PayPal account being closed - Anger

[eh-stevo]

Hello,

Recently I have been doing some digital sales, some on ebay some on forums. Yesterday I received a call that my Paypal accounts were being limited, and I just received an email that they denied my appeal.

What happend:
We have 2 paypal accounts. One is my fathers. One is mine. I buy CDKEY's from ShatteredCrystal, who requires you verify with them one paypal account. It is my fathers that is verified. So what I do is, send money from my bank account to my paypal, send it to my fathers, then send it to Shattered Crystal.

So about 4 days ago I started selling a few on ebay. Looked good, sold about 6 keys.

Saturday. Get a call from dad while Im at work that Paypal called, and our accounts are both limited. I get home and check it out, yup we are. I check my email and Shattered Crystal says paypal took back the payment i sent them. Paypal does not say why were are limited.

I call today, they say it was because of suspision that I was "Laundering Money". Because I frequently send money between those 2 accounts, and then the 3rd one being Shattered Crystal. As well as receiving payments with no reason stated (even though its optional). They tell me to do the steps to remove limits and it should be fine.

Then I get 5 emails that 5 of my received payments are on hold. Great. I fill out as many steps as I can, and fax both accounts crap.

I call back and let them know I faxed it, they got it. The lady made some notes to give to review team. She tells me 5 of the cdkey payments I received from auctions off ebay might have been fraudulent.

I get an email about 30 minutes later saying my Appeal was denied.

Every business must balance its exposure to risk with its business goals.
At this time, we are not comfortable with the amount of risk your business
exposes itself to.

We would like to begin the process of ending our relationship in a manner
that is least disruptive to your business.

I have the options of refunding customers (which there are none to refund) or wait 180 days to get my balance out of the account (which is now $1.70 something).

I called back and the guy told me at that state its almost hopeless, only thing you can do is send a last text appeal to their email. So I did.

This all comes at a wonderful time. Cell phone bill is this week. Traffic ticket I just got. I owe Shattered Crystal $120 dollars.

Everything of mine online is somehow linked to either of the Paypal's. I doubt they'll let me open another account.

All this over one mistake that isn't even my fault. Dont know why im going to do?

Steven

 

[RageD]

So let's get this straight: They're terminating your account because 1 you're selling CD Keys and 2 your frequent transfer between two or three accounts?

-RageD

 

[eh-stevo]

Without all the details: Because I received money from ONE fraudulent buyer, and it's suspicious that I transfer money between two accounts frequently.

Steven

 

[RageD]

That's very odd. They're closing your account because you received money from a dishonest person? Now that doesn't make sense. In person you might be able to tell but when someone buys something from you online there's no way of knowing a.) their character and b.) if there money is good or not. What did they say to the appeal letter?

-RageD

 

[Rom]

Fraudulent buyers shouldn't be a problem.
I had a fraudulent buyer at ebay using a fake credit card and I got an email from PayPal telling that the payment is on hold and I will need to show the details of the transaction. All I did is just reply to that email with the url of my ebay listing and I got the $ in few seconds.

2 accounts aren't a problem either.
You are allowed to own 1 personal account and 1 business account.

Every business must balance its exposure to risk with its business goals.
At this time, we are not comfortable with the amount of risk your business
exposes itself to.

We would like to begin the process of ending our relationship in a manner
that is least disruptive to your business.

Sounds like it's because of the CDKeys.

 

[eh-stevo]

They have not replied to my appeal letter yet. I told them and they can see I just started selling them, and Im willing to stop to clear this mess.

Reported the guy to ebay today, and explained it to them as well.

Steven

 

[kemjika11]

if you want to make things a bit less compex, why dont you register YOUR paypal account wth shatteredcrystal. IF you take your dad's paypal account off shattered crystal, and replace it wth yours, the transfer of money looks more transparent, therefore making your bsiness look better in paypal's eyes.

 

[eh-stevo]

Wish I could now, but it doesn't look good.

Steven

 

[maximum]

2 accounts aren't a problem either.
You are allowed to own 1 personal account and 1 business account.

But to switch money back and forth on each transaction? No wonder fraud dept. thinks something is out of place.

Sounds like it's because of the CDKeys.

Not exactly a 100% "tangible commodity".

if you want to make things a bit less compex, why dont you register YOUR paypal account wth shatteredcrystal. IF you take your dad's paypal account off shattered crystal, and replace it wth yours, the transfer of money looks more transparent, therefore making your bsiness look better in paypal's eyes.

Exactly what PayPal's anti-fraud team is thinking, I bet.

You may be being 100% straight-up here, albiet, like PayPal, I'd wonder why all the switching, but it isn't what you do that is the problem. It is how it looks. Like what you say is not what matters, but how it is perceived or interpreted. Especially, now that PayPal has a whole lot of new rules on them from the federal government (post 9-11 anti-terrorist money-laundring related), your actions are questionable, rather your actual intent was or not. You have to look at it fom their stance, and their risks, IMHO.

Best of luck in resolving the issues :]

 

[labrocca]

I don't understand why you are transferring from your dads account to yours to another and doing all this run around. I can see why Paypal flagged your account.

 

[eh-stevo]

I do not see the problem switching funds between 2 accounts, as that is what you are allowed to do. Both accounts have the same last name, pretty obvious were related. My account has a bank account and a debit card on it, and his has his credit card. If we were "money laundering", im sure we wouldent be stupid enough to add those.

I understand that is "looks" fishy. But if they realised where the funds were coming from (my bank) to buy the keys, then selling them and getting money, there shouldent be any problem. Thousands of companies sell virtual items everyday, and I guarantee many of them have disputes brought upon them for legit or unlegit reasons, and their not taken down. Like said, I assume its because of the flagging of the transfers between 2 related accounts, but I see no problem with that.

As suggested by someone else, Im going to call wednesday and get high up in the support tree as I can to get this fixed.

Thanks for the comments,
Steven

 

[klarth]

That does seem kind of weird. I don't think Paypal should've done that, but it does look suspicious. Also, are you over 18? Why the need to switch between the accounts?

 

[eh-stevo]

That does seem kind of weird. I don't think Paypal should've done that, but it does look suspicious. Also, are you over 18? Why the need to switch between the accounts?

I buy CDKEY's from ShatteredCrystal, who requires you verify with them one paypal account. It is my fathers that is verified.

No I am not, though when talking to them on phone it sounded like as long as I have adult permission my account is fine, and not to do with the limitation.

Steven

 

[labrocca]

He asked you this:

Why the need to switch between the accounts?

What was the need for that?

 

[daabomb2002]

Ok here is what you should do.use a paid press release server like eworldwire,write in the press release exactly what is happening between you and paypal.tell them paypal currently doesn't have to obey bank laws because it's not a bank.state in the press release paypal should be regulated because it handles all this money. the government has to regulate paypal.
Now hopefully a newspaper or tv news agency picks up your story and hopefully paypal will sort this out with you and hopefully some regulation is applied to paypal.

 

[eh-stevo]

He asked you this:



What was the need for that?

And I replied:

I buy CDKEY's from ShatteredCrystal, who requires you verify with them one paypal account. It is my fathers that is verified.

So, I send money from my bank on my account to his. Did not see a problem with doing that, so did not bother going through another verification process with my own.

Steven