Paypal huge limitation! 35k!

Pembroke

Do you have a friend relative or business partner who could run the Ebay side of things as a separate venture (new Ebay and Paypal ID's) until such time as the funds are released ?

chowiekid

Pembroke wrote: »

Do you have a friend relative or business partner who could run the Ebay side of things as a separate venture (new Ebay and Paypal ID's) until such time as the funds are released ?

you mean set up use a friends bank account, to create a new paypal and new ebay and use there name and address?

can i do that? with there permission?

Pembroke

chowiekid wrote: »

you mean set up use a friends bank account, to create a new paypal and new ebay and use there name and address?

can i do that? with there permission?

Well I was more thinking of actually using the friend as well. You supply them with the goods to sell which they sell for you on a commission basis. Then when paypal come back to you with your cash you either close them down, buy them out or let them continue.

You would have to talk to whoever you get your legal stuff from and your accountant to set it up so the agreement was airtight but it would work and I can't see how Ebay / Paypal can object, after all it's not what you're selling that's the problem is it? I think you may also out of courtesy if nothing else mention it to your supplier.

I'd even go so far as to say that there maybe people on here or Pistonheads who may be interested in doing this with you as a joint venture.

chowiekid

Pembroke wrote: »

Well I was more thinking of actually using the friend as well. You supply them with the goods to sell which they sell for you on a commission basis. Then when paypal come back to you with your cash you either close them down, buy them out or let them continue.

You would have to talk to whoever you get your legal stuff from and your accountant to set it up so the agreement was airtight but it would work and I can't see how Ebay / Paypal can object, after all it's not what you're selling that's the problem is it? I think you may also out of courtesy if nothing else mention it to your supplier.

I'd even go so far as to say that there maybe people on here or Pistonheads who may be interested in doing this with you as a joint venture.

the issue with that is i would then be giving more money away on top of seller fees etc etc.
if i had a friend who would be will to do this for free. i would create a new company in his/her name and employee myself i would do all the work they would just be the company owner? whats to stop me doing that?
so the director was ...... and i worked for them but they took 0 or an extreamly small salary...

or could i just get an agreement written up where my company im using now is changed about and i put a friend as a director and with an extreamly low salary and im allowed to use there name on things such as paypal as it appears like you say my name is now black listed or could i just employee them as put them in charge of the ebay sector of my company and they would then use there name and address etc or i just move the company to a different address... so many different options. But dont know what id be allowed to do

Pembroke

chowiekid wrote: »

the issue with that is i would then be giving more money away on top of seller fees etc etc.
if i had a friend who would be will to do this for free. i would create a new company in his/her name and employee myself i would do all the work they would just be the company owner? whats to stop me doing that?
so the director was ...... and i worked for them but they took 0 or an extreamly small salary...

or could i just get an agreement written up where my company im using now is changed about and i put a friend as a director and with an extreamly low salary and im allowed to use there name on things such as paypal as it appears like you say my name is now black listed or could i just employee them as put them in charge of the ebay sector of my company and they would then use there name and address etc or i just move the company to a different address... so many different options. But dont know what id be allowed to do

I would avoid giving out directorships to anyone as that means they would have a share in the company and would expect to be paid a dividend. Having them as an employee of your Ebay division on say a 6 months contract would work. That would take you outside the 180 days that Paypal have imposed. It will cost you money though (minimum wage as an employee) I don't think there's any getting round that but it's up to you, is your business continuing and growing for six months worth more to you than sitting on your hands for six months while you wait for Paypal to sort this out and your customers drift away to other suppliers?

chowiekid

Surly what is to stop me employing some1 on minimum wage for 1 hour a day or something? Just using that person to answer messages and say they run the shop? Sorry if this is totaly against the law but just a thought in my head? almost as if I was hiring someone to answer messages and site maintenance?
even if I hired full time staff it would be worth it I was seeing crazy growth

Thanks for the help

sarahb

Pembroke wrote: »

I would avoid giving out directorships to anyone as that means they would have a share in the company and would expect to be paid a dividend.

A director does not need to be a shareholder and only a shareholder would be entitled to a dividend (assuming of course that a dividend was declared and payble in the first place.)

davidisonfire

Unfortunately I can sympathize completely with your situation.

I'm a ticket reseller (tout lol) on there and I have 950+ feedback over 8 years. I specialize in mostly large festival tickets and sell the tickets months in advance of the concert without having the tickets in hand to send. This is the only realistic way it can be done if you have large quantites of tickets due to the fact the tickets don't arrive until a week or so before the events. It's somewhat annoying that feedback can only be left upto 90 days after the sale date as in many cases I cannot get feedback as it's been too long.

Like you I have never had any intentions to defraud anyone or rip anyone off and my feedback stands testament to that, you don't last long on there going about business in that way. Now, considering eBay own Paypal one would assume that your reputation within the eBay community would hold some swing with the likes of Paypal. Sadly not.

Over the years I've had many encounters with the bullies at paypal who seemingly have the authority to hold your money to ransom whenever the desire strikes them and for whatever reason, sometimes without even telling you what you have done wrong.

I started off small when I was 15, buying a few extra tickets here and there and selling them for more and I quickly realised there was serious money (for someone of my age at college) to be made. My first dealings with paypal's ransom team were when I had to upgrade my account to a premier account due to reaching the turnover threshold, whilst it was quite straight forward there were moments of panic when I discovered I wasn't actually old enough to be having an eBay account etc in the first place.


After 2 or 3 years starting with nothing and reinvesting every bit of profit I was in a position to be buying £15k plus worth of tickets for one particular festival with a resale value almost double that. After I'd sold quite a few of them but nowhere near all I had my eBay and paypal account suspended without warning or explanation and then had no contact from them until 2 days after. I had tried to contact them immediately but they could not tell me any reason why the account had been suspended and that I have to wait for the trust and safety bully team to contact me.

Like you I had to provide all of them documents, passport, utility bills, proof of purchase from suppliers, Proof of posting to the buyers for all the tickets sold etc etc.... Once I had submitted all of these documents I was informed my account would be reviewed.

Right, okay:

1) I had no passport, lost it shortly before this incident.
2) I lived at home, there were no bills in my name.
3) Tickets are bought in other peoples names, I could only provide proof of purchase of the tickets I have bought, how dodgy would it look if I sent them invoices of other people's orders, trying to explain that I'd paid them the money to order them for me?
4) Tickets hadn't even arrived yet let alone been posted out.

I seriously thought I was f&%ked, I couldn't supply this documentation as they'd asked for. Meanwhile, trying to login to eBay resulted in a big page saying my account was suspended, I could not access anything. This in itself was another problem, I had other tickets that had been sold that were due to be dispatched imminently and I couldn't even get online to find their addresses to be able to post them out! I called several times to ebay to explain this situation only to be told by some smarmy irish eBay hench that there's nothing they could do.

Great I thought, can't sell these tickets, can't send other tickets, can't access money in paypal account. All the while having done absolutely nothing wrong or illegal and having 100% feedback, it feels as if, like you say, they're trying to make you quit. Nice of them when you're paying them thousands in fees.

Long story short I managed to blag the whole documentation part after I'd got a new passport. Some of the tickets for the festival I'd bought were bought in person and I had them in hand with receipts and had already sent them out, this accounted for about 10% of the amount of tickets I had. Luckily they didn't put 2 and 2 together that I'd only sent them proof of a small amount of what I'd been selling.

After days of waiting and many frantic phone calls asking what the hell was going on, I logged in to ebay one day to find that all the restrictions had been lifted and I was free to go about my business. I received no warning about this and no emails or calls letting me no that this was the case. What a joke srsly.

With the pressure off somewhat I carried on selling the rest of my tickets without hindrance. However, every year since then I have had exactly the same problem and have to jump through all the same hoops, it's ridiculous. Last year paypal came up with a new one.... They put a "rolling reserve" on my account which means they keep 15% of everything I take and it's released to me 90 days from that date on a daily basis. They state that it is because I sell 'high risk' items and the money is held back for the possibility of disputes, even though I've never given them any reason to think I'm intending to rip someone off.

the stupid thing is, after going through all of this I now have a pretty good idea of how the whole system works with them. and if I really really wanted to I could setup a massive scam and rake in at least six figure sum from it based on my reputation, and the money will have long cleared to my account before anyone had any idea. But they don't understand that not everyone is a scammer! Especially people who have a proven track record!!

I keep telling myself it's not worth it anymore, especially with the MASSIVE increase in fees since I first started and every increasing numbers of competition but now I just do it out of habit as a sideline rather than to make a lot of cash.

Basically the moral of the story is that ebay/paypal have got THAT big that they're their own judge jury and executioner. The little guy has no say and it seems that they couldn't give a toss if they're going to lose thousands in fees because they've p*ssed off a couple of small fries. They make what..? millions an hour? I heard it was 10k a second a while ago. You're nothing to them, you need them more than they need you and it's as simple as that. They even !!!! off some of the high flyers with their ridiculous top rated seller criterion. They probably lose quite alot from some of those who abandon eBay completely but then again, it's just a drop in the ocean.

Sorry for the long read but felt like venting and hopefully you'll feel like you're not alone, I hope it all works out for you.

P.S. Not even banks can hold your money like paypal do without governmental authority. It's ILLEGAL.

sunnysea83

What about the financial ombudsman? could he help

kbh4031

I really cant offer any advice OP
But storys like this really worry me..I have been running my ebay shop for just under 6 months now and I am just waiting for Paypal to place a hold on my account for no reason. You see storys everywhere like this
Why is nothing being done to stop this!!!
I bet they wouldnt hold Tesco's or Argos's money cause they would sue the a** off them