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Is PayPal Safe To Receive Commission Payouts?

rudolf
Posts: 75
Joined: 17 Mar 07
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Is PayPal Safe To Receive Commission Payouts?

Hello there!

We've got two choices to receive commission payouts:

1. Through check
If we decide to use checks we have to pay around 80-100 Dollars in total for processing and we also have to wait 6-8 weeks before the money is actually deposited.

2. PayPal
With PayPal you pay only a few bucks and it takes 2-4 days total before the amount is actually deposited into your own bank account.

It seems like an obvious choice, but I've heard rumours that PayPal has freezed accounts in the past due to "suspicious" activity, like when from one to another day large amounts of money are being received and deposited.

We're kinda shocked to hear something like this. Imagine you receive your first payment totalling a thousand dollars, and PayPal freezes your account never to see the money returned!

Does anyone know more about this, or have experience with PayPal?

Thanks, Rudolf
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This account is managed by two persons; Maarten and Rudolf. You may find either of us posting individually with this account.
 
PremiumMember
sean06
Posts: 1377
Joined: 16 Jun 06
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I've heard about the freezings too, but it only happens when one day there is nothing, the next there is say 20,000 bucks. If you make sales slowly and consistently, there's nothing to worry about, but if you send an email to 100,000 people, watch out :)
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markling
Posts: 2488
Joined: 13 Jun 06
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People have hyped up this issue amazingly... it happened to some people a few years ago and the paranoia spread like wildfire. I think PayPal might have even been taken to court over it and forced to pay out some bucks.

Basically they *might* get a little nervous if they see a HUGE and sudden influx of cash. We're talking $10,000 in a couple of days.

But I don't think they're much into freezing accounts of regular joes all that much anymore. Definitely go with the PayPal option.

Regards,
Mark
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Site Admin
markling
Posts: 2488
Joined: 13 Jun 06
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If you ARE going to receive a large influx of cash, simply let paypal know before you receive it and you'll be fine.

regards,
Mark
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rudolf
Posts: 75
Joined: 17 Mar 07
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Thanks for your replies.

The hype must indeed have caused me to post this topic. I just wanted to be sure.

We're expecting to receive appr. $1200 in turnover at the end of the month. We started last thursday with ppc advertising and we're still experimenting with Adwords ads, keywords, etc. We've earned $385 total in turnover, minus the costs we have a near break-even. Hopefully we'll be in profit the next weeks.

Emailing PayPal sounds like a great idea, I will certainly do that.

Thanks, regards,
Maarten & Rudolf
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This account is managed by two persons; Maarten and Rudolf. You may find either of us posting individually with this account.
 
mikekaz
Posts: 7
Joined: 03 Jan 09
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I have been frozen by Paypal many times. The first time, the main reason quoted to me by paypal was "suspicious activity". What happned was I averaged $400.00 dollars a week in sales and then I burst to $2000.00 in a weekend so they froze the assets until shipping was verified. Took 10 Days. They do it to me a lot now, I don't know why and it causes a lot of trouble with my cash flow because I am not a big business. and I only sell electronics. They say now "Random Security check". So I stay away from them as much as possible. http://www.paypalsucks.com is interesting read. Some cry babies but a lot of legit issues.
This is my first post and I'm hoping to learn and do great things here.
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