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  1. #1
    Join Date
    Jul 2000
    Location
    Washington, DC
    Posts
    591

    PayPal Temporary Holds

    When you get an e-mail like this from PayPal:

    Subject: PayPal Notification: Temporary Hold Pending Investigation

    It has come to our attention that you may be the recipient of potentially unauthorized funds. We have initiated an investigation into this event. In the meantime, we have placed a temporary hold on the funds in question until the investigation is complete. This temporary hold will show as a deduction in your available balance. In the meantime, you are free to continue transacting using your PayPal account.
    What do you do to the customer who caused it? Do you suspend their account immediately?

    It says *potentially* unauthorized, and I've had this type of hold happen before where afterwards PayPal said the funds were fine and returned them to me. But sometimes PayPal says the funds were really unauthorized and doesn't return them to me.

  2. #2
    Join Date
    Mar 2003
    Location
    Spokane, WA
    Posts
    262
    Well I suspend the account simply for security reasons. I've had a few people create accounts with stolen PayPal accounts in the past and not one turned out to be legit. To me it's a good sign that things may not be as they seem and you're better safe than sorry.

  3. #3
    Join Date
    Oct 2004
    Location
    Germany
    Posts
    356
    Suspend the account. I don't know what's going on, but in the past few months we had about 30-40% fraudulent signups, all paid with stolen PayPal accounts. PayPal needs to do something about this.
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  4. #4
    Join Date
    Jul 2003
    Location
    Goleta, CA
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    5,566
    Since when is paypal responsible for you using common sense and verifying your orders?
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  5. #5
    Join Date
    Sep 2005
    Location
    In canada
    Posts
    3,374
    Quote Originally Posted by pixelized
    Since when is paypal responsible for you using common sense and verifying your orders?
    ^^ ok thats totally confusing.

    Did you mean to say below :

    Since when is paypal responsible for you, not using common sense and verifying your orders

    ??
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  6. #6
    Join Date
    Oct 2006
    Location
    UK - Midlands
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    195
    I think he/she did but tbh until I read your post I thought it did

    The mind eh!!

    And of course PayPal are responsible. Maybe not 100% but if they can't keep their accounts secure then they need to find another business.

    Do you believe pixelized that MS aren't responsible for keeping their browser security patched too?
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  7. #7
    Join Date
    Sep 2005
    Location
    In canada
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    3,374
    Quote Originally Posted by SH-Giles
    Do you believe pixelized that MS aren't responsible for keeping their browser security patched too?
    Aah dont drag poor MS into this , they are nothing but an example of blind faith and marketing , they dont give damn about stuff other than making money
    12+ years -same website , new server [SSD Inside] providing shared/reseller hosting only !
    These things we do not provide/offer : Unlimited Storage ! Unlimited Bandwidth ! But Why? Cause, we were unable to put such a large number on our pages, it just would not fit.
    So check out the numbers that actually fit >> << the page as well as your budget too !

  8. #8
    depending on how the account information was obtained the blame is either on paypal or on the user, maybe even a third party site.

    1. if paypal had a vulnerbility in their scripts, I would blame paypal.
    2. If the user used the same password at paypal at he/she used for signing up on a "suspecious" site, the user is to blame for being stupid.
    3. if the information has been taken from a 3rd party site (because of vulnerble scripts used on that site) the 3rd party is to blame.


    Do you blame the car company who built the car becaue you forgot to fill the car up with gas??



    my 2 eurocent....

  9. #9
    Join Date
    Jul 2005
    Location
    A Gigopolis In The Making
    Posts
    320
    Me, monitor the account closely to make sure no fishy activities is going on, but I wont suspend the account. Give them about a week and push Paypal for a resolution.

    My customers are mostly Asian, and I don't know why, they are always being labelled as potential fraud.

    Even when I use 2checkout, a few legit transactions are declined.

    Yes. I heard horror stories that spammers create account with fraud card or PP account, brought down the whole server, left and repeat the cycle with another host.. but so far, I'm careful and lady luck has always been at my side.

    Best, keep contact with that unfortunate user... Ask him does he know why Paypal classify his account as "potential fraud"
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  10. #10
    Join Date
    Oct 2006
    Location
    UK - Midlands
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    Quote Originally Posted by paidhosting
    Aah dont drag poor MS into this , they are nothing but an example of blind faith and marketing , they dont give damn about stuff other than making money

    Easy target sorry
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  11. #11
    Join Date
    Dec 2004
    Location
    San Francisco, CA
    Posts
    1,912
    We receive PayPal Holds occasionally, due to fraudulent payments. They probably number several each year, and thats about .003% of the payment volume (# of transactions) we receive.

    So honestly, if you are getting 30 to 40% of your payments as fraudulent, you aren't verifying/calling your customers.

  12. #12
    Join Date
    Mar 2003
    Location
    Spokane, WA
    Posts
    262
    One other thing I always do, besides immediatly suspending the account is emailing the user via the email they signed up with and seeing if that bounces or if I get a reply.

    Out of curiosity I looked through all my records, last year I got about 10 suspicious PayPal signups, I caught all 10 before PayPal got involved, and all 10 ended up being rogue paypal accounts. It's all about looking at the transaction and signup, does everything match up? Usually not.

    If I got a transaction that was put on hold and everything matched up properly then perhaps I wouldn't suspend the account right away. But since I don't do automatic signups anymore, I'd still feel safe.

  13. #13
    Join Date
    Sep 2002
    Location
    Top Secret
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    14,135
    What do you do to the customer who caused it? Do you suspend their account immediately?
    Clearly.
    They haven't paid yet, so their account should be put on hold.
    Once their payment has cleared (if it does), then unsuspend the account. If it doesn't, then terminate the account.
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  14. #14
    Join Date
    Nov 2003
    Location
    Boston
    Posts
    212
    all i know is it didnt happen inthe past, so unless a whole slew of really stupid people are getting paypal accounts i think its paypals fault.

    i think someone found a bug and is exploiting it, i had a bunch of these not to long ago and as i stated in another thread it messed me up for a bit but now i got some more protection.

    it certenly is not the hosts fault, and personally i dont thinks the users who owns the account either
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