PayPal - Complaints from Sellers

lisa of brewton, AL October 30, 2009

About four years ago I opened a paypal account under a non-profit...a few months later paypal decided they needed to see the paper work to show it was a non-profit...until it was sent in they limited my acount. paypal limited my acount because they wanted to see IRS papers about the non-profits...I sent the paper work two times and they still did not lift the limit...first they would not let me take money from the acount...so my money was trapped and then they said I could take money from the acount but not add to it...I was so glad to be able to finally get my money so I took it all out and said to hell with this acount and paypal.

About 4 months I came across some items that I wamted to sell on the internet...so I opened up a paypal acount under the name -----...I always liked the name and I thought it would make a great business name. Of course, I added ma bank acount and was verified. After I sold my first item I was shocked to find out that I could not get my money for the item...the item had been shipped and delivered...but I had to wait for positive feedback or three weeks to be able to get my money...so i had to e-mail all of my buyers and ask them to leave me positive feedback so I could get my money...one of them did not leave any feedback (even though I asked her to) so I had to wait until paypal released it.

The first big ticket item I sold was for $2,000...so I made sure that the buyer knew he had to leave positive feedback ASAP so I could get my money and he did. A sale I made after that... that the buyer was very happy with left me positive feedback but I had to call paypal to get them to release the money...by this time I am just ready to close my account and sell another way. I go to my acount and try to transfer money to my checking acount and they tell me I can only transfer $84...because I have a $500 a month limit and that is all that's left for the month of September...then since all of my money is released I try to close the account and they tell me because of the $500 limit that they have put on my money...I can't close the acount because it would exceed the limit...since my acount had over $2,000 in it.

They tell me I can lift the limit if I give them my social security number so I try...but remember that other acount at the beginning I mentioned...it has my social attached tied to it so I can't use it...so i go to that account and fine out that it is still open but blocked! I try to close it but they won't let me close it because it was limited and I needed to send up some files(the same files I had sent up twice)to lift the limit so I can close it so I can get my money out of the other acount. I have been working on this since the 26 of October and still I CANNOT get my money...MY MONEY111 My items have been delivered to the customer and they are satisfied but I can't get my money. No bank I ever dealt with will not give you your money...paypal is out of control!!!

melanie of irvine, CA October 27, 2009

I am a seller on Paypal and I recently sold an item to Kirsten. She received the item, either didn't like the boots or wore and damaged them and then filed a Paypal claim when I refused a partial refund and asked her to email me photographs of the damage. I also asked her for further explanation as to what she was referring to concerning damage and she didn't clarify. She said that ebay discourages communications outside of the ebay messaging system so she did not want to send the photos. Ebay discourages it to prevent people from completing transactions, not from resolving disputes.

The problem here is not just that she filed a false claim, it is that Paypal awarded it with no evidence whatsoever from her to show that the boots were in a damaged condition when she received them. When you look at the feedback that Kirsten has left for others, it is evident that she makes a practice of buying from people on ebay and complaining to extract a refund. She has few feedback but clearly knows the system and knows how to exploit it to her advantage. IF she decides to return the boots after damaging them I will not only have damaged boots back, I will have to eat the cost for mailing them out to her. Paypal encourages this by siding with the buyer without question.

Carolyn of Waynesboro, VA October 24, 2009

On Oct. 07, 2009 I sold an item on eBay, the other party paid and I immediately printed a shipping label. A few hours later PayPal closed my account and limited my access. I attempted to refund the money as PayPal is keeping the money the other party paid for 6 months they took the money from my checking account that bounced 3 other payments I had used my account to pay bills. So far PayPal has cost my personal account $365.67. The other party still doesn't have their item and PayPal has all the money.

I recently received an e-mail that says they are suspending my account indefinitely. With no chance of returning my account in good standing. I had never done anything to break their "RULES" I only sold a used item on eBay which closed my account as well because of PayPal's decision to close my account. $365.67 and two closed accounts - eBay and PayPal. I have lost my business due to this reckless decision PayPal has done to me as I am no longer able to make a living selling on eBay.

Henry of New York, NY October 18, 2009

I am writing in regards to the unfair practice PayPal engages in and how they are falsely advertising their Seller Protection Policy to lure customers into joining their service. Two months ago, I sold an iPhone 3G on eBay to the highest bidder, who happened to be in the United Kingdom. I was hesitant to follow through with the auction because what was written negatively on his feedback page and how low his positive percentage was. Having been an eBay and Paypal user of over ten years with over 300 positive feedback at a 100% score, I have usually been very careful with all my auctions and the way I conduct business on these two sites. In the last year alone, I have been scammed twice and I understand that PayPal customers are becoming easier targets because of the phishing scams out there that are sometimes hard to evade. As a long time user, after getting burned back in March, I made sure to read and re-read the new and updated PayPal policy and inform myself of what I needed to do, to the best of my understanding.

I decided to go ahead and ship this item using international customs tracking at the post office. Any other type of tracking was not available, according to the post office guidelines on usps.gov and the attendant I worked with, for international door to door tracking. The customs tracking number would be enough, I was told, and on their website, you would be able to track the package to the destination as close as possible.

After I shipped my item, a few weeks passed and the buyer filed a dispute that he never received the item. I was asked by PayPal to provide the tracking number but I could not find it immediately. I had to figure out through the post office and the NYPD how to retrieve that and by the time I had PayPal already sided with the buyer despite my pointing out that I needed sometime and to also consider the years I've done business with PayPal and eBay coupled with my feedback vs. his. They closed the dispute and I was out approximately $400.00.

According to their policy, I should have been protected and I wasn't. What's the point of having said policy when they refuse to protect you when said protection is required? I do not know what to do next, but I will exhaust all necessary means to get my money back and hopefully make a case out of this to warn other users that the Seller Protection Policy does not really protect you.

Carol of Schenectady, NY October 7, 2009

I received this e-mail today10/07/09, and it didn't sound legitimate so I am sending it to you. Could you please advise. Thank you

"Notification : Update Your Account Information/ From: PayPal/Information Regarding Your Account: We have noticed several attempts of fraud. Seems like a third party tried to access your account. You are able to log into your account but all your payments are suspended untill you verify your personal information. PayPal works day and night to help keep your identity safe. That's why it has come to our attention that your PayPal account information needs to be verified as part of our continuing commitment to protect your account and to reduce the instance of fraud on our website.

If you could take 5-10 minutes out of your online experience and verify your personal records you will not run into any future problems with the online service. Important Notice : Failure to confirm your full credit card & billing information within 72 hour's will result with your account suspension...."

Lisa of Springfield, OH October 7, 2009

I sold crystal stemware for $185 on ebay to a buyer in Hawaii. She complained that she didnt recv the merchandise after a couple weeks, and filed dispute with paypal. Paypal reversed the payment back to her out of my account. Meanwhile, I checked with Post office who said 30 days must go by before filing lost pkg form. (Ins was purchased) After 30 days...postmaster followed up and within a couple days determined the package had been delivered the day AFTER Paypal gave the buyer her $ back. She used the tracking number on the insurance receipt but had to make a call b/c the tracking # didnt pull anything up online. This discrepancy seems to be the biggest issue with Paypal. I faxed the USPS forms, stamped..etc showing when delivered, but b/c it wasnt posted online, Paypal wont accept it. The buyer in HI has both the merchandise and the money and Paypal will not do anything, saying they acted within their guidelines. Michael, the exec of escalations says " he believes that I sent the pkg and in a timely fashion, etc...so he is willing to give me $100.!! My question, then is why wouldnt he just give me the money back? Why offer $100? Paypal can arbitrarily take $ out of my account at any time and is not a safe trading place for the seller at all. They assist fraudulant activity at the very least.

Timothy of Waynesboro, VA September 28, 2009

I WAS a seller on ebay. First, PayPal closed my account with over $5000.00 in it and I had to refund each buyers purchase. Then ebay closed my account because PayPal had closed my account. My seller fees with ebay were over $300.00 which they made me pay, even though I canceled and refunded everyones purchase through PayPal. I have tried to start again with ebay and PayPal three different times and only lost more money. I a 55 years old and trying to take care of my wife and four children and this is my only income.

cindi of chester, VA September 27, 2009

I made a payment to seller for $62.94, the money left my acct and before it could reach the sellers acct, Paypal closed my acct and they will not let me have my money back. They have very unfair practices, I want my Paypal balance so I can put it back in my bank acct. They took my hard earned money and I want my money from them, and I want you to investigate these people.

Tom of Pittsford, NY September 18, 2009

I sold some trading cards on ebay to an individual in Italy. He claimed he never received them, so he filed a complaint with PayPal. I have proof of shipping, but I do not have proof of delivery. (It is impossible to track a shipment in Italy.) Because of no proof of delivery, PayPal took money out of my account (plus fees) to pay the individual.

This is all in accord with Paypal's user agreement. There were no legal procedings of any kind, but PayPal believes it can help itself to my money without due process of law. Even a bank can not take money out of my account to settle a debt without a legal proceding. Many companies remove consumer rights with their agreements. i.e. forcing any dispute into binding arbitration. Dell Computers goes even further - besides requiring binding arbitration you can not join a class action lawsuit or states attorney general's actions.

Christopher of Smithfield, RI July 30, 2009

I am having a problem with Paypal. I sold a used Rolls Royce car key to a person in the United Kingdom for $300 plus shipping. It's been only 21 days since the key was shipped, and the buyer has sent me a few e-mails claiming he never received the key. I told the buyer it takes time to ship items from the US to the UK, but he didn't want to hear it. The buyer filed a complaint with Paypal and escalated it to claim. My paypal account suddenly became overdrawn over $200. Not only did Paypal take the money out of my account, but they have limited my account until I resolve the negative balance!

When I sold the key, I offered two forms of shipment in checkout; standard int'l shipping or express mail. I also set insurance to optional. The buyer only paid for standard int'l mail and neglected to pay for insurance! I sent the item USPS first class mail with a customs form number, which when plugged into the USPS website tells me that the item left the US, but nothing more than that.

Paypal is now asking me to give them tracking info by Aug 8th which is in about 10 days. I think I will give them the tracking number on the 7th, hopefully this will buy me some time. The buyer is telling me that it's MY fault I did not send the item with insurance, even though he neglected to pay for it during checkout! How can I be expected to give the buyer a refund? It's not my fault the post office has lost the item!

I do have a tracking number, but as of today it only states that the item was shipped out of the US, and that it will be updated later. It does not state the item was delivered. If the tracking info does not change to state the item was delivered, Paypal will probably reward the buyer a refund. What can I do to protect myself? How can they give the buyer his money back, taking it out of my account, when I did not do anything wrong and have no item to show for it?

Jeff of Los Angeles, CA July 24, 2009

I sent a payment of $550 via PayPal to an associate. When I logged onto my PayPal account, my account balance was "$0.00." Therefore, I thought that I first needed to transfer money from my bank account to my Paypal account in order to send the money via Paypal. I transferred $550 from my bank acc't to Paypal, then I sent $550 to my associate. However, Paypal viewed this as TWO separate transactions and $550 was taken out of my bank account twice. I called Paypal and spoke with 2 representatives and both told me that there was nothing they could do even though one of the transactions was still pending. It took a week for the second $550 to clear my bank (causing a -$433.00 balance) and then for me to transfer the money back from Paypal to my bank account. It took a week for this to be resolved and for the money to be redesposited back into my bank account. I had to initiate the transfer back into my bank account. Paypal did NOTHING to help me.

Karen of Junction City, OR July 9, 2009

I bought a pair of diamond earrings from a seller. These earrings were awfull so I sent them back to the same company address that I received them from. I mailed the item back on June 9th and they were signed for by one of the company representatives on June 11. I called Paypal to let them know this and they said I would need to fax them proof of service from the post office, which I did.

I called yesterday and spoke with a man named Sean. He tried to tell me that Pay Pal had sent me an email telling me that the tracking information I had provided from the US Post office was no good, that the seller wasn't at the address I had sent the merchandise back to and that I would have to send the merchandise back to the right address. I asked this Sean how in the heck could I send back merchandise that had already been sent and recieved by this company on the 11th? He said he didn't know but that is what I had to do. Obviously I must have made this Sean mad, because after we got done talking, I went back to my Pay Pal account to look up the case and found it had been closed.

Not only has Pay Pal caused me to lose my merchandise, but also the $120 I spent for it and now will probably not beable to recover. I just sent Pay Pal an email asking them to reopen this case of mine, but I bet they won't do it. I have documentations that will prove this company did not want to pay me back for the item, even though they admitted to me that they had received it back. HELP

Scott of West Valley, UT July 9, 2009

I sold a used Ibanez TS-9 Reissue overdrive pedal in the original box with all original paperwork to this person on May 11, 2009. Shipping weight was 1 lb., 8.3 ounces as stated on my USPS shipping receipt. My cost was $8.80 with Delivery Confirmation. The actual pedal (no box, no packing, etc.) is 1.3 lbs.. The pedal worked perfectly when I shipped it, and when Exquant received it, as they left positive feedback on eBay. Over six weeks later they complained to PayPal that the pedal quit working after they sent it to another company to be modified. PayPal immediately put a hold on my account and put $71 on hold to pay Exquant with.

A couple of days later they said his claim was valid and I was to pay the $71 and they would release the funds to him when he verified he had returnded the item to me in the exact condition it was received by him in. Several days later I received a small envelope with 3 IC's, 4 resistors and 4 capacitors in it along with a letter stating that these part were removed from the pedal, but there was no pedal. The envelope he sent weighed 3 or 4 ounces at most and cost only $2.02 to mail from Florida to Utah USPS First class WITH Delivery Confirmation. So the actual postage was really only $1.32 as DC costs $.70. So I appealed to PayPal. They asked for documentation. I sent my original receipts (with weight and costs) on it. I sent photos of what I had received (with the $2.02 postage showing), the components I received, and the letter more or less "taunting" me that these components had been removed from the pedal. I also had the original delivery confirmation receipt where I had sent it, which matched the number PayPal has on file. So if Exquant would be made to provide their receipt showing the weight of the package, one could determine that what I received weighed approx. 1/10th of what I sent to them. But one lady at PayPal stated oh it could have "dried out". It's made of steel and electronic components and a 9V battery. It weighs 1.3 pounds not in the box, no matter what. It doesn't "dry out". Another call to PayPal and I was told that maybe he got "a deal" on shipping.

So I contacted the USPS and was told a 1.3 pound package would cost a minimum of $5.50 (including the Delivery Confirmation) to be sent to me. That is MINIMUM, parcel post cost. He sent it USPS First Class for $2.02, so it clearly did not weigh 1.3 lbs., absolutely, without a doubt. But PayPal says "he said he mailed it to you and we have a delivery confirmation number". I had to provide proof of the weight of what I sent to him, yet he has to only "say" he sent it back? My proof (and it is ironclad proof) is being ignored by the people at PayPal. The question is why? Probably because if they have to make him pay my money back, they have to give my the $2.36 PayPal seller fees they make me pay. And yes, they released the funds to Exquant on Monday, July 6, 2009. So I have no pedal (Exquant still has it) and he also has the $71 back.

So I appealed to PayPal and they asked me to send an affadavit, fax information and photos of what I received. Well, I did all of that on Thursday, July 2nd, and it was deleted on Friday July 3rd. I resubmitted it on Monday July 6th and it was deleted on Wednesday July 7th (today). I resubmitted it once again today.

PayPal is either woefully inept or outright thieves, and I can't figure out which. Each time they asked me for info, the very next day they'd rule against me, and Exquant had sent them nothing to prove anything. He just said it didn't work after more than six weeks. He could have dropped it in water, or otherwise broken it, or probably after he had it modified it didn't sound right to him so he complained to get his money back, and then knowing PayPal wouldn't do anything he sent me a worthless bag of parts and kept the pedal anyway.

Jane of London, ON July 8, 2009

I purchased several pieces of jewellery on E-bay from a seller in China. The items arrived significantly not as described and some were damaged. I filed claims with Pay-Pal and they told me the seller was going to give me a full refund if I sent the items back to China, which I did. The postage cost me almost $50. To my amazement however, Paypal closed one of my claims against the seller for the reason that the tracking information I provided was invalid and the seller said he did not receive the items within 30 days.

I sent Paypal a complaint letter about the 30 day limit as the items were going to China and I also sent them copies of the postal tracking information documents. Today I received an e-mail that they were closing another claim to the seller for the same reason as above. However, I checked on the Canada Post web site at it said that the package arrived to the destination country on July 6, 2009. Why didn't Paypal give me a refund, if they have a zero fraud policy and I was defrauded by the seller? Why wasn't the seller instructed to give me a refund?

Why was I told by Paypal to ship the items back to China for $50 to get my money back and now it appears as though they just want to close my claims against the seller and not give me a refund?

Trevor of Golden, CO June 24, 2009

I have been creating some software and use PayPal as the payment source to pay the people working on it. One of the people is in South America, and paypal wouldnt let me use my own credit card to pay and I had the option of linking my bank account (no thanks) or get their credit card. I figured, why not, I will just pay it off before the end of the month. Well the itnerested rate comes back after you get it at over 20%! My credit was above 750, and I still get a 23% credit rate!

So I use the temporary card,and it gets maxed at the limit which wasnt very high. I call them and ask if I can pay it off so I can pay my people again, they say no the card has to show up and you have to activate it. Well, the card never showed up but they cant give me any more information becuase the card comes from GE Money bank, not them. So I cant pay my people, and everytime I call them I get transfered at least 5 times, but never get any help.

This is terrible customer service, and it seems like a scam to me. My entire project is in jeopardy becuase of the cruddy practices of this company. Beware. use this for basic simple things, dont depend ont his service for anything important.

Gary of Grove City, OH June 9, 2009

Can you actually contact PayPal and speak to someone? I can't find out how. I sold an item on eBay that was disputed by the buyer. A dispuite was filed. I offered a refund once the item was returned. The buyer had untill June 5, 2009 to return the item. He has not. The claim was supposed to be "automatically" closed on June 5th. It has not been. In the mean time I am out $157.00.

Can't communicate with PayPal to find out why this has not been closed & my money given back to me. It is very frustrating when you can not get an answer or even find out how to get an answer.

david of Sacramento, CA June 6, 2009

ebaysuccesssystems actually stole 39.95 from my paypal account without approval and authorization. I submitted 1.95 for ebay business information and actually charged 2.95. A couple days later they deducted 39.95 from my paypal account from my debit card. Paypal wants to suspend all activity from the card account before they investigate the transaction which amount to ZERO and the ebay company getting to keep the deduction and they don't even have a legit telephone number that paypal won't even verify. The telephone numbers only ring as busy or plays music for hours at a time with no live human contact.

Paypal & Ebay has set up a systemt that will take monies from individual accounts and have no recourse as they work in cohoots with each other and sends the monies over seas that draws the whole complaint and affidavit process out, way beyond american identity theft laws and into personal accounts that are actually fake.

I am so [upset] at both companies that I will probably go into the office the next time I'm in the bay area and just sock the CEO of ebay for theft and join any class action law suit against paypal that claims they are just a front for ebay and does nothing for the seller or on a flip side, the buyer either.

Vince of Lake Balboa, CA June 1, 2009

I sold a part to a person in USA. the person sent the part back. Paypal has policy that any item valued over $250.00 must be sent "signature confirmation" My item was sent back without my knowing. The box was in terrible condition. All packing was missing. Parts were missing/ damaged. The item was in non-salable condition.

I contacted Paypal about the situation and was told that I would need to file incident report with local police Department. I filed the report with officer Clark (badge # 39587). The report was then faxed directly from LAPD west valley division. Paypal then says "we did not receive the fax" I then go back to police department and officer Emenheiser (badge #38440) sent second report directly from the police station.

Paypal claims they never received the faxes. Paypal then gives me a different fax number. I contacted officer Clark once again and gave him the different fax number but Paypal has never contacted me.

Tom of St Charles, IL May 4, 2009

During my wife's battle with cancer in 2006, she wrote a journal to me in secret. After she died in December 2006, I responded to her writings and published them together as a book. About 5 weeks ago, book finally in hand, I created a website aimed at helping people write their own stories about loved ones they had lost as a way of helping them through their grief journeys. On the site, I made my book available as an example of what could be done. Purchases could be made using PayPal. As I was giving copies away to the people we had known together, I had no idea if others would find their way to the site and order the book or not, but I wanted it to be available to people in need.

When I received no orders for the book in 5 weeks, I asked my brother to use the site to test the process. He subsequently placed an order, his PayPal account was charged, but I did not receive notice to ship the book nor receive payment from PayPal. In researching the problem, I discovered that the email used 'behind the scenes' on the website was missing one letter from the domain name. After fixing the error on the site, I called PayPal to determine how I could get a list of the transactions that had been affected. I was told they were not able to provide me with this information as it was not possible for their systems to query for such errors. They were able, however, to verify that the user id/domain name combination was not a valid PayPal account so no one else would be receiving these orders. Any affected buyers would simply have to wait for 30 days, after which time their accounts would be credited for an unclaimed purchase and they would presumably know to contact me in some other way to order the book at that time.

I think this is an unacceptable response. PayPal knows this happens, and gets to keep they funds interest free for the 30 days. They have no self interest in changing their systems or processes to do the right thing. Meanwhile, people suffering their own losses are waiting for help that never comes.

CRYSTAL of OLIVE BRANCH, MS May 4, 2009

In December of 2008, I sold some home use software I bought directly from Microsoft. The listing I had specifically stated that it was HOME USE ONLY, it said that on the pictures in the listing, and the customer that ultimately bought the software asked for pictures before he bought it. I sent those, which, again, had HOME USE ONLY clearly stamped in large, black ink on the front of the package. The pictures were taken with a high quality digital Nikon and were crisp and clear.

Several weeks after buying the software, the customer emailed me and told me that he wanted commercial software and to please refund his money. As it was Christmas, the money had been used to buy for my three children. I explained to him that my listing was very clear and that, although I couldn't refund his money, he could certainly turn around and resell the software for profit or to recoup his loss. He became angry and demanded a refund, saying that I had no right to sell that kind of software on Ebay. I responded with Ebay's policies in the body of my email, empathized with the fact that he didn't pay attention to what it was he was buying and again explained to him that our transaction was legitimate and finalized.

He filed a complaint with Paypal who then requested supporting docs from me. I sent them everything I had, including emails between the buyer and I where he clearly admitted his mistake and they also had the listing showing that I very clearly noted the software was HOME USE ONLY. I don't even know how commercial software works! After a couple of weeks, Paypal ruled in his favor, much to my surprise, and generated a refund back to him which left my Paypal account almost $800 in arrears. I immediately called and was informed by a Paypal rep that they (PP) never rule in favor of the seller, always the buyer, and not to worry about it because they couldn't access my bank account.

I received my software back from the buyer, opened and therefore useless. Paypal consistently asked me to pay them the $800 they had given back to the buyer and I refused. A short time later, I started receiving calls from a collection company and after being harrassed for days (including calling my work), I filed a cease and desist with the company. I sent numerous emails to Paypal asking them to explain to me how my item was SIGNIFICANTLY NOT AS DESCRIBED or SNAD (per their website) and they have never responded to me with anything but, "We ruled against you, now pay us". In order for an item to be SNAD, one of the following has to apply:

What is Significantly Not as Described (SNAD)? An item is Significantly Not as Described if it is materially different than what the seller described in the item listing. Here are some examples: You received a completely different item. Example: You purchased a book and received a DVD or an empty box. The condition of the item was misrepresented. Example: The listing said "new" and the item was used. The item was advertised as authentic but is not authentic. The item is missing major parts or features which were not disclosed in the listing. You purchased three items from a seller but only received two. The item was damaged during shipment. An item is not Significantly Not as Described if it is materially similar to the seller’s item listing description. Here are some examples: The defect in the item was correctly described by the seller. The item was properly described but you didn't want it after you received it. The item was properly described but did not meet your expectations. The item has minor scratches and was listed as used condition.

What the customer did was listed perfectly under their definition of NOT SIGNIFICANTLY NOT AS DESCRIBED. My item was listed and described accurately but the buyer paid no attention since he buys in bulk and purchases hundreds of listings a day (he is a re-seller). When he realized his mistake and didn't want it, he fell into Paypal's own definition of NOT SNAD! However, Paypal refuses to work with me, advise me how they determined my listing to be SNAD, or give me details of the decision that they made. I am being kept in the dark, have collection processing pending against me (and my credit is flawless. It took me years to build my FICO score to where it is today!), not to mention the stress and anxiety this has caused. I was also told that I should have appealed their decision, but when I called Paypal after they made their initial decision, the rep told me that the decision was final and there was no appeals process!

Jeremy of Manalapan, NJ April 23, 2009

I sold $350 worth of silver eagles to the above individual through Pay Pal. The items were sent with delivery confirmation. The above individual contacted Pay Pal stating he never received the items, and my account was subsequently deducted the $350. I was never contacted by the above individual regarding any problem. I contacted the post office and they stated the item was delivered as confirmed by their tracking code. I contacted the above individual and he stated through his e-mails through E-Bay, that he did indeed receive the items. I thought that this issue would be resolved. However, to my dismay, the above individual is not attempting to resolve the issue with Pay Pal, and Pay Pal states it is out of their hands. I would like to know why they have the right to deduct the money from my account, and not look into this issue any further. The e-mails that he sent to me through E-Bay confirm he did indeed receive the items.

Eddie of Edgewater Park, NJ April 18, 2009

Eddie of Edgewater Park NJ (04/18/09)
Towards the end of February I sold a pair of Boots to a woman on Ebay for a $100. In my ebay terms, I clearly stated a 3 day refund/exchange policy refund/exchange honored within the timeframe of 3 days if the boot is damaged only. After 5 days from when the buyer received boots, she granted me a positive feedback stating comfortable boots, great deal thanks!. About a a week and 1/2 later the buyer sends me a complaint stating the sz 9 boot doesn't fit like her usual sz 9 footware and that both inner soles came out the boots. She advised that the soles did not come out the boots until the 1st time she wore them, which was after the warranty period. These were brand new boots and my wife thoroughly inspected these boots before shipping. The boots proved to be sound externally/internally.

The 3 day exchange/refund period was for the buyer to inspect the boots by wearing them not for the boots to remain idle in her closet. I declined the exchange/refund because the buyer did not honor the terms established. The buyer filed a dispute against me with paypal, stating did not receive item as described. I have no control over how people wear their clothes. This is the reason why I chose a 3 day warranty. This is more than enough time to determine the quality of the footware if they're worn. About 2 weeks later, paypal released my account and granted the buyer the $100 refund.

When I asked the bases of their decision, they said, their paypal user agreement over rides any Ebay terms established between the buyer and seller. I went straight to the executive level to have this matter investigated. I sent the president Mr. S. Thompson, Senior agent Mrs. B. Beutler e-mails staing my grief. Mr. Thompson never replied to my e-mail but his senior agent Mrs. Beutler responded by stating this is our final decision and it will not be over turned. These people (paypal) refuse to give their last names. I had to do research to get Mrs. Beutlers last name.

I also spoke to an executive agent Jenni over the phone who refused to furnish her last name, she was extremely rude and non-professional in dealing with issue. I have learned my lesson, I will never use Paypal again. It's a payment vehicle that many people use for money transfer security, they will not see the negative side of this company until something negative happens. My paypal account will be closed by the end of the week.

I'm currently unemployed. My wife and I was using Ebay to sell items to supplement our income. Ebay had my account on hold because the fees weren't paid. The money that paypal refunded back to the buyer was intended for the ebay fees. I had to use my credit card to pay the fees which put us in a deeper negative situation. I cannot take the chance to sell anything on ebay if Paypal has this ridiculous policy overiding ebay established terms.

Michelle of Morgantown, WV April 16, 2009

Michelle of Morgantown WV (04/16/09)
Paypal has frozen my funds for a laptop that I had recently sold. The buyer has recieved it but I still haven't recieved my funds.

I needed the money to pay my bills. now I have shut-off noticies and I'm pregant with added stress.

Hiep of Seattle, WA April 11, 2009

Hiep of Seattle WA (04/11/09)
Paypal took away my seller money without investigation. That's went against their Seller Protection Policy.

Debbie of Chicago, IL March 21, 2009

Debbie of Chicago IL (03/21/09)
I have been a perfect seller on Ebay for over 10 years with perfect feedback over 2500. Despite doing everything by the book, I recently had a buyer do a chargeback through his credit card provider. This chump got his item and left me positive feedback for the item! I have delivery confirmation that shows he got the item. Now he claims he didn't make the purchase. I am out the money for the item (Versace) plus the shipping, plus I no longer have the item.

Isn't it up to Paypal to verify its buyers just like they have to verify the sellers? This guy is no longer on Ebay and I feel like he is pulling a scam. Since Paypal took the money from my account, I am now in the negative, which I'm sure they'll raid my bank account next. I NEED this money to keep my lights and heat on! I also have to ship out items with this money! This seems totally unfair and not in the best interests of the sellers. Screening buyers is their job, not mine!

The burden of proof should fall on them. They say it will take up to 30 days or more to resolve this. From what I'm hearing from other sellers who've fallen to this new scam, is that I may lose in this situation. I am guilty until proven innocent. Meanwhile, paypal has my money and collects interest on it. In many cases, they do not fight the chargebacks unless it is worth their while. I am furious! Somewhere in the fine print of legaleaze they can do this.

economic damage = me not having money to pay vital utilities!

John of Cleburne, TX March 13, 2009

John of Cleburne TX (03/13/09)
I sold an antique fountain pen on eB ay last week for $455. Although I have 100% positive percent feedback for the past five years, PayPal decided this was a risky transaction and has placed my money on hold for 21 days in case the buyer wants to file a protest or dispute. The only way the funds will be released earlier is if the buyer gets around to posting positive feedback about the transaction or if PayPal can verify deliver -- and the only way that can happen is if you elect to use PayPal to purchase a shipping label. Otherwise, they have no method of tracking delivery. In the interim, I'm stuck for the $441 left after PayPal deducts is $13 fee for screwing with my transaction.

Everyone should refuse to ship on a PayPal payment (and explain precisely why to the purchaser) until funds have been released to your account. That's the way I handle it when someone sends me a personal check -- and apparently, PayPal no longer provides a speed or convenience edge if the transaction is larger than $100 and/or you haven't been selling at a sufficient rate to ipress them. I'm only taking checks from here on out.

Kim of Huntingdon, TN February 18, 2009

Kim of Huntingdon TN (02/18/09)
I sold some vintage toys on ebay. Ebay makes you accept paypal as payment. Once the auctions had ended and I was paid, they put a hold on my account until items had been shipped and recieved by the buyers. Then they were suppose to release my account. After I had shipped the items and provided the USPS tracking numbers they completely locked my account down because a relative has unresolved issues with his account. They also asked for my proof of address and to verify my bank account. I sent faxed them a copy of my bank account agreement and a copy of my Tennessee Drivers License both with my address. But they say this not enough.

They now want invoices where from where I purchased the items I sold or proof of inventory as they call it and my disturbutors name and address. I tried to explain to them that all these items were over 50 year old vintage toys that had been purchased at yard sales and fleamarkets and there was no invoices from where I purchased them. I also ask that wasn't the buyer recieving them wasn't proof enough of inventory. All buyers have recieved the items they purchased and left positive feedback saying they were happy with the purchase.

They are holding my account because of a relative's account which I have no control over and I believe this is against the law. It is no where in my user's agreement that I would be liable for someone else's account. They are holding close to $500.00 of mine and I also had to pay for the shipping out of my pocket. I was going to start selling on ebay because times are hard here and the extra money would help alot, but it seems I am getting the shaft here.

Holding close to $500 of mine plus I paid for the shipping which was over a $100 out of my pocket thinking that they would release my money like they told me in the beginning they would. I need that money to help pay bills and feed my family. Thanks you,

Irene of Dumfries, BC February 12, 2009

Irene of Dumfries BC (02/12/09)
i sold my gold bracelet 2 days ago i have had pos feed back from the buyer who is daw2540 who is a lovly lady but paypal has not releast my cash it says i need to waight till i get feed back which i have had. it is sill in pending

Mary of Tyler, TX February 6, 2009

Mary of Tyler TX (02/06/09)
We have used Paypal for over eight years for our home-based business. In July 2008, we sold our product to a man in Nevada for over $3000. We delivered the product and have the buyer's signature as having received the product. In October 2008, Paypal informed us they were going to refund the buyer the amount of the sale, even though we had proof of receipt. We tried without success to reach the buyer.We never received any request from him for a return or refund. We have contacted Paypal by phone and email many times to get this resolved. We were assured that our personal bank account would never be touched, however on two occasions this is exactly what happened.

We supplied Paypal with all the written documentation requested and were told via email that our account was restored and by phone that Paypal Seller Protection would cover us, not to worry. However, we soon learned this would not happen. We have now been turned over to a collection agency, even though Paypal Executive Escalations tells us they are conducting more research to see if this man actually received the product (for which we have proof from the shipping company.) The buyer has the property and now his bank has the money.

We have filed a complaint with the white collar crime division and multiple complaints with the Better Business Bureaus and ETrust, to no avail. For a company the size of Paypal, it seems an easy thing to cover this under the Seller Protection plan. I am shocked and dismayed at the incredible emotional battle this has been and the lack of power we as small business people have. I am not even able to cancel this account. I have removed PayPal completely from my website and will be happy to share my experience with others. Someone needs to sue Paypal for this type of treatment.

We have been turned over to a collection agency. We have endured emotional and psychological distress.This company has abused their power.

Alex of Des Moines, WA February 3, 2009

Alex of Des Moines WA (02/03/09)
On August 26, 2008 I sold a pair of shoes for $395 on an online message board. I received the payment through Paypal, and sent the shoes via USPS with delivery confirmation which were then delivered on August 28, 2008. Another flawless transaction, or so I thought. Two months later on October 28, 2008 I get an email from Paypal stating that the buyer has issued an Unauthorized Payment Chargeback Claim. Paypal asks for proof of shipping which I was able to show with the delivery confirmation number (Please see the attached page for more details regarding the transaction).

The next day Paypal emails me again and says that there is nothing they can do, and asks me to pay back the $395 plus another $10 fee for the Chargeback Settlement in which they did absolutely nothing in protecting me as a seller. In addition, this could not have been unauthorized because the buyer knew what he was doing by writing, "payment sent I await the shoes. Thank You" in the payment.

Now my account sits at negative $405 and the seller never returned the shoes. I called Paypal and was told that according to the User Agreement, items over $250 must have Signature Confirmation in order to be protected as a seller. Despite this detail, I followed every other step by sending to the confirmed address provided and using deliver confirmation. Paypal serves as the middle man for the buyer and seller. They charge me to use their services, and now, when their services fail, I suffer from it.

How was I to know that the buyer would be a scammer? I am currently a college student and I cannot pay the $405. Do I have to pay Paypal? What can I do? Who can I report this to? Who is at fault, me, the buyer, or our good friend Paypal?

Adrian of Kelana Jaya, OTHER February 2, 2009

Adrian of Kelana Jaya OTHER (02/02/09)
I sold a product on ebay. The product was an iPhone. Client made a chargeback on me. Paypal contacted me to inform me of this matter through email. I responded immediately by providing paypal the tracking number that the item has already been shipped. I did not hear from paypal after that. It took some time then i decided to contact paypal to see the situation with the case. Paypal replied that they may take 15 days to investigate the matter.

Approx on the 17 day Paypal got back to me that the chargeback was successful adn my account showed a negative amount. Reason being that I am not protected by paypal 'seller protection'. In this case what was the investigation about? It is not about us being an honest seller and promptly responding paypal with all the prove needed i.i shipping information. What paypal wanted to investigate is how they could wipe their hand clean of this case. They just want to put the blame on the seller.

There are a few ironic parts to this case as well i'd like to point out:- 1. On paypal page they claim that we must respond ASAP - paypal them self took forever to respond to my concerns. 2. Paypal through their email states this We want to help you but we're not able to respond directly to emails sent to this address - this statement is plain BS if you asked me. I tried contacting paypal through other channels even on Ebay but cant seem to reach them. It seems that this is a dodgy company or at least a company with horrible customer service. Final word proceed with Paypal with caution. Even you might have the right documents to prove your case, Paypal will neglect it to preserve its best interest. I have all the emails and i challenge Paypal to refute this.

My paypal account was frozen pending investigation for more than 15 days. My paypal account shows a negative balance in which paypal ask me to settle. Lost of business and more importantly lost of my faith on the online business specifically EBAY and PAYPAL.

Wai of Lexington, KY January 29, 2009

Wai of Lexington KY (01/29/09)
Paypal is holding my funds of $6335 for security reasons , they says. i sold 5 platinum coins on ebay and i had about $300 of my own money that i transfered from my own bank. Although i have provided them with all the tracking information and four out five coins have been recieved, they wont give me any explanation they just said its for security reasons, the agents from paypal are very rude to customers and they really disrespect us.i paid $220 ebay fees, almost $200 paypal fees and paid $107 for shipping with full insurnce.and i have sent out all 5 coins and it shows that 4 of them have been recieved and 1 is at the postoffice waiting for the buyer to pick up.Everytime i call each agent give me different information and try to twist things around, is it legal at all, is there anything i can do by law. thank you

James of Woolwich Twp, NJ January 24, 2009

James of Woolwich Twp NJ (01/24/09)
We advertised a LCD projector on Craigs List. An email from a buyer named Joyce Maxwell from Joyce Maxwell inc stated that she was interested and would like to provide payment via PayPal. I created a PayPal account. I checked my PayPal account 1 day after I opened the account and there was a pending payment for the $800 that represented the sale price of the projector. Given this pending payment, I assumed that it was safe to send the item to Joyce Maxwell's associate in Nigeria. The cost of shipping the projector to Nigeria was $115. Joyce Maxwell requested the shipping info via a phishing email under the name shipping@paypal.

I entered the shipping info, but Joyce Maxwell never released the payment. I called PayPal and they stated I had been scammed and although this happens very often, PayPal was not responsible. Shortly after, more service@paypal emails were received asking for us to refund an overpayment of $500 by Western Union, which we did not do.

Our projector is en route to Nigeria (value $1000). $115 in USPS shipping to Nigeria. No reimbursed payment was received.

Delbert of Roanoke, VA January 23, 2009

Delbert of Roanoke VA (01/23/09)
Pay pal placed a hold on 1209.33 of my money from items I sold on E-Bay. They send me a e-mail and explain that I must provide proof of sale from the items I sold like I am a criminal. This is a privacy issue as far as I am concerned. I have a right to protect how I earn my money and not give away my trade secrets. Pay Pal is only a accounting buisness not a Bank ,Lawfirm,or Police Department. They are not licenced to even make money off intrest from sales.

The Attorney General needs to look into these matters 1- What the percentage is of how many accounts are placed on hold 180 days. 2- What happens to the funds when this is done. A- Do they move these funds on the market to make a profit? B- Do they move these funds in a escrow account? If the funds are moved are they obligated to pay intrest for the funds that are locked out from their customers?

I recived a final letter from them that said they will no longer do buisness with me does that not terminate my account and on demand they must return my money from items I sold. I have letters from all my buyers and every item I sold they were all very satisfied with the items I sold them. any chargebacks that could be filed is pass the date sold that could be filed even if that was not the case. would not matter because pay pal does not pay for the chargebacks because they are not a bank.

They stole 1200.00 from me I am a disabled vet on low income. these items I sold with pay pal was to help me with my income. I sold them because I needed the money. They are in California and I am in Virginia. Hard to fight all them miles do you agree?

William of Southbury, CT January 22, 2009

William of Southbury CT (01/22/09)
Paypal has put a limitation on my account and they are holding $672 of my own money. They say that there is a security risk with my account and cannot verify information. They say I need to verify information with them, but do not list how or why they need this. They do not list any reason for the freeze.

Obviously I am out $672, but it is much more than that. The transaction I collected the money from included professional high-end radios and I am also out that asset and I had a problem with the buyer and had to refund $150 of my own money. Currently with the fees, ebay fees, paypal holding my money and the refund I am out around $1,000 of my own money. During a tough economic time, I am a college student can can no longer afford even essentials.

Jason of Van Nuys, CA December 21, 2008

Jason of Van Nuys CA (12/21/08)
I have been an Ebay /Paypal customer since 2001 with a perfect record. I have 299 Positive feedback with ZERO negatives. My PayPal record is flawless as well. In Oct 2008, I sold a Nokia N95 to a buyer in the Netherlands (my first international sale). On Nov 4, he files a claim of non-receipt. PayPal immediately puts my account into a negative status of $424.58. It took three weeks for the Nokia to arrive. The buyer had the tracking number since the day I mailed it in October so he knew that the delay was because of Customs in the Netherlands. The item actually arrived on the next day after he filed the complaint on Nov 5. I received notification of this claim on Nov 5, checked the shipping status and discovered that the item had actually arrived.

I contacted PayPal with the USPS tracking # and informed them that the buyer had incorrectly filed a claim. The item had indeed arrived. PayPal delayed in responding to me for several days. They said that they need to investigate. Not sure what this means. From the suspension of my account on Nov 5, they said they would have an answer by Nov 25. I sent repeated emails to PayPal saying the claim is false and they should remove the negative $$$ status on my account so I could continue to buy on EBay as I purchase electronics to run my business. I said that the buyer has too much power and they should not freeze my account without hearing both sides. They did not comply.

On Nov 19, the buyer cancels the non-receipt claim and files a new claim saying that the item he received is not what he bought. PayPal opens a new claim on Nov 19 and promises to complete the investigation by Dec 5. I periodically check the status of my PayPal account and now they say the investigation will be completed by January 18, 2009. This entire experience has been ridiculous. The buyer has no credibility and too much power. He is tap-dancing all over my account and I find it appalling that a buyer can just freeze someones account at their own whim. There are always a few bad seeds on the Internet and I had the misfortune of crossing paths with [one].

I have been a very active buyer on EBay since 2001 and I have never been the cause of any issues whatsoever. I feel, my rights as a consumer have not been recognized or honored. This is peak buying season and PayPal has committed a major disservice to me and my ability to pay people using PayPal which is widely recognized as the de facto payment system. Moreover, my account remains in a frozen negative $$$ status and I have no power. I fear this will look bad on my credit and also my reputation in the online community.

I work very hard to maintain my reputation and PayPal, through their [poor] customer service and their inability to take care of me, is singlehandedly responsible for losing me as a customer of EBay and PayPal. I have requested for PayPal to cancel my account and they refuse to answer. I told them that is they take money from me, I will fight it. I hope this is useful information for you.

Scott of Ormond Beach, FL December 20, 2008

Scott of Ormond Beach FL (12/20/08)
I sold a set of heads on ebay. Customer complained so I told him to return the heads for a full refund.He sent the heads UPS ( another mistake) and they apparently dropped them off at my house ( no signature). When I informed him that the heads did not get delivered to me he filed a dispute with PAYPAL stating that the item was not as described. They of course took my money back. Custmoer then filed a claim with UPS. So now Paypal has my rent money for January help up, the customer has two claims filed ( paypal and UPS). Paypals policy is very clear that items over 250.00 require signature. Paypal just keeps running me around. They claim that they will decide the claim by Jan 15th. Tell the people that I owe money to that story.

I do not have the heads( 599.00) I have paid for the original shipping of 39.00. Paypal has frozen my account. Can't pay bills. PAYPAL DOES NOT CARE ONE BIT.

Richard of Fresno, CA December 4, 2008

Richard of Fresno CA (12/04/08)
I bought a thermostat on EBay and found that it was defective. (It registered the room temp. 5 degrees hotter than it actually was.) I asked the seller to send me another one but he refused and wanted me to return the one I bought first. I told him that the weather was hot and that my air conditioner would not work without the thermostat. I contacted Paypal and filed a complaint with them. A period of a month went by and I received notice that they had ruled in favor of the buyer. I told them then that if they had ruled in my favor, why did I not get a refund or credit to my Visa card. They essentially never answered my questions but told me via an email that my case was now closed. They have been very sparse in answering emails and have provided false information when they have responded.

They allowed the seller to keep my money. He has both the defective thermostat that I mailed back to him and the $35 I have spent on the product and what it cost me to mail the package back to him.

Danielle of Anderson, SC December 2, 2008

Danielle of Anderson SC (12/02/08)
Paypal is holding my money even after delivery confirmation and positive feedback was left for me.

I can't buy my little sister her christmas now.

Jason of Coral Springs, FL November 24, 2008

Jason of Coral Springs FL (11/24/08)
I was the seller in an Ebay transaction. The buyer didn't respond to any emails inquiring about payment (I gave him approx. 2 weeks) so I opened a dispute with Ebay. The dispute got the buyer to pay for the items and he paid with PayPal. About a week or two later the buyer then opened a dispute with PayPal saying the items shipped were not as described. He said one of the items was damaged. The items were in the condition as described in the auction listing and there was absolutely no damage.

In my response to PayPal I went on to explain that if there was damage it had to have occurred during shipment. (I actually don't even think there was damage to begin with - that the buyer has buyer's remorse and was attempting to get what he wanted but at a less than agreed-on price.)

Also know that the buyer declined insurance. I thought that the purpose of insurance was to protect against lost or damaged goods. So basically I think the buyer used the not-as-described claim to get around the fact that he didn't purchase insurance and/or to pay at a lower price. I'll re-state that I don't think there's damage but at this point I think he'd purposefully damage the item to now provide evidence if it was required.

I disputed the claim with PayPal by which the buyer wanted a refund for some of the original purchase price. PayPal sided with the buyer and I did not get an explanation as to how they came to their decision. How does this impact me? PayPal says the buyer was entitled to a full refund and now I'm going to get back a damaged item - an item that was not damaged when I shipped it.

PayPal says the refund stipulation is that the buyer ship the item back in its original condition but that is literally impossible because there was no damage when shipped. All said, and I'll go back to the point that I had to open an Ebay dispute to get the buyer to pay, the buyer was able to work the system to get out of paying and I'm stuck with something damaged.

Dave of Sicklerville, NJ November 15, 2008

Dave of Sicklerville NJ (11/15/08)
Paypal has struck again. After selling an item on ebay paypal decided to HOLD the funds. Since im not a merchant and im leary of internet scams, i never keep money in my PayPal account. When i went to ship, i could not due to lack of funds in that account. They have the extreme power to just come in and SEIZE my money?

I have 100% positive feedback with Ebay and amd a Premier acct holder with paypal. Now- I just dont know. I used BUY IT NOW so i paid money to get my payment immediately...guess what..i cant touch it. ebay and paypal...are just TOO BIG like the others. [They] too are not recession proof. enough of this gets around...maybe [they] will start releasing peoples money.

cant ship item immediately...positive feedback will go away..

Roberto of Ansonia, CT November 10, 2008

Roberto of Ansonia CT (11/10/08)
I sold some items on Ebay to try bridge a gap between the sale and my next pay check from my employer I just needed to pay some creditor to avoid having any action taken against me but now I'm in a heap of trouble because PayPal has a new policy that prevent from accessing funds for well over 2 business week how can I make my ends meet when all these so called safe transaction make more difficult to access funds

I have some utility company threating to shut off service

Jeremiah of Greenwich, CT October 24, 2008

Jeremiah of Greenwich CT (10/24/08)
Here is a good one about the company Paypal, which you are forced to use if you sell on ebay. I sold a card to a person in Hawaii. The buyer claims he never received the card. So the buyer logged a complaint with paypal. Paypal proceeded to take 133.00 out of my acount and hold it until i could prove that i shipped the card. I sent paypal all the information along with a photo copy of the shipping reciept from the post office. I sent the card priority mail. The buyer did not pay for insurance or delivery confirmation.

It took three weeks and Paypal ruled against me. They said because i had no tracking number of proof of shipping (which i 100% do) there is nothing they can do for me. Talk about having $133.00 stolen from you with reason or explanation. There must me something that i can do. This company can not just feel free to go into my account and take money that does not belong to them. More over, make a ruling based on facts that are false. Plus - this specific buyer has claimed in the past that he has not recieved high dollar cards from other buyers. I have been stolen from and i think something should be done.

I am out the card that i sold and i am now out $133.00. In these harsh economic times - losing - having $133 stolen from me is not a good thing. What can i do?

Debra of Fowlerville, MI October 17, 2008

I would like to know WHY when I use a virtual ONE TIME USE ONLY PAYPAL PLUG-IN number, WHY the company is allowed to use it again. I authorized transaction for $4.95 on 09.27.2008. I HAVE RECEIVED THE ORDER THIS IS NOT IN DISPUTE. I called this number Sunday 10.12.08 left a message, told them when to call me back as expected I did not receive a return call on Tues. or a message on Monday when I was at work!

I DID NOT authorize transaction for $79.95. on 10.12.08. oddly enough no phone number for this company, but it is the same company. I haven't disputed it with my amazon.com transactions but it happens there but I AM making those, I DID NOT MAKE THIS ONE, I WANT IT STOPPED. I have called the number on the first transaction and left them a message. PAYPAL NEEDS TO MAKE THE PAYPAL PLUG-IN VIRTUAL DEBIT CARD TRANSACTIONS THAT ARE ONE TIME ONLY REALLY ONE TIME ONLY. This has happened before.

This is paypals claim about the one time use card: ""Single-use cards. You generate a MasterCard debit card number for a single purchase. Once the purchase is complete, the card is closed and can't be used again by anyone. These cards can be used for up to two months, unless you close them" Copied directly from the paypal site. Obviously this is a problem.

Paypal is my business account, I try to keep it separate from the household money. They allowed the removal of money from my account that hampers my mailing of items to customers, and my purchase of items to sell. They promise one time use and security but refuse to not only provide it, but refuse a timely resolution. I am out the $79.95 until they decide whether or not I really made the purchase I DID NOT, and maybe decide to refund my money. I feel both the company that did this and paypal are commiting fraud on the consumer.

April of Lincoln, CA October 11, 2008

April of Lincoln CA (10/11/08)
I had a buyer claim that the item bought was defective. A claim was filed with Pay Pal. Pay Pal has now suspended $175. out of my Pay Pal account. Since there was not an money in the account, I suspect they will withdraw money from my back.

The buyer filing a bogus complaint is a win win situation for Pay Pal. Where is the seller protection? I suspect $175 will be taken out of my account and returned to the buyer.

Patricia of Fair Haven, NJ October 7, 2008

Patricia of Fair Haven NJ (10/07/08)
someone hacked my paypal acct and tried to withdraw money from my checking acct. There was hardly any money in that acct, and Paypal paid them anyway! This seller was from the uk and the buyer was listed as being from VA, but, on researching ebay, he was actually from the uk. Now I have a negative balance with Paypal which they say I owe them. I know they will ruin my credit if this happens.. all because a scammer got into my paypal-- all with different names and addresses than my own.

I never received a warning from paypal that this item was going to a different address than mine; nor did I receive a you have made a payment email from Paypal. All the names of the seller and the buyer on my paypal page were totally unknown to me. My claim was denied very quickly from Paypal with no recourse.

Many many hours on phone and email with Paypal..had to get new credit card and bank acct. Lots of sleepless nights and worry.

Cindy of Alvin, TX October 4, 2008

Cindy of Alvin TX (10/04/08)
I am so upset with Pay Pal. I recently was selling an item and was going to ask the buyer (from another state) to deposit in my checking account through a bank near him. Someone said, Pay Pal will have your money to you same day. I signed up for pay pal and have not seen my money since. They are making it nearly impossible to obtain my money.

Phone calls seem to go in circles. After 25 minutes on this latest call, the customer service rep told me exactly what I told her in the first one minute on the call. Everything they tell me is you have to wait anther 3-5 business days. Well, that's a week. So far we are up to 3 weeks before it MIGHT be resolved and I MIGHT have my money. I would like interest on my money they are using during this time. When I asked who can I contact to complain, they said go to their contact us link. Well, that's a bunch of garbage too. It allows you to ask a question. Nothing more.

Economical consequences???? I'm now overdrawn in my checking account because Pay Pal funds did not hit. Pay Pal should have to re-imburse me.

R.e. of Long Beach, CA October 1, 2008

R.e. of Long Beach CA (10/01/08)
I set up 2 different Payment Processors (Propay and Moneybookers) but many buyers don't like using anything but Paypal. I kept on refunding all the sales payments I made through Ebay that wound up paying through Paypal, and only wound up with angry buyers when I sent an invoice from Propay or Moneybookers, ending up with negative feedback. But the worst is, now I cannot even request a refund to the buyer from my Paypal account. Yet Paypal continues to accept payments from my buyers, then holds on to the funds. Obviously, no buyer is going to pay me twice through 2 different payment processors. It's just a nightmare!

In a 3 days I had sold close to $10,000. worth of merchandise a net profit for 3 days of over $4,000. I completely lost that income and my reputation was destroyed on Ebay.

Sharon of Stanhope, NJ September 30, 2008

Sharon of Stanhope NJ (09/30/08)
They make it impossible for you to withdraw money from your paypal account. They keep you on hold forever if you call (20 minutes or more); they can't help you when you do call. Their live chat is useless online; I have been trying for 2 weeks to link my credit card and verify my bank account with paypal in order to withdraw money above my limit of $500.00. They can give me $500 in the form of a check, but they charge a handling fee. Not fair....

I have had to wait over two weeks to get some of my money. They are requiring too much red tape for people to verify their identity and take too long to correspond back to their clients. They need more phone help and better live chat online assistance.

Larry of Holbrook, AZ September 24, 2008

Larry of Holbrook AZ (09/24/08)
I manage a Vacation Rental Property. Since I have had a PayPal merchant account for 8 years I decided to use PayPal to receive electronic payments for deposits and advance payments of rent. An individual made a $1000.00 payment via PayPal for the deposit and advance payment of rent. PayPal received the funds the next day from his checking account. PayPal then placed a hold on the funds, stating they were investigating the transaction for possible fraud. After 10 days I started asking when they were going to release the funds. After 2 weeks, they reversed the payment without giving any reason. The renter swears he did not do or say anything to cause them to reverse the payment.

PayPal just decided to screw me over because I questioned their actions. I have since come to an arrangement with the renter and he paid me in cash once the funds were back in his account. PayPal had no reason to freeze my account, nor any reason to reverse the payment other than the fact that I questioned their actions. I have requested that my PayPal account be canceled and I will never again trust or use PayPal.

Lost use of my PayPal account for over 2 weeks and I must find a real financial institution to process credit cards and electronic payments as I can no longer trust PayPal to perform this critical function do to their proven unreliability.

Alisa of Lake Charles, LA September 7, 2008

Alisa of Lake Charles LA (09/07/08)
i sent a item to a [man] mexico. he claimed that he did not get the item, so i did a tracking number. my paypal account is frozen, and if i sell anything on ebay, they will take that money to deal with the negative balance in my account. they will not restore the account until the [man] receives the item. i cannot ship any item out cause paypal have made my account minus. i have talked to them a bunch of times, but have gotten nothing.

Christy of Corinth, TX August 28, 2008

Christy of Corinth TX (08/28/08)
I have had the worst experience with using pay pal lately. They hold your money, because they have new policies that state they have that right to hold your money that your customers pay you. What I think is really unfair is how they take their fees out of the money you are paid by the customer and then they hold the funds so you can not with draw or have any access. Ebay takes their fees out of the money as well.

You get very rude treatment when calling pay pal customer service to ask questions about this or you get hung up on. They keep changing their policies on me everytime I call or email them to find out when are they going to release my money. First they told me to pay through pay pal to ship item so I did and they got the confirmation that my customer did receive the item.

Next when I call asking why isn't my money released yet they say because I haven't received positive feedback yet. This is very very unfair for the sellers and also let's not forget ebay is what they are today because of people selling on there and paying all of the ebay and paypal fees. If pay pal holds peoples money they should not be aloud to take their fees out until releasing the funds, because what do they care since they already got paid. NOT TO MENTION THE FACT THEY CHARGE $1.00 everytime you their shgipping through pay pal. There should be another law suit against them because they are not even following their new policies and they make it extremely hard to get in contact with their customer service. When you email them they just send an automated email about their policies.

I have spent alot of time on this,I am very stressed and I am out more on shipping charges then what I charged my customers.

Christy of Corinth, TX August 27, 2008

Christy of Corinth TX (08/27/08)
I have been selling and buying on Ebay for over 1 yr and I use to enjoy doing this plus it helps me so I can stay home with my autistic daughter. I recently sold 3 items on ebay and when I went to withdraw the money from my pay pal account I was declined so I came home logged onto paypal and they decided to hold $115.00 of my money.

I called them several times trying to find out why is my money being held I was hung up on then another customer service rep I could barely understand stated that I had 2 charge backs from 2 customers over 1 month ago and that they have new policies that state when you have a charge back they will hold your money for 21 days or until a positive feedback is left or until you provide proof of delivery of merchandise.

I was furious because they never warned me and I have to pay out of my own pocket to ship items because they are holding my money the customers paid. I went on ebay and paid for shipping through pay pal and sent them the confirmation numbers and tracking info. The merchandise has been delivered to my customers and PAY PAL still comes up with other reasons why they are going to hold my money.

One customer service rep I spoke with flat out told me I have no clue why they are still holding your money. I have seller protection through pay pal so if someone does a charge back on my account it is covered under pay pal seller protection.

Tom of Sacramento, CA August 22, 2008

Tom of Sacramento CA (08/22/08)
I am very dissapointed with my paypal service. I dont know what gives them the right to withold my recieved payments and expect me to ship the items! I generally will only ship items once payment has been recieved. I was never told prior to receiving payment that my payments were going to be held. If I would have known this I would have certainly used a more reliable form of payment other than Paypal. I Shipped the items anyway and even after they have been recieved my payments are still being held. I appreciate they are trying to protect buyers interests.... however as a seller I have given up my goods and not recieved payment! I am pretty sure ebay is breaking some form of rule or law and I intend to follow up with this and will be posting my experience on various boards. This is rediculous!

Shalini of Aldie, VA August 22, 2008

Shalini of Aldie VA (08/22/08)
They are charging excees postage from me and all other sellers who are completely unware for printing shipping labels on their website once a sale has been made on ebay. They claim to give you discounted shipping while charging us not only extra but also the discount part has been pocketed by them. They blame usps but its not usps. Leave alone the discount, they charge at least 70 cents for the smallest package of once once extra. It multiples with the size of the package. I have personally verified this at the usps website and usps store. The charges for the same weight on usps website and store is same and is lower than what paypal charges us.

I sample checked on 8 items and all cant go wrong had it not been paypal scam. Their corporate veil needs to be lifted. I do want a lawyer to contact me

Millions of sellers on ebay are being cheated by the minute. Millions of sales takes place on ebay and each seller is being cheated on it. Millions/Billions of dollars are being by the minute pocketed by them.

Billie of Midway, TX August 21, 2008

Billie of Midway TX (08/21/08)
I wish to file a complaint against PAYPAL, INC whose headquarters are in California. I sold two motorcycles via EBAY online and the buyer paid for them through PAYPAL. The buyer came to my home, took delivery of the motorcycles without riding them or even looking them over, took the titles and a paper where I said the motorcycles were sold AS IS, NO WARRANTY and once at home, 1000 miles away in another state, he began trying to get his money back. He tried for a refund from PAYPAL, who refused him. Then he tried for a refund through Ebay's Vehicle Buyer's Protection Plan, which refused him. Then he did a charge back on his credit card, which he received despite my protests and evidence there was nothing wrong with the motorcycles and that he had possession of them.

Now he has filed a charge back on his credit card for the Second motorcycle sold to him by us, and meanwhile PAYPAL is doing nothing to solve this dispute, PAYPAL is not standing up for me the Seller, and PAYPAL has let this person steal my motorcycle by allowing him to get a charge back via his credit card, and PAYPAL will probably now allow him to get a second charge back for the second motorcycle.

Now PAYPAL has a negative balance in my account online and wants me to fund it, effectively putting in the money in the account the buyer paid for the motorcycles, which he has for free. This means I would be out my motorcycles and my money for the motorcycles. PAYPAL would have their money, the buyer would have my motorcycles, and I would have had my property stolen. Please look into my case with PAYPAL and force them to protect me, as per their service agreements, against a buyer who is trying to steal from me. Something has to be done about PAYPAL and their buyers who try to steal from sellers on Ebay. Thank you.

Lacy of Wentzville, MO July 3, 2008

Lacy of Wentzville MO (07/03/08)
A customer purchased an item from me and paid me by paypal. She lived in Canada, and ask that I send it to a P.O. box No. in Michigan. She did not want to pay the extra money shipped to her Canadian address. She did not purchase insurance either. I sent her package on 4/5/08. Around a month later I received a letter from the Detroit Bulk Mail Center in Allen Park, Michigan telling me they had found an empty wrapper (it was actually a box) with my address on it. I filled out a long form and sent it to St. Paul, Minnesotas Mail Recovery Center. They said they would try to find out what happened to what was in the package.

I contacted the buyer of my package and let her know what was going on. I even sent her a copy of the letter the post office had sent me along with a copy of the shipping receipt and delivery comfirmation receipt. I told her that it could take a while for the post office to find out something. She didn't answer for two days. When she did answer, she wanted me to send her money back. I told her that's not the way it works, that we have to let the post office handle the matter first. She contacted Paypal, and paypal sent me a complaint form with her complaint on it.

They allowed me to tell my side of what happened. They sent me another e-mail and told me to click on their complaint department. They gave me a file number to use when I went to the complaint department. They gave me ten days to work this out. But when I went to communicate with them, I could not. The only thing they allowed me to do to work it out was to give them permission to send her the money back she had sent through them. I would not allow them to do this because I was waiting on a answer from the Post Office. I have sent them numerous e-mails telling them she did not purchase insurance to cover the package.

So Paypal gave her the money back anyway and charged my account which put it in the negative. Now they have turned it over to a collection agency wanting that money which I did not authorize them to send. This is going to run my excellant credit. Can you help and what should I do. The amount is only $41.75 but thats not what bothers me. Its what they did and the way they did it. I don't feel they did me right.

They are ruining my credit.

Gilda of Winton, NC July 1, 2008

Gilda of Winton NC (07/01/08)
An email address was submitted informing me that a person had made a paypay purchase for an ebay product and pay pal wanted to know if I had authorized it and if not to click onto my paypal account to dispute it and that charged amount would be returned. Everytime I try to log on to the paypal account and dispute the purchase, I can not get through I keep getting an erro message.

Tana of Rancho Cordova, CA June 25, 2008

Tana of Rancho Cordova CA (06/25/08)
I have also been noticing the discrepancy in total $ received. However, I go by the total amount shown as received on the email PayPal sends me (this has always been the same amount shown on my account page as well). The discrepancy is near the top of the page where I'm paying for postage.

If the email from PayPal does not show that insurance was paid for, then I do not pay for insurance. This discrepancy shows for Priority Mail, but (as of 6/24/08) not for Media Mail or Parcel Post.

Also on 6/24/08, I called PayPal and asked about this problem; they said it was a known issue and would make sure that my account gets top priority (yeah, right). So pay attention to the emails you receive from PayPal!!! If your customers aren't actually PAYING for insurance, there's no reason you should be buying it for them (unless that's your usual practice, of course).

It's a major annoyance!

Merial of Grand Prairie, TX June 18, 2008

Merial of Grand Prairie TX (06/18/08)
I sold an item on ebay, used software with license key. After 42 days the customer emailed me to let me know that she can not register it and I told her that the software is used and she can install it and I did not have a returned policy. So she filed a claim with paypal and paypal had her to returned the item and they are going to debit my account.

My complaint is that I didn't do anything wrong and the customer was able to install my program on her computer and/or copy my disk and return my items. Paypay did not get in touch with me regarding this resolution.

Dena of San Diego, CA June 18, 2008

Dena of San Diego CA (06/18/08)
Discrepancies in total $ received. One screen show shows extra $ was received from the buyer for shipping insurance. Another screen shows a different total $ actually paid by the buyer.

A loss of $2 per shipment.....60 listing per week.....over a $100 per month. I cannot possibly be the only one this is happening to.

Dina of Santa Ana, CA June 17, 2008

Dina of Santa Ana CA (06/17/08)
I sold a Coach bag and shipped it using Priority Mail international flat rate envelope to Malaysia. I have the receipt showing the post office received it on April the 25th at 5 p.m. He never received it. I went to the post office and they told me there was a huge transportation riot in Malaysia, maybe that was the problem. Paypal decided to reverse the payment. Took all the amount from my account including the fees they charged and did it in a way that I can't even recover the Ebay fees because it took them exactly 45 days to decide. I am supposed to have expanded seller protection where is it?

I paid for the bag, shipping, Ebays Fees, Paypal fees twice, all a loss out of my pocket with nothing back other than a huge disappointed on the system.

Crystal of Sandston, VA June 9, 2008

Crystal of Sandston VA (06/09/08)
I sold an item on Ebay.com. Auction terms clearly stated as is and final sale. As per ebay's tos, bidding implies compliance by the buyer. Buyer decided he wanted to return the item after receipt; I declined. Buyer instigated complaint with Paypal, who didn't do any research whatsoever and decided to debit my account and give my money to the buyer ($75).

Paypal's email states that this has left my paypal account $75 in the negative and they intend to debit my personal checking account to retrieve the funds. I wrote them and expressly stated that they are NOT authorized to do so. Their email stated that if they could not retrieve the funds, they will send me to collections and damage my credit.

$90+ loss (including funds taken out of account and given to buyer, cost of shipping and all fees associated, plus loss of functional item).

Shawn of Mableton, GA May 28, 2008

Shawn of Mableton GA (05/28/08)
On Ebay I paid $425 for an item titled 16gb iPhone. I received an item in the mail from the seller which was not an iPhone. The item was not an item that Apple iPhone has ever made. The item actually said HiPhone on the back. I sent it back to the seller and filed a claim with Paypal.com (the way to pay for an ebay item). Paypal has decided not to refund my money even though I provided written testimony and I also have pictures to prove it was not an iPhone. Now I'm stuck without an iPhone and less $425.

I have lost my $425 and the shipping costs to send it back with signature confirmation. I never received the as advertised 16gb iPhone.

Greg of Concord, NH March 15, 2008

Greg of Concord NH (03/15/08)
I sold a computer motherboard on an Ebay auction where I stated that the item was not eligible for return due to the sensitive nature of such electronics. The buyer complained that the item was defective and without asking to arrange for a refund or return, he filed a complaint with Paypal. The email address used on the payment transaction was not my primary email address so when Paypal attempted to contact me via email, I did not respond within the 10 days they require. Paypal refunded the purchase price with shipping to the buyer without ever having communication with me. I responded on the 12th day but it was too late. I have appealed this case twice yet Paypal has still not rectified this. The buyer has not responded to my emails requesting payment or return of my item. Now I am out the item and my money and Paypal is not helping at all. Paypal needs to review it's policies when an honest seller (99% positive feedback) gets the short end of the stick because of an unscrupulous buyer.

$75.90 which is the item price with shipping that was refunded to the buyer.

Angela of Portage, MI March 2, 2008

Angela of Portage MI (03/02/08)
I was limited by Paypal for no reason on my account which is ruining my online sales on ebay and on my drop-shipping site that I use to raise funds for my nonprofit organization. I have told Paypal this, and they keep telling me to login and go to the sentence on the page where it says how to unlimit the account. I click on it, and it just says the account cannot be unlimited. All information they needed from that, I faxed to them and has been received, but they still won't unlimit my account. They keep saying I can only have 2 accounts with them which is all I have--a personal account and a business account.

However, they keep making my personal account my business account, and then they keep changing my information on it and limiting my account. Three years ago it was finally fixed; then a month later they limited it again. I have been trying to get my account unlimited for 3 years now. I am losing many sales by them doing this to me.

Toy of San Bernardino, CA February 22, 2008

Toy of San Bernardino CA (02/22/08)
 My Paypal debit card expired in August 2007. Paypal never notified me of its expiration. Paypal made no attempt to send me a new card. I finally had to request a new card in September. I AM RECEIVING ALL MY MAIL. September the card did not arrive so I requested a second card. In October the card did not arrive so I requested a third card, etc. In December I changed my address and confirmed my new address. I added a new credit card, verified/confirmed everything, and I requested a fifth card. In January the card did not arrive so I requested a sixth card. On February 22 the card still did not arrive, so I called and asked to speak to a manager. I was told I never applied for a card, and the woman operator hung-up on me. Called back and spoke to Melvin in Midwest call center who transferred me to manager Joey Dublin in Ireland. Manager Joey said the card was sent to my old address again instead of my new address. I completely removed all my old information from the Paypal system and requested my seventh card. I AM RECEIVING ALL MY MAIL; NOTHING IS WRONG WITH MY MAIL

This has absolutely hindered my business as I am unable to access my money immediately or make reservations. Cost me hundreds of dollars in time and money.

Johnathan of Avondale, AZ February 6, 2008

Johnathan of Avondale AZ (02/06/08)
Last year I sold numerous used cellular phones on ebay that were once my personal items. Paypal came to me and told me that my activity was suspicious and they froze my account asking for copies of my social security card, identification, contact information for my supplier, and receipts for my items. I explained to them that the items were old and I no longer had receipts and that they were personal items. I emailed them my ID. I was told that this should not be a problem. Then they suspended my account indefinitely and froze my funds. Unfortunately those funds were to pay for the shipping of the items. 6months later I was sent an email stating that my money was available for withdrawal and my acct was eligible for closure. I withdrew my funds and requested an account closure BUT my money market acct deposited an interest payment of .20 cents but I can't withdraw any less than a dollar. I called them today and told them that I no longer wanted any affiliation with their company and I wanted my account closed. They refused. I told them that my social security number is attached to that account and I no longer wish for that account to be in existence. They refused again. I do not believe that paypal has the right to FORCE me to have an account with them wether limited or not. Can someone please help me?

I was forced to pay for shipping out of my personal money. Furthermore, I spent a lot of time arguing with customers that were sent emails stating that I was not allowed to receive money. NOT TO MENTION that I was forced to pay the ebay fees for items that I was not able to collect funds on.

Amy of Cocoa Beach, FL February 5, 2008

Amy of Cocoa Beach FL (02/05/08)
My sister had an internet business and she transferred money from her paypal account to my paypal account to hold it temporarily until her dropshipper notified her to pay because they didn't pick up the money within the 5 day time line. She transferred the money back to herself once the dropshipper emailed her. Then they flagged our account for suspicious activity. I'm clueless - now they charged back the $759.00 back to me and told me to pay it out of my checking account. I had nothing to do with it, it was my sister, she transferred that money without my knowledge. I refuse to pay them. I had a PayPal account so a man from Canada could pay me for cleaning services I do at his timeshare. All this was just a temporary money transfer between my sister and I and somehow they cannot figure this out!

They are trying to take this money out of my checking account. I don't owe them any money and I don't know what they are talking about. I want to sue them

Robert of Spartanburg, SC January 7, 2008

Robert of Spartanburg SC (01/07/08)
Paypal flagged a payment transaction between me and a client and hassled my client by asking him to verify his home address, alledging the trnasaction was possibly unauthorized This has created an embarassing situation for me professionally. My client simply wanted to pay his bill using paypal...and what he got was an invasion of privacy and a questioning from paypal about his personal affairs.

I chose paypal because it supposedly protected the privacy of my client as well as being convenient. When i called paypal dispute resolution I got a cheeky response with corporate double speak and excuse making, tellimg me it is for security purposes. By the way, this was a simple $600 transaction for services with no goods or shipping involved. Paypal has just lost a FEE PAYING customer. And their attitude was, who cares.

James of Louisburg, NC January 4, 2008

James of Louisburg NC (01/04/08)
I placed two orders for $850 each (Order 2216 for $850 placed on Nov 21, 2007 and Order 2232 on Nov 30, 2007 for $850) for gasoline gift cards through website www.ediscountgascards.com and paid through PayPal by EFT from my personal checking account. The above business address is, as per website, but is actually a UPS store box. Business phone number is as per website, is apparently registered to Laverne ____. Seller discontinued contact with me (Buyer) shortly after second order was placed, and has not returned phone calls or emails. Dispute was filed with PayPal, concluding in a claim with Seller but was notified by PayPal that none of the funds could be recovered from the Seller's account. I have been notified by PayPal that contact info for this company cannot be provided without a subpoena or warrant.

For now it appears I have been defrauded of $1700 from this seller.

Bud of Briarcliff, TX December 30, 2007

Bud of Briarcliff TX (12/30/07)
Paypal seems to be engaged in a policy of passing liability/costs for unauthorized use of accounts onto seller-victims. I recently sold an item on Paypal and was later told that the buyers payment may have been an unauthorized use of the account. The holder of the account told his credit card company (from which the funds were deducted) that the withdrawal was unauthorized. The CC company issued a charge-back to Paypal pending investigation of the withdrawal. Paypal requested from me information regarding the transaction. When questioned, Paypal said that if the CC company decides the account usage was unauthorized and the buyer is refunded his funds, then Paypal will expect me to refund the money paid me, although my goods were shipped and would be unrecoverable. Paypal policy claims to allow charge-backs for any reason, which would allow them to shift the cost of recovery from (a) the person who surrendered his account information to (b) the seller to whom Paypal transferred the funds. The CC company's investigation is on-going, but Paypal wants the funds returned.

Lost $1300.00 in goods and $117.00 in shipping fees.

Bruno of Corona, NY May 6, 2007

Bruno of Corona NY (05/06/07)

I sold an item on Ebay. The buyer paid me and Paypal put limitations in my account and hold the money for 180 days. I tried to lift the limitation providing everything they needed to lift the limitation but nothing worked. They said my account was a high risk and they had to keep my money there for 180 days.

The consequences about this whole thing is that I had to paid for that item out of my pocket I didn’t see a dime from that money and I got both my Ebay and Paypal account suspended.

Zhen of Brooklyn, NY February 27, 2007

Zhen of Brooklyn NY (02/27/07)

I am a Ebay seller and a Paypal user. Paypal put a limitation on my account twice in 2 weeks. They lifted the first limitation off last Wednesday after i have provided them with my bank account number, credit card number, and tracking information for the items that i have sold on Ebay. Today, Payapal place a limitation on my account again. The limitation froze all of my money in my account and asks me to provide more private information such as Social Security number, proof of purchase of the items that i have sold, and tracking information. I was told I need to provide all the information they want or the they will not lift the limitation. Now, I cannot withdraw my money, I cannot do business on Ebay, and I have shipped the products to all buyers.

Edwin of Norwalk, CT December 21, 2006

Edwin of Norwalk CT (12/21/06)

I was selling Playstation 3's and Nintendo Wii's online on Ebay, who by the way owns Paypal. Please keep in mind, I have a good feedback rating in Paypal after 5 years with them and I have a 100% rating for 6 or 7 years with EBAY with over 120 feedbacks. There is no reason to suspect whatsoever that I would suddenly start scamming people.

On my third item I sold on Ebay I did a transfer of funds to my checking account. To my surprise, Paypal reversed my funds back to my Paypal account without prior notice or warning. Paypal restricted my account from transferring funds and even reversed my last transaction because the items I sold were “high risk“. They asked me to provide all sorts of information after 5 p.m. on a Friday including tracking numbers, and requested I fax a copy of my license. Once I did all that, they had my status in review.

I called to find out what was going on and they again asked for the tracking number. This I found to be a ridiculous request because the tracking number they were requesting was in their very own transaction data they provide you when your checking the details of the transaction. After giving them the tracking number numerous times, they said they were going to hold my money for 180 days!

I call them and they said once they can verify that the customer has received the items, they will release the money. On day 6, the FedEx tracking showed the customer received the item. The customer even e-mailed me to tell me they got the item. Now Paypal's excuse was that the item was not signed for, even though the customer signature was on file. The customer service person said they would call the customer to verify they received the item. Apparently Fed Ex tracking is not good enough for them.

They have ruined my Christmas as they have now locked up $1300.00 of my Christmas money in their account. They are delaying my bill payments and are causing interest charges on my part all while they float my money. I have spent countless hours trying to get them to release MY money.

John of Santee, CA November 29, 2006

John of Santee CA (11/29/06)

We have a vehicle repair facility and use Paypal to process our credit card payments. Paypal froze our account and has kept what money we have while a "dispute is being reviewed". Paypal says this is due to a customer filing a fraudulent claim with the credit card company AND giving a fraudulent check in order to avoid a lien against the vehicle.

We have ALL the documentation and $6000.00 is involved. The customer never requested his money back from us. In addition, the customer is driving around in his perfectly fixed vehicle.

When we contacted Paypal, we were assured that Paypal would not attempt to take ANY money from our bank account until this was resolved AND it was proven we were at fault, which would take a minimum of 30 days. We are not able to delete our personal or business checking account information in Paypal in order to prevent them from taking our money "while our charge-backs are in review". We haven’t been able to accept credit cards since 11/17 and have fees on top of the balance. We need help. We’re a small family owned business and this could literally ruin us.

It’s bad enough that we have had to file a small claims suit against our customer for the bad check, but we also have to figure out how to get our $6000.00 from Paypal. Paypal has even blocked us from getting our own money that was in the account prior to this problem!

Joann of Rancho Cucamonga, CA August 30, 2006

Joann of Rancho Cucamonga CA (08/30/06)
I sold a pocket pc on ebay and sent it insured getting a signed receipt. I also got a letter from the United States Post Office claiming that they delivered it and it was signed for. This guy says he couldn't track it online so paypal gave him the item and his money back. I am out both pocket pc and $77.50. They will not protect there sellers. I want my product back or a refund of $77.50. I did appeal the case but they won't even respond to my emails. I get an auto response saying they recieved the email and will get back to me but they haven't.

Loss of $77.50 hurts alot especially when I have bills to pay.

Barry of Savannah GA (2/13/04):
Paypal decided to close my account and FREEZE my cash because a buyer had a questionable login name and inferred that I was selling adult material. Prior to this excuse they said I used their logo on my website (DO NOT HAVE A WEBSITE) then they said I changed my credit card too many times (DON'T USE CREDIT CARD - USE CHECKING ACCOUNT) then they finally decided to slander me with this complaint. I have contacted Paypal by telephone and by email but have yet to get a consistent response.

Further they will only tell you they will SEND YOU A CHECK in a "few" days but will bot quantify a "few" nor will they tell you the bank name that the check will be issued from. The funds are frozen and they ALONE are reaping the interest off of the money. I caution you about complaining to the BBB of Silicon Valley (bbbsilicon.org). Despite that Paypal has over 2,800 consumer complaints, the BBB of Silicon VAlley keeps them in GOOD STANDING.

Fred of Orlando (1/26/04):
I sold merchandise to an individual and she paid me through her paypal account to mine for the goods. When I went to withdraw a money transfer this individual sent me for some merchandise I could not do it. When I went to my paypal account, it asked me to confirm my identity by giving them my Social Security number. They said there was a transaction that was done on the 25th that made them suspicious so they need more info.

I called them on the phone after looking at my account (which had no transaction for that date and challenged them on it. They told me they froze the account because a person I was selling to had problems with some of their buyers so they decided to hold it aganst me because I sold them merchandise. I cannot send the merchandise to another buyer because his money is on hold. The money the person who is having the problems is long gone.

Lee of Lee NH (1/22/04):
Over a year ago I sold a used Leica M6 camera lens on eBbay. The buyer wrote and said that the item was "not as described" - he alleged a problem with the lens. Ebay checked into his complaint and closed the case having taken no action. A month and a half ago I received an e-mail from PayPal informing me that they had placed a "chargeback" against my account. Evidently his credit card company was requesting a return of funds because the item was "not as described".

I sent all pertinent information to PayPal, and asked many, many questions - to which I received no response except irrelevant form letters. I then received an e-mail from PayPal saying that they had my lens in their posession and they required a check from me for the amount of the refund due ($540.00). I have no assurances that the lens is in the shape it was in when I sent it to the buyer - over a year ago. I have no information as to how and why someone decided that the item was "not as described". I have no information about his credit card issuer's "chargeback" policy - which is usually about 30 days for most banks. A year and a half seems excessive.

I must tell you that the lens truly had been used by 2 professional photographers and they thought it to be in pristine condition. And I included many photographs of it when selling it. I suspect that the buyer did not pay attention to the descrption, and bought a "rangefinder" lens for a non rangefinder camera.

Damage Resulting: PayPal has charged me 544.00 - and has requested that I send them a check for that amount, at which time they will return the lens to me. The lens could be in pieces as far as I know.

Michael of Lawton OK (1/3/04):
I sold a computer on Ebay, about 2 months ago. The person was from California and said she/he had a nephew that lived in Illinois, and it was his birthday in 2 days. She/he asked if he/she could use PayPal to pay for the transaction, and if I minded sending the computer to the nephew in Illinois. I completed the transaction with him/her, and once I confirm that the package was delivered I left positive feedback on ebay for him/her.

A day after I left positive feedback I recieved a notification from paypal that A funds reversal has been initiated due to use of fradulant funds. I sent PayPal a copy of all emails, on the transaction, and they refused to give me any information, not even an IP address of the person that bought the computer off me, so I had no legal action that I could take on the person that took my money and my computer.

So far I have refused to pay PayPal because they have provided me with no proof that this transaction was not legitimate. I notified Ebay on the problem, and they did nothing to resolve the issue, I received no refund on the auction fees, and I even lost my registration because they claimed that I was the fraud.

Two months has passed and I just received an Email from a person in Pennsylvania, who has just had the same exact thing happen to him with the same ebay username! Now I notified ebay and paypal of the issue, and they did nothing to the person responsible, they didn't even suspend their account! And now someone else has fallen victum to the same person. I feel this is gross negligence on the part of Ebay and Paypal to alow this to happen twice by the same person with a 2 month time difference.

Toni of Frankfort IN (12/23/03):
Sold $14,000 worth of planters on Ebay. Buyer put $1,400 down through PayPal then came to Indiana to pick them up. Three months later the buyer stopped payment on his credit card and PayPal charged my account the $1,400. The buyer later returned the money to PayPal, but PayPal sat on the money and sent me to collections!

Now my credit report has a collections on it. To this day they have not credited my account but say the buyer has sent the money, so I do not know what else to do.

Brian of Urbanna VA (11/26/03):
Last week, Paypal sent a notice stating that my company was in violation of their acceptable usage policy for selling adult novelties, and as a result, my account would be restricted if it was not in compliance of their policies by 11/24/03, and would no longer be able to accept future payments. Upon receiving this notice, I altered approximately 600 pages of my website, in order to comply with their request, and adhere to their �user agreement�.

As of last week, well before their deadline, my website was 100% compliant with their policy and all of the stringent regulations they have set forth, per their email request. However, on November 26, 2003, I was shocked to learn that my account had been limited without any justification or warning, despite the fact that I had complied with their previous request. In addition, the funds from transactions prior to the date of their notice that my account was in violation were also locked. There was no fraud, or even the question of any activities such as that, or any other tangible reason for that account to be limited, other than non-compliance, which had already been taken care of days before the account was �limited�. Although my account is still �technically� open (their legal loophole I suppose).

I am not able to withdraw, or access any of the funds from my paypal account, nor am I able to spend those funds anywhere else. As of writing this, I still have $118.15 in my account, which paypal has adamantly refused to refund to me, giving no rhyme or reason. I understand that this is a relatively small of money, however that does not make it right. Regardless of whether or not my account, or any other account adheres to their policies, they have no legal claim to hold those funds without explanation or cause.

Delina of Moshannon PA (7/7/03):
I have been selling on ebay for about 2 years. I advertise Paypal as the online payment I prefer. On July 1, 2003 they reversed a credit card payment of 810.00 to a buyer that bought a mink coat on April 27, 2003 from me on eBay. Paypal just reversed the payment withput even contacting me first. I was shocked. As a seller I thought I was protected.

She said the item wasn't as described and wanted her money back. It was as described and I had the original sales receipt for the mink coat. Clearly written on the receipt is MINK and the original selling price. I also had a signature confirmation receipt from the post office. It was over 30 days since she paid me for it through paypal. She did not purchase the buyers protection insurance either. The previous money transaction on June 30, 2003 to my bank was cancelled and reversed back to paypal. My paypal account now is -810.00 as they reversed the payment for the mink, back to the buyer, just because she said wanted her money back because the item wasn't as described.

Now all the payments made to me by buyers of my auctions goes toward the -810.00. I don't receive any of the money that is being sent to me from the buyers, but I still have an obligation to my buyers to send the items they paid for. I had 5 days to contact paypal with the tracking numbers, which I did so, but nowhere was there a place to add any other information. The email I received from paypal said that they would make a decision within 5 days. I called paypal and asked about the sellers protection policy and about it being over 30 days. I also informed them that the buyer did not purchase buyers protection. I was informed that since the buyer paid by credit card, that none of the above applied.

The purchase showed that her payment was instant. Nowhere did it state that she paid by credit card. The seller is not protected when paid with a credit card, I was told by paypal. Then why doesn't paypal state that in their agreement up front? Paypal did tell me to fax them a copy of the original sales receipt that I had kept that was on the mink and a copy of the signature confirmation. I did that on July 1, 2003. I have still not heard anything from paypal and my account is still negative. I also informed paypal that I did refund to the buyer 13.00 in overpayment of shipping costs through paypal. Still no response on that either.

I am a very honest seller and try very hard to keep my good reputation. Paypal makes people believe that they can trust them. I want other sellers to know just what is in store for them if they use paypal.

"imarkit" of Woodland Hills CA (6/6/03):
Paypal which recently has been taken over by ebay.com, has simply allowed a large amount of my customers to commit credit card fraud, and did nothing about it. I started hearing rumors on the ebay bulletin that there is a loophole with paypal. Any customer who pays by credit card for any product may do a reversal after receiving the product and keep both the money and the product simply BY STATING THAT THE PRODUCT WAS NOT AS PROMISED. That is it.

If the customer put non delivery, we can defend ourselves. The problem here is the money is tied up for a couple of weeks! Even though we get the money back within a month or so, the customer then does a chargeback with their credit card company. HERES THE BAD PART. THEY ALWAYS GET THEIR MONEY BACK!

Paypal tries to send an email that says anything over $250 you must have a signature stating that the customer received the package for us to support you. If you look at my paypal disputes list, you will see some examples of me just getting ripped off! The worse part is paypal froze my account due to people wanting chargebacks because i couldnt get to the money that was frozen. just yesterday i sold some items and the money was negated from my account instead of being added to the account.

Susan of Bakersfield CA (4/7/03):
In January 2003, Paypal deducted $900.00 from my account for a fraudulent chargeback complaint. Even though I provided proof of delivery with signature, Paypal said it would take up to 75 days for the chargeback investigation to be completed. 75 days and many phone calls later, the funds were finally returned to my account. A second chargeback for over $915.00 was also deducted from my Paypal account. This time, however, even though I provided proof of shipping with a signature, the chargeback was finalized, and I will never see the money from this sale again. Paypal is unable and unwilling to provide their customers with any level of personalized service. They also can do little or nothing over the phone, aside from telling you your case has been stacked with the rest of them and will be handled in the order received.

Amy of North Vernon IN (1/30/03):
Effective today Paypal froze my account; their term Limited Access -- meaning I can do nothing with the money. I sold two Vulcan Griddles (a three burner and a four burner). The buyers paid using Paypal. I requested that $1200.00 oof the $1434.00 be transferred to my bank account. After waiting two days for the EFT, they reversed the transaction and requested more verification before I can regain access. Due to this fact I have placed a hold on the shipments for Monday and have faxed Paypal the requested information. They say 3-5 business days to resolve the matter. However, my account already shows that they have verified the account and my social security number.

It has already hurt my reputation with my buyers due to the fact that I felt obligated to inform them that their shipment may be delayed and why. If the buyer backs out I am out the sale and the fees, plus my reputation will be worthless and the equipment, purchased specifically to resell will be nothing more than a storage problem.

Joe of Seattle writes (3/7/02):
PayPal froze my account $100 because I added a second credit card and started transferring money there. PayPal told me I needed to veriy the account. I did, and sent proper documentation. This took a week.

Three business days later they told me I need to change my password and "secret questions" before I can withdraw money or unfreez the account. I did that. 10 min later they send me another letter saying the only way to release the hold on my account is to verify the account (which they had already checked) and send the documentation (they had already sent me an e-mail verifying that they had received the fax and reviewing it)

This may not seem like a major problem but I need that money to ship the items paid for. Also the amount in the account has tripled from auction's ending. My total time locked out is estimated at 3 weeks minimum. They have caused me considerable headache and financial grief without reason other than they are having unrelated security problems.

Isaac of Walnut CA (3/7/02):
I have been using Paypal on my Ebay auctions for so long. I clearly indicated on my auction page that I prefer this form of payment and a lot of customers use Paypal to pay for their merchandise. All the while I thought it was safe and secure to use them.

Out of the blue, on February 27, 2002, at 8:00 A.M., I received an email from Paypal saying that I have added another Paypal email address and that this change was my primary PayPal email address on my account with them. Nobody else knows my password on that account and no one at home uses hotmail.com, so I could only think that this has to be an inside job from Paypal who did this. I started to email Paypal to inform them about it, but I could not access to this email address anymore.

It has been very hard to contact them. All the emails that I sent them got the same response, to log into my account, which I could not of course because my account name was not valid anymore. Distressed and frustrated not able to get any resolution to this mess, I emailed them about this fraudulent act and finally on March 1, 2002, I was able to get hold of one of their employee named Doug, and told him the problem.

I have suffered harrassment from angry clients who thought that I just decided not to accept Paypal as mode of payment when in fact it was in my site that I accept payments through Paypal. Although I emailed my clients on the temporary suspension of Paypal until the problem is solved, some customers did not even read my note; they simply made payments to Paypal. I advised them to make a reversal of their payments to my old email address and some are having problems doing that and they are as frustrated and annoyed with the poor Paypal customer service. They are asking for help on how to get through to PayPal other than by email; and there is no phone number to reach them.

Kelly of Oxnard, CA (2/15/02):
They have frozen my account that I rely on for business, and have complyed with everything that they asked me to do, and they still have done nothing! I have been out alot of money, buyers can't send me payments nor can I withdrawl money from my paypal account that has $646.00 in it that I really need to use!

Valerie of Jackson, TN (10/20/01):
I work for myself on the Internet. I have a simple ezine with over 1000 subscribers. I also join many marketing and affiliate programs. One such program I joined is called "Pay Direct Pal Depot." It is an affiliate program in which monies are paid to members' accounts upon joining.

Pay Direct Pal Depot program has many products for the one time 20 dollars one pays to join. The list is so long of what you receive that it would be silly for me to place it all here. However shortly after Pay Direct Pal Depot entered the net, Pay Pal froze their account. I was making 200 dollars a day almost from that great program and many others were making money and utilizing their good products. Now I have lost my good name and reputation due to the fact Pay Pal shut them down for no true legitimate reason.

How? Because I informed my subscribers of what a good program it was and they paid their good money of 20 dollars of which some never were able to utilize the products because pay pal shut them down so quickly. I feel paypal does these things in order to receive interest off companies and peoples monies. I am beginning to believe that Pay Pal is ONE BIG SCAM itself. Although I have never had my little account froze my them, I have lost more than once due to them shutting down legitimate business on the net.

Maya of Los Angeles (8/9/01):
I have sold several items on Ebay and to make payment faster and easier, I recently created an account with PayPal, which accepts credit card payments from buyers and deposits the money into my account after taking a fee of almost 3%. I signed up for PayPal because Paypal is often used on and heavily advertised on Ebay as a type of "secure" payment that protects both buyers and sellers.

Unfortunately, I have discovered that PayPal is not what it advertised itself to be. I recently sent a bag (on or about July 20, 2001) to the winning bidder of one of my ebay auctions in the amount of $114.00. I received payment notification from PayPal, indicating the amount paid and the name and address of the person to whom I was to ship the bag to. Shortly after receiving payment, I sent the bag with insurance at the United States Post Office.

After a couple of weeks, I received an email from PayPal notifying me that I may have received the funds "fraudulently" and that they were currently investigating. I was also notified that as a result of the investigation, the $114 less PayPal's fees would be put on hold. In other words, they took that amount out of my account for no legitimate reason and without proper information.

I emailed PayPal back and provided them with all the information I had including, but not limited to, the name and address where I sent the bag, pictures of the bag I had taken, and the date when I shipped the bag and the "tracking number" on my post office receipt. When I never received a response from PayPal, I called their 888 number and was told no information could be given to me because it was currently under investigation. I also inquired as to why PayPal was so quick to withdraw the money from my account and expressed my concerns that this was quite unfair for there was no proof anything was "fraudulent" and that I indeed had proof that I had sent the bag to the address given to me by Paypal. In addition to wrongfully taking my money out of my account, they stopped paying me interest on the amount withheld despite the fact there was no clear and convincing evidence anything wrong had happened.

I then received ONE email from PayPal indicating that the tracking number I had provided was NOT valid and requested that I contact the post office. I immediately contacted the post office and was told that the Post Office cannot electronically track packages and that instead, the post office requires the recipient of the package to sign for the package and that signed card would then be sent to me. I then conveyed this information to PayPal that the post office did not in fact have an electronic tracking system. However, rather than respond, I recently received an email from PayPal indicating that they have "determined tha the funds I received were given to me fraudulently" and the payment of $114.00 less PayPal's fee was permanently withdrawn from my account.

As a last resort measure, I contacted the buyer to find out her side of the story. I received an email back from her today and she indicated that she had been out of the country and when she returned, she found out about the mess PayPal had created. She told me that she DID receive the bag and there was NO FRAUD that she complained about. Rather, she said PayPal told her that she used the wrong email address to make payment and as a result, PayPal erroneously concluded that the transaction was FRAUDULENT.

Based on the information PayPal provided me, it insinuated that the buyer had made a complaint, but I have since found this is NOT the case and instead, PayPal acted on its own to take money out of my account and prevent the buyer who has received my item, from paying me the money I am owed.

Ken of Southport, Queensland, Australia (4/27/01):
As a consistent seller from Australia on Ebay, I have considerable problems when items are sold to US customers. For those of us without credit card handling facilities (which covers pretty well all private citizens), movement of funds from US to Australia is extremely expensive and confusing to most Americans.

Ebay of course does not concern itself with these problems, but I feel they can hardly claim to be a global service when they provide so little information about how people can pay for goods sold. In an effort to overcome this, and acting on pressure from some buyers in USA, I joined PayPal late last year (2000).

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