PayPal - Rolling Reserve

mgtarheels

mgtarheels

New member
Sep 9, 2010
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Got a lovely email this morning from Paypal telling me they're withholding several thousands of dollars as a rolling reserve and won't release it for 120 days. They're also taking at least 10% of every money received and adding it to a 120 day rolling reserve.


Anyone have any recommendations on the course of action? They won't tell me why or provide documentation as to the reason they've limited and added a rolling reserve.
 


I take it you're doing business through that account? I know some paypal business account had the same type of thing.
 
There is NO way to fight them. The best thing to do is consider that money gone and find a new payment processor.

They do it all the time, for no reason. Just do a google search for paypal nightmares and stuff. You are not alone.
 
One of two things is going on. Either you just started moving a lot of cash through the account and they got suspicious so to cover their ass they are stashing a portion of the money.

or

You have had a lot of complaints and disputes and they are now watching your account like a hawk.

Either way it sucks, but it's not the end of the world. If it is a business account you should have a rep which you can contact.
 
Did they send you the IRS email requesting your EIN/SSN? I've heard of them doing what they did to you after people not submitting their EIN/SSN within a few days of that email.

ps - ALWAYS withdraw from PayPal multiple times a day. I never have money in my account for more than a few hours, for just this reason.
 
This is pretty common once you start processing a good volume.

Not much you can do. Think of it as a savings account with no interest.

Had this happen with paypal before and it wasn't bad. But back in the day had this happen with card services and it was a complete nightmare.
 
you have to remember that paypal is not a bank so they are not required to act as or follow the rules and laws of banking. They're just a fraud prevention tool that allows you to send money.
 
writtenstyle said:
There is NO way to fight them. The best thing to do is consider that money gone and find a new payment processor.

They do it all the time, for no reason. Just do a google search for paypal nightmares and stuff. You are not alone.
Click to expand...

Not true.

In Florida, they're a money transmitter. By law, they have to release funds within 10 days of receipt.

What they're doing is technically illegal.
 
mx=headroom said:
One of two things is going on. Either you just started moving a lot of cash through the account and they got suspicious so to cover their ass they are stashing a portion of the money.

or

You have had a lot of complaints and disputes and they are now watching your account like a hawk.

Either way it sucks, but it's not the end of the world. If it is a business account you should have a rep which you can contact.
Click to expand...

I've been doing this for over 4 years.

I push very large volume, and oddly enough I've never had 1 chargeback.

I've only ever had 1 dispute, which I won.
 
subigo said:
Did they send you the IRS email requesting your EIN/SSN? I've heard of them doing what they did to you after people not submitting their EIN/SSN within a few days of that email.

ps - ALWAYS withdraw from PayPal multiple times a day. I never have money in my account for more than a few hours, for just this reason.
Click to expand...
Wow, I am freakin glad I read this crap. I've been letting PayPal hold too much. They piss me off always putting a limit on my card because I live out of the country but I didn't know that got THAT gangsta wit it....
 
subigo said:
Did they send you the IRS email requesting your EIN/SSN? I've heard of them doing what they did to you after people not submitting their EIN/SSN within a few days of that email.

ps - ALWAYS withdraw from PayPal multiple times a day. I never have money in my account for more than a few hours, for just this reason.
Click to expand...

Nope, I didn't even get a warning.
 
dollar said:
This is pretty common once you start processing a good volume.

Not much you can do. Think of it as a savings account with no interest.

Had this happen with paypal before and it wasn't bad. But back in the day had this happen with card services and it was a complete nightmare.
Click to expand...

A savings account that I cannot take money out of. Even if I close my account, I cannot get that money for 120 days after the closing.
 
dchuk said:
you have to remember that paypal is not a bank so they are not required to act as or follow the rules and laws of banking. They're just a fraud prevention tool that allows you to send money.
Click to expand...

Yep, exactly why I'm going after them.

They're acting as if they're a merchant, processor, and a bank. They're just a fucking money transmitter and don't have the luxuries of the aforementioned institutions.
 
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