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Don’t Use Paypal – Increasingly Dysfunctional

I have held a Paypal business account for over 10 years. While the fees and charges have been eye watering at times it has been a place to make payments reasonably safely. This started to change a couple of years back.

  1. Recurring payments set up with no explicit warning the payments you are making through a supplier is recurring.
  2. Ability to manage a number of features, such as remove recurring payment authorisations have been moved from the obvious places (receive money / pay money etc) and hidden under account profiles etc.
  3. Ability to get help with real people is really tucked away. Its almost as hard to find as Facebook help.
  4. On going nags to verify credit cards / accounts etc – I have already verified 2 or more times.

I have now hit the final straw – received a payment from a client for around 2k. PP say I can only get $400 of it and have to fill in a ton of information in about 8-10 categories. Half the information isn’t doable ( I dont sell product so cant give product information) and if I don’t provide it I cannot get my money. Whats more they have shafted me $70 for the privilege of taking money off my client but not paying me out.

I raised a ticket. They then put even more draconian limits on without contacting me back about the ticket.

Help page links return 404 errors. Trying to find chats a nightmare. Phone systems wont take the 6 digit code (good luck finding that) and when it finally does tells me they are closed on days and times they are advertised as open for.

I cannot do any of the following:
1 – Raise a dispute
2 – Get my money
3 – Close my account
4 – Remove all payment information so they cant take more payments off me
5 – Access certain types of help
6 – Complete forms they require
7 – Upload information they request ( remember the 404 errors??)
8 – Refund my clients money (so I can empty my account and close it)
9 – Get timely help in under 3 business days.

When I get the account emptied ( at present it will be in excess of 180 days to do) I’ll be closing it. Until then I am looking at other payment options to receive client payments.

Paypal have got more unusable and their interface exhibits ever more dark patterns of development and UIX  looking more like a roach motel than ever. Bitterly disappointed. A 10 year plus customer is now kissing them good bye.  I’m not the only one – people are leaving in droves : https://www.productreview.com.au/listings/paypal

Why have I listed this under Paypal scam?  Paypal allowed me to take payments THEN changed the rules holding my pay outs up. Legally they have to declare changes before the transaction happens. Terms and processes cannot happen and be imposed after the transaction has been entered into.

Further they are trying to force me to disclose personal information on staff (photos, DOB, name, address etc) which is illegal. By extorting me (withholding my money) until I break the law and provide information that I’m not legally allowed to give – they are forming a scam / extortion / blackmail.  If Microsoft was a client, Bill Gates wouldn’t have to upload photos, personal email, personal address, DOB etc. I’m a company same as them. Staff personal details are off limits. Mine included.

Also – read the Terms And Conditions: Paypal are with withholding payments – and in their terms and conditions acknowledge they make money deliberately withholding money for periods of time before paying it out.  They explicitly state this so they can explicitly prevent you getting any financial benefit from your money they are withholding and investing for their benefit. They treat your money as a free loan to their benefit. That sucks. You pay finance costs while they dine off your money.

BTW – If you want to try something hilarious – try reporting a 404 link in their help chat system. 404 gets turned into *** so typing 404 page looks like *** page.   However the deadly seven (NSFW)  will get through okay. Really?