Paypal sucks ass. I wish it wasn't that popular really, I'd switch in a second. I had way too many accounts limited and never did anything illegal really.
PayPal - Rolling Reserve
- Thread starter mgtarheels
- Start date
Either drop them or deal with it. Those are your 2 options. You more than likely won't win a legal battle.
I had an account that had a 10% rolling reserve. When my rep called we discussed how my business operated and we agreed at 5%.
If you contact your rep and explain a little about your business in a nice way, I'm sure they can work something out with you
I had an account that had a 10% rolling reserve. When my rep called we discussed how my business operated and we agreed at 5%.
If you contact your rep and explain a little about your business in a nice way, I'm sure they can work something out with you
Had you read the thread, I've expressed numerous times my issue isn't solely with the rolling reserve as it is the minimum reserve that is against the State of Florida's Money Transmitter license.
They're licensed as a Money Transmitter in the state of Florida, thus legally bound by Florida laws when dealing with Florida residents.
So take it to the AG. I doubt it will go anywhere, paypal knows what they're doing, and reserves are normal. They probably have some sub LLC set up considered to be a processor to bypass that law
Yeah, already did. Talked with Aaron Kelly about it, too.
We'll see where it goes. I'll keep it all updated.
As someone that has been through this a couple times with them now, I'll give you some advice.
Hire an attorney to send them a letter, basically saying that what they are doing is illegal and that you do not accept the new terms that they have placed on your account.
Make sure that your counsel cites specific laws in your state that justify you saying it's illegal.
Give them a date to either negotiate better terms with you or to close your account and send all remaining funds to you, minus a "fair" amount that you will allow them to hold for any refunds/chargebacks that might take place over the course of the next six months. Where at which time, they will send you whatever the remaining balance is.
If you need a specific email address to send the letter to, PM me and I'll give you one, but also make sure that you follow up by sending the letter certified the same day that you email it.
Once you do that though, understand that one of three things is going to happen.
1. Someone will call you and negotiate better terms on the rolling reserve. If they do, remember that while they can be a pain in the ass, they have to make sure that their asses are covered. if you are doing 1K a day as you claim that you are, there is always a risk there that you could be hit with refunds/chargebacks and paypal has every right to ensure that those funds are available in your account in the event that they do arise, regardless of whether or not you've had them in the past. The business that we are all in here is considered HIGH RISK by just about every single merchant/processor out there, and with all the fucking scammers out there, the risk isn't getting any lower.
2. You will get a call or email letting you know that they have terminated their relationship with you and that they are sending you a check for your balance minus a specified amount that they will hold for 6 months to cover any refunds/chargebacks.
3. you will get a call or email letting you know that your account has been returned to the status it was prior to the reserve being put into place.
The reserve isn't the end of the world, and if you're banking that hard, it really shouldn't be an issue immediately. If in the end you still have a reserve, and you have a clean account for the next 3 months contact them again, update your business info, allow them to "pull your credit", and provide them with a balance sheet for your business, certified by your accountant if possible, and they will likely release it at that time.
Hire an attorney to send them a letter, basically saying that what they are doing is illegal and that you do not accept the new terms that they have placed on your account.
Make sure that your counsel cites specific laws in your state that justify you saying it's illegal.
Give them a date to either negotiate better terms with you or to close your account and send all remaining funds to you, minus a "fair" amount that you will allow them to hold for any refunds/chargebacks that might take place over the course of the next six months. Where at which time, they will send you whatever the remaining balance is.
If you need a specific email address to send the letter to, PM me and I'll give you one, but also make sure that you follow up by sending the letter certified the same day that you email it.
Once you do that though, understand that one of three things is going to happen.
1. Someone will call you and negotiate better terms on the rolling reserve. If they do, remember that while they can be a pain in the ass, they have to make sure that their asses are covered. if you are doing 1K a day as you claim that you are, there is always a risk there that you could be hit with refunds/chargebacks and paypal has every right to ensure that those funds are available in your account in the event that they do arise, regardless of whether or not you've had them in the past. The business that we are all in here is considered HIGH RISK by just about every single merchant/processor out there, and with all the fucking scammers out there, the risk isn't getting any lower.
2. You will get a call or email letting you know that they have terminated their relationship with you and that they are sending you a check for your balance minus a specified amount that they will hold for 6 months to cover any refunds/chargebacks.
3. you will get a call or email letting you know that your account has been returned to the status it was prior to the reserve being put into place.
The reserve isn't the end of the world, and if you're banking that hard, it really shouldn't be an issue immediately. If in the end you still have a reserve, and you have a clean account for the next 3 months contact them again, update your business info, allow them to "pull your credit", and provide them with a balance sheet for your business, certified by your accountant if possible, and they will likely release it at that time.