    January 29th, 2007
    PayPal Rant - Large payment freezes account
    I’ll start by saying that I have been using PayPal for years and have never had any issues with them until now. During the last 6 months I was given access to my client’s PayPal account to manage their SEM spend (mostly payments to various vendors ranging from $20-$300 per payment), all was going well until last week…

    A programmer that we work with IM’d me asking why I disputed the latest payment of $300. After doing some research I found the following:

    A large invoice was over looked by the accounting people at the company that was payable to their graphic designer. The amount was just over $2000 – while not a huge sum, they wanted to get the money to the designer ASAP, so they decided to send him the money by PayPal. That is what triggered the issue.

    PayPal flagged that transaction and as a result the whole account. They asked the designer for various information about the transaction and when they received that they asked my client for more info about the company. Until they review everything, they will not let the designer get his money that we paid (which PayPal already deducted from the company credit card), nor will they allow the client to receive payments or make any other payments.

    As if that is not enough, payments that were made a few days before and a few days after that big payment (but before the account was flagged) are also being held and PayPal is asking the sellers for more paperwork. These are payments that we have made to these same sellers multiple times in the past for the exact same amounts.

    As you can guess I am a bit frustrated at the moment, and quite embarrassed about this. Has anyone else had similar issues? Any suggestion on what we can do to avoid future occurrences of this type of hold up?


  2. #2
    ABW Ambassador DesignerWiz's Avatar
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    January 18th, 2005
    Hello Alon,

    I'm a bit suprised Paypal would have issues with an account that has had former relations with the member account that is in question. I do know that Paypal does have issues with any transaction exceeding $1999.00 from prior experiences we have had with client billings that use Paypal payment processor... so we just split the billing into 2 seperated billings in order not to exceed the $1999.00 marker.

    My assumption is that the disputed transaction has come to play in this unique scenerio and exceeding their $1999.00 maximum transfer at the same time.

    Infortunately, Paypal services work extremely slow when they have either frozen an account, or have a disputed transaction claim against a member account.

    I wish I had a better advice/answers for you ... but Paypal services are very tight lipped and basically non-helpful even when you talk directly to inner office management. They always point you to their terms of service & specific requirements/demands in order to release an account back to good standing.
    Ray Thomas
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    ABW Board Category: Programming / Coding

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