eBay and PayPal claim to be the best e-commerce service providers online, But in-fact there stupid policies and useless fraud detection system causes trouble only to the genuine buyers and sellers. The fraudsters easily bait the buyers and run aways with the money, while the genuine users get there accounts under unprofessional scrutiny for no reason. And it not only causes inconvenience to the honest users, many times the users are forced to give up and loose control over there money and online reputation.

I am the partner in legally registered import export company. Our company conducts a part of our business through eBay and PayPal. We have eBay Store and use other paid services of eBay, also the attached PayPal account is verified. We have already submitted all the required documents to PayPal including  our Company’s ‘Certificate of Incorporation’ and ‘Telephone Bill’ etc.

We have 100% positive reputation on eBay through over 150 feed backs. I also have another eBay and PayPal account for personal use, which is also very old(over 7 years old) with 100% positive feedback.

But still we faced this weired problem with eBay and PayPal. Few days ago paypal limited our company’s paypal account for no valid reason and asked for various documents(address proof, dealer information etc.) for verification, which we provided immediately. Mean while company’s eBay account and my personal eBay accounts were also suspended. After few days wait and some attempts we received email from PayPal stating that : They are “not comfortable with the amount of risk your business exposes itself to.”  and they “would like to begin the process of ending our relationship in a manner that is least disruptive to your business.”

The Disbursement options they provided are:

1. Your remaining account balance can be used to provide refunds to your buyers (if applicable).

If you choose to provide refunds to your buyers, please provide a list of transaction IDs for the buyers that you would like to refund.


2. Your remaining funds will be held in your PayPal account for 180 days from the date your account was limited. After 180 days, you will be notified via email about how to receive your remaining funds.

Now, we’ve already shipped the items to the buyers(we tend to ship the items within 24 hours of the payment received), So we can not refund the money. Now, the only option for us is to wait for 6 months(?) for our honestly earned money. Not only that we have to bear the debt for 6 moths on the items we sold and shipped, as there is no other option to get the money from PayPal before that.

On top of that, our eBay accounts are lost. We received the following canned response from the eBay support representative:

“I’ve looked at our records and see that your account was suspended because you owned or are associated with previously suspended eBay accounts.

We have reviewed your appeal and decided that your account will remain suspended. Our decision is based on evidence in our records as well as any additional information you may have provided.

At this point, we will not accept any additional appeals or requests for more information. Although we will read emails you send us in the future, we may not respond.”

Now, PayPal has our hard earned money(hopefully for 6 months only), also they have restricted our access to our eBay accounts and they would not even listen to our appeal. 🙁

This is really frustrating, the scampers easily con people on eBay and run away with the money. And the genuine users like us loose access there hard earned money and also the online reputation for no obvious reason. I think this is how PayPal compensates for there own loss. They get the money from honest people, when they lose it to the fraudsters.