Paypal Horror Story 40k Frozen No Answers

Re:Paypal Horror Story 40k Frozen No Answers by rgbrenner on Sunday March 12, 2017 @02:12PM (#13852082)

2% dispute rate?! That would get you shut down at every merchant account provider I've ever dealt with. In fact, it's usually 0.5% or 1% max. One major bank gave me 0.25% max. I've never seen an agreement that said 2% was ok.

That's a very serious fraud problem.

I've run an ecommerce store -- the chargeback rate was 0.1% (seriously, I calculated this from actual #s).

Nothing in this story (except maybe the customer service issues) would be out of the ordinary for any merchant account.

Edit: fixed chargeback rate

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Re:Paypal Horror Story 40k Frozen No Answers by sabslaurent on Sunday March 12, 2017 @03:32PM (#13852565)

Not sure what kind of volume you were doing to get that chargeback rate. I was doing 500 sales a day, approximately $250k a month in volume when I was running, my dispute rate was high but chargebacks lost were minimal. Despite that, Paypal were aware of my dispute rate when they negotiated the terms of our agreement ($5000 set reserve + 10% rolling reserve) - they then woke up one day and closed my account without letting my appeal or negotiate or provide any information. I just get the run around...

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