The dark side of PayPal disputes, security and account ownership hazards
by - Casey Nolan | 3 years ago
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I have been a PayPal user for a long time now. Sadly, like some other individuals on the World Wide Web, it did not end well. You have heard of the phrase, “Meddling with a pig is going to make your clothes dirty. The more you meddle; the muddier you are going to get.’ This applies to PayPal, your boss, snotty school teachers and government employees mostly – You can’t mess with them.
In the name of “Resolve” we will take all your money!
PayPal is not a trusty medium for financial activities. Most of the people, who have been stung by PayPal, relate their negative experiences on the same note. Things were going great, until one day they receive an email from PayPal stating that proof of account ownership, proof of transaction in real life etc. needs to be procured to “protect” the said user from fraud.
On the other hand, when we are talking about money disputes and resolutions, the amount in your account and probably the amount in the other person’s account, with who you are settling the dispute with, remains locked/ in accessible. In other words, you are pretty much screwed up as long as PayPal sorts out the account verification.
Never leave all your money in your PayPal account:
The first and the foremost rule of business, especially with PayPal, is not to leave all your money in your account. PayPal has the right to retain or withhold any payment without prior warning. As long as it is a couple of hundred dollars in question, you will not face any trouble or whatsoever. The payment medium will keep on working, until the moment or the day when you will start “saving” huge amount of money into your account.
Secondly, if you have a few thousand dollars, regardless of whether they were accrued through legit sellers or whatever, PayPal police will suddenly popup, asking for details of those transactions, chargebacks or your own identity. If PayPal is not having a case of “***k ups” that day, you will get your money back and your account will remain functional.
The best bet is to accept payments in small amounts *(if possible), and then immediately withdraw them to your bank account, or your Prepaid MasterCard.
PayPal vs. proxy software vs. countries not supported:
Being an internet based entrepreneur I’ve had my share of the fill. I have personally dealt with, worked with and seen people who create PayPal accounts from countries that are not supported by the payment processing company.
For instance, I have a friend from Nigeria, and another one from Pakistan; both of them have PayPal accounts, but they have shown the country of origin as U.S., and the U.K. for that matter. So far they have only run into a few hiccups, but they don’t realize that they are waiting to be blocked by PayPal any given day.
These “friends” actually created accounts in their real life contacts’ name. However, they access their accounts using a proxy software, to trick PayPal security system into believing that the account is being accessed through a whitelisted IP address range.
In other words, PayPal is smart enough to detect if you are accessing your U.S. etc. account from Pakistan, Indian or any other country that is not entirely supported. India is in PayPal’s list, but the company has applied so many restrictions on Indian accounts that most of the users are better off without PayPal in the first place.
Anyhow, if you are using IP address changer, or proxy changer to log in to your PayPal, you will be caught eventually. They will ask you security questions or demand submission of documents to verify account details. If you don’t have those credentials on hand, your account will remain locked until further notice. On the same note, whatever amount of money you had in your PayPal account; it will also remain locked.
PayPal makes money even when your transaction is locked/ is under review:
No doubt, customers want security when it comes to safe transactions, but PayPal is using the same cards to its own benefit. Each day that PayPal takes to “resolve” disputes, it is earning interest on that locked up amount.
Let’s say your account had $100 in it, and PayPal asks you to provide some kind of proof to “protect” your account and user experience, the company charges a small percentage of money to process that security clearance phase.
Sellers believe that PayPal’s practices have started to become unethical. They are misrepresenting and luring the customers through false promises. Once there is enough money in a customer’s PayPal account, the company starts asking them for bills, ID forms and passport copies.
From an ex-client’s perspective, it is just an excuse to “steal” money. By the way, you can contact me anytime at email@example.com if you are having trouble with PayPal account. I can only advice you to the best of my knowledge. Most likely your case will be resolved soon.
About Casey Nolan
Hello everyone, I am Bilal Malik AKA 'Casey Nolan'; Head Editor and owner of 'Infinarium.Com'. For product reviews, article requests, recommendations, or if you just want to get something off your chest, send me an email at firstname.lastname@example.org.
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