Subject:
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Re: eBay buys PayPal
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Newsgroups:
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lugnet.market.services
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Date:
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Sun, 14 Jul 2002 22:14:12 GMT
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Viewed:
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2964 times
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There was a message on the RISKS list that PayPal locks down accounts when
their software sees a fraud pattern, and unlocks them when they get around
to it. One user was flagged because they received an amount and immediately
sent the amount. Probably they have a list of standard excuses like
"chargebacks".
In lugnet.market.services, Amy Hughes writes:
> In lugnet.market.services, William R. Ward writes:
> > You don't know much about banking, I trust... Do you really think that
> > every penny in your checking or savings account is actually held just
> > for you?
>
> That's not what I meant. Paypal has a habit of locking down funds that you
> didn't authorize them to use under the guise of checking for fraud. For the
> time they are "investigating" you don't have access to those funds, and
> according to their tOS you have no recourse, and there's no time limit for
> their "investigation".
>
> Their typical scheme works like this...
>
> First, you notice that you are unable to transfer funds *from* your account,
> though your customers are able to transfer funds *to* your account. You notice
> not because paypal tells you there's a problem but because someone you tried to
> pay tells you (and in my case the seller was instructed *not* to tell me there
> was a problem). When you inquire, they tell you your account is locked while
> they investigate fraud. They tell you you've had too many charge-backs. So you
> contact your customers and ask them if everything's alright with their order,
> and they tell you everything's fine - yes, they received it, no, they didn't
> make a charge-back, and no, they didn't get their money back from paypal.
>
> There are *many* stories like this at the following site, and many other types
> of stories, including bank accounts being emptied...
>
> http://www.paypalwarning.com/WallOfShame/
>
> While they are "investigating", people you tried to pay are told the
> transaction is fraudulent, i.e. you are slandered.
>
> > Heck no, they spend it. Sometimes they even have to borrow
> > to cover it when you make a withdrawal
>
> But you *can* withdraw it. When paypal restricts your account you can't
> withdraw your funds. I believe that prior to their IPO they were using the
> funds from locked accounts to operate their business (kinda like a shell game),
> and at least one of the class action suits against them charges that they
> improperly used customer funds, so maybe I'm right.
>
> Amy
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