Be Careful With PayPal
Many people want to sell our products and use PayPal to process their customers credit cards. However, I would warn against using PayPal as your only means of processing credit cards.
There have been instances of PayPal freezing distributors accounts because they sold certain products. Below is an excerpt from the email sent out by PayPal:
“I found several items which violate PayPal’s Acceptable Use policy regarding Firearms, Weapons, and Knives policy, as well as PayPal’s Surveillance Equipment policy.
If you choose to remove the prohibited items from your website, you will need to remove the following items:
Butterfly Knives, One Hand Opening Knives, Pen Knives, Telescopic Steel Batons, Sling Shot, Throwing Stars, Telephone Recorder, Cell Phone Recorder, and Conversation Recorders.”
The accounts were frozen then the email was sent.
The following information shows the difference between PayPal and a merchant credit card account.
With a Merchant Account, your funds are directly deposited into your personal or business bank account, which you control and which is also protected by Federal Banking Regulations.
With PayPal, your money is deposited into a PayPal Account, which PayPal fully controls. Since PayPal is NOT a bank, they do not need to follow federal banking regulations. These regulations are designed to help the average person avoid issues like having their bank account frozen for weeks or months with no explanation.
“Who would trust their money with a bank that could do that?”
Sadly, Paypal routinely freezes its customers’ accounts for almost anything and without warning. Once an account is frozen, the funds are often held by PayPal for months on end with absolutely no recourse for the merchant.
A domino effect occurs when a PayPal account is frozen, leaving the merchant with no way 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.
Its OK to use PayPal as an option, but you should have a real merchant credit card account to process your customers credit cards.
Jerry Kinnan
Yes! The risks with paypal are there. For people like myself that are starting with nothing trying to make something, paypal is about the only route we can afford. Merchant accounts cost not only in monthy fees but set up fees and trans action fees as well. This is where paypal gets most of their clients. I myself plan on getting a merchant account once I can sustain one finacially. I have seen some of paypal tricks while trying to work on ebay. I need a low cost merchant account that I can process credit cards from my shopping cart and have a virtual terminal on my laptop so I can process cards at the flea markets as well… Recommendations??????
Yvonne D. Randolph
Thank you for the information regarding PayPal of which I did not know.
I was using Merchant Credit Card account but I stoped them because every month they would subtract $21.00 from my account wheather I did any business or not and I did not want that.
I’ve not been getting a lot of sales to my site so, I felt that was taking money from me for nothing but I will switch back once I start getting a reasonable amount of sales.
I once again thank you for letting the word out about Pay Pal.
Judith Thixton
I too have hesitated using Pay Pal. I called Pay Pal and was told as long as I was not selling guns or ammunition I would not have any problems. Now I am not sure what to think. I intend to make another call and get something in writing. My problem is that I am new, I have a regular credit card processor however they want to limit the ticket value to less than $750 and I am billed whether or not I have any transactions. Not that I have sold anything yet but I would like to at least have the opportunity to sell a surveillance system.
Roy Converse
I have been useing paypal for about two and half years. I have had no truoble with them. Until lately there money market account paid 5% or more no matter what amount of money you had in the account. You do have to be careful of what you sell If you cant sell it on ebay paypal mite hit you for it. Hope everyone has a great 2008
Gord Durfy
We had lots of dealings with Pay-Pal because we are Canadian and I know how you`s all feel When it comes to Us little Businesses They ( Pay-Pal ) think they are God and can do what they want. I`ve got 8 phone numbers to just get one answer, answered If you need a phone number For them keep calling and they will give you a New One everytime We don`t make much but somewhere down the line we will drop them just as quick they can drop Us. The Policies are really getting out of hand but all We can do is Grin and Bare until a Company comes out to help Us Little Guys. so as soon as you get your money in Pay-Pal Transfer it as soon as possible before they get it.
Ronald Roberson
I just recently started selling self defense items through safety technology and already can say you guys are great. I used to sell on ebay and my own little web stores and sold electronics using paypal. I agree they will freeze your account for no reason what so ever. I sold a LCD TV on ebay, and sent it out because it was one of the few items I had on hand. I tried to withdraw the money to my bank account, and 30 minutes later my account was frozen. This was 13 months ago, and I have still not received the money for the tv. I would suggest Google Checkout or a credit card processor. Thank you for the wonderful advice, and I look forward to a long successful relationship with your company.
Klay Kirby
I have been using Pay pal since I started. I did get my account frozen once when I was selling butterfly knives. I have been reinstated of course, but here is my suggestion. When you word the item name value in the shopping cart HTML leave out anything Paypal might be looking for. For example, put “Talon Mini” instead of “Talon Mini Stun Gun.” I think this will keep their bots from singling you out. They likely have bots that look for specific things like “gun” or “butterfly knife” or anything else they have determined is “inappropriate” for their services. Paypal has many advantages for people with low budgets if you can keep them from freezing your accounts.
kevin cassidy
Pay pay ties up all of your money, bank accounts, get verified, if there is a chargeback you are out 30 days with your money and products and i believe the purchaser is out as well! It is easy to set up and use and that part is good, everything else is bad! Usually when they freeze accounts, they just take your money , never give it back and you are banned from setting up another account. if you do set up another account, they eventually link it and seize your maoney again! Pay PAl is only a PAL to PAY Pal not to any seller!
Pay pal is owned by ebay and they deny it! Then we they need to use it against you, they say oh we are owned by ebay! Its all a bunch of BS!
With alll the CC fees front back and middle on top of all the discounts in prices we need to make, its hell to take cards and hell if you dont becasue it is all about Conveince!
Nelson
I had an account with PayPal a few years ago and they froze my account because of my products…I recently opened another with them…cant tell you how, but I did….now I dont use paypal on my site. I use it in emails and other internet transactions, but not on my site….
SafetyMode Systems -Pepper spray, stun guns, tasers, surveillance cameras, hidden cameras and more.
I haven’t had any problem with PayPal so far…hope I never do.
Orion Self Defense
It’s better to use stun guns and pepper sprays using a straight credit card. No hassles.
Self Defense Pepper Spray
PayPal banned us. When I started to do some research I found that this was not an isolated problem. PayPal plays by its own rules, you are better off without them.