Report: #821361

Complaint Review: PayPal, Inc.

  • Submitted: Wed, January 11, 2012
  • Updated: Thu, January 12, 2012
  • Reported By: Chris T. — Lake Forest Illinois United States of America
  • PayPal, Inc.
    2211 N First St
    San Jose, California
    United States of America

Show customers why they should trust your business over your competitors...

My problems with Paypal include the fact that they  PERMANENTLY restricted my access to their payment processing services when I have been a loyal, dedicated and profitable customer for them since 2003.  I have also used the services of their parent company (EBay) since 2003.  I am also upset that they have frozen the funds in both of my accounts.  I will not quit my complaints and legal fight with the company until they concede and allow me to use their services again.  I am in a difficult position because their company owns a virtual monopoly in the payment processing sector.  My livelihood and EBay sales depend on having the ability to use Paypal as a payment processor. 

Additionally, I also sell sports tickets on Stubhub (also an EBay owned company), and Paypal is the preferred payment processor for this company as well.  Nobody at Paypal seems willing to give me a second chance and I am outraged that they can take such a stance.  I am demanding to have access to their service ASAP, otherwise I will be pursuing a lawsuit against the company and I will encourage all of my friends, acquaintances, business contacts, and social networking contacts never to do business with the company again due to my negative experience with the company.  Many other individuals have had extremely negative experiences with Paypal as well.  We are all put into a difficult position due to the monopoly-like nature of their market position and EBay ownership of the company.

I will continue to fight Paypal legally until the company restores full access to both my Premier & Personal accounts.  I have been in contact with multiple Supervisors and even a gentleman (Trevor) from Paypal's Executive Escalations team.  I have sent out a letter to Paypal's Legal Department which they will receive by tomorrow.  I have been a loyal customer since 2003 (both of Paypal & its parent company EBay).  They have unfairly characterized me as an excessive risk to their company. 

I have emphasized to them that I would NOT pose any sort of risk to them were I to be given a second chance, but their company does NOT appear to believe in second chances.  I have filed complaints with the Better Business Bureau, Federal Reserve, and the California & Nebraska's Attorney General's offices.  I am in the process of choosing a lawyer so that I can sue Paypal and take them to court.  I am willing to settle if Paypal decides to RE-INSTATE my accounts (my Premier & Personal account).  This is the only circumstance under which I am willing to settle.  PERIOD!

Key contacts:

Kyle Seader - Head of the Executive Escalations Team Supervisor Trevor - member of the Executive Escalations Team (reports to Kyle)

There are many other folks at the company that could be key contacts including numerous individuals in the Risk Department.  Most of these operations (including all of these teams) are based in La Vista, Nebraska right outside of Omaha (Nebraska) although their corporate headquarters is in the same building as EBay (in San Jose, California).
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This report was posted on Ripoff Report on 01/11/2012 05:05 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Not many options for you

AUTHOR: voiceofreason - (United States of America)

As a private company they are within their rights to terminate your account for violating their policies. Plus, they probably, with valid reason, see you as too high a credit risk if you had to resort to those "cash advance" charges.

Your only grounds to go after them might be for illegal restraint of trade under whatever state or federal laws covering such, because they essentially, for all intent and purpose, maintain a monopoly over their particular service on sites like Ebay, who owns them. So while it would be reasonable to maybe fine you for such violations, outright cutting you off is tantamount to declaring you may no longer make a living via mail order. Such determinations ought to at least entail some kind of due process.

But a fight like that will cost you big legally for lawyers. Even a lawyer friend will only be able to go so far with them pro bono. If they view a submission to you on this as a fundamental risk to their business model, they will fight you tooth and nail.

Your only real world, practical choice is to fall on your sword and beg them to forgive you, or do business without their service.
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#2 Consumer Comment

Based on your last comment

AUTHOR: Robert - (U.S.A.)

Believe me I'm trying to work something out with them.  It has been a fruitless endeavor so far, but maybe one of the key folks there will have a heart and reverse the permanent decision.
- This appears to be a much toned down post.  I may be wrong, but my guess is that you talked to a lawyer who basically told you that you had no hope of prevailing.  Either that or Ebay did get the letter you sent to their legal department, and they matched it with another letter that "got your attention".

I would even go so far as to say that if you talked to a lawyer once you told them the reason you were banned they told you that if you pursued it you may actually run into more "issues".

Oh and just a side note I did as you said and looked at your ebay profile.  You have a 100% feedback rating as you said.  But even though you are a member since 2003 and you claim that this is your "livelyhood" you have a rating of only 213.  This seems odd because that is not a lot of transactions over 8-9 years, in fact that works out to about 2 Transactions a month.  If you take out the ones where you were a buyer(138), you are selling about 1 item a month on average.  Perhaps you do more business on StubHub.  The point is how much are you really relying on them for your "business".

So good luck in your "endeavor", but in the end if the only thing that happens to you is that you get banned from Paypal consider yourself very lucky.
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#3 Author of original report

I'm trying my best to work something out with them but it has been a difficult proposition so far

AUTHOR: Chris T. - (United States of America)

Believe me I'm trying to work something out with them.  It has been a fruitless endeavor so far, but maybe one of the key folks there will have a heart and reverse the permanent decision.
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#4 Consumer Comment

'I never engaged in fraudulent or illegal activity...'


While 'cash advancing' yourself a couple bucks a few times will probably not get the local DA knocking at your door with a criminal complaint, it is a big no-no with banks, credit card companies, and paypal.  To try to cover yourself by claiming what you did is not 'illegal' is rather spotty.

if you needed money you could have gone to a bank for a loan, or done a credit card cash advance.  This is a legitimate and above board practice although it often involves higher interest rates and other costs.  You decided you didn't want to pay those costs, so you set up bogus 'purchases' where you sent paypal money from your credit card as a legitimate 'sale' to yourself.  Can you see where this would be a big problem for paypal?  Instead of getting only a small amount from a credit card company thru cash advance a person could max out a credit card paying himself, and then skip on both paypal and the credit card, leaving them to untangle the mess.  And that is only one possible scenario.  You can make up lots of others including stolen/forged cards, check kiting, you name it.  Do it on a large enough scale and you just might have the DA come knocking.

I have seen paypal hold payments, suspend accounts for various lengths of time etc... but to find them completely terminating an account, that is rare (at least in my experience).  They must have found a pattern of these cash advances that set off their alarm bells.

Im sorry to see that your actions have ruined your business.  A 100% feedback rating on Ebay is not easy to maintain.  If you have been with paypal since 2003 you know that once upon a time paypal did have several competitors, including one sponsored by Ebay itself.  Paypal beat them all into the dirt.  Waiting on someone else to rise up against paypal now is not a solution.  It would seem to me that you would do better trying to work out something with them.  I doubt screaming about reinstatement or hiring a lawyer will get it done.

Good luck.
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#5 Author of original report

you'll be eating your words once EBay & Paypal are forced to quit their monopolistic ways

AUTHOR: Chris T. - (United States of America)

Hey there "coast".  One day you'll be eating your words.  There could come a time when the EBay / Paypal monopoly machine spirals even further out of control and they are FORCED to re-structure.  Remember Enron?  Anything is possible.
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#6 Author of original report

Nice try Mr. Know-it-All from the O.C.

AUTHOR: Chris T. - (United States of America)

I NEVER engaged in any fraudulent or illegal activity.  I simply cash advanced some money to myself on a few occasions FROM MY OWN credit cards.  After they told me that this is not congruent with Paypal's allowable uses, I agreed that I would not engage in this practice ever again, but yet they still insisted on keeping my account permanently shut down.  Check out my track record on EBay.  It is absolutely flawless.  I have a 100% feedback rating:  chrsg83

Trust me Mr. Hot Shot Orange County (Irvine, CA).  I'll be able to find representation if Paypal doesn't budge.  I'm pretty well connected.  Take one look at my LinkedIn account, and this will be evident pretty quickly.
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#7 Consumer Comment

Good luck with that

AUTHOR: coast - (USA)

"I am demanding to have access to their service ASAP, otherwise I will be pursuing a lawsuit against the company"

A business has the right to refuse service to anyone for any reason. Welcome to America.

"I am in the process of choosing a lawyer so that I can sue Paypal and take them to court."

You won't find representation. Good luck with that.
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#8 Consumer Comment


AUTHOR: Robert - (U.S.A.)

Now why would the big evil Paypal terminate your accounts? 

Did they just throw a dart at a list of names and you were the lucky one they decided to pick on?  No..probably not.  So let's guess that you have several complaints and/or "charge-backs" against your accounts and they feel that you are too much of a risk to allow you to continue

I have emphasized to them that I would NOT pose any sort of risk to them were I to be given a second chance, but their company does NOT appear to believe in second chances. 

- So let's see they ban you from Paypal and you want them to take your word that you will not pose any risk to them?  Why would a company that banned you trust anything you say. 

By the way why would you need a SECOND chance?

This entire report has you coming off like some 4 year old who throws a tantrum in the store because they are told they can't have some toy.

Now this may be a shock for you but Paypal is NOT a right they are a business. Where as a business they can decide whether or not they will allow you to use their services.  Any lawyer you try and find who is the least bit legitimate will tell you the same thing..that is after they stop laughing.

If by chance you find some lawyer who takes your case, if they take a single penny you need to immediately report them to the Bar association in your State.
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