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PayPal Froze My Account
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PayPal Locked My Funds
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PayPal Withdrew $1,315
Why Can't I Refund
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Chargeback Nightmare
Funds Held 180 Days
PayPal Removed Money
PayPal Double Billing
I'm Out $1,745
Multiple Amounts Taken
Fraud, Lies and Threats
Totally Disgusted
Another PayPal Victim
PayPal Nonsense
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PayPal is Crooked
eBay Nightmare
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Everything Seemed Fine
My PayPal/eBay Saga
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Screwed Over By PayPal
Bank Account Charged
This is All Bullcrap!
Huge PayPal Problems
PayPal Password Theft
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PayPal Held $1,100.00
PayPal Phone Fraud
PayPal Employee Theft
I'm So Stressed Out!
Can They Do This to Me?
PayPal's a Waste of Time
I'm Out $97 AND My Item!
$1,225 Rolex Runaround
PayPal=No Seller Protection
Such Incredible Stress!
PayPal Account Hacked
Collections Nightmare
PayPal Sided With a Thief!
PayPal Horror Story
Chargeback After 1 Year!
Account Locked For Weeks
PayPal/eBay are Crooks!
PayPal Acct Broken Into
PayPal an Awful System
Broke For Christmas
Robbed out of $2,500
PayPal Sides With Scammer
PayPal Funds Vanish
I'm Done With PayPal
Boycott PayPal and eBay
Lack of Communication
PayPal Phishing email
No Seller Protection
PayPal Security Problem
Held Money for no Reason
Stolen Credit Card
Taking Legal Action
PayPal Hurt My Business
How Can This Continue?
PayPal Gift Certificate
PayPal "Foreign Policy"
PayPal Float Concept
Former PayPal Customer
All of a Sudden, PayPal...
PayPal Fraudulent Email
Instant Download
PayPal Is No Pal Of Mine
PayPal Dictatorship
PayPal Took $630 From Me
Changing Credit Card Info
Funds From Wrong Account
Privacy Violation
PayPal Legal Jargon
Another Frozen Account!
PayPal Conflict of Interest
PayPal Ruined My Credibility
Another One For You
Merchant Account
How Can They Do This?
Top Ebay Seller Burned
4 Years no Problems UNTIL
PayPal Ate Almost $500.00
Can I Join in The Lawsuit?
Thanks For The Warning!
PayPal Extremely Evasive
These Guys are a Ripoff
Take My Advice
This Has Ruined Me
PayPal Team of Idiots
Commission on Stolen Money
This is a Nightmare!
PayPal's Phone Support Sucks
Awful PayPal Experience
PayPal Does Not Care
PayPal Privacy Issue
PayPal Account Hijacked
Paypal Helps Crook Steal
Paypal Can't Reopen Claim
Paypal Sided With Buyer
Ebay Power Seller & PayPal
I Stopped Using PayPal
Over 99% Feedback Score
Account Closed No Warning
Never Make Changes
No More PayPal For Me
No Pay Pal of Mine
$700.00 Down The Toilet
Funds Stolen By PayPal
PayPal Hackers Take 20k
Paydirect Yahoo Even Worse
PayPal Phone Number
PayPal Sucks
PayPal Resolution Futile
PaySat Is No Better
Another One Bites The Dust
PayPal Is Holding My Money
Don't Take PayPal Overseas
Making Ends Meet?
PayPal India Relationship
PayPal Locked My Account
PayPal Scam
PayPal Closed My Account
I Was Scammed
PayPal Fraud Email
PayPal Virus
Can't Close PayPal Account
PayPal Account Frozen
PayPal Problems
PayPal LapTop Scam
PayPal Ebook Problems
Letter To The BBB
Bad Experience With PayPal
Multiple PayPal Charges
Reversed Transaction
A Bunch Of Junk
Battle Against PayPal
PayPal Wont Refund Me
PayPal Took My Account
PayPal Must Be Stopped
PayPal Blackmailed Me
Stabbed By PayPal
PayPal Has No Ethics
PayPal Account Frozen
PayPal Is A Joke
PayPal Overcharges
A PayPal Nightmare
My Money In Limbo
PayPal Stole My Money
PayPal Wont Answer Me
PayPal Went Nuts
PayPal Is A Ripoff
Beware of PayPal
I Have No Account
PayPal Is Spamming Me
PayPal Took My Funds
I Won't Use PayPal
PayPal Equals Terrorism
Where's PayPal's Answer
Identity Fraud Victim
PayPal Has A Loophole
Scammed By PayPal
They Limited My Account
PayPal Is Fraud
PayPal Is Hard Labor
Won't Accept Complaints
PayPal Days Are Over
PayPal Is Not Safe
PayPal Is About Money
A PayPal Eye Opener
My Check Bounced
My Address Changed
PayPal Wouldn't Open
PayPal Passes Judgement
Hacked PayPal Account
Mistreated By PayPal
PayPal Shows No Love
Getting My Money Back
Limited PayPal Account
Money In Wrong Account
Foreigners Ripped Off
Lost Money From PayPal
Should Start PayPal Union
Multiple PayPal Problems
Fraudulant Account
About PayPal And Minors
PayPal Legal Threats
A PayPal Horror Story
No Buyer Protection
Invalid PayPal Purchase
Unauthorized Payment
PayPal's Unethical Ways
Thieves Stole My Money
A Profit Eating Scam
Prevent PayPal Victims
PayPal Lost Me All
Ebay Should Be Banned
Who Used My Account
Disgusted With PayPal
PayPal Was Hacked
False Payment Made
Fraudulant Transaction
PayPal Eye Opener
Those PayPal Crooks
No Explanation Given
PayPal Froze Account
Abused By PayPal
Should Be Outlawed
No Proof Of Delivery
PayPal Pulled The Plug
What A PayPal Scam
PayPal And Charges
Unfair Ebay Trading
False Transaction
A PayPal Lawsuit
Don't Deal With PayPal
Fraudulant Withdrawal
Thanks For Warning Me
PayPal Ruined Us
Buyer Fraud In UK
Wrong PayPal Account
Refusing To Refund Me
PayPal Deception
PayPal Chargeback
Account Held Hostage
May PayPal Burn In Hell
Criminal Shill Bidding
What PayPal Rubbish
PayPal Criminal Actions
Refunding Multiple Sales
No Proof Of Shipment
No PayPal Security
Check Out This Site
PayPal Is Trash
Spam From PayPal
Is This A Hoax
I Do Not Accept PayPal
Closing My Account
Not Holding My Breath
No PayPal Reinbursement
Misery Loves Company
Keeping PayPal Away
PayPal Protects Crooks
PayPal Fraud Victim
Most Unhelpful People
Court Against PayPal
I Plan To Sue PayPal
Seller Loses Two Ways
Product Misrepresentation
Won't Freeze Accounts
Neteller Versus PayPal
PayPal Is Robbery
Open To Negotiation
Nothing Is Happening
The PayPal Nightmare
Liars And Thiefs
Switching From PayPal
Claim Of Terrorist Activity
Sixty Day Claim Limit
Another PayPal Flub
A Fraudulant Monopoly
Complaint Of Suspicion
PayPal Placed Block
A Refund Is Impossible
PayPal Violated Me
Robbed Twice By PayPal
Austrailian PayPal Hater
Topping On The Cake
No One Is Exempt
A PayPal Horror
Poor Seller Protection
PayPal And Legal Action
Can't Cancel Account
Retaliating Against PayPal
Can't Get A Refund
Unethical PayPal Ways
FSA For PayPal Victims
Additional Credit Card
Worried About Security
A PayPal Nuisance
Victim Of PayPal Bums
Cheated And Betrayed
Change Not Authorized
PayPal Is Too Slow
Trying To Cancel Sale
I Must Delete Account
Want My Money Back
PayPal Trojan Email
PayPal Assists Fraud
Passion Against PayPal
PayPal Is Worthless
Shut Down This Scam
PayPal Killed Business
Question About Ebay
PayPal Loves Money
Like Broken Glass
It's Got To Stop
PayPal Shopaholic
Money And Corruption
How To Bypass PayPal
Fraud Letters Out There
PayPal Pain And Agony
Received Bad Item
No Reason For Block
PayPal Info Confirmation
Dragging Their Feet
Ways To Make Purchase
My PayPal ID Stolen
No Choice But To Pay
PayPal Criminal Charges
Wishing Them Bad Health
PayPal Account Negative
I Never Had An Account
PayPal Nonappeal Status
I Was Almost A Victim
PayPal Says No Comment
Wishing Death On PayPal
I Hate Stupid PayPal
My Account Hijacked
PayPal Is In Shambles
Unverified Purchaser
Bank Account Is Primary
PayPal Refused To Listen
PayPay, Face The Light
Words Fell On Deaf Ears
My Blood Pressure Soars
PayPal Cheated The Seller
Can Not Cancel Account
PayPal Account Is Limited
No Amicable Resolution
Requested Bank Card
PayPal Robbed Money
Attempt To Get Business
Problem With PaySat
Can't Get My Money
Pretend PayPal Emails
New Email Address
Requested Password
PayPal Shut Me Down
Fraud To My Account
Some Kind Of Fraud
PayPal Really Stinks
Never Received It
A PayPal Grievance
It's Payback Time
To Confirm Or Decline
PayPal Failed Funds
A Legal Way To Steal
Only On Buyer's Side
PayPal Strikes Again
PayPal Punched Me
They Closed My Case
PayPal Spawn Of Satan
This Will Shock You
PayPal Scam Artist
Suspended Forever
Nonexisting Account
Provided PayPal Info
Identity Theft Victim
The PaySat Attitude
PayPal Is So Crooked
PayPal Victims Us
Can't Get Password
Closed PayPal Account
Didn't Order This Stuff
Beware UK PayPal-ers
Class Action Lawsuit
Business With Liars
Through PayPal Direct
PayPal Buyer Scam
Ebay High Tech Thieves
PayPal The Giant Beast
Always Stand To Lose
Complaint With PayPal
Payments Made Twice
PayPal Should Reimburse
Cannot Send Or Receive
PayPal Wants My Profits
A Double Account
I Don't Have An Account
PayPal Privacy Policy
No Word From Seller
Been Treated So Unfairly
Ebay Wants My Bank Pin
PayPal Refused Appeal
Phone Number Fraud
Once Burned Twice Shy
PayPal Is Messed Up
Emails From PayPal
PayPal Screws Me Over
Fraud Investigation
Just Lost My Money
PayPal Breaks TOS
Scared To Hell
I'm Boycotting PayPal
Made A Big Mistake
Never Again PayPal
PayPal Took The Money
Unusual Use Of Funds
PayPal Outright Theft
Afraid to Use PayPal
From Suspicion To Real
Denying PayPal Access
Won't Cover For Fraud
PayPal Denied Complaint
Another Uninformed Idiot
Charged For PayPal User
PayPal Stole Thousands
Limited Due To Moving
Snail Mail Versus PayPal
PayPal Cheated Me
They Took Money Back
Notice To PayPal
How I Got Money Back
PayPal Is A Con Artist
Vulnerable Excitizens
PayPal Is A Thief
Where Is The Law
PayPal Scams Billions
Those Scamming Bastards
PayPal And Personal Info
Charged For Illegal Funds
They Want Card Number
PayPal Wiped Me Out
Can't Resolve Payment
PayPal And Identity Theft
Why My Account Froze
Fed Up With PayPal
Money Falsely Accessed
Must Ruin PayPal's Name
My Money Is Still Frozen
Holding Money Hostage
Subject Of PayPal Scam
PayPal Does Nothing
Low Life Thieves
PayPal Account Update
PayPal Really Is An Ass
Ripped Off By Ebay
Too Close For Comfort
PayPal Suspended Me
Charged A Reversal Fee
Be Careful With PayPal
Stay the Hell Away
PayPal Is Terrible
Waiting For My Money
No Reply From PayPal
Stronger Than PayPal
Won't Stop Chargeback
PayPal Verified Address
PayPal Kept My Money
PayPal Stole One Yen
Can't Close My Account
Stealing My Money
A Website With A Heart
On PayPal And Hackers
Funds Held Two Years
No Luck With PayPal
Won't Refund My Money
PayPal Are Big Crooks
Yet Another PayPal Story
Can Not Gain Entry
Sided With A Scammer
PayPal Is Just A Joke
Wish To Cancel PayPal
Email States Fraud Alert
More Paypal Horror Stories
Top 3 PayPal Questions
Can PayPal hold my money with no explanation? The answer is YES.
Can PayPal freeze my account for no reason? The answer is YES.
Can PayPal take money out of my account without my knowledge?
The answer is YES.
A Note From The Editor
May 4, 2007
This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..
While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day. The main subject of the majority of these horror stories is the following:
Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months (if not forever), and there isn't much you can do about it.
If you would like to submit your own PayPal horror story, we would be more than happy to post it for everyone to read, providing that it is truthful and void of inappropriate language. Please feel free to submit your story by clicking Here
If you are searching for an alternative to PayPal, we strongly suggest acquiring a Real Merchant Account. CLICK HERE FOR OUR TOP PICK.
Should I use PayPal to Accept Credit Cards Online?
Let's begin by first stating that PayPal is not a bank and does not provide its merchants with a Real Merchant Account. PayPal provides its merchants with a PayPal account.
There is a Very Big Difference.
With a Real Merchant Account, your funds are deposited into your personal or business bank account, which you control and which is also protected by Federal Banking Regulations.
With PayPal, your money is deposited into a PayPal Account, which PayPal Fully Controls.
Since PayPal is NOT a bank, they do not need to follow federal banking regulations. These regulations are in place to help the "Average Joe" avoid issues like having their bank account frozen for 6 months with no explanation...(Imagine if your bank was permitted to do that!)
Because PayPal is not regulated in the same way as a Real Merchant Account, Paypal accounts are frozen for almost anything and without warning. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money. Once an account is frozen, the funds are often held by PayPal for months on end with Absolutely No Recourse for the merchant.
Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant's account is frozen, leaving them with No Means To Fill Orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant. "Welcome to the PayPal Nightmare." The Best Solution?: Get a Real Merchant Account.
How Does PayPal Make Money With My Money?
According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:
U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!
The Lawsuit You Need To Know About
As you will come to discover while browsing through the many horror stories posted on this site by current and former PayPal users, PayPal has some tough allegations to deal with. Allegations of mishandling money, unnecessarily locking funds, not providing adequate customer support, freezing accounts with no explanation and disregarding customer complaints, just to name a few.
In early 2002, Plaintiffs Roberta Toher and Jeffrey Resnick filed separate lawsuits against PayPal, Inc. These two cases were later consolidated into one lawsuit in the United States District Court for the Northern District of California.
The lawsuit alleges, among several other issues, that PayPal has placed inappropriate restrictions or other limits on customers' accounts and engaged in several other improper practices. Based on these improper practices, the lawsuit sought damages for money unjustly held, negligence, and violations of consumer protection statutes.
Rather than dealing with a lengthy public trial and being forced to clean up their act, PayPal decided to settle out of court and pay $9.25 Million Dollars to Tens of Thousands of PayPal merchants who processed with PayPal between October 1, 1999 and January 31, 2004. (A mere slap on the hand for a company this size)
Instead of a Judge forcing PayPal to change their questionable business practices, PayPal agreed to pay the settlement and walk away from the entire allegation.
So what does this mean to current PayPal merchants? Unfortunately, this means that PayPal is free to continue operating in the exact same way it always has. Judging by the number of PayPal horror stories we receive every single day, it appears that the situation has only gotten worse since the settlement.
We highly suggest getting a Real Merchant Account to avoid becoming another PayPal horror story.
Click Here For Our PayPal Alternative