Do you have a best pal? You know, someone with whom you like to hang out — socialize — mix — and hobnob?
People enjoy all types of pals throughout their lifetimes. As children, many enjoyed pen pals, secret pals, or gal pals. Later on, famous duos and trios (some of infamous reputation) top the list of favorite folks.
Remember Butch Cassidy and The Sundance Kid? The Three Stooges? And Bonnie and Clyde? What about Smokey Robinson & The Miracles, Julie Child and Jacques Pepin, Sonny and Cher, or Simon & Garfunkel?
Some of these legendary folks were great pals, and some were not. All delivered unforgettable memories to millions of folks around the world, with many still famous today.
Now that you’re building a high risk ecommerce business, you may be reaching out to another type of pal. One notable payment aggregator — PayPal — attracts millions of ecommerce merchants who need to process payment card transactions, and who want an easy solution.
PayPal began the payment aggregator business around the world. They’re well known for being simple to start — but also difficult to retain as your payments processor when inevitable chargebacks occur.
So don’t be surprised if you or another merchant who’s your good pal says, “PayPal closed my account and I don’t know why… ” Not the action you expect from a good pal.
Why and How PayPal Closes Accounts
Looking for good news about how you’ll hear PayPal closed my account? Sorry to say, you won’t find it here.
PayPal account holders sometimes discover closed accounts only when attempting to make a purchase, or when others attempt to buy from them using PayPal accounts. Or they receive an email about “unusual account activity” leading to a frozen account — without explanation.
Merchants cannot access funds frozen and held by PayPal — for a minimum of 30 days, and up to 180 days. The longer period seems more usual based on the multitude of complaints found via industry complaint sites. Here’s one of the most egregious stories.
As occurs often today, merchants who suffer bad experiences don’t hesitate to share their PayPal closed my account stories online. (And we didn’t even check popular social media sites.)
Oddly, PayPal’s rating with the BBB is an A in the U.S., and A+ in Canada. Odd because of 94% negative reviews and 6,720 and 4,849 customer complaints, respectively. And at least one consumer advocate was unable to help a frustrated consumer who told him PayPal closed my account and I don’t know why.
But rest assured, PayPal will eventually release your reserved funds.
PayPal’s website states, “Monies held in reserve are typically paid out in 180 days.” Why so long? PayPal mitigates its own risk of loss associated with returns, disputes, or chargebacks filed with buyers’ credit card companies. Meanwhile, they hold merchant funds.
PayPal helpfully offers explanations in the “self help” section, including these six quoted reasons why your payment may be placed on hold:
- You’re a new seller with PayPal
- You have performance issues or a high rate of buyer dissatisfaction or disputes
- The pay received may be considered unusual for your selling pattern (especially applicable for those moving off eBay)
- You were previously an inactive seller
- You’ve been selling for awhile but opened a new account
In case you wonder, they go on to say you “typically” receive the money in your available balance within 21 days after receipt — if no issues exist with your account. And they offer tips to help expedite payments. But keep in mind you cannot reopen a closed account.
Here’s more : how PayPal handles chargebacks, restrictions on their famous “Seller Protection Policy,” and on using PayPal with eBay.
There Are Better Options
Don’t want to hear PayPal closed my account again? If PayPal terminated your account for any reason, you should know that there are better options available. You can process payments again while also protecting your business from chargebacks and fraud.
High-risk merchant accounts (both domestic and offshore) provide unique benefits that payment aggregators like PayPal, Stripe, and Square don’t. You’ll also receive earned revenues more rapidly because merchant accounts provide faster funding (about 48 hours).
Look for a full-service payment solution provider to help find the right merchant account for your business, based on your unique business needs. The right provider cultivates many banking relationships, which they’ll leverage to help you land a dedicated merchant account.
And that account will cost you less over time than an account with a payment aggregator like PayPal.
Take the Next Step After PayPal Closed Your Account
Here’s an idea a true pal would share: Reach out to a specialized high-risk payment processor. It’s the right next step to get your payments processing up and running again smoothly and seamlessly. And the best move to get your business quickly back on track.
A processing partner with proven account experience and a great reputation is a better bet than any other type of pal you may find. Choose one who offers a secure, reputable, and stable solution.
Your next “best pal” should offer a secure, reputable and stable solution. He should treat you like a partner, act as your payments consultant, and ensure a secure payment gateway is up and running quickly — so you can start accepting credit card sales again.
And like a real pal, he sticks around to meet your current business needs. And to ensure that the payments solution you choose provides the flexibility desired to scale up for future growth.
So you won’t hear PayPal closed my account again.