21–30 of 160 posts
And why did you keep so much money in your account, there's must be an explication?
If he really was doing 6 figures in sales then roughly 10% being withheld is in the ballpark of reasonable.
The reason this probably happened is that their business was getting a high % of chargebacks from paying customers, paypal is not a specialist payment provider that wants to handle what they consider high-risk business like that, so they block your account and hold your funds for 180 days and during that time keep processing chargebacks.
After the 180 days, Paypal will give you the remainder of the money back, so the title is clickbait, they will get back their money.
The best thing to do if you operate a business which gets a lot of chargebacks is to find a payment processor that is okay with that, when I had this issue I ended up looking at which payment processors porn sites used and picked one of them, which had no problems. That was a long time ago, so I'm sure there's more options now.
Nice idea for a business, by the way.
Businesses will abuse you like this unless you know how 1.] to sue 2.] how to make a threat to sue sound credible 3.] be strong on #2 with articulation on punitive damages. A well written letter can get things moving pretty quick.
Wouldn't have happened with Bitcoin.
I could set it to a lower threshold, but my AOV is ~$2,000 so I prefer to have enough for refunds - otherwise PayPal needs to debit my checking and then it takes very long for the customer to get their money back.