xiaoming's dashboard

Some people say when you created a PayPal account, you agreed to PayPal's user agreement allowing them to shut you down for any reason. Well, I don't think so. By creating an account with them I entered into a mutually binding contract with PayPal, and any unilateral decision on PayPal's part needs to conform with the contract. By not violating the contract, I should not have been shut down. If I don't get my account back, I will write a very long story and send it to all the major media outlets over the world.

After receiving an email from PayPal’s office of Executive Escalations, explaining how they reached the decision to limit my account, I got the understanding that everything resulted from a disgruntled customer of mine filing a complain to PayPal on November 1. The transaction in question was less than $20. I know exactly who this customer is, and that was a very rare outlier case and the order was fully refunded. The customer is from a non-US country, and he sent me a copy of the complaint he filed to PayPal, claiming my operations is a complete scam.

He filed the complaint on November 1, and my account was limited on November 2. So I wrote this rebuttal immediately upon receiving the email from Executive Escalations. I am attaching the email from the Executive Escalations as well.

It's just amazing how a slanderous message from a single customer could have such catastrophic effect on my business. Well, I guess this only happens with PayPal. I have had a merchant account for many years, and never ever was forced out of my account for any reason. It's just amazing with PayPal. I feel I have to write the whole story and publish it in the New York Times and other major newspapers. I will fight my case to the end!

Dear PayPal:

Thanks for the response.

I feel my case was mishandled by your appeals department.

Contrary to what you claim here, I have done my best and provided all the information you asked for. My personal information, along with information on business transactions, vendors and all other pertinent information. I am attaching my last fax to you again here. You can’t say that a PayPal payment to my vendor can’t be regarded as a valid invoice, just like you can’t use a stone to shoot your own feet, right?

I have 100% positive feedback on eBay as I write, at 132 points. I have no pending dispute on PayPal. Less than 1% of my PayPal transactions resulted in a dispute against me. Isn't this sufficient information? Anyone with good common sense can tell that I am fulfilling the duties of the seller diligently. Now you have made my business really hard because I can't take PayPal payments. My eBay buyers are waiting to pay with PayPal.

You assume all businesses operate like this: build a big warehouse, invest in inventory, stock inventory, sell it on eBay and ship it. Your big customers like Buy.com or Sears might operate like that, but you can’t expect small businesses like mine to operate in exactly the same way. That's not my business model. We have VMI vendor managed inventory. The inventory is not mine until sold to a customer. I have clearly shown you a list of my vendors and my balances with them in various currencies. I have serious doubts about the competency of the staff in your appeals department. Do they have college degrees? Do they have the basic business and accounting knowledge? Do they have a GED? Do they even have common sense?

Now let me summarize the information you requested, one more time:

You asked for: *Upload or fax contact information (phone number, email, etc.) for your supplier(s)
My response: Two sample vendors here:
Vendor 1: (vendor information omitted)
Vendor 2: (vendor information omitted) Some invoices attached show payments to this vendor.

I have numerous other vendors as well. Sometimes for my website sales, I go to eBay and purchase the items for my customers. You can see that in my eBay and PayPal accounts.

You asked for: *Invoices for a sample of the merchandise you have sold or are selling.
My answer: Here, for this sample PayPal payment I received: XXXXXX802BK185805W . The procurement/fulfillment invoice for this order is in attachments invoice_image_Page_1.jpg and invoice_image_Page_2.jpg Please review these sample invoices to show that merchandise was promptly paid for and procured for, and shipped to my customer. I am sorry the invoice is in Chinese, but that’s what we do. It shows 120 YUAN in currency RMB was paid to this supplier for this particular order.

You asked for: *Copies of the original bills of sale or invoices referencing your purchase or acquisition of the items you are selling.
My answer: For this you can look at attachment paypal_limited_800.pdf and find the PayPal payments I sent out to my vendors. Two sample vendors: johnny@XXXXXX.com and eleXXXXX@so-net.net.tw. These are valid PayPal transactions paying my suppliers. I wonder why they were not accepted by your appeals department?

You asked for: *Name and telephone number of your supplier
My answer: I already provided this above.

I will continue to fight this until an equitable and fair solution is provided. I reserve my right to forward this case to the district attorney’s office, and find channels to forward this information to the CEO of PayPal and eBay, as well as all the major online and offline media outlets.

While it’s simple for you to nip it in the bud while treating a small business like mine, please bear in mind that you are dealing with the livelihood of several people.

You are also implying some of my buyers have reported to you their negative experience with me. Then why was I not given a chance to defend myself? What specifically was the charge? I have a hundred percent good eBay feedback and I have less than 1% disputes resulting from the PayPal transactions I receive. No pending PayPal claim in my account at all right now. So what really is the problem? I was never given an explanation and a chance to defend myself.

Now here is my modest proposal: return my PayPal account to normal standing so I can continue to accept payments. For each payment I receive, you hold it for 60 days. If a claim is filed within the 60 days, you continue to hold the funds until the claim is resolved. Wouldn’t this be a win-win for both of us?

I read about a major PayPal customer in Australia going bankrupt and causing millions of dollars in loss to PayPal. Wouldn’t a simple solution like holding payments for sixty days solve the issue once and for all? It’s constitutional and not against any local by-laws, and you have my consent to do so.

Please help.

-Xiaoming

executiveoffice@paypal.com wrote:
Dear Xiaoming XXXXXX,

My name is XXXX and I work for the office of Executive Escalations.
Your concerns were recently forwarded to our office. I have reviewed
your Account and would like to offer the following information in
response to your inquiry.

Our records indicate that on November 2, 2009, as part of our security
measures, we observed activity in your PayPal account that was unusual
or potentially high risk. At that time, we limited access to your
account pending the submission of additional information in regards to
your business (Case ID Number: PP-XXXXXXXXXX-XXXXXX-82).

Some of the information we requested is as follows:

*Upload or fax contact information (phone number, email, etc.) for your
supplier(s)

*Invoices for a sample of the merchandise you have sold or are selling.

*Copies of the original bills of sale or invoices referencing your
purchase or acquisition of the items you are selling
*Name and telephone number of your supplier

As you were not able to provide this information to us, for the safety
and security of the PayPal network, we decided to close your PayPal
Account because of security issues. You were provided information on how
to refund your buyers who had paid you with PayPal, and advised that
money in your PayPal account will be held for 180 days. After 180 days,
you will receive an email with information on how to receive your
remaining funds.

In accordance with PayPal’s User Agreement, PayPal reserves the right to
close any account reported to be involved in possible high-risk
behavior. In your case, PayPal has determined that it is in our mutual
best interests to part ways. This is not a decision we make lightly, and
we deeply regret any inconvenience or frustration this matter may cause
you. Unfortunately, this decision is final.

Unfortunately, websites exist on the Internet stressing a negative
experience with a particular company. I apologize that you feel the need
to escalate this issue in this manner. Please note that all actions
taken on your PayPal account are in accordance with our Legal Agreement,
and PayPal will respond to any outside inquiries received.

Again, I sincerely apologize for the difficulties you have encountered
while using PayPal. If you have further questions, please email
executiveoffice@paypal.com.

Sincerely,
XXXXXX
Executive Escalations
PayPal, an eBay Company

Original Message Follows:
------------------------
I would like to appeal the action taken on my account.

I have posted my case online. Please kindly review.

http://www.getsatisfaction.com/paypal...
ested_to_provide_sensitive_and_highly_confidential_business_information

Building a business on eBay and PayPal is like building a mansion on sand.

Don't expect anything good unless you are as big as buy.com or sears.com. Just two of eBay's biggest customers.

Anita: did you get your account back? This is happening to me too. 100% positive eBay feedback, no pending PayPal disputes, everything looks good. And bang! Your account is locked!

I just got notice that PayPal closed my account, and is holding $3,706.49 for 180 days AT LEAST.

I dislike the extremely unprofessional practice at PayPal, that every time I get a response from them, it’s from a different person. I feel I am being treated like a small ant. Being treated like trash.

How could ten different people handling the same case, each one getting only a piece of the information, get a whole picture of my operations and my business????????? Not to say to understand my specific needs?

My fledgling eBay account is being destroyed. It has 125 points positive feedback. Now I have buyers waiting to pay with PayPal, and are angry at me for not taking PayPal payments. http://feedback.ebay.com/ws/eBayISAPI...

My Merchant Warehouse merchant account, which allows me to charge my customers tens of thousands of dollars each month on credit cards, never had such issues.

PayPal is, apparently, disproportionately skewed towards the consumer instead of the seller. It’s pro-buyer, pro-consumer. I would advise any small business owner who need to charge customers to open accounts with merchant account providers like Merchant Warehouse. But strangely I don’t have a single negative feedback on my eBay profile, and not a single case of PayPal claim pending.

I am REALLY REALLY ANGRY AND FRUSTRATED.

---------- Forwarded message ----------
From: <service@paypal.com>
Date: Fri, Nov 6, 2009 at 9:08 AM
Subject: Your PayPal Account
To: ×××××××××××××××××××××

Hello ××××××××××××××,

For the safety and security of the PayPal network, we often review accounts
for potential risks. After reviewing your account, we have decided to close
it because of security issues.

If your PayPal account balance is zero, and you have no unresolved buyer
complaints or chargebacks, your account will remain limited.

-----------------------------------
Disbursement options
-----------------------------------

Option 1. If you owe refunds to any of your buyers, you can use the money
in your PayPal account to refund them.

To refund your buyers:
1. Log in to your PayPal account.
2. Click "Contact Us" at the bottom of any page.
3. Click "Contact Customer Service."
4. Under "Choose a Topic," select "Sending/Receiving Money."
5. Under "Choose a Subtopic," select "Refund/Cancel a Payment."
6. Click "Continue" and follow the instructions to refund payments.

Option 2. Money in your PayPal account will be held for 180 days. After 180
days, we'll email you information on how to receive your funds.

We regret any inconvenience this may cause.

Sincerely,
Jordan
PayPal

Please do not reply to this email. This mailbox is not monitored and you
will not receive a response. For assistance, log in to your PayPal account
and click the Help link in the top right corner of any PayPal page.

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PayPal Email ID PP1448

How did you finally resolved this issue with PayPal? Did you get to talk to somebody on the phone?