Have a look here > http://www.paypalwarning.com/

WARNING:

Your Paypal account can be frozen at any time, without advance notice leaving you without your money for weeks (if not forever), and there isn't much you can do about it. Paypal is currently being investigated by regulatory authorities in three states!

Last updated: April 1, 2004 (wall of shame and feedback are updated constantly)

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Be warned that Paypal is not a bank and is not FDIC insured. Paypal provides for a new concept – “pass-through FDIC insurance coverage”. They do this by pooling funds into checking accounts at about four different banks. This is great in case any of those banks go out of business (highly doubtful), but we are not yet sure of the coverage offered in case of another Paypal "dot com" failure.

Many Paypal accounts are frozen for almost anything and without warning until the owner faxes in lengthy and intrusive private information – several times over. Even then, the account may not be released. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money.

Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant’s account is frozen, leaving them with no means to fill orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant.

While anyone paying into the Paypal system with a credit card does still have the protection of their own bank by disputing the transaction to create a “chargeback”, Paypal will eventually insist that a customer begins depositing money through their checking account. This will eventually prove to be a mistake as all chargeback protection through a credit card is then lost, leaving the customer at the mercy of Paypal.

Anyone experiencing these Paypal nightmares could always threaten to sue them, but that may be difficult at best. A thorough reading of the Paypal terms of service will reveal that you cannot even sue them should you have a legitimate claim. Their terms of service make it very hard to sue them! There have been several class-action lawsuits filed against Paypal.

Fraud seems to run rampant on the Paypal system. Merchants doing business through Paypal are simply not given any of the same tools to identify fraudulent transactions that real credit card merchants enjoy, yet they seem to take even more risk. Paypal is quick to chargeback transactions months after the fact, for seemingly any reason.

Any Paypal customer with a problem typically has an impossible time calling and talking to a real live person, and personal attention to electronic mail is virtually non-existent. According to Vince Sollitto (PayPal spokesman), Paypal intentionally makes the phone number very difficult to find in order to save costs. This is fine, except their Email "customer service" also leaves a lot to be desired. Many times you will get a canned response that doesn't address your initial Email message, if you get a reply at all. It doesn't do any good to complain anyway. When asked about customer complaints, Sollitto said the company reads them, but takes them with a grain of salt... (source MSNBC article, above).

None of this is very surprising when you consider that Paypal, Inc. publicly admits "we have limited experience in managing and accounting accurately for large amounts of customer funds." Their EMail "customer service" is also outsourced to a company in New Delhi, India. Additionally, regulatory authorities in three states (California, Idaho and Louisiana) are investigating whether PayPal, Inc. is engaged in a banking business because of their customers' ability to retain a balance for future transfers. Because Paypal is not licensed as a bank, they are not permitted to engage in a banking business! (Source, IPO Prospectus) Louisiana has already ordered Paypal to stop doing business in the state. This could spell REAL trouble for anyone with funds "deposited" in Paypal.com!. Paypal also recently shelled out $200,000 to the NY Attorney General and has agreed to stop service to NY gamblers.

This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc.. While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day.


Disturbing, if true! :(

as of 15th jun they seems asking for faxed statements or credit card added to the account.

just got a notice on my un-verified paypal account which i can't use till i fax them and add the credit card in file

thats for sending and taking the money out of ur paypal, but receiving is fine ?! :confused:

This is no joke. I did work for a friend in Florida (I'm in Connecticut) and he would pay me via Pay Pal. I completed my work and Pay Pal froze his bank accounts. To this day he still can't access the funds. I believe he's in the middle of legal action. Which states are currently investigating, and what have they found?

http://www.****paypal.com/

check this too.

really stunned.

Site doesn't work.

Originally posted by Bashar
as of 15th jun they seems asking for faxed statements or credit card added to the account.

just got a notice on my un-verified paypal account which i can't use till i fax them and add the credit card in file


Thanx, Bashar, for your message :)

I've signed up for a PayPal account some days ago (still un-verified).

Tomorrow I will send them some money from my bank account to verify my account.

Hopefully it works without faxed statements and added credit card infos :confused:

Originally posted by NikeAero1080
Site doesn't work.


f_ _ kpaypal.com

u should now get it. just fill u and k in the dashes above and u get the site name,

coz the word is banned here.

LOL, ok. Thanks

Paypal is easy to reach by phone. These sites somewhat seem like a childish thing that possibly a minor did to get back at paypal, because maybe paypal found out they were a minor.

https://www.paypal.com/us/cgi-bin/webscr?cmd=_contact-phone

If you guys are not keeping up with the news, paypal has settled some of the forzen funds (in US only) for 9.4 million dollars.

Apparently, they we understaffed and had forzen many accounts for no reason. Several times they had withdrawn money without owner permission and refused to pay the bank charges when they realized that they have to give the money back.

I would be careful before trusting too much money to paypal though I hear they are better now.

Although I just read through some of the anti-PayPal sites and forums
I'm still willing to verify my PayPal account :)

The risks we take in order to get something free.... :rolleyes:

Hi,

f_ _ kpaypal.com

Most people should know what are the two letters between f and k even you don't provide the answer :D :D

Originally posted by seekhosting
Hi,



Most people should know what are the two letters between f and k even you don't provide the answer :D :D

But he provided U and K which would turn out to be FUKK, and that domain won't get you anywhere LoL

paypalwarning has always cracked me up. This site is full of individuals who have failed to live up to paypal's various regulations and, upon getting caught get their account frozen. Paypal won't release the funds because they were obtained in violation of their TOS, no biggie.

A few facts, rather than the falsities thrown out @ paypalwarning (or paypalsucks or forkpaypal (insertcreative4letterwordthere)).

Paypal does take action against countless individuals, because they don't act under paypal's TOS. This includes porn and gambling. Like it or not, paypal will shut your account down if you're found anywhere near those 2.

Paypal is regulated in many countries by the governing authorities, including right here, in the U.S. The interest of these authorities is to ensure that all things are handled in a professional and complete manner. They're looking out for the individuals in those countries.

Millions (if not billions) of individuals have paypal accounts. how many of those have had them frozen? Probably 1%. Why? Most often times, because the individual violated Paypal's TOS/AUP in some way shape or form.

I (personally) have had a paypal account in one form or another since '99. At the time it was a personal account, and I closed it out for a business account some 2 years ago to keep myself fully legal. During those times I've always had my account (banking) information in paypal, and I had a few transactions that were business (back when I was doing game hosting way back in the day), yet never did paypal bother me. In 5 years, they've yet to bother me, and I'm pretty sure the same will happen with 99.9% of the rest of the paypal users. It's those .01% that cause problems and throw a fit.

Any time a company gets large, you get individuals trying to discredit that company. Look at microsoft, apple, ebay, paypal, numerous other corporations. It's about who can exaggerate the most, who can cry the loudest and who can threaten the most. Funny thing is is that very few of these cases (extremely few) ever get into court. Why? because the user in this case is in question.

:gthumb: Excellent post, wolfstream :D

Accounts can be frozen if the person is a seller who has multiple cases against him pending about non-delivery of goods. That happens quite a lot on eBay, who is also the owner of PayPal.
An innocent buyer bids on a product offered by an (unscrupulous) seller, but after payment never receives the goods, or received inferior merchandise or merchandise not ordered.
The duped buyer then files a complaint with PayPal, and if the seller cannot prove that the material was delivered, the buyer is entitled to a chargeback. If the seller is thought to pull that scam over and over again, then his account is frozen, and he'll have a hard time getting it "thawed" again.
I've been with PayPal for almost 3 years as a certified business account holder, and NEVER had any problem with them. PayPal is HONEST with HONEST merchants, and very TOUGH on DISHONEST merchants.
That's a good thing, though they do make mistakes, which should be rectified and their victims should be fully compensated, including an apology on the PayPal website, for all to read.
But, PayPal is still the best payment system on the web. Love 'em or hate 'em, that's a fact!

I honestly think that if you're serious about conducting business online, you need a merchant account. Paypal just reaks of unprofessionalism. Myself, I would never use a web site that only accepts paypal. I would never place the future and success of my business in the hands of company with so many complaints. Paypal is not a bank and as such, they do not have to abide by banking regulations.
Honestly, take the time and research some real merchant accounts. They aren't as expensive as many think they are and give you much more control without all the paypal spoofs, hacks, terms of service that require a law degree or about 15 hours to read through, or account freezing under the guise that "only unscrupulous sellers" get burned by paypal.
Many honest sellers have been burned as well and "just a mistake" can't cut it when you need to get paid.

Just my 2 cents.
:cool:

http://www.paypalsucks.com