PayPal once made me refund every customer in the last 6 months. They said it was the only way to unfreeze my account. I gave them the thumbs up because I had no other options at the time, and they said, "you have to manually refund them one-by-one yourself and then call us when it is done". It was really strange.
They permanently froze my account after I refunded everyone and refused to talk to me when I called. I wasn't able to get a merchant account and I lost thousands of PayPal recurring subscriptions. This was the death of my first start-up.
PayPal is a scam and it's not as uncommon as you think. If you're using PayPal, your time will come. I didn't think they would do it to me either, they never bothered me once until all of this went down.
They froze it randomly. They said I was automatically flagged but couldn't tell me why. When I pushed the issue with someone higher up, they didn't care. I couldn't find anyone who cared. They bullied me and sent me around in circles until I gave up. How was I supposed to fix a problem if they cuoldn't tell me what it was? You can read a lot of stories like my own on www.paypalsucks.com - a lot of the stories are similar to mine, where the customer is left in the dark or bullied around until they give up.
I guess it qualifies as SaaS (software as a service). When shit hit the fan, the business was running exactly as it always has been, but at a higher volume.
They mentioned something about not allowing "intangible products" but it was complete bullshit because they always have, always will, and still allow intangible products. This wasn't their reasoning for it but just something they vaguely mentioned once, I never did get any answers out of them.
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PayPal once made me refund every customer in the last 6 months. They said it was the only way to unfreeze my account. I gave them the thumbs up because I had no other options at the time, and they said, "you have to manually refund them one-by-one yourself and then call us when it is done". It was really strange.
They permanently froze my account after I refunded everyone and refused to talk to me when I called. I wasn't able to get a merchant account and I lost thousands of PayPal recurring subscriptions. This was the death of my first start-up.
PayPal is a scam and it's not as uncommon as you think. If you're using PayPal, your time will come. I didn't think they would do it to me either, they never bothered me once until all of this went down.
Amazing how they can get away with pulling stunts like that. Why did they freeze your account in the first place?
BTW, I feel like this exact post has been posted before.
Edit: Yep, it has. See http://news.ycombinator.com/item?id=1598227
They froze it randomly. They said I was automatically flagged but couldn't tell me why. When I pushed the issue with someone higher up, they didn't care. I couldn't find anyone who cared. They bullied me and sent me around in circles until I gave up. How was I supposed to fix a problem if they cuoldn't tell me what it was? You can read a lot of stories like my own on www.paypalsucks.com - a lot of the stories are similar to mine, where the customer is left in the dark or bullied around until they give up.
What line of business were you in? What was the proximate cause of their demand for refunds?
I guess it qualifies as SaaS (software as a service). When shit hit the fan, the business was running exactly as it always has been, but at a higher volume.
They mentioned something about not allowing "intangible products" but it was complete bullshit because they always have, always will, and still allow intangible products. This wasn't their reasoning for it but just something they vaguely mentioned once, I never did get any answers out of them.
What was your product?