Dropping PayPal

I’ve used PayPal as a payment processor for intangible goods for the last five years ago. As of today, I’m ending my business relationship with them.

In the last few weeks I’ve learned that processing tens of thousands of dollars each year, being a customer since they were founded, responding quickly and diligently to chargeback complaints, and never having balance issue doesn’t mean squat.

Despite the above, restrictions on my account currently include a 30% 90 day rolling reserve and a $928 dollar indefinite minimum reserve which are both way above industry standards. To top it off, PayPal is now initiating and resolving chargebacks against me that are entirely independent of the customer.

Let me be clear on that last bit: without the customer’s knowledge or request, PayPal determines that a sale is not eligible and refunds the customer’s money. Why? Good question. The explanation I’ve received so far was regurgitated boilerplate which is PayPal code for “because we said so”. I call it theft.

Managing PayPal has become the largest burden in my day to day operations. It used to be a good company to work with, but it’s time to take my business elsewhere.

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