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A PayPal Fiasco

Writer Wishes To Remain Anonymous

We’ve dealt with PayPal without any problems for about 2yrs now. A couple of months ago we recieved an incoming payment of $4000.00 [$3,888.00 after PayPals charges.] I paid for one auction item [$452.00] out of the recieved payment to a seller in Hong Kong and proceeded to withdraw $2500.00 to our bank account. A couple of days pass and we recieve an email of limited account access. PayPal had reversed the transfer and placed a hold on the funds, it wasnt even recredited to our PayPal account. We have no recieving limit on the account and our info on file was up to date so I didnt understand the hold or the “hold up” on this transaction. PayPal was requesting the following; repeat the verification process, fax documentation of proof of ownership of the item for sale, verify location, telephone verification, tracking info, etc. Iam not shipping anything that I’ve not recieved payment for, much less in holding by PayPal and not recredited to my limited access account!

A couple of days later I recieved an email from the seller in Hong Kong that PayPal reversed my payment to him and placed a hold on the payment. He’s upset because he’s already shipped the item for which he’s being denied payment. Back in the states, our $4000.00 buyer is getting worried not to mention skeptical of our credibility with the PayPal story. I suggested our buyer to file the buyer claim. Because of our limited account access and inability to refund, PayPal would recredit their account in the event of a sellers non-response to the claim. Our buyer filed the claim with PayPal as suggested and over the course of the next 10 days our payment to the seller in Hong Kong was not recredited to our account “though it was still being witheld from the seller by PayPal!” To add further to our dillema there is now an unauthorized purchase on our PayPal transaction page for 2 Dell laptop computers totalling $400.00+ “while our account access is limited?” Hows this?

Emails to the seller have yielded no response. Where were they sent? To PayPal Inc. no doubt! PayPal released the witheld funds in lieu of our buyers claim “to the buyers account 10 days from the initial filed claim”,..however now our account balance is at a -$880.00+ [to the negative!] The Hong Kong sellers witheld payment was not recredited and the unauthorized Dell laptop purchase [with a limited account bear in mind]have toppled us $880.00+ to the negative. Needless to say our buyers assuming that we bilked him out of $880.00+ and we’re probably facing a negative feedback on ebay from the seller in Hong Kong unless I fork out another $452.00 via a Global M.O. I’ve been increasingly concerned about our initial $4000.00 transaction and I’ve honestly been avoiding the buyer rather than face the accusations [I've never done this before.]The PayPal fiasco has gone on for so long that our buyer thinks we’re giving them the runaround “and honestly I cannot blame him.”

With a limited access account you cannot even close out your account. I just want to get out of this mess without the police knocking on my door or a day in court trying to get anyone to believe my story [I dont even believe it.] My advice to anyone would be to get your own merchants account or settle for mail-in payments. It may mean a longer wait and less of a convenience than transacting through PayPal on a sunny day,…”but let something go wrong and you will wish that you had.” Regards,


Posted: April 20, 2012 at 7:33 am


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