PayPal Reserve Hold

O

o hai guyz

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Jan 15, 2010
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I have one website taking payments through PayPal and I get about 1k in chargebacks a month out of about 20k in revenue. They said this rate is too high and they decided to implement a $12k reserve on my account. I've spoken to them numerous times about it and they haven't been able to provide any useful information.

Obviously it makes no sense to have such a ridiculously high reserve unless they think I'm just planning to randomly withdraw all the money, shut down the business and move to the Cayman Islands and disappear, while nobody at PayPal notices it for an entire year.

Has anyone been in this situation and do you have any tips on solving this (decreasing the reserve amount)?
 


Paypal does this quite often. At one point they held 20k of mine in reserve (5k minimum balance reserve + 15k in rolling reserve). It took about a month or two with a non existent chargeback rate for them to remove the 5k minimum balance reserve. Unfortunately, there was nothing they could do about the rolling reserve, but I've gotten most of the money now anyway.

I'd say try your best to keep your chargebacks really low for a month and then give them a call to try and negotiate. Once you start getting your money back immediately withdraw it to your bank account.
 
I tried to run a penny auction through paypal a few years back.

I'm still waiting for them to return my $20k "reserve"
 
yeah, been about 16 months. They quoted 18 months since penny auctions violate their TOS.

Which is funny-- because you can use paypal on quibids and beezid.
 
Someone CB'd a $1k amount (some FUCKFACE from WF mind you) several years ago, immediately resulted in a 20% rolling reserve.. Getting that down to 10% to 5% only took a couple years, lulz.

Basically, someone at paypal (if you request it) will take a look at your account once every 6 months. You can get the minimum amount removed or the reserve all together removed based on your CB% (which is also inclusive of disputes opened by paypal account holders as well).

1.5 yrs ago I received an email warning from a paypal "risk mitigation specialist" warning me my cb % was getting too high. I had to make some changes, like notifying rebilling customers via email a day before their account was going to be charged; pretty much took care of that issue.

I've found that they'll ultimately work with you.. You're at a 5% CB ratio, and that's considered to be pretty high with them. You'll need to take steps to cut that cb rate down if you want the reserve removed.
 
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