All people know, PayPal is the only payment processor that is the greatest, most popular, and most often used for online transactions. Online payments, involving credit cards, in people’s minds the first time is PayPal.
But did you know, the business that we are living now is absolutely not friendly with the PayPal service. For the umpteenth time, our paypal account is permanently limited. And we should lose our money for 180 days. Again, over and over again.
If you are a PayPal user, and would like to buy our products, please read this article until it is completed. And you will know, how PayPal became the source of the disaster in a startup business.
You need to know, we have a paypal Account that is legal, complete with all supporting documents and connect with our bank and credit card.
Verification needed to create a PayPal account in Indonesia are quite complicated. Although PayPal does not directly provide services to customers Indonesia. All taken over by PayPal Singapore. And we should give all our personal documents to a stranger? Oh … well …
Why PayPal do not have branch offices in Indonesia, instead they opened a branch in Singapore?
PayPal’s business practices is not acceptable in Indonesia in regulation. because they cannot qualify as a financial institution, and the regulation of Bank Indonesia. OJK (Authorising financial service), is the agency that oversees all business form relating to money, transfer money, and saving money.
PayPal declined as the Bank. But as the money transfer service claims, and the services of an intermediary payments. Their business practices are clearly breaking the law financial law in Indonesia. Where a company other than a Bank prohibited practice deposit money, or store customers money. And if PayPal reveals himself as a money-transfer services, and the services of a payment gateway, then PayPal should not store the customer’s money in any form. As soon as may be sent to the buyer’s account. And, none of the companies including banks, which can hold one’s payments to others more than 3 hours. Moreover, 21 days? 180 days?
Paypal Merchant Accounts
PayPal we have is PayPal business. I belong, belonging to my wife, and my younger sister. All were made legal, regular and appropriate regulations, although we are very uncomfortable providing this information to a stranger.
PayPal always ask fee, in every transaction we make. What if we using it to do business transactions, such as invoice or purchase directly through the website.
The big, Greedy, and Crabby
This is the most appropriate picture for PayPal. After he asked a lot from you, he will never be enough.
21 Days Held Funds
If you become a merchant business at PayPal, they will be happy to hold your money for 21 days each incoming transaction until you granted as Established Merchant. With the following conditions:
- Number of successful transactions 5, without dispute or chargeback
- The number of cumulative, $100
- Evaluated for 60 days
So, if you are new to PayPal merchant, you must prepare the extra capital to run for 60 days in the future.
- Where the money goes for 21 days?
- How many people are detained his money for 21 days?
- If it’s money you put it on your saving bank, how much interest do you get?
- How much Billion of Dollar PayPal held in a month?
- If you are a merchant that the money is still pending, how do you pay the postage to your customers, and paying suppliers or labor?
You sell a lot, your funds will be put on hold again for 21 days
This seems funny to be discussed. Yes, this really happened to me. Average sales transaction was us $ 65 per transaction. And the few times we receive orders over $ 100, and without trouble.
That time we had already passed through our hard times, no more funding was delayed 21 days. And granted as “Established Merchant” Looks good, no problems for 4 months. And until we have received the order from US for $ 250. And the money is transferred on the same day by the buyer.
All of a sudden we get an email from PayPal, the funds return detained for 21 days. Because we experienced a surge in an improper transaction. Ah, what the fuck! After all this time, you guys did it to us again?
An hour later we refund the funds from the buyer. And we told him, if the incoming funds last held 21 days. And we are not able to process the delivery. Because the postage that must be our responsibility almost half of the total incoming funds.
Of course we missed sales. And we disappoint buyers. But our decision never mind exactly, we don’t want to owe to anyone.
As for what you should do if menjadisebagai merchant PayPal, is do not ever make your business with fast, PayPal doesn’t like it.
Avoid fees, send to “friends or family”
This is a common practice conducted by PayPal users. But if you do large transactions each month as we are, I recommend not to do so.
Already happened to our PayPal account. When the buyer wants the “Let’s do for the payment as a gift“. It seems fine for the first week. And the second week, we returned account limited. We call PayPal, and ask whats wrong. And they said, “you can’t receive something as a gift multipple time. Its strange for PayPal, and we put limit to your account, until you resolve it, and provide us proper request”. And they want our document again for “verification”. Sucks doesn’t it?
Withdrawal takes forever
Enough already with the funds held 21 days. There are still other problems again with PayPal. If we withdraw the funds in our balance, will take at least 5 working days. Yep, in fact more often more than that. Extremely rare under 3 days, often can be up to 7 working days.
Try once in a while you become a seller on Ebay, or wherever, and the first time to charge a person with invoice. You will feel the same as we have experienced.
Let we say, about healthy business cashflow? No, its never happend. Unless you are the sons of Donald Trump.
PayPal, paradise for Scammers
PayPal is the paradise for Scammer
PayPal is the place to be a Scammer. Surely You will deny my statement on this subject. But wait, wait for a moment and read until the end. And try to put your feet in our shoes, as a seller.
You as the buyer, using PayPal is the best solution. Your rights as a buyer will protected. How do the rights of the seller?
Long story short, you all know, that we are engaged in businesses that are in the gray area. Which involves PayPal in this cigarettes business is to act stupid. If we know that PayPal’s ToS does not allow for cigarettes, tobacco, and derived products.
Do you know of a holes in the PayPal can take advantage by Scammers?
Yes, the answer is the Dispute and Chargeback. General users of PayPal using a credit card to buy something online. The dispute is the gap to ask for money back from the seller by way of a fine. Whereas a chargeback is rough.
Let’s say, You have purchased a product of our cigarettes. And pay using PayPal as payment, and credit cards as a source of payment. Okay, I never know where your funds come from, because I can’t possibly ask that. Make sense right?
Let’s say I have the item sent to you. And you have received it the next 25 days. I put fake invoicing to PayPal, say the Bill for a pair of shoes “as described”. PayPal will contact us about it. And explain about the stuff I send. I explained to them with false excuse, for maintaining the confidentiality of cigarettes transactions. We wont blow our covers.
But the buyer says, the item is empty boxes, and gives the empty cardboard photos that we use for sending the cigarettes order. And I am being asked to provide a photo of the product before I sent, complete with same box, and I only have a picture of the product that I’ve posted the complete with cigarettes. It’s crazy, I have no reason to defend myself.
And, the case was won by the Buyer, and money in my PayPal was forced back to the Buyer, plus we had to pay a fee to the dispute.
almost similar to the dispute, but made directly to your credit card provider. If the dispute is not successful, and the seller won the case. Then you can do the last step, namely the Chargeback.
Your credit card issuer, and your Bank will do anything to PayPal. Bank and Credit Card provider is “Over Powered”. Be an artist, and paly victims. And PayPal will definitely surrender, and return the funds to you. And funds provided by PayPal to you, is the funds withdrawn from the Seller.
And the more terrible again, the funds withdrawn without notice to the seller. All of a sudden just funds will decrease in the balance of the seller.
If the seller does not have the funds. It will be withdrawn from the Seller’s credit card. If the seller’s credit card limit, or the credit card issuer refused to provide funds without authorization, it will be withdrawn from the bank account of seller.
If the bank seller also failed to be drawn, since PayPal requires authorization to take the funds, and the Bank does not allow. Then PayPal will put seller into a negative balance.
What happens with negative Balance? Seller is considered owed to PayPal. And he will call to pay his debts to PayPal. Every day, even when we sleep.
Let’s say, your son using your computers, and he browse about us. And made purchase some packs of cigarettes. And, he pay with your PayPal. You always “remember” login on each your password on your browser, because you were too old to remember each logins, include PayPal account. And made payment for Cigarettes using your name and address.
We receive your order, payment clear. And we send you the order the next day. And you’re just aware of it 3 days later. Order already sent, because we didn’t do a cross-check against you. We assume its You, as LEGAL PayPal users and buyers we are responsible for every act. And the transaction went trough successfully.
And on day 5, you do filling a dispute to PayPal against us. Do claims for “unauthorized transaction” did by your sons. And you tell PayPal about your son’s transaction for Cigarettes. And BOOM! Our account permanently limited, after you got your money, plus your cigarettes.
Wether we never know, just only The Dad and God knows. The Sons real did it, or just The Dad play victims?
Now we already tell you, how to be a Scammer in PayPal. Not because we’ve done it, but we ever become victims. And, of course, this practice is often done by online buyers, mainly from the United States. Ouch… shame bad buyers!
Whether this action can be stopped?
The answer is a BIG NO NO! PayPal is a United States company, and he will protect customers in the State of United States. Similarly with credit card issuers and banks in the United States. They will try to make their money in the United States. They will let incoming goods shipment to the United States, but not to let money out of it. Fair enough doesn’t it?
Blown the Cover
Cigarettes, tobacco, PayPal, and credit cards.
We all know, that we are now in a gray area. Business smoking isn’t as easy as you think. Clash with regulation, and banning the distribution of cigarettes via mail. The Ministry of health, the Ministry of Commerce, and the institutions involved in the regulation of trade in tobacco and its derivatives. Not to mention customs, taxes, and so forth. It’s making you crazy in a month if you don’t know what you are doing.
3 our PayPal account has been permanently frozen by PayPal.
- First, account frozen because of our mistakes. We do not yet know very well about PayPal’s ToS. And ended in the detention of 180 days. A lot of money there, enough to make us suffer for several months. And we are desperate.
My account is long enough, before PayPal notice. Several times the Chargeback and Fraud occurred in this account, but we can still survive. Our losses of about $ 800 from the action of the chargeback and fraud.
- The second account, courtesy of my wife. My wife has her own business. Selling on Ebay and Etsy for knitted products. All of a sudden my wife a permanent limit account by PayPal, with reasons still relate to me. Although there is no evidence of any that mention my wife is involved in the business of smoking, but PayPal have their own reasons about it. He lost $ 2700 in payPal balance for 180 days. Until this article was created, still 4 months again we can pick it up. And are forced to stop our business, knitted and fired 6 of our employees.
- A third account, courtesy of my sister. I borrowed her account and bring it to cigarettes business again. Meet market demand United States against cigarettes, and payment by PayPal .With a better system, and beautifully clean. And long enough to survive. With an average revenue of $ 1200 per month from this business.
There are always fools in this world
A fool always born every day in this world. Not only in Indonesia, including the worldwide.
How clean we mask our businesses so that all is safe, comfortable and in control. There is always some fool who messed it up.
Our third account, after going through the hard times, and can fight for steady. Suddenly struck with a permanent limitation.
Yes, a fool drom Arizona had leaked our transaction. It looks like he’s not familiar with the laws of the State of Arizona, which prohibits the distributionn of cigarettes using mail.
He ordered 2 cartons Marlbro Black Menthol from us. And pay using PayPal. Then, customs permitsparcels to pass trough. But customs informing Government of Arizona, that is Cigarettes inside the parcels. And Arizona Government allow USPS send to the buyer.
Then, it may happen by the interrogation of Arizona against the buyer. And unravel the whole deal that we did. Although still giving parcels to the buyer.
After obtaining information from a buyer, including the PayPal transaction, complete with details and time of the transaction. Arizona Government ordered PayPal to make permanent the limit to our account.
Well … stupid people there are always on the go.
Living under the Rock
No offense, if you still use PayPal, what’s more to buy a service and product that goes into the gray area, you still live under a rock.