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Paypal questions

easyrider
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Paypal questions

I am setting up a website to sell my own product on and I have a few questions about Paypal, which I am hoping someone can help me out on:


Firstly, should I use a Premier or Business Account? The Business account requires me to enter a date on which my company was registered in the registrar of companies (I am not sure whether this is for New Zealand or the US as well). I am worried that it might be considered fraud if I enter in a fake date for this field. The Premier account seems to be able to process payments etc.

Secondly, since I am using a pen name for my website, I want to have the same name showing up when people go to pay for my book. How would I do this and not have trouble when my bank information is in my real name and with the taxation authority etc ?

Thirdly, what should I select as the primary currency? Should I select $US since my transactions are going to be carried out in this currency, or should I select $NZ since I am living in New Zealand?

Thanks for your help. Greg
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Greg
 
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cecille.l
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Hi Greg,

I would say choose the Premier. I think it fits your needs well enough. I got this from the PayPal FAQ:

Premier: Recommended for casual sellers or non-businesses who wish to get paid online, and who also make online purchases.


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Secondly, since I am using a pen name for my website, I want to have the same name showing up when people go to pay for my book. How would I do this and not have trouble when my bank information is in my real name and with the taxation authority etc ?


It would be best if you check with a PayPal support rep but I think you can set up a separate Premier account using your pen name. Or maybe there is an option to have a "display name" shown during the purchase instead.

------------------------

Thirdly, what should I select as the primary currency? Should I select $US since my transactions are going to be carried out in this currency, or should I select $NZ since I am living in New Zealand?


You'd want to make that in US$. It's the standard currency for most online payments.

Hope that helps. Have a good day!
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Cecille


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easyrider
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Thanks for that.

Also, should I trust Paypal? I have heard a lot of horror stories about them. For example:

http://www.warriorforum.com/main-intern ... aunch.html

http://www.screw-paypal.com/resources/p ... ounts.html
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Greg
 
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thebigventure
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Hey mate,

Cecille pretty much got it right. The only thing is check about the pen name, I highly doubt they'll let you do it though, and here's why I suggest you be careful.

Those horror stories were true for me at one point, simply because I was naive when I first started using PayPal. Firstly, yes pretty much everything said on those sites are true, some don't apply currently (they've updated some stuff), but most do.

Firstly, don't lie. Don't put anything down that's not true or real. Keep your name, address (of the business if you register as a business), license numbers, company name/s, phone numbers, DOB, etc etc all real.

Why? Because WHEN (not if) but when you get limited. Trust me, if you start receiving too many payments too quickly, it will happen, or even if you just get a lot of money (I've had 2 accounts limited, both legit and all, but one after 2 years I think because I had a total withdrawal amount that was very high, and one after 1 month after I sold a $1500 laptop on eBay that was mine, nothing weird about it, just that PayPal thought I was fraudulent). So when this happens, they want ALL your details. I'm in Australia, but I've heard if you're in the US they even want your social security number. They've tried getting my passport number and all off me too. The problem is if you don't comply fully (I didn't the first time), and I caused up a bit of a stir, you realise there is no other way and things will never go your way. It's all in their policy. I've had funds frozen in my account for 6 months! Then only I could withdraw it out (read their policy).

I could go on and on, PM me if you have any direct questions.

But here's what I suggest. USE it, but don't rely on it. Set up some sort of a backup, because if you're product sells incredibly well (eg. look at the WF link you had on the product launch limitation, it's obviously a common occurrence for those making high volume sales), and your PayPal is limited and it's the only method you use, yes you can still receive payments but you won't be able to withdraw them out until PayPal lifts those limitations.

1) Go to PayPal support, call them and tell them what you're going to do. Ask them for THEIR advice. What account you should set up, what information you should put on, etc. etc. Tell them how much predicted sales you believe you will be receiving, and ask for the best account type and structure you should set up.

2) Do the sales without fear of the account being limited. Like I said above, you can still get a limited account and receive payments, just not withdraw to your bank account. Only when your account is restricted (banned), you can't do either.

3) If/When limited, give them what they want, but do some research (go here and read in the PayPal threads http://www.aspkin.com/forums/) and see the sort of stuff they will ask, get it ready. Most importantly, don't lie or put anything incorrect down as your information, even if it's a mistake, because when it comes down to it, they're a massive company and do things on a mass scale. If your account isn't matching up somewhere to the documents you provide, it may ring bells for them.

4) You should be good though. They do it just to protect their customers and their business, once they know what you're doing you'll be fine. Limits get removed plenty of times, the only reason they won't get removed is:

- You're selling something illegal.
- Customers are complaining about your product/asking for refunds too often.
- Your information is incorrect or something doesn't match up.

But you probably know most of the above from your research already. Oh and by the way, if you put it in $USD, and the USD$ goes down (NZ$ goes up), be prepared to get paid less for your products in your currency... If you put it in $NZD, you can get a guaranteed price for your product, BUT it will keep fluctuating and even getting higher if you're selling to Americans. So it depends who you're selling to. Try both (you can have multiple currencies on a PayPal) and test which sells better.
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easyrider
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Thanks for that. It helps a lot. It is amazing that a company that seems so arrogant and paranoid (they seem worse than Google with Adwords accounts) can continue to remain such a dominant player in the market.

One additional question is that if they freeze your account can you still issue refunds? My worry is (based on some of the horror stories) is that they will freeze my account, I won't be able to issue refunds, then angry customers will make complaints against me, Paypal will take this as evidence of wrongdoing on my part and then punish me even more. Is this a legitimate fear?

Also, I understand that you have to attach a bank account or credit card to your Paypal account. Some people have said that Paypal has the right to take money out of these accounts at will without any consultation with your as the account holder. Is this correct?
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Greg
 
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michellerana
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easyrider wrote:One additional question is that if they freeze your account can you still issue refunds? My worry is (based on some of the horror stories) is that they will freeze my account, I won't be able to issue refunds, then angry customers will make complaints against me, Paypal will take this as evidence of wrongdoing on my part and then punish me even more. Is this a legitimate fear?


Try to find ways so that your customers can communicate with you efficiently and effectively. That way, you could process a refund using another payment processor if your Paypal account gets frozen.

I suggest that you contact Paypal's support directly. I'm sure they will tell you what to do on these situations.

All the best! :)
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Michelle
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thebigventure
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Hey mate,

Great thinking, that's something that I didn't even think about when I experienced it. Luckily for me it worked out well. Basically, when you're in "limitation" mode, you can receive payments still and also issue refunds. So there are no issues. Like I said, this may be ALL you experience, if anything, and then your account may be reinstated.

Just a few days ago I had a new PayPal account of mine get limited for transacting too much (I had a $1k transaction come in), within 2 weeks after providing the required documents, the limitation got lifted and now I'm back to normal.

When you are in "restriction" mode however, which is also the same as a permanent limitation (or in regular man's terms "banned from paypal") you cannot send, receive, nothing. At this point people CAN make complaints against you and may process charge backs. PayPal freezes it all because when a charge back happens, they will automatically allow the refund to go to the customer who issued the charge back. The reason PayPal freezes the funds for 180 days is because this is the usual charge back period for major credit card companies, and if a customer processes a charge back, PayPal has funds to give them (yours, rather than it being theirs if you clean your accounts out).

You need either a credit card or bank account to open an account with PayPal. Thing is, you have to have a bank account to withdraw any funds, so I'd open one up with the bank account to begin with, it makes everything easier later on.

Yes they can take out funds at any time. Will they? No. They're very, very paranoid and sometimes unfair, but they aren't thieves. They will take funds out if your account goes negative, or you need to pay people and don't have enough funds in your account, eg. subscriptions or refunds due.

I know I may sound a bit "doom and gloom" but the truth is that the horror stories DO happen if you're going to be a seller who sells a lot of products/items regularly, but they are only called "horror" because the people it happens to were not expecting it. At least now you know and you've done your research so you're already prepared.

If you have any more questions, hit me up via email ashton@thebigventure.com - I check it more often than I come on here, and I'd be more than happy to help you out mate (PayPal is something I know quite well and would be happy to pass on unbiased info).
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cecille.l
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Hi n0thsa,

Thanks for that post! That will certainly answer a lot of questions aspiring merchants here in the forum would have about PayPal.

So, thumbs up to you! :)
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Cecille


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easyrider
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Just as an update, I have emailed Paypal regarding what sort of account I should get, how to handle the pen name issue and how I can avoid getting my account frozen. The guy replied that I should get a business account (rather than a Premier account), but didn't answer my other questions.

I then replied back asking for answers to the questions that were not answered, plus a question about what I should put in the field about the date of registration of my company (if I got a business account). I waited five days and got no answer, so I emailed them back. I got a response saying that I should call some phone number (in the US) if I wanted these questions answered. That is ridiculous. These guys are unprofessional idiots. What I'm going to do is open a premier account and once my business generates sufficient revenue I am going to get change to a proper payment processing system that I have a lot more control over.

And Ashton, regarding what you said about these guy not being thieves, I would have to respectfully disagree with you. When I signed up for my personal account, they made me pay them $3 to prove that the credit card I listed was legitimate etc. But nowhere on my account is this listed as being a credit to me. I know that the amount is small, but if they do this to everyone they are probably stealing millions of dollars of people's money.
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Greg
 
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cecille.l
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Hi Greg,

I'm sorry to hear about your experience with PayPal. There are other payment processors out there. I've heard of 2checkOut but haven't gotten feedback on them.

And Ashton, regarding what you said about these guy not being thieves, I would have to respectfully disagree with you. When I signed up for my personal account, they made me pay them $3 to prove that the credit card I listed was legitimate etc. But nowhere on my account is this listed as being a credit to me. I know that the amount is small, but if they do this to everyone they are probably stealing millions of dollars of people's money.


They took a $1 out of mine for verification. They said it would fall off but it was still charged on my account. Not a big amount really, but converted to local currency, that's equal to a small fast food meal here. :)

Have a good day!
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Cecille


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easyrider
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This Paypal thing is becoming a real pain. I tried to sign up for a Premier account and on good advice (from Ashton) I can't use a pen name and have to link my account to a different credit card than the one on my personal account. Since I haven't got a second credit card (and don't want one), this means that I would have to delete my personal account and then use the credit card that was attached to that.

I am beginning to think that it would be best to just put my product on Clickbank and use their payment processing system, even though they take a bigger cut - around 10% on a $50 product (in addition to the one-off charge of around $50) . But it's probably worth it in terms of retaining my sanity. Also, I would possibly be able to attract some affiliates to sell my product.

Would Clickbank be appropriate to use for this purpose for someone like me who is just starting out? Is it easy to set up the buy now button, the download link, and use a standard New Zealand bank account to accept payments? Do you need a separate shopping cart, or does Clickbank provide all the payment technology?
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Greg
 
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thebigventure
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Hey mate, just had a read through some of the things you wrote.

- Regarding the $3 they took from your credit card, that should be completely refunded back. Has it all been processed and verified? You can CALL them (never email them, it goes NOWHERE, I haven't seen a company so large yet so unorganized, well apart from eBay), and ask them if it has been verified. Then tell them to process the payment back. They can't just take money from you, and honestly I would like to see an instance where they do. I'm not taking up for them here either, as you probably know I'm only a user of it because it's the most efficient way to process payments for my current business model and not because I'm their fan :) But yeah, iTunes do the same thing, they charged I think $1 and then refund it back after 2 weeks (so with PayPal there could be a reasonable waiting time, just make sure you find out).

- With the personal account name thing, DON'T delete the account. Simply upgrade it. There's a link on the main account page at the top left corner near your "Welcome "YOUR NAME" part of the screen. It will saw "Personal Account" And you can click it, or click next to it where it says "Upgrade" I think. If you have problems finding it, again, call them and they'll sort it out for you on the spot. You can upgrade to a premier account, and it'll save you the credit card hassle.

- The guy recommended a business account because it probably is the best for you. That said, their call centre reps have NO CLUE about anything... Nor is their customer service deserving of even a 2/5, so that guy might have been confused? I do think the business account would be best, but starting with a premier account is fine. Like I said in the email before, your #1 priority is to just get ALL your information LEGIT. Your name, address, dob, etc. Don't put anything that is not real (and cannot be proven through your drivers license or passport), even if it's a pen name, because PayPal won't understand and will just pin you down as a fraudulent user, and permanently limit you. So use the premier if you want, just keep your info legit, and I'd recommend against the pen name as the name of the account. (Just had a thought though.. if you DO use business account you could use your "business name" as your pen name so on people's payments it goes to your "business name" which is really your pen name).

- Paypal is easy once you set it up man.. And a lot of other tools and things can be integrated with it once you start going with it. I can't speak from experience about clickbank because I've never used their payment system as a vendor, but I think it's more for larger scale products that sell massive volumes (as you said) because of the large fees. Paypal is great for newbies starting up their own products. Get in there and start, I suggest. You've done plenty of research and I think you know all the things you need to, so that if you're successful enough to get limited, you will be out of it in a flash and keep going.
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easyrider
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Regarding the $3 they took from me, I don't believe they ever gave it back. I did email them about this, but I got an obscure answer and in the end decided it wasn't worth the effort to challenge.

The problem with upgrading my personal account is that I have already upgraded it (by mistake) and then got it downgraded. I don't think I'm allowed to upgrade it again. Also, it has a Hotmail address attached to it and I would rather have my business email address - even if I can't have my pen name on it.

I don't think I can have a business account without lying to them, because one of the fields requires me to state the date my company was registered (I have not got a registered company).

It would be great to get the product listed on Clickbank though. This is one of the things on my to-do list; if I could find out how to get some affiliates interested in promoting it, I could do really well. It is a world better than any of the higher gravity products on CB in the attract men niche. I reviewed the highest gravity product in this niche last week ("The Woman Men Adore" by Bob Grant) and it was total crap. It actually had very little about attracting men in it. A more appropriate title for this book would be: "Men are Insensitive Stupid Oafs: How to Work Around their Many Faults to have a Decent Relationship"
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Greg
 
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thebigventure
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Well can't help you when it comes to CB. But:

- Email doesn't matter, you can add/remove/change emails on your PayPal. You can have up to 8 emails on the one account, and make any of them primary, and the rest secondary.

- Ah not sure then about your account, contact them again maybe? You can do 2 accounts no problem, if you open another premier, but then you have to link it to a new bank account right? That was your original dilemma? You could make another bank account though?

- And have you registered your business in NZ? In Aus (and I'm sure it's VERY similar in NZ), you can have a company, be a sole trader or partnership, trust, etc, etc. But the main ones we have to worry about here are company or sole trader. You say you're not classified as a company. If you work online already then you're probably a sole trader right? Least for tax purposes you should be if you're earning enough. If you're a sole trader than means you have a business number (your tax identification number). Called an Australian Business Number (ABN) in Aus, and I'm 90% sure it's the IRD number in NZ right?

Anyway so you get this number, and then you also have to register your business name in NZ right? Either nationally or domestically in your state/city. The point I'm making is when you register this business name, that can be the day your "Company is established". You don't have to have a company, just a registered business will suffice (and you will have all the appropriate legal documents with it to give to PayPal).
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easyrider
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Okay thanks for that. I thought that I needed a proper company rather than just a registered business. And the field seems to be different for the United States according to some online training that I have seen on setting up business Paypal accounts.

BTW, is anyone able to answer my questions about selling your own products through Clickbank?
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Greg
 
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cecille.l
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It would be great to get the product listed on Clickbank though.


Selling your product through Clickbank is easy enough, but there are considerable fees involved. For one thing, once your product has been approved to be sold through CB, you have to pay them a one-time fee of USD$49.95. They have a Vendor Guide that you might want to check out. It's all straightforward enough. You might also want to go over their vendor fees.

Hope that helps. Have a good day!
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Cecille


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