trinorthlighting - 4:34 am on Sep 11, 2010 (gmt 0)
Yep, it sure did. We were doing about a million in sales a year, one small sale less than $20 on a stolen pay pal account and bam, they shut us down for two weeks. Imagine what that does to a large company cash-flow. So, while we waited for pay pal to make a decision to turn our account back on, we ended up moving to a full blown merchant account. Since pay pals customer service was so bad, we dropped them. Then they decided to try to hold all the money they froze for 6 months. Now, I can understand holding a reserve, but not the whole amount. Needless to say after a month, a lawyer and a $5000 legal bill pay pal agreed to release the $20,000 or so they were holding and keep the reserve that was built in place for 6 months like usual.
Needless to say, always have at least two payment processors in case one goes down, you can flip a switch on your site and have the back up running. We use authorize primarily and have google check out as a back up. This came in handy last year when authorize had a major data center outage for a weekend.
We learned our lesson the hard way and Make sure you read pay pals terms of service carefully then compare it to other processors before you make a decision. Oh, and as far as all those stories goes, read the one from former ebay power sellers and you will see a pattern. Ask yourself why you do not see a huge volume of complaints online about other credit card processors.......