The Paypal Lockdown – Yup… It Happened to Me
If you’ve read any of my previous e-books, then you know that I’m not ashamed to admit my failures or mistakes. Sometimes the deepest enlightenment comes from watching another person bust their ass.
Well today I’m face down on the ground.
I was out this afternoon – taking an alone time break since my daughter went back to school today after being at home (in my face) with me for 3 WEEKS. I swiped my well-worn Paypal debit card at Whole Foods, and the card was declined. Hmmm, let’s swipe it again. I KNOW I’ve got plenty of cash in that account. Declined again.
Now I’m worried. Strike that… I was more like SUPER DUPER PARANOID, times 1 gazillion heart attacks.
After finally paying for my purchase I rushed outside to call Paypal. The rep gives me my balance. Okay it’s ALL there. (I wipe the sweat from my brow.)
Then he transfers me to the debit card department. That gentleman commences to tell me that my Paypal account has been restricted. I cannot access my money. I cannot receive money.
Okay now I’m back to SUPER DUPER PARANOID, times 1 gazillion heart attacks mode.
He tells me that a single transaction (one for Desperate Buyers Only) is the culprit. At this point I’m assuming it’s a chargeback, so I didn’t bother to ask what happened. Then he gives me a laundry list of things I’ll need to login and supply to Paypal.
When I got back home I immediately logged on to Paypal. I see a case number, but there’s no link to the offending transaction. Then I begin going through the list of things they need:
- Social Security confirmation.
- They need to verify my telephone number through an automated service.
- They’re going to charge $1.95 to a credit card they have on file for me. When they do that I’ll have to get the Extended Usage Number (or something like that) from the credit card statement, and type that into my account.
- They need a copy of my identification, bank account statement connected to the Paypal account, and a copy of the credit card statement that’s connected to the Paypal account.
- They need the shipping details for the last 6 transactions.
So I get to work supplying all these details.
Social security, check.
They charged my credit card, and my statement immediately showed the number they were looking for, check.
Shipping details for 6 e-books is basically the download links which I supplied, check.
When I went to the window for telephone number verification, I accidentally hit continue instead of cancel. So the service called my house – in Florida. Of course nobody answered because I’m in New York. (The number I’ve had on my account is my cell phone number, which customers have called me on in the past. But Paypal needed a landline number, which was at my Florida house.) So when I went back to this window it said that they now have to send out a letter that contains a code. I must wait 7-9 days to receive said letter. Crap!
Copy of my ID, bank account statement, credit card statement, check (I hope). I faxed everything to them. And when you print out the cover sheet (which they supply), there’s a page saying that you’ll receive a confirmation e-mail within 15 minutes of faxing your documents.
I wait for the confirmation. No confirmation.
I go back into this page. I notice that I can also upload the documents to my account. I scan everything. Then I upload 1 document, check. The second document, check. The third document… Internal server error. (A problem on Paypal’s server.)
Okay let’s try that again. Document #1, fine. Document #2, fine. Document #3, Internal server error.
So I deleted everything and changed the order of the documents. First I uploaded the troublesome document – no problem this time. Then Document #2, fine. Document #3, INTERNAL SERVER ERROR.
Deep breath in… and let it out calmly.
I called Paypal. I told them that I’d sent all the documents, but that I hadn’t received a confirmation e-mail. The rep told me to give them 24-48 hours.
Oh and don’t worry about the missed telephone call – she said. As long as my Paypal address matched my credit card or bank statement address, I’d be okay. (Which they do.)
So now I’m Paypal-less. Caught out in the big, nasty freeze that I’d only read about on other peoples websites.
I always thought “It’ll NEVER happen to me.” And it happened.
BTW, in case you’re wondering how much I had in my Paypal account, I’ll just give you some roundabout numbers. I always keep a minimum of $1,000 in the account for refunds. I’ve never received $1,000 in refunds within a month. But I like to err on the side of safety.
I keep my affiliate payments in the Paypal account. And since I had a good December saleswise, I decided to keep another $2,000 in there as mad money for a few projects I’d been working on.
So the account had plenty of cushion. And when I look at the account balance, it’s all there. (Come to think of it, there’s no money missing for a chargeback. Hmmmm.)
Right now I’ve done all that I was supposed to do. I honestly don’t think this is going to be a long term situation. But I can’t rely on that guess.
I’ll be switching my payment options on my e-books today. It’s a pain in the butt.
So learn from my situation. ALWAYS have a payment backup plan. ALWAYS.
I’ll keep you up-to-date.
Filed under: Bullet Point
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So Alexis, I hear they are starting a sixth and seventh requirement.
1. Your next born
2. A paypal chip implanted in your forearm that can be used to verify
all transactions and your identity with the USB Zebra 1226 hand scanner followed later in the year by the Microsoft USB VSI Retinal scanner.
You are lucky, you were in the US when they froze you. How about being in Thailand, logging in at a cafe and ZAP! you are frozen out! You can’t send docs to Paypal until you return home to access them. You beg and plead from Phuket and all they say is tuff titty. And this is to a longstanding account holder with a low 6 figure amount in PP.
I still did not catch the reason they locked you out. Guilty until proven innocent. Someone purchasing your book and they lock your account???
BTW, when you travel tell paypal what countries you’ll be in. Believe it or not China is OK to access PP from but the Land Of Smiles Thailand is a no-no. Go figure.
Mike
I’ve been to several countries using my PP card, and thank goodness had no issues. But I’ll definitely keep your advice in mind.
I removed a huge chunk of cash out of my PP account last year, because two of my super affiliates mentioned they’d like to be paid in ways other than Paypal. Apparently they’d run into the account restriction thing too.
Thank goodness I did that, or else I’d be clawing at the walls like banshee right now!
Alexis
I wanted to buy Desperate Buyers over the weekend, but couldn’t access MY paypal account. Asked my husband to do it for me on his account and he got the paypal freeze-agram, so I tried again and saw the message, too. So nasty. Thinking you might be a fraudster who got shut down (seemed odd given that I got to you through problogger’s recommendation), I googled your name and got right to this post. Isn’t the Internet grand? And aren’t you clever with your brilliant reputation rehabilitation post??
I think your next book should be on online reputation management with your tips for quickly shooting rehabilitative posts to the top of Google. Can you think of a more desperate audience???
Hi Tracy,
That sucks. There’s nothing more “holy smokes” shocking than realizing that your money lies in the hands of somebody else, and that you’re basically guilty till they say you’re not.
I never thought of my post as reputation management, but you’re right. It actually was.
As I mentioned in my DBO sales letter, I am a regular person. And I think it’s important that I show readers my flaws as well as my good points. Especially with the type of information I’m selling.
The very best lessons are learned from the worst possible situations. The bigger and hairier, the better.
So when stuff like this pops up, it just helps me get better at what I do.
Alexis
Alexis
Welcome to my world. I had only about $500 in my account when they froze it (and actually cancelled it since I sold some items they didn’t like). It was 6 months before I could get my money out, which I did the very minute I was able. I continued to receive emails from them telling me that I needed to rectify an issue with my account…which the system wouldn’t allow. Idiots.
Best of luck getting your money….$3k is a lot to have tied up for half-a-year.
Tim
Wow I need to check my paypal account (although I only have about $30 in there) I live in South Africa so had to do some shuffling to get a US bank account and verify that with Paypal. I have been trying to get into the internet marketing scene however keep hitting brick walls. your DBO ebook sounds great, a little too rich for my budget though (Almost 1000 bucks in South African Rand) but I am going to study your blog to try and glean as many tips as I can
Tip # 1 try find a friendly payment processor (Google checkout refuses my business cause I am in South Africa)
I am JMR from JMRPub.com