I did not know how important a customer I was until I received an email from PayPal, explaining how important my business was to them. I am also not sure whether this was sent to me as in individual or as a business owner with an LLC; Kijiji Republic.
QUOTE: Your business is important to us. That's why we're committed to providing a fast and secure payment service to you and your customers while keeping our prices competitive. We're also committed to clearly communicating changes to our policies and procedures. So, we're writing to let you know about a change to your PayPal account.
From now on, payments you receive will be temporarily held in a pending balance. This pending balance helps make sure that you'll have enough money in your account to cover any buyer claims.
Payments will be held in a pending balance for up to 21 days. For example, if you receive a $100 payment (after fees), the $100 will be held in a pending balance for up to 21 days. After 21 days, the money will be available for withdrawal. ENDQUOTE
While PayPal has allowed small business to be able to sell their services and products on the web without the need to have merchant accounts; and I commend them for this, it has also taken this too far. PayPal has decided that it will start behaving like a financial institution. In their own wisdom, knowing that the number of transactions they are able to process in a day, they “PayPal Bank” will now be a financial institution and will be holding onto a business funds for a period of 21day.
Will it be paying interest on this? May of the users of PayPal are small businesses and do not have with them a huge cash reserve. They depend on a customer’s purchases and turning that around to add inventory. While their may be justification to hold on to the funds, there has to be other ways of dealing with claims. We at Kijiji Republic have a customer and shipping policy, not to mention that we are a LLC. We use PayPal as an option to our customers who may otherwise not be able to use other merchant services, but do we have to be penalized with the hold.
How are small businesses that depend on cash to operate?
Do small businesses have to send shipping information to PayPal so they can release the funds?
Do corporations have to be treated, as though they do not have governance rules on how to deal with their customer?
Since when did PayPal
1. Become a financial institution?
2. Decide that the best number of days to hold onto a customer’s money is 21day?
3. Decided that it will be involved in financial management of small business?
4. decide to use other business’ funds to gain interest
May be you have an answer to the issue of PayPal and we can help them out with a solution. In the mean time I will pray and seek which to stick with or maybe deny some of my customer the option to use PayPal and ask them to use Google check out or just use the secure services we have on Kijiji Republic
What do you think we need to do as small businesses? Stay or leave……..that is the question.
QUOTE: Your business is important to us. That's why we're committed to providing a fast and secure payment service to you and your customers while keeping our prices competitive. We're also committed to clearly communicating changes to our policies and procedures. So, we're writing to let you know about a change to your PayPal account.
From now on, payments you receive will be temporarily held in a pending balance. This pending balance helps make sure that you'll have enough money in your account to cover any buyer claims.
Payments will be held in a pending balance for up to 21 days. For example, if you receive a $100 payment (after fees), the $100 will be held in a pending balance for up to 21 days. After 21 days, the money will be available for withdrawal. ENDQUOTE
While PayPal has allowed small business to be able to sell their services and products on the web without the need to have merchant accounts; and I commend them for this, it has also taken this too far. PayPal has decided that it will start behaving like a financial institution. In their own wisdom, knowing that the number of transactions they are able to process in a day, they “PayPal Bank” will now be a financial institution and will be holding onto a business funds for a period of 21day.
Will it be paying interest on this? May of the users of PayPal are small businesses and do not have with them a huge cash reserve. They depend on a customer’s purchases and turning that around to add inventory. While their may be justification to hold on to the funds, there has to be other ways of dealing with claims. We at Kijiji Republic have a customer and shipping policy, not to mention that we are a LLC. We use PayPal as an option to our customers who may otherwise not be able to use other merchant services, but do we have to be penalized with the hold.
How are small businesses that depend on cash to operate?
Do small businesses have to send shipping information to PayPal so they can release the funds?
Do corporations have to be treated, as though they do not have governance rules on how to deal with their customer?
Since when did PayPal
1. Become a financial institution?
2. Decide that the best number of days to hold onto a customer’s money is 21day?
3. Decided that it will be involved in financial management of small business?
4. decide to use other business’ funds to gain interest
May be you have an answer to the issue of PayPal and we can help them out with a solution. In the mean time I will pray and seek which to stick with or maybe deny some of my customer the option to use PayPal and ask them to use Google check out or just use the secure services we have on Kijiji Republic
What do you think we need to do as small businesses? Stay or leave……..that is the question.
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