
Paypal froze our funds, then offered us a business loan - edwinjm
https://medium.com/@casey_rosengren/paypal-froze-our-funds-then-offered-us-a-business-loan-49a078310fb#.hz04mc4sa
======
davismwfl
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.

------
rw2
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.

------
DrScump
posted 3 hours earlier, 110+ comments:

[https://news.ycombinator.com/item?id=10859502](https://news.ycombinator.com/item?id=10859502)

