Imagine if you treated your customers as badly as @PayPal

So PayPal out of the blue has decided to keep thousands of pounds from one of our businesses.

OK, as a business person I know that things happen and as somebody that knows banking I understand the problem of fraud and risk management, but...

...after a few months of trying to resolve the situation and being very co-operative I decided it is time to close the account and just use a merchant account provider, to which I am told they want to keep thousands of pounds of our businesses money for six months!

When asked if I could speak to a decision maker or manager I am told that it is not possible and no decision maker or manager speaks to people on the phone.

I have been a customer of theirs for years with no problems, have transacted hundreds of thousands of pounds and out of the blue they want to keep all our money.

Not sure if they knew that I own a very big blog on the topic of banking, own a social network for banking, wrote a book on banking reform and have a very large social media presence in banking and am about to launch an alterative non-bank So thought this blog would help them a little...maybe...

This blog is in pure frustration and hoping that PayPal will give the decency to at least speak with someone on our team or at least write an email from a human. Nothing yet.

Anybody else had an experience like this?

If you 'like' this blog above and share on twitter, it will tweet PayPal.

If you comment we can get this to the first page of Google. All I want is to speak to a decision maker and ask if there is any way we could be treated as a customer.

Is that too much to ask?

After watching this video, it seems I am not alone.

I even talked about how revolutionary PayPal is in my book 'Bank To The Future'. Perhaps time for a second draft.

Share your PayPal experiences...

Simon Dixon
Founder of Benedix
Author 'Bank To The Future: Protect Your Future Before Governments Go Bust' & 'Student To CEO: 97 Ways To Influence Your Way To The Top In Banking & Finance'

Philip Cohen


Imagine if you treated your customers as badly as @PayPal

A solicitor's letter apparently does do the trick … Scott Thompson abandons the struggling eBay for the struggling Yahoo! Oh, Scotty, why? Why? Why? Obviously, Scotty could see Visa's "" iceberg ahead and decided to abandon ship before the tired old scow, eBay, hits that berg—a very smart move, and ... "Study Sees PayPal Adoption Down Among Multi-Channel Merchants "Twenty-two percent of EPIS merchants who had accepted PayPal on their own websites and off-eBay stores in October 2010 stopped accepting PayPal as a payment method on those sites in October 2011. "There were 19% more merchants who accepted credit cards on their own websites and stores in October 2011 than in October 2010." And, Visa is to launch its new online payments gateway "" this year. The idea is similar to that offered by PayPal: payment card details are uploaded to Visa—even if they're not Visa-branded—and Visa will process payments—directly between the payer's banker and the merchant's banker—without revealing card details to the merchant. So, the use of such a "professional" system should reduce the risk and cost of online credit card fraud on all concerned to virtually zero. Off-eBay online merchants will now be able to free themselves from the parasitic, most unprofessional, unscrupulous and "clunky" PreyPal. And, undoubtedly, PreyPal will then atrophy back to it's mandated use on the eBafia marketplace only, from whence, without its mandated use thereon, PreyPal would never have had the success that it has had. Unfortunately, there is no relief from PreyPal in sight for on-eBay merchants. But, be in no doubt that, except for its mandated use on whatever will be by then left of the Donahoe-atrophied eBay Marketplace, the clunky PreyPal will elsewhere be quickly buried by Visa's professional online offering, "", once it is up and running this year. Thereafter, as eBay continues to atrophy, so will PreyPal. And, as for the possibility of the clunky PreyPal moving into EFTPOS at B&M in competition with Visa/MasterCard—this is pure science fiction—if Scott Thompson was still there I would say "Beam me up Scotty". The Home Depot "partnership" is simply more disingenuous nonsense directly from the eBay Dept of Spin. This arrangement is actually only a very limited trial and the only "customers" using it will be PayPal employees—things are apparently getting that desperate at PreyPal! And, frankly, Home Depot executives must be stark raving mad to have even contemplated getting involved with PreyPal, even in this limited "trial". Then, there is that other little problem of corporate image: the eBafia and PreyPal have become the two most despised commercial entities on the planet, even more hated than "the banks", and that has taken some doing, and will have an ever-increasing debilitating effect on both of these clunky operations. So, no more underpinning of eBay's sagging bottom line by the clunky PreyPal. What is the "eBafia Don" to do now? Maybe, if Mittless Romney wins the GOP nomination we can hope that he will pick as his running mate his fellow "Pain from Bain", the headless turkey, John Donahoe. Donahoe's nearing the completion of his demolition of the eBay marketplace and so he should soon be looking for an even bigger challenge. It appears that Scott Thompson was smarter than we thought; after all, he would know the real situation at PreyPal and he undoubtedly recognises that the clunky PreyPal is on the cusp of commencing its journey down the gurgler, and he has jumped off the tired old scow "eBay" before it finally goes submarine. Anyone that thinks that Thompson has abandoned eBay (and the headless turkey Donahoe) for the struggling Yahoo because PreyPal has a great future ahead of it outside of eBay is simple delusional. As a matter of interest the total value of credit/debit cards transactions currently stands at about $6,242 billion dollars per annum, of which Visa has $3,273 billion (or 52%), MasterCard $2,047 billion (33%), American Express $702 billion (11%), Discover $107 billion (1.7%), JCB (who?) $87 billion (1.4%) and Diners Club $26 billion (0.4%). On the other hand PreyPal claims total payment volume of $29.3 billion for Q3 2011; let's estimate it at ~$110 billion for the year 2011, or about 1.8% of total payments volume! Methinks more noise than substance; then, what other purpose is served by such a hard working Dept of Spin? The total number of cards currently on issue is 3,089 million, of which Visa has 1,897 million, MasterCard 975 million, American Express 91 million, Discover 56 million, JCB 64 million and Diners Club six million. Buried somewhere in these figures are all the "co-branded" cards, like PayPal's, which are nevertheless invariably still Visas or MasterCards. "PayPal will become bigger than eBay in the next 3-5 years"—John Donahoe, eBay Analyst Day, 10 February 2011 Notwithstanding Donahoe's obviously delusional mental state, eBay's chief headless turkey has got that right: undoubtedly PreyPal will be bigger than eBay soon, but it won't be because PreyPal has gotten any more successful, just the opposite—Visa's will see to that; it will be because the eBay "house of cards" has finally imploded. And, seriously, who but a total idiot would invest in a PreyPal IPO now? It appears that Donahoe was genuinely surprised by Thompson's departure. Who then will now take charge of PreyPal? Surely, only a fool would take charge of this clunky entity now. Regardless, the real question now is, when is the "eBafia Don" also going to abandon ship, or be thrown overboard by the owners of the ship when they finally wake up to the fact that, all along, they have had "Captain Queeg" at the tiller? Hang on, apparently eBay has found a fool to take charge of PreyPal ... "Ebay Boss John Donahoe To Serve PayPal's Interim President" Regardless, if ever there was an unscrupulous commercial entity that deserved to be comprehensively audited by a court-appointed special master, eBay (along with PayPal) is it. "A tale of two unscrupulous and clunky commercial entities" "PayPal claims PayPal Is Not a Payments Processor!" And, if you still don't understand why PreyPal has no future outside of its mandated use on eBay, visit eBay / PayPal / Donahoe: Dead Men Walking


Nic Oliver


Imagine if you treated your customers as badly as @PayPal

Always make sure that you have either a verified or business account with them. A friend of mine launched an online business, using an ordinary Paypal account and it seized about $10,000 of his money. And he needed the money to live on! It took him a long time to get the money released. Oddly enough, as soon as he threatened legal action, the issue was resolved in a matter of days! I hope you get your money back soon Warm regards Nic


Mick Say


Hi Simon -

Hi Simon I have heard this story (or similar) many times about PayPal, however my personal experience with PayPal has always been positive. However as a safeguard I always transfer all funds over £1,000.00 from PayPal to my bank account. Recently I made an online purchase for £519.00 rather than use my debit card I used my PayPal funds to pay for the goods. Cut a long story short the website turned out to be dubious and I did not receive the goods - I raised the issue with PayPal and got a full refund within the week. I am confident my money would have been lost if I used my debit card. Again from my own experience I think that PayPal is a great merchant for small businesses with small transactions, We just need to leave the minimum possible funds in our PP acounts to guard against this issue. Good luck with your quest to speak to the powers that be, you have my support if you need it further. Regards - Mick


Alan Bowman


Imagine if you treated your customers as badly as @PayPal

Hi Simon This is not an uncommon chain of events in the last year and does make one wonder what is happening with their cash flow and complaints procedure. Good luck in getting it resolved Cheers Alan


Andrew Field


Imagine if you treated your customers as badly as @PayPal

Simon... In simple terms PayPal sucks.... Paypal at once stage sanctioned all transactions into and out of Zimbabwe as part of United States targetted sanctions against political individuals in Zimbabwe. This meant that all foreigners resident in Zimbabwe, irrespective of their political pursuasion were sanctioned, me included. The United States Treasury was right behind them. The response to my protests to the local US Embassy, PayPal and anyone else who would listen was pathetic... so much so that I wondered if I was actually dealing with an international corporate. Because of this, I will avoid PayPal at all costs... and always make an effort to do transactions another way. I really do not think that they will care too much about your influence in the banking world, Simon, David and Goliath does come to mind, but they are just too big for their boots now. By all accounts, they could stumble and fall.


Chris Johnson


Imagine if you treated your customers as badly as @PayPal

PayPal is fine and dandy until something goes "wrong" and you get no help what so ever from them. Why not put your complaint on PayPalSucks? It may make you feel better. Good Luck Chris Property Costa del Sol Furniture Algarve


Georgina Lester


Imagine if you treated your customers as badly as @PayPal

Have you done a search in the BS community forum Simon? I think that you will find someone discussing this there too.


Andreas Wiedow


Imagine if you treated your customers as badly as @PayPal

See Why is @PayPal dying and why it deserves to be - same video.