PayPal, or PayBully?

My son tried to make a purchase yesterday using my PayPal account. The payment was declined by PayPal.

Unfortunately, you’ve hit your initial PayPal sending limit of $10,000.00 USD. That’s why your recent payment was declined.
Your sending limit is the maximum amount of money you can send or use for purchases before you need to become Verified.
We place initial limits on all accounts to increase security and help prevent fraud. Once you link and confirm a bank account or get approved for PayPal credit, your account will be Verified and you’ll be able to make as many payments as you like with PayPal.

My reaction was complete incredulity. They were fine pushing my money through their service right up until, apparently, the moment I spent too much money? WTF?

I took a day to stew over how to handle it. Then I sent this reply.

Yesterday you rejected a payment on the premise that I have “exceeded my spending limit”. Let’s break this down logically, shall we? In order to exceed my limit – a completely arbitrary limit set by you – I had to pass $10K through your service. Since sellers who use your service kick back a substancial fee to you per transaction, that means you’ve made a great deal of money from transactions made by me and members of my family.
But that’s not good enough for you. No. You insist that, in order to continue utilizing your service, I must provide you with my bank account information or use your credit card for future transactions.
I’m not sure what it is that motivates this strong-arm action on your part. Is it greed? Control? What? All I know is that what you are demanding makes no rational sense to me.
I will not provide you with my bank account information. Why would I do that, when you’re regular targets of hackers – particularly Anonymous hackers – who would be able to run wild with my financial information? Nor will I be coerced into using your credit card.
I passed $10K through your system over the past several years. I will not pass one additional penny though it. Find someone else to strong-arm. I have other options that don’t involve being bullied by a service provider.

To summarize: PayPal can kiss my lily-white ass.

6 Responses to “PayPal, or PayBully?”

  1. Capt Gene Says:

    I was banned from pay-not my or anyone else’s-pal years ago when I LEGALLY sold a commerative rifle through AuctionArms. Having a pay-not my or anyone else’s-pal account, I let the buyer pay through pay-not my or anyone else’s-pal .You’d think I was lee harvey oswald reincarnated! After numerous back and forths I wrote them a “strong letter” (calling them everything explative known to man plus a couple more is so tacky!) and told them if they could get it past their head what they could do to themselves. I stopped using these bolsheviks over 10 years ago and have never looked back.

  2. mabba Says:

    I’d say it was a scam to get your banking details. A variation on the regular Nigerian scams. Report it- but to whom?

  3. Niall Says:

    No, its more likely to be Paypal’s response to anti-money laundering or anti-terrorism laws, in AU any transaction over 10k (or any ‘suspicious’ transaction) must be reported to the relevant authorities, which means that you have to be verified.

    • Vulture Says:

      Which would make sense if I was spending $10K all at once. But this is $10K over a dozen years! Even in the surreal world that is modern America that can’t be confused with money laundering.

    • Niall Says:

      @Vulture, I do take your point, however after seeing numerous stories similar to yours over the years, I believe they’ve interpreted the relevant legisltation (worldwide) and have taken the “lowest common denominator” approach, that is, whenever your transactions amount to > $10k, then according to their (self made) rules, you must identify yourself.

      I stopped using paypal about 4 years ago, and only recently have stopped getting emails from them.

  4. Sam Ammons Says:

    it is probably because you have had a recent change in your credit card or bank arrangements in the paypal account settings. For example, I changed banks from one bank to another, removed the old bank from paypal preferences, added the new bank to paypal preferences, and then before verifying (look at the new bank account, enter the 2 transactions in the paypal form) i bought something new on ebay. Then I get the notice. It isnt that I have spent 10,000 as the email says, it is that I dont have ANY verified accounts left. The paypal message is for people who have no verified account OR have spent 10,000 and need to re-verify. The reverification is probably there to keep somebody from stealing more than 10,000 of your dollars.

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