Found this interesting post on a PayPal procedure I have never heard of. Apparently they have a “rolling/minimum reserve” a portion of your money from transactions they hold I presume just in case of chargebacks or other “incidents” you would think the fees and seller insurance would cover that. Whats interesting in this PayPal users case is they already paid $15K in fees and PayPal took around $30K out of there funds.
Source : https://redd.it/6lhxme
They reward your growing business with the following:
- $30k+ Minimum Reserve
- 35% Rolling reserve
We’ve had our company with PayPal for just over a year now. Processed around $350k in sales for our software. PayPal decides to steal $30k from us in the form of a minimum reserve. They refuse to give us a release date – We were informed to come back in 6 months and ask for a review.
They also have decided to keep 35% of every transaction for 45 days. This is absolutely killing cash flow to the point we have stopped using PayPal entirely.
Their reasoning is that our processing volume has increased greatly – Really? That’s typically what happens to companies who are new and rapidly expanding. Who would have thought.
It’s worth noting that our chargeback rate is well under 0.1%
We have tried contacting them in every way we can think of but they simply do not care. Their escalation team is email only and has refused to call us so we can work together to come to some kind of middle ground. Each time we contact the escalation team we have to wait up to 45 days for a reply.