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  1. #1
    Join Date
    Mar 2009
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    Thumbs down PayPal New Rule's ? Read More.....

    Here's the rather quite upsetting email i got from PayPal after reading it what's your thought's?

    Hello Dustin Cisneros,

    Your business is important to us, and we are working hard to provide an easy, fast and secure payment service to you and your customers while keeping our prices competitive. We're also committed to clearly communicating changes to our policies and procedures. To that end, we are writing to inform you of a change to your PayPal account, which will take effect 30 days from the date of this email.

    Beginning 07/25/2009, a small percentage of the total payments you receive will be held temporarily as a reserve in your account. This small reserve amount helps to ensure that funds are available to cover payment reversals or buyer chargebacks, if you do not have a sufficient PayPal account balance and do not provide the funds to do so.

    A reserve is like a security deposit for your PayPal account and is standard practice in the payments industry, especially for retail segments like Computers & Networki where there is a higher-than-average risk of reversals or chargebacks. This does not mean that you have done anything wrong. We are requiring a small reserve in your account because you sell in a category that has a higher risk of reversals and chargebacks and because you are relatively new to PayPal as a seller.

    Your reserve amount will be 10% of the total payments you receive, which will be held on a rolling 60-day schedule. That means 10% of the money you take in each day will be held in your account, and then made available for withdrawal 60 days later.

    For example, if you receive $2,000 every 60 days into your PayPal account, then a reserve amount of about $400 would be required on a rolling 60-day period. In other words, about $6.67 would be held in reserve each day, then released 60 days later.

    If you are a PayPal Money Market Fund customer, you will still earn interest on your total balance while your money is in reserve. Click here for more information or to enroll in the PayPal Money Market Fund.

    We recognize this is a change in the way we do business with you. By requiring some merchants to reserve money in their accounts, we're able to lower our own costs. Keeping our costs low helps us to continue providing competitive pricing for all sellers who use PayPal.

    If you have any questions about this change, please call us at 1-877-729-7252. We appreciate your business and look forward to a continued partnership.

    Sincerely,

    PayPal






    What's weird is a day before i had got an email to keep me aware but i just ignored it but it was true here was the email,

    ATTENTION PAYPAL AND EBAY USERS


    PAYPAL, AN EBAY COMPANY, ARE NOW STARTING TO HOLD FUNDS OF THEIR SELLERS
    WITHOUT CAUSE AND WITHOUT WARNING.

    THEY WERE FINED BY NEW YORK STATE AND LOST MILLIONS IN A LAWSUIT FOR THIS

    YET THEY JUST STARTED DOING IT AGAIN.

    BECAUSE OF THE ECONOMY THEY MAY BE IN TROUBLE AND THERE IS NO PROTECTION AS THEY ARE NOT A BANK.


    PAYPAL ACCOUNT HOLDERS:

    DO NOT SEND OUT ANY MERCHANDISE UNTIL YOU CAN VERIFY THE PAYMENT IS IN YOUR BANK!
    DO NOT TRUST PAYPAL, DON'T BE A VICTIM!
    DO NOT USE PAYPAL AS A PAYMENT METHOD!

    KEEP UPDATED ON PAYPAL BY GOING TO:



    Paypalwarning.com

    PaypalSucks.com

    Screw-Paypal.com

    EbaySucks.com

    Aboutpaypal.org

    paypalpetition.com

    NoPaypal.com




    ***PLEASE SEND THIS TO SOMEONE YOU KNOW WHO USES EBAY AND/OR PAYPAL
    SO THEY CAN PROTECT THEMSELVES.

    THANK YOU!
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  2. #2
    Join Date
    Aug 2008
    Posts
    2,469
    I also had a rolling reserve a few months ago. I however got them to remove it two weeks ago. After a month or so call PayPal and ask them to evaluate your PayPal account. Do this through a supervisor not an agent. Best of Luck!

  3. #3
    (smack) paypal, (smack).

    Had that same thing on our account. Got tired of having large sums of OUR money marked as PENDING while paypal puts it in their large money pot and decides to profit off our interest for 30 days. Called, demanded it be removed or we would be canceling our account.

    /Removed.

    This is nothing new.

  4. #4
    Join Date
    May 2007
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    2,745
    What is the big deal about them holding 10% of your funds for 60 days?
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  5. #5
    Quote Originally Posted by verdictjosh View Post
    What is the big deal about them holding 10% of your funds for 60 days?
    Why do they need to? What gives them the right? Is it because they them don't have to follow the same rules as banks? With this stupid PCI compliance coming into full force here soon, and Paypal being a safe haven for that, they better learn how to do business right and placing a 10% hold on our funds simply isn't going to happen. So your supporting paypal profiting off of your own money even AFTER paying your transaction fees. You want them to put YOUR money in their money pot and hold it there for no apparent reason what so ever?

    LOL!
    Last edited by AquariusStorage; 06-26-2009 at 12:36 PM.

  6. #6
    Join Date
    May 2007
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    2,745
    Well personally it would help out a lot if they did that to me I have a habbit for spending money. No joking its not to bad, Well Maybe holding funds sent to you for 24 hours? Just like "some" banks do.
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  7. #7
    Join Date
    Aug 2008
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    2,469
    Quote Originally Posted by verdictjosh View Post
    Well personally it would help out a lot if they did that to me I have a habbit for spending money. No joking its not to bad, Well Maybe holding funds sent to you for 24 hours? Just like "some" banks do.
    Agreed, it does help you in controlling what goes in and out of your PayPal account. But, what I didn't like about it is that the amount they held reached a certain point that angered me.

  8. #8
    Quote Originally Posted by verdictjosh View Post
    Well personally it would help out a lot if they did that to me I have a habbit for spending money. No joking its not to bad, Well Maybe holding funds sent to you for 24 hours? Just like "some" banks do.
    Oh now come on....

    We're talking about a 10% 60 day hold at the least, and I've seen the hold be as bad at 30% and 120 days for some people.... its silly

    Smacked that crap off of our account and we only had a 10% 30 day old. They are reluctant to remove it once its on. Calling in to them to get it removed is hell. They seem to hangup on people a lot. Prepare for a while on hold, as while as getting a lot of people on the phone who barely speak English. Did I mention they hang up on you a lot to?

    I really think we're entering a sad world when we leave it up to a Paypal reserve to dictate how we spend our money . Just because you have it doesn't mean you need to spend it. Invest it, put it into CD's or something which have a penalty for touching the money early and let it draw interest. That way, you wont be so tempted to touch it. Allowing paypal to force "reserves" down our throats when most of providers in the coming year or two will be forced to switch to only paypal with PCI looming is not a good idea.
    Last edited by AquariusStorage; 06-26-2009 at 12:54 PM.

  9. #9
    Join Date
    Mar 2009
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    CA
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    Quote Originally Posted by AquariusADMIN View Post
    Oh now come on....

    We're talking about a 10% 60 day hold at the least, and I've seen the hold be as bad at 30% and 120 days for some people.... its silly

    Smacked that crap off of our account and we only had a 10% 30 day old. They are reluctant to remove it once its on. Calling in to them to get it removed is hell. They seem to hangout on people a lot. Prepare for a while on hold, as while as getting a lot of people on the phone who barely speak English. Did I mention they hang up on you a lot to?

    I really think we're entering a sad world when we leave it up to a Paypal reserve to dictate how we spend our money . Just because you have it doesn't mean you need to spend it. Invest it, put it into CD's or something which have a penalty for touching the money early and let it draw interest. That way, you wont be so tempted to touch it. Allowing paypal to force "reserves" down our throats when most of providers in the coming year or two will be forced to switch to only paypal with PCI looming is not a good idea.
    Ive been following up on this and i agree with you 100% Im surprised you have got your's removed we will try the same.
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  10. #10
    Join Date
    Aug 2001
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    5,065
    This is ridiculous. When I get my monthly payment I need it all of it immediately... I'm not going to have them keep my money from me and hold it for 60 days... that's a long time!

  11. #11
    Quote Originally Posted by Frosty View Post
    This is ridiculous. When I get my monthly payment I need it immediately... I'm not going to have them keep my money from me and hold it for 60 days... that's a long time!
    Exactly how I feel. Not sure how GCM and verdictjosh are fine with Paypal holding on to their money to stay afloat during these hard economic times..... but what ever

  12. #12
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    May 2007
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    Well I'm still sticking to Reserve or hold your funds for 24 hours before going into your account.

    I see no reason why you need the money straight away. Would the shop see the money you paid with a eftpos card in the corner store? No.

    They have to wait until the next business day or some even have to wait until a certain date much like other merchants even popular online 2checkout.
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  13. #13
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    Quote Originally Posted by AquariusADMIN View Post
    Exactly how I feel. Not sure how GCM and verdictjosh are fine with Paypal holding on to their money to stay afloat during these hard economic times..... but what ever
    I never said I was alright with it. I agreed with Josh if they did this with a 24 hour hold instead of 60 Days I would be fine with it. The hold has been removed for weeks now so I'm not here to complain.

  14. #14
    Quote Originally Posted by verdictjosh View Post
    Well I'm still sticking to Reserve or hold your funds for 24 hours before going into your account.

    I see no reason why you need the money straight away. Would the shop see the money you paid with a eftpos card in the corner store? No.

    They have to wait until the next business day or some even have to wait until a certain date much like other merchants even popular online 2checkout.
    I see no reason for not having your money available to you instantly, as all fees for the transactions have already been taken out, so why the need to hold an additional %? I do not employee Paypal to manage my $$ for me. That's why you hire an accountant. 24 hours, maybe, but guess what, they don't have a 24 hour hold, they have a 30, 60, 90, and 120-130 day hold.
    Last edited by AquariusStorage; 06-26-2009 at 01:12 PM.

  15. #15
    there is no point in holding 10% of funds for 60 days.

  16. #16
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    The do not hold 100% funds straight away for 30, 60 , 90 or 120 just 10% right. they are not managing your money they are just protecting other customers.
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  17. #17
    Quote Originally Posted by verdictjosh View Post
    The do not hold 100% funds straight away for 30, 60 , 90 or 120 just 10% right. they are not managing your money they are just protecting other customers.
    They can hold between 10% to 30% of your funds for between 30-120 days. Paypal is doing it to protect Paypal, and not to protect the customers.

  18. #18
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    oh well business is business
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  19. #19
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    this has been there for quite some time now and only for business accounts - we are actually getting money out of our reserve everyday now - funds collected by PP 60 days ago.

    Quote Originally Posted by afgunz View Post
    there is no point in holding 10% of funds for 60 days.
    well they use the money for their own needs - banks do the same thing when you deposit money - that's how you get interest out of it, but unfortunately paypal isn't giving interest on that although it would be nice.

  20. #20
    Quote Originally Posted by njoker555 View Post
    this has been there for quite some time now and only for business accounts - we are actually getting money out of our reserve everyday now - funds collected by PP 60 days ago.



    well they use the money for their own needs - banks do the same thing when you deposit money - that's how you get interest out of it, but unfortunately paypal isn't giving interest on that although it would be nice.
    When I deposit money into my Savings account, which does in fact draw interest, I am free to move it to my checking account (within regulation). Not only is Paypal not allowing you to get interest on the reserve amount (unless you have a money market account), but they are not allowing you for any reason to transfer the pending to available funds. Although we got the reserve lifted, we still have to wait for the money from the 30 day reserve to work its way through the cycle as they refuse to remove funds from pending to available.

  21. #21
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    Quote Originally Posted by AquariusADMIN View Post
    When I deposit money into my Savings account, which does in fact draw interest, I am free to move it to my checking account (within regulation). Not only is Paypal not allowing you to get interest on the reserve amount (unless you have a money market account), but they are not allowing you for any reason to transfer the pending to available funds. Although we got the reserve lifted, we still have to wait for the money from the 30 day reserve to work its way through the cycle as they refuse to remove funds from pending to available.
    yea, well I wasn't saying they are completely the same - i was just saying that banks usually take about 90% of your money and give it out in loans (or they have the right to do so) and since they have a lot of money, you can actually withdraw your money any time - but if everyone goes to withdraw their money, they won't be able to get more than 20-25% out of the bank in total, most of the money is just in loans.

    paypal just has to work on this I guess. They are suffering from the economy and they probably came up with this system in a short period of time.

    I'd rather have them have a reserve on my funds than have them shut down.

  22. #22
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    the next time someone sells something on either ebay or via paypal and gets rammed by the op.....and paypal can return your money due to the reserve they've held back from the op before they up sticks and do a runner....you may see this as a positive.

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  23. #23
    Quote Originally Posted by Outlaw Web Master View Post
    the next time someone sells something on either ebay or via paypal and gets rammed by the op.....and paypal can return your money due to the reserve they've held back from the op before they up sticks and do a runner....you may see this as a positive.

    owm
    Be careful who you buy from and that wont be a problem

  24. #24
    Consider yourself lucky Moneybookers does the same thing for the same rate, 10%, but for 180 days!

    And just to be clear, this isn't so that they can better protect themselves from chargebacks or anything similar.

    It's simple, the longer they keep the money, the longer they can reap benefits from investing that money. Don't think for a second that the money Paypal's clients have there is 100% available.

    There is a mostly constant rate at which money is withdrawn from Paypal accounts, so they keep that amount available, the rest is invested. With this change they just guaranteed there is even less money being withdrawn, and thus more money for them to invest.

    It's like you're lending them money with no interest.
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  25. #25
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    ... good time to use another service.

    I can't imagine a bank holding my money at all. That is why I use a credit union. Right when my money is deposited... i'm able to access it.

    An older bank I use to use, made me wait 48 hours.. LMAO
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