Do NOT let your big clients pay with PayPal

[NETWizz]

I am NOT too happy with PayPal right now!

Looks like I will be getting their Debit Card thing and just using it for EVERYTHING to get every cent back from them.

I called and asked why they need it; since, a 1099K is NOT required until I do $20,000 in sales. They said, they do NOT use the SSN to report income to the IRS until such income is earned as for them to provide a 1099K.

So, I asked WHY they want my SSN to lift my $500/month withdraw limit. They said, "It is for a simple credit check, sir..." Next question was, "Why do I want PayPal running my credit?" They said, "So, we can provide you Bill Me Later at checkout."

WTF? I said, "I would NEVER use Bill Me later." They agent responded, "It is the fastest, easiest way to pay."

She then said, "To lift the limit, provide your SSN."

 

[NYJimbo]

It's their bank, it's their rules. I did what they wanted and they lifted my limits.

 

[NETWizz]

It's their bank, it's their rules. I did what they wanted and they lifted my limits.

I am not going to pay taxes on it, so they can just hold the money and release it slowly overtime.

 

[lan101]

Wow, I didn't know they had a withdrawal limit per month.

 

[abyssinian]

It's unfortunate that you had to realize this the hard way.

I wonder if this is new (asking for SSN to lift the limit), I do not have such a limit and do not recall ever giving them my SSN. My account with them is pretty old though...as am I (sort of).

 

[abyssinian]

It's their bank, it's their rules. I did what they wanted and they lifted my limits.

By the way...Paypal is NOT a Bank. Which allows them a little more leeway to serve their own agenda, instead of their customers.

 

[Knightsman]

I gave them my SSN from the get go. Thankfully ive never had an issue.

 

[NYJimbo]

By the way...Paypal is NOT a Bank. Which allows them a little more leeway to serve their own agenda, instead of their customers.

I know they are not an actual bank, but they process money like one and have their own rules so if you want to "bank" with them you have to do what they want.

 

[compnet]

By the way...Paypal is NOT a Bank. Which allows them a little more leeway to serve their own agenda, instead of their customers.

I lol'd..

You're thinking of a credit union.. Banks can screw their customer's 6 ways to sunday to serve their own agenda.

 

[tek9]

I gave them my business's EIN when I signed up for my business account, and when I added my bank account info plus a credit card, they lifted my limits. They did want my SSN to lift the limits, but you could use a credit card + bank info, instead. (if I remember correctly)

 

[abyssinian]

No, I am not confusing Banks and Credit Unions (which are generally much more favorable to their customers who are essentially part owners).

My post was not intended to take away from NYJimbo's point, but to bring attention the fact that Paypal is simply a company under no Federal or State regulations (of the "Banking" variety anyway). If Paypal and any customer have a major disagreement, there is no authority to oversee the situation like there is with Banks and Credit Unions (State Banking Commissioner etc.). Any money sitting in a Paypal account is also not Federally insured.

 

[3ft]

I learned this fact the hard way years ago when, within a week, I sold a very high end bass guitar and a very high end saxophone on ebay, along with a World of Warcraft account (back when they sold for big bucks)...I had around 7K put on hold before I could withdraw. Needless to say my landlord didn't really understand NOR give a crap about PayPal's policy.

Seems like it was about 3 weeks before they concluded I'd sent them enough random paperwork, utility bills, and written statements. Many Ramen noodles were consumed.

 

[callthatgirl]

I've let a couple of large invoices go through paypal, mostly because I needed the cash faster than a check could be sent and processed. I do try to have checks sent for anything larger than $1000 due to the charges and I usually have no issue waiting.

I have no limits on paypal either, not sure what to say!

 

[NETWizz]

I've let a couple of large invoices go through paypal, mostly because I needed the cash faster than a check could be sent and processed. I do try to have checks sent for anything larger than $1000 due to the charges and I usually have no issue waiting.

I have no limits on paypal either, not sure what to say!

Obviously, you provided ALL your personal information and probably get a 1099K from them right?

 

[mraikes]

I'm not clear on the concern here. Is it that you don't want to pay tax on it?

Your customer should drop a 1099-misc on you anyway. Paypal's 1099k (IF you receive one) would be a non-issue.

"Regular" banks require all that info AND report transfers over 10k to the Feds.

 

[NETWizz]

I'm not clear on the concern here. Is it that you don't want to pay tax on it?

Your customer should drop a 1099-misc on you anyway. Paypal's 1099k (IF you receive one) would be a non-issue.

"Regular" banks require all that info AND report transfers over 10k to the Feds.

I got a 1099 MISC... yes!

 

['putertutor]

I absolutely never have and never will use PayPal. I can take credit cards through Square, checks, and cash still works too. I just don't see the need, and I have never once been asked about accepting PayPal either.

They just have too many restrictions and control over my money for me to be even close to comfortable.

 

[callthatgirl]

I don't know to be honest, I haven't done my taxes in awhile, the accountant did all the forms and stuff required.

I took in a sh!tload in paypal last year, so I'm sure it's on the books.

 

[16k_zx81]

Man that SUCKS. I feel your pain!

................

 

[SupportCover.com]

If it's any consolation to you, I have never found PayPal helpful as a seller when dealing with larger amounts. Smaller amounts when buying and selling (perhaps no more than £10 - £20 / $20 / $30) is just about ok if something goes wrong but the whole attitude of PayPal is that they can justify anything and don't care about their customers. If ever a company had a monopoly on an industry it's PayPal.

Doesn't help I know, sorry!