Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : PayPal issue

[markjut]

Hey all,

Wasn't sure whether to post it here or the billing forum, but I decided here would be a better place as it directly involves running a hosting business.

Unfortuanatly, I've come across a second client this week abusing my AUP.

A new customer signed up and started running a phishing scam - it was the Chase Bank one which I have seen quite a lot. The client was suspended and an email was sent.

The next day, having received no reply I logged in to my PayPal account to refund the transaction. It appeared that the subscription had already been cancelled and the first payment was being "Held" by PayPal while it was being reviewed. Unfortuanatly this meant that I couldn't refund it as the option wasn't there. I contacted PayPal and asked why the transaction was being held and that I wanted to refund it, but have so far received no response.

I am trying to work out why the transaction was held, was it because the person complained to PayPal, or that they were being investigated for fraud, ie using a fake credit card etc, or perhaps was it because they cancelled the subscription so quickly after creating it.

I would appeciate anyone who this has happened to in the past telling me what it means that the payment is "held" and how long will it be before I can refund the client, or will I just have to send the money back through a new transaction rather than just refunding it.

Thanks

[ScottJ]

Paypal will take the money from your account and give it back. You will not have to do anything. It will take about a week.

[kevhosting]

I would NEVER send it back through another transaction since they still may beable to reverse it. Double dipping?
My 2c.

[Mxweb]

paypal will refund it as its not there money i had that problem but it does take time like SJRHosting.com siad it will take around a week

[Anky]

I wouldn't worry about this too much, it's possible that the payment is on hold because it was sent from an account that had it's account password stolen. I've seen a few of these and basically once the owner finds out and contacts paypal they will put all transactions related to that account on hold.

[deastwood]

It has happened once to me, the money was held straight away and it took a month for them to follow up.

[Flammable]

Originally Posted by Anky

I wouldn't worry about this too much, it's possible that the payment is on hold because it was sent from an account that had it's account password stolen. I've seen a few of these and basically once the owner finds out and contacts paypal they will put all transactions related to that account on hold.

This is what I was about to post. This is why telephoning new signups is important.

[ddmobley]

Originally Posted by markjut

Unfortuanatly, I've come across a second client this week abusing my AUP.

While I don't know what your AUP is, this is more of a generic question about AUP's in general with regard to abuse and illegal activities.

Would it be imprudent to NOT refund any client who is involved in illegal activities. I ask this because of how I look at money-back guarantees, etc. If I used a site within the scope of the AUP, I would expect a refund under those circumstances. But, if I violated the AUP, and certainly if I were doing something illegal, I would have no expectation of getting a refund.

Is this an area of AUP design where it is stated that refunds and money back guarantees do not apply to individuals who violate the AUP or who violate the law?

Darrell

[detox host]

I tend to leave as is. They customers account remains suspended until the funds have been cleared.
I must say though, i have been experiencing the same thing over the last week.