Complaint Review: Pay Pal

Unbelievable experience... We started an online store offering electronic merchandise at discounted prices and have had the worst experience ever using Pay Pal as a method of processing payments for orders.

Our webhost is GoDaddy which is affordable in comparison to what the cost could amount to using a web developer. GoDaddy offers a platform for creating an online store which includes PayPal option for processing payments. Our first buyer turns out to be a serious invester of our products.  Customer purchases over $6,000.00 dollars in merchandise because he is himself a retailer and his intention like ours is to sell the merchandise for a profit.

So this customer places an order, paypal processes the payment and then immediately we get an email that we cannot touch the funds until paypal can confirm that our company is legit. So paypal basically holds the customers money for up to 30 days which is plenty of time to piss everybody involved off.  So I spend the entire day on the phone with paypal listening to how paypal policy is to enforce buyer protection. Finally, they request info on my company proving the company existance, they ask for my drivers license, and other proofs. They tell me that once I have furnished everything they will lift the block on my account. So the block gets lifted and I inform my customer who is waiting patiently for days, that he can finally process his order. So the customer goes to the online store and he purchases $1,500.00 worth of merchandise. I get an email notifying me and I login to my account to confirm the funds. As soon as I go to withdraw funds to process the customers order, Pay Pal again locks my account telling me that before I can get a release I must first provide them information on my supplier, "license, Invoice for items, tracking number, etc." 

My supplier cannot furnish an invoice or tracking info for items that have not yet been purchased. How am I expected to process an order when paypal is blocking the transaction?  So now I am forced to remove paypal as a method of payment from my website.

Now I have to refund my customer for a second time as well.  This is damaging business relationships between my company and the buyer. Not to mention, paypal set restrictions on the account that I can only process $400.00 per day for a transaction. The guy wants $6,000.00 dollars worth of merchandise?  

So, with all the B.S. set aside, I decided that the paypal method is useless.  I refunded my customer and am in process of removing the paypal option from the online store.

I am cancelling all my paypal accounts as well.  I have incorporated a custom payment option where customers can process payments directly into my business account.

If you are an entrepreneur that is thinking about running an online store, do yourself a HUGE favor, AVOID PAYPAL at all cost because they donot care about your business.

What PayPal cares about is how they are going to control your business and how they manipulate transactions to take funds away from your profit!

They set limits on your account because they charge you $15.00 - $16.00 for every transaction you process up to 400.00

They claim that they are concerned about buyer protection when really all they are concerned about is causing you grief and taking your money...