Ha ha. Not PayPal Fault! Your fault for using them.
I made $200K and PayPal locked my account
141–150 of 298 posts
Re: I made $200K and PayPal locked my account
#142Sorry to hear about the troubles :( If this wasn't the umpteenth time I've heard this story, I wouldn't say this so pesteringly: To everyone: Stop stop stop stop stop using PayPal. This happens over and over again. For once, thankfully, there are viable alternatives out there -- Stripe & WePay to name two (both of which I've had excellent experiences with). Not saying they're panaceas or that there won't be security/…
I don't think paypal is the problem here, this is a pretty clearcut case of not having ones ducks in a row before doing business.
People shouldn't expect that you can run a business as though it were a lemonade stand and funnel hundreds of thousands of dollars through any processor, including paypal, without anyone taking notice. That's not the way banks work, it's not the way the law works.
Get a business license, get your ducks in a row, make sure you read the terms of use, make sure you understand the legal implications of the business you are conducting, and then proceed accordingly. If you run into problems with a bank, a processor, or whomever then go consult someone who knows the law far better and can act on your behalf (e.g. a lawyer).
This is the exact same advice whether you use stripe or paypal or authorize.net or what-have-you.
If your business operations are indistinguishable from fraud or money laundering on the surface then you should not be surprised if your accounts get frozen and you should ask yourself how you need to go about making sure there is a perceivable difference.
Perhaps one could argue that the law or banking regulations or the corporate policies of the most popular services were different, but that's the world we live in. And it's not because they are trying to be assholes, it's because fraud and money laundering are commonplace, and if these companies don't try to keep it in check then they will get shut down by the government or the fees you pay to use the service will be much higher.
Re: I made $200K and PayPal locked my account
#143Use WePay.com
Re: I made $200K and PayPal locked my account
#144Sad story, I agree with folks who say you should seek out legal advice. HEADS UP FOR ANYONE ELSE CONSIDERING THIS: If you are going to receive funds with PayPal and they are going to exceed the 'occasional sale' guidelines (which some people interpret to mean the same guidelines at the rule for sending an IRS 1099 form which is First establish your business presence in the US, that means creating an LLC, getting an E…
'It didn't help that the OP is a student from Venezuela which is not one of America's trading partners.'
A common misconception among Americans. Though understandable considering the state of diplomatic relations.
"The United States is Venezuela's most important trading partner. U.S. exports to Venezuela include machinery, organic chemicals, agricultural products, optical and medical instruments, autos and auto parts. Oil dominates U.S. imports from Venezuela, which is one of the top four suppliers of foreign oil to the United States. About 500 U.S. companies are represented in Venezuela. U.S. foreign direct investment in Venezuela is concentrated largely in the petroleum, manufacturing, and finance sectors."
Re: I made $200K and PayPal locked my account
#145I was always wondering, if PayPal locks a 200k$ account, where does that money go?
It doesn't "go" anywhere, it's just a balance. It remains locked until some resolution of an investigation happens, it's no different than when a bank account is frozen.
Re: I made $200K and PayPal locked my account
#146Sorry to hear about the troubles :( If this wasn't the umpteenth time I've heard this story, I wouldn't say this so pesteringly: To everyone: Stop stop stop stop stop using PayPal. This happens over and over again. For once, thankfully, there are viable alternatives out there -- Stripe & WePay to name two (both of which I've had excellent experiences with). Not saying they're panaceas or that there won't be security/…
I don't think paypal is the problem here, this is a pretty clearcut case of not having ones ducks in a row before doing business. People shouldn't expect that you can run a business as though it were a lemonade stand and funnel hundreds of thousands of dollars through any processor, including paypal, without anyone taking notice. That's not the way banks work, it's not the way the law works. Get a business license, g…
Personally, I think the law is outdated and poor if pretty much anybody can run afoul of the laws while being completely clueless and befuddled by them essentially on accident.
Re: I made $200K and PayPal locked my account
#147Re: I made $200K and PayPal locked my account
#148Why is PayPal's policy to wait until the account accrues significant funds and then lock it? If the OP doesn't have an SSN then why wouldn't PayPal block the account from being registered in the first place?
Occasional sales of personal property below a threshold value are not taxable, nor do they need to be reported to the IRS, etc., nor do most payments, so creating an account does not necessarily require an SSN/TIN.
Re: I made $200K and PayPal locked my account
#149Sad story, I agree with folks who say you should seek out legal advice. HEADS UP FOR ANYONE ELSE CONSIDERING THIS: If you are going to receive funds with PayPal and they are going to exceed the 'occasional sale' guidelines (which some people interpret to mean the same guidelines at the rule for sending an IRS 1099 form which is First establish your business presence in the US, that means creating an LLC, getting an E…
'It didn't help that the OP is a student from Venezuela which is not one of America's trading partners.' A common misconception among Americans. Though understandable considering the state of diplomatic relations. "The United States is Venezuela's most important trading partner. U.S. exports to Venezuela include machinery, organic chemicals, agricultural products, optical and medical instruments, autos and auto parts…
Thank you for that, I stand corrected.
Re: I made $200K and PayPal locked my account
#150Sorry to hear about the troubles :( If this wasn't the umpteenth time I've heard this story, I wouldn't say this so pesteringly: To everyone: Stop stop stop stop stop using PayPal. This happens over and over again. For once, thankfully, there are viable alternatives out there -- Stripe & WePay to name two (both of which I've had excellent experiences with). Not saying they're panaceas or that there won't be security/…
I don't think paypal is the problem here, this is a pretty clearcut case of not having ones ducks in a row before doing business. People shouldn't expect that you can run a business as though it were a lemonade stand and funnel hundreds of thousands of dollars through any processor, including paypal, without anyone taking notice. That's not the way banks work, it's not the way the law works. Get a business license, g…
> And it's not because they are trying to be assholes, it's because fraud and money laundering are commonplace
Actually, in large part, they are just being greedy assholes that are doing this because they can get away with it, and because it is profitable. They largely invented the freezing game, and they know how profitable it is.
Of course fraud and money laundering are issues, however that is far from the OP's use case. Before they freeze hundreds of thousands of dollars, you would think they would at least look at his site for a few minutes.