Author Topic: Paypal Money Laundering Restrictions & Ditching Paypal  (Read 6678 times)

earthmother

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Paypal Money Laundering Restrictions & Ditching Paypal
« on: December 04, 2010, 12:21:06 PM »
Happy Happy Joy Joy -  NOT!  :enraged:

Does anyone know how long it takes for the restrictions placed on paypal accounts to be lifted once you supply all the documentation?

Also, has anyone ditched paypal and just gone with their own credit card merchant facility for ebay payments?  I understand that you can go with your own merchant facility on ebay once they approve it.  I already have merchant facilities at my shop and have been given the info to set up an internet payment gateway... is ditching paypal on ebay and replacing with your own payment gateway reasonably easy?

Does it affect sales like they suggest? (Tell a lie often enough ....)

*wheels*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #1 on: December 04, 2010, 01:13:19 PM »
Sorry, earthmother, no idea about the timing for having restrictions lifted. Have you rung PayPal? I know that sometimes is a waste of time but it may be worth a try.

Also, I don't have an answer for you about not offering PayPal. We also offer Paymate but have only ever had one buyer use it, 95% of our buyers use PayPal and 5% pay by bank deposit.

Have you tried any listings offering Paymate only? The buyers do not have to have a Paymate account, they can pay with their creditcard.


earthmother

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #2 on: December 04, 2010, 01:22:32 PM »
Hey wheels

Sorry, earthmother, no idea about the timing for having restrictions lifted. Have you rung PayPal? I know that sometimes is a waste of time but it may be worth a try.
I did ring them, and spoke to a representative (order taker) and a supervisor (mildly helpful) who gave me an email address to send documentation through to but he hasn't responded to my subsequent emails (surprised???).  I understand that this is Australian law but what a hassle! Especially if you've got stock bills to pay!

Quote
Also, I don't have an answer for you about not offering PayPal. We also offer Paymate but have only ever had one buyer use it, 95% of our buyers use PayPal and 5% pay by bank deposit.
Have you tried any listings offering Paymate only? The buyers do not have to have a Paymate account, they can pay with their creditcard.

No I haven't investigated paymate but I'm wondering why more sellers don't use their own credit card merchant facilities instead of a third party clearing house or am I missing something?  :enlighten:

*wheels*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #3 on: December 04, 2010, 01:35:28 PM »
Credit card merchant facility charges are generally based on turnover volume and can work out to be more expensive than eWay or Paymate etc. Also, I have read that a lot of banks are reluctant to provide merchant facilities to online sellers unless they also have a B&M business.

*smee*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #4 on: December 04, 2010, 01:41:21 PM »
as you already have merchant c/c facilities for your  shop , I would go down that path but as well as paypal , as not all paypal a/cs are linked to c/c a lot of buyers use paypal money they have earnt from sales to buy goods with

*CountessA*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #5 on: December 04, 2010, 02:08:54 PM »
I support using a merchant credit card facility. If you've already got one, you're already paying for it... so it makes sense to use it. Depending on what sort of plan you have with your bank and the gateway provider, it can be cheaper than using PayPal - but you should check your figures to make certain of it.

One very strong reason for using that rather than offering PayPal is that if a dispute arises, you can be sure of having it investigated PROPERLY. You will not be held to ransom by PayPal arbitrarily holding your funds. If you're a good seller with a good ethic towards your customers, PayPal's protection for buyers becomes irrelevant, anyway (unless the buyer is "trying it on" - definitely easier to do with a seller using PayPal than with a seller using merchant facilities).

However, there IS a perception among some buyers that they "must use PayPal". It's like the mines left behind after the war is over... It may make no sense to someone who is not a PayPal fan, and who is aware that using a credit card offers better protection than using PayPal, but there may be some buyers who only want to use PayPal.

It may be worth trying out offering payment by credit card (and not offering PayPal), but keep an eye on whether this affects your sales or not. Only then can you really see to what degree (if any) no PayPal on your listings affects your sales.

As to waiting for a reply from PayPal by email... you could wait forever. I suggest you call the PayPal number, keep very calm, have all the information to hand, ask to speak to a supervisor if the situation is not resolved immediately, hold on, keep very calm, insist nicely and politely and definitely that you wish to speak to a supervisor, explain it all over again, state that unless the situation is resolved immediately you will be lodging a complaint with the Financial & Banking Ombudsman (http://fos.org.au/centric/home_page/resolving_disputes/how_to_lodge_a_dispute.jsp), stay polite and friendly and definite, and if your call drops, call again immediately.

"No man is an Iland, intire of it selfe; every man is ...a part of the maine; ...any mans death diminishes me, because I am involved in Mankinde"

*Brum6y*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #6 on: December 04, 2010, 03:32:06 PM »
As I understand it, the 'money laundering' legislation is being improperly used by Paypal as an excuse for holding funds.

The legislation requires monitoring and reporting only.  If there are any requirements to freeze funds, they will come as a directive issued from the relevant government authority. Paypal does NOT have the authority to act independently - but they do it anyway and just give customers the run around.


As for resolving your matter, earthmother, I'm afraid I will have to reiterate what Countessa has stated.

Paypal has the power - over your funds and over communications.  They will not act if they can wear you down - it's simply cheaper.

Persistence and composure are the order of the day ... but you will have to plan on losing several hours in this pursuit - with nothing more than a hope of its resolution.

earthmother

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #7 on: December 04, 2010, 03:36:30 PM »
As to waiting for a reply from PayPal by email... you could wait forever.

Here's part of the reply I just got:
Quote
Once we receive and review your documentation, we will notify you via email regarding the status of your account.

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, direct all questions to complianceverifications@paypal.com.

The only problem is that the email I promptly sent to this email address was met with the following instantaneous reply:
Quote
Your message did not reach some or all of the intended recipients.

      Subject:   FW: Request for additional information PP-001-137-892-959 RXI000
      Sent:   4/12/2010 1:30 PM

The following recipient(s) cannot be reached:

      'complianceverifications@paypal.com.' on 4/12/2010 1:30 PM
            Invalid recipient
Can you believe it???   :gladiator:

Countessa, I read your post a little while ago about "how to speak to paypal re disputes"...
So when I rang a couple of days ago, I kept calm, very calm and managed to get an email address from the first operator I spoke to.  If anyone is interested it is now compliance@paypal.com

So as soon as the above bounceback came in I used the compliance email above and just now an email came in to say I have a fully restored account.

On the notes about costs comparisons between merchant facilities to paypal, I definitely will compare costs and let you know.  We've been customers of the ANZ for over 10 years so the first break through was to get them to waive the $99 set up fee.
Lovely Manu from the ANZ informs me:  "Yes madam the setup - it is $99."
Me:  "Well considering I've been a customer of the ANZ for over 10 years Manu, I don't think I should be paying a set up fee."
Manu: "OK we will waive the setup fee."  :money:

Sometimes you've just got to know you're worth it!
Thanks everyone for piping in! :grouphug:

*CountessA*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #8 on: December 04, 2010, 03:44:52 PM »
That's great news, Earthmother. Being persistent and patient and polite yields wonders!

(By the way, I think the bounced email is a result of the period (full stop) after @paypal.com - is that possible?)
"No man is an Iland, intire of it selfe; every man is ...a part of the maine; ...any mans death diminishes me, because I am involved in Mankinde"

earthmother

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #9 on: December 04, 2010, 03:48:09 PM »
Possible yes, but I entered it correctly in my first email....
Maybe it was just the universe giving me ammunition for a good story!  ;D
Ahhh the joys...

shyer

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #10 on: December 04, 2010, 04:00:41 PM »
.......is ditching paypal on ebay and replacing with your own payment gateway reasonably easy?

Does it affect sales like they suggest? (Tell a lie often enough ....)

I ditched  Pay$pal years ago for selling. A corrupt design, staffed by morons, trained in runnning clients around in circles. I do lose sales about 10% mearsured over many years. HOWEVER I no longer have fake pay$pal charge backs or money held at pay$pals whim losing intrest. often small amounts lost forever.

I am a long way in front NOT using pay$pal , paymate is fine for clients who do not want to use your own CC gateway. I also offer post office COD after a 20% deposit, this is quite popular. And popular with me as I cash the money orders I receive. Real money.

earthmother

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #11 on: December 04, 2010, 05:05:38 PM »
Thanks for the heads up Shyer.  Will look into how to setup paymate.

*Yibida*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #12 on: December 04, 2010, 06:21:44 PM »


Ok earthy now we have solved your problem there's a little matter of payment... we'll send you an invoice shortly... if you pay by direct deposit we can discount you 5%..

if you decide to pay by Paypus we will add 10% to your bill for advisory services rendered...

BTW don't forget to visit the other threads... we don't just deal in serious ebash paypus stuff... we also have a toga party every Tuesday night...

Oh yeh and have some laughs too...

well......come  to OzRt ~ !!

LOLOLOL


da_ewok

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #13 on: December 04, 2010, 06:52:31 PM »


Ok earthy now we have solved your problem there's a little matter of payment... we'll send you an invoice shortly... if you pay by direct deposit we can discount you 5%..

if you decide to pay by Paypus we will add 10% to your bill for advisory services rendered...

BTW don't forget to visit the other threads... we don't just deal in serious ebash paypus stuff... we also have a toga party every Tuesday night...

Oh yeh and have some laughs too...

well......come  to OzRt ~ !!

LOLOLOL



and I'm the debt collector ;)
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*smee*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #14 on: December 04, 2010, 08:52:41 PM »

earthmother

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #15 on: December 05, 2010, 05:16:34 PM »

Ok earthy now we have solved your problem there's a little matter of payment... we'll send you an invoice shortly... if you pay by direct deposit we can discount you 5%..
if you decide to pay by Paypus we will add 10% to your bill for advisory services rendered...
BTW don't forget to visit the other threads... we don't just deal in serious ebash paypus stuff... we also have a toga party every Tuesday night...
Oh yeh and have some laughs too...
well......come  to OzRt ~ !!

 :rofl:  I think my pay$pal account just got frozen again  :neener:

*CountessA*

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #16 on: December 05, 2010, 06:51:12 PM »
That's all right; I know Yibs accepts SmeePal payments as well. (Smee, tell Earthmother about SmeePal and all of its wonderful user agreement policy points and the way in which you reserve the right to use all SmeePal funds for the purchase of penguins...)
"No man is an Iland, intire of it selfe; every man is ...a part of the maine; ...any mans death diminishes me, because I am involved in Mankinde"

da_ewok

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Re: Paypal Money Laundering Restrictions & Ditching Paypal
« Reply #17 on: December 05, 2010, 07:04:56 PM »
Can I go hunting? Huh huh huh?

Please......................... you know I like the smell of fresh blood................... :D
"I've just been in a bad mood for 40 years"

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