Do NOT let your big clients pay with PayPal

[mkeathley]

My advice, get your money out NOW. Paypal can and will randomly lock up your money for no good reason. You have NO recourse and NO rights.

They often lock my account for 120days or more. That is why I no longer sell on ebay. I will note I have 400+ feedback all 100% perfect never a single complaint. But every so often paypal sends me an email saying my funds are held for 120 days due to high risk behavior. What that is they cannot and will not say, and thats when ya finally get them on the phone.

Do whatever it takes but get your money out now.

 

[Peaceful]

I only use Paypal for making online purchases. Saves me from spreading my cc info all over the internet.

Something that always bugged me was the fact that when making a purchase, they can xfer money in a skinny minute from your bank acct. If you want to xfer from paypal back to your acct takes 4 business days and they say it's your bank that causes the delay. Give me a break

 

[Bryce W]

You are probably going to get stung with a massive fee in order to pull that out too. Paypal is terribly expensive fee-wise as a seller.

 

[daverichards]

My advice, get your money out NOW. Paypal can and will randomly lock up your money for no good reason. You have NO recourse and NO rights.

They often lock my account for 120days or more. That is why I no longer sell on ebay. I will note I have 400+ feedback all 100% perfect never a single complaint. But every so often paypal sends me an email saying my funds are held for 120 days due to high risk behavior. What that is they cannot and will not say, and thats when ya finally get them on the phone.

Do whatever it takes but get your money out now.

I got the same song and dance, I was selling computers, and ham radios, that was the high risk behavior.....

I closed my eBay account and PayPal account.

 

[maclaptech]

PayPal is always my "LAST" choice for any kind of payment option. I never cared for their idiotic policies and how they keep parts of your payment for up to 3 months. I also never liked how they almost always take the customers side on chargebacks no matter how wrong and unfair the customer can be. It is pure BS.

 

[NETWizz]

I talked to my CPA about all this.

She indicated that IF PayPal does a credit check it would be a SOFT inquiry NOT a Hard Inquiry (unless I specifically sign up for a PayPal Credit Card or Bill Me Later...) Their standard (un-requested) credit hit would be just for marketing reasons and have no impact on one's credit.

She also assured me that a 1099-K is no big deal because I already have the 1099-MISC and will NOT be double-taxed.

Suffice it to say, she helped me generate a Tax ID Number (Instead of my Social Security Number). We provided my TIN to PayPal, and I got every last Dollar Out (though it will take 2 to 3 days to appear in my Credit Union). They will provide a 1099-K to me at the end of the year, which is a moot point because it will take 20 seconds to enter into my taxes and have no impact on my tax liability unless I have $20,000 or more in jobs not on 1099-MISC forms (I don't).

 

[colonydata]

the only reason i have a Paypal account for my business is so i can have a debit card linked to my business account. My bank does not offer them by default on business checking accounts, and if you choose to get one, there is no theft/fraud protection on it.

 

[datnewnew]

PayPal runs your credit or at least uses your social you verify your name and probably age. This verification must reduce fraud, otherwise they wouldn't mess with it. Institutions that deal with money like PayPal does like to know the people they're dealing with. Asking for a social lets them do that.

PayPal has been around forever. I just kind of figure by now, if you use it, you know what you might have to put up with. I think you're allowed to use an Employer Identification Number instead of social if you have a business account.

 

[NETWizz]

PayPal runs your credit or at least uses your social you verify your name and probably age. This verification must reduce fraud, otherwise they wouldn't mess with it. Institutions that deal with money like PayPal does like to know the people they're dealing with. Asking for a social lets them do that.

PayPal has been around forever. I just kind of figure by now, if you use it, you know what you might have to put up with. I think you're allowed to use an Employer Identification Number instead of social if you have a business account.

I used a Tax ID Number instead... I don't trust them with my Social Security Number.

 

[coffee]

Very interesting thread. I never thought PP had a limit on your account. Of course I dont do that much business with them. I do have an account and I have had a few customers pay their bills by them. However, Mostly I use paypal for ebay purchases for parts. I keep only about 200 bucks total at a time in it. Then if PP does try and screw me I will not lose more than that.

I have a standard rule that I developed years ago that I do not waiver from concerning the internet. TRUST NO ONE. Those that violate this rule are open to bad things. The only time I did violate the rule was with the Evil Charge.com and that was a VERY painfull experience!

Best Regards,

coffee

 

[ElementalWindX]

I boycotted paypal. They do whatever they want with your money. I stay as far away from them as I can.

 

[lan101]

This has been a very interesting thread. Like most of you, I only use it for small amounts of money. I think the most anyone has ever paid me at 1 time through paypal was around $300.00 (US dollars). What I typically do is just leave it in my paypal account and then use that money to order parts etc. thats needed.

After reading all of this negative stuff about it, I don't believe I will allow anyone to ever pay more than just a couple hundred dollars maximum through paypal.