4 ms·

Paypal froze our funds, then offered us a business loan

4 points by edwinjm 11y ago

rw2 11y ago
If you are using paypal and not stripe to start your business, you already made a bad move. After reading countless horror stories, the first thing I do is always use stripe for payment.
davismwfl 11y ago
I do everything possible with every client I work with to talk them out of using Paypal period, but especially as a primary or sole payment method. In fact, if they want Paypal as a sole provider, most times I will refuse the work because I have had 2 clients blame me when Paypal decided to freeze their funds. Something I have 0 control over (but had warned them was possible) and eventually I got them to see that, but after considerable stress and pain. That I have seen, Paypal has promised for about 2 years that they are correcting this issue and making things better, yet I still hear about frozen funds quite regularly, even charities which then can cause a charity to potentially be in deep trouble with donors and the law. Almost always Paypal freezes large percentages like 2/3rd's of the highest months gross billings, and then hold the remaining during the charge back window. I don't disagree Paypal has to be fraud smart, but so does every other payment processor and I don't know of another Processor that is as aggressive as Paypal or as willing to interrupt your business as Paypal is. I always wonder if there is some legal factor that could put Paypal in hot water as they are interfering with the operation of your business, potentially tortiously interfering with contracts by witholding funds like this. My bet is there is something, but they will claim it is in the T&C's. However, they likely only do this to small businesses without the funds or ability to fight back as T&C's are protective but cannot violate other laws.
DrScump 11y ago
posted 3 hours earlier, 110+ comments: https://news.ycombinator.com/item?id=10859502 https://news.ycombinator.com/item?id=10859502

4 points by edwinjm 11y ago

rw2 11y ago

If you are using paypal and not stripe to start your business, you already made a bad move. After reading countless horror stories, the first thing I do is always use stripe for payment.

davismwfl 11y ago

I do everything possible with every client I work with to talk them out of using Paypal period, but especially as a primary or sole payment method. In fact, if they want Paypal as a sole provider, most times I will refuse the work because I have had 2 clients blame me when Paypal decided to freeze their funds. Something I have 0 control over (but had warned them was possible) and eventually I got them to see that, but after considerable stress and pain. That I have seen, Paypal has promised for about 2 years that they are correcting this issue and making things better, yet I still hear about frozen funds quite regularly, even charities which then can cause a charity to potentially be in deep trouble with donors and the law. Almost always Paypal freezes large percentages like 2/3rd's of the highest months gross billings, and then hold the remaining during the charge back window. I don't disagree Paypal has to be fraud smart, but so does every other payment processor and I don't know of another Processor that is as aggressive as Paypal or as willing to interrupt your business as Paypal is. I always wonder if there is some legal factor that could put Paypal in hot water as they are interfering with the operation of your business, potentially tortiously interfering with contracts by witholding funds like this. My bet is there is something, but they will claim it is in the T&C's. However, they likely only do this to small businesses without the funds or ability to fight back as T&C's are protective but cannot violate other laws.

DrScump 11y ago

posted 3 hours earlier, 110+ comments: https://news.ycombinator.com/item?id=10859502 https://news.ycombinator.com/item?id=10859502