PayPal Holdings, Inc. Bank Account Or Service Complaint

PayPal Holdings, Inc. Bank account or service department,

Other bank product/service Account opening, closing, or management Virginia

We started an online advertising company -/-/2015. At the beginning we accepted debit/credit cards and PayPal for clients to purchase our advertising services. In -/-/2015 we had an issue with our debit/credit card virtual terminal because some clients were submitted false payments with unauthorized use of stolen cards. We immediately addressed this issue with - - - who was providing the service for the virtual payment terminal, and at the end they decided because there were a few clients who processed fraudulent transactions that they would terminate our use of their payment solution. We understood the circumstances and then found out that they had place our business on a TMF list ( The Terminated Merchant File is shared among processors and acts as a blacklist, where merchants with high risk accounts or excessive chargebacks are put on the list and prevented from opening an account with a different credit card processor. ) Because of this act by - - - for something we had no control over, PayPal continued to allow us to process payments through their processor for the next 2 months and then all of a sudden we receive an alarming email stating they would no longer be


accounts and attempted to pull money back. In the course of the time we were using PayPal we did over $ - in sales through them and they reaped the benefit of the fees they charge to transfer payments etc. PayPal froze almost $ - of our business funds and ultimately caused us to get behind on Payments to our clients using our services. They should not have frozen our account and held the money because initially when they accepted our business they went through a thorough review and decided to put a reserve of $ - and take a percentage as a reserve on each transaction to cover any possible chargebacks. Instead PayPal chose to freeze everything and we were forced to let our clients know that we could n't pay them which created thousands of disputes. PayPal continues to do this to multiple businesses and personal accounts. PayPal currently has a class action against them for this exact reason ( - v. PayPal Settlement ). PayPal has caused us to practically go out of business due to this and damaged our name and business tremendously. We attempted to work things out with them multiple times when this first happened, but it caused nothing but problems as they were not willing to release funds that were owed to us according to their terms and caused massive disputes.