Sorry Paypal - I dogged you unjustly

A couple of weeks ago I received an email from Paypal that really threw me for a loop. It detailed a new holds policy that Paypal had implemented. A new funds hold policy for certain high-risk accounts and that funds received (mostly from EBay auction sales) could be held for up to 21 days. My immediate reaction was F them - I don't need this crap - who do they think they are dealing with?

Truth be told I read the first few lines of the email and really didn't bother to read the rest of it. I was so furious it didn't matter. Just who do they think they are? I have had an EBay account for almost two years. I have a Feedback score of 19 because I really only sell something every so often. I have always had positive feedback from my buyers, I always strive to give great service and ship promptly - in my mind that makes me low risk.

I decided that I was not using Paypal period. End of story. I was also going to let the world know about their dastardly new policy and encourage others to follow-suit. I would show them I didn't need to use them and that I could sell my items and deal in cash. Not only was I wrong - I was dead wrong. I don't like being wrong. Maybe wrong does not accurately describe my mindset, too stubborn to bother trying to do anything other than defend my stance .

So it goes, I had a back-up plan of selling my items on CraigList to local buyers who would pay me cash. That plan failed miserably. I posted the ad's and waited, waited, waited. No bites, no sale, no activity. Limited exposure, limited potential. So I decided there must be an alternative payment solution that would allow me to still use Ebay but not have my funds Hijacked for 21 days or longer. I discovered there were two, Paymate and Moneybookers. I set about setting up accounts at both of these sites once I discovered I could link them with my EBay account.

Disaster in the making - Paymate

I felt so victorious, that is, until my items sold and I actually attempted to complete the sale. Problems were evident immediately - I received an email from Paymate that stated in order to receive the funds from the buyer - I needed to apply for a Merchant account. Now when I signed up for the account, it wasn't disclosed that I would not be able to accept my buyers payment without one - it was merely presented as an option. I felt I did not need a merchant account because I do not do a certain volume of Ebay selling, I simply sell a few items here and there on a scattered and Random basis. I sent them an email asking for clarity and assistance - it went unanswered. Great Customer Service huh?

Double Whammy - Moneybookers (AKA Skrill)

Realizing I was in deep muck, I went back to my buyer and offered the option of using Moneybookers to send her payment. I realize at this stage that my brilliant plan was a torpedo. I felt so stupid and defeated. The buyer was understanding and co-operative and said she would establish a Moneybooker account and send the payment. I realized she may not be comfortable giving them sensitive information - so in an attempt to make amends (too late in the game I'm afraid) I advised I'd be willing to cancel the transaction if she felt uncomfortable doing so - she did and we decided to cancel the transaction.

Not what I wanted to do but, since I had created a rather annoying problem for her, I at least wanted to do the right thing and give her an out. I always look to do right by the client so they feel they were treated fairly. I felt horrible for creating such an annoying problem for her. She was kind and very understanding but I know she had to be very irritated and disappointed. I know I would have been. I felt overwhelmingly foolish for putting her in that situation.

It gets much worse

The buyer of my other two items was able to pay through Moneybookers and I received an email that the payment was confirmed. Great. At least this one will work out - NOT. My egghead plan and knee-jerk reaction caused me to be blind to the facts. I figured I would transfer out the funds to my linked Bank account and ship the items right away so I could salvage my other buyer relationship ( since I had fouled up one so badly I hoped for a chance at redemption ). I logged onto Moneybookers and proceeded to transfer the funds (squealing tire sound effect). "You cannot transfer fund due to an insufficient balance". What? I do have the balance, I can see it right here. $40.13.

At this point I have no idea what is going on. So I call the Moneybookers 800 no. The news is not what I want to hear - MoneyBookers has a 30 day hold policy for funds received. I argue, fuss and fight with them about not advising of this in advance - they tell me it is in the fine print on the Terms of Service I agreed to when I opened the account. So Sad, Too Bad, We don't care. Defeated does not even begin to describe how I felt being snookered at every turn. I figured since there was little I could do to change what was already done - I'd use my credit card and ship the item to my buyer. I did, she was grateful, and left me very positive feedback.

Lesson learned - assume nothing, verify everything and get all the facts.

I figured out that my knee-jerk reaction got me a kick-in-the teeth. My attitude did not serve me, nor did my negative reaction. I went back to the PayPal email and reread it.

In my haste and bitterness here is the part I skipped: After 21 days, you can withdraw money from each payment as long as the customer hasn't filed a dispute, charge-back, claim, return, or reversal. The money may be available sooner if:

1. We can confirm that the item was delivered.

1. Your buyer leaves positive feedback. (Applies only to eBay items)

Wow, what a jerk I've been. I went back and decided to give Paypal another shot. 21 days isn't quite as bad as the Moneybookers 30, and, at least Paypal gave me advanced notice of the hold. I sold another item with Paypal. When the buyer paid the sent me an email that the funds were placed on hold. I also learned at this point that if I print the shipping label from Paypal - the shipping portion of the funds will be made available for use.

I shipped the item promptly and within a few days the buyer received and gave me positive feedback. Paypal automatically released the funds, I didn't even have to ask. This is my formal apology to Paypal for dogging them unjustly. In the end Paypal did right by me and my buyer. Thanks Paypal for not being the schmucks I thought you were. After my dealings with the less reputable companies - I appreciate them a whole lot more.

I learned a lot from this experience. Trying to use the less credible services created more headaches and stress for me and my customers. Jumping to conclusions before I had all of the facts was unfair to Paypal. I also learned I better read things all the way through before getting all worked up about it. I still can't stand injustice, but I learned that there are some situations that require more research and having all the facts ~ before cutting off the nose to spite the face. I hope you can learn from my experience too. As for Moneybookers I'm starting to wonder if I will ever see those funds. 30 days has not yet elapsed so I'll have to wait and see, but since they have treated me with such disdain it does make me wonder.