Forum Moderators: buckworks
Here at PayPal we strive to provide our merchants with a safe and secure payment ecosystem. In order to support a safe payment ecosystem, we will periodically review and assess the financial well being of all merchants who use our products.
A periodic review of a company's financial condition in a payment processing relationship is a standard practice in the payment processing industry. Our periodic reviews serve to enhance our understanding of your business and help us avoid any unnecessary impacts to your account. These reviews typically occur annually but may happen as frequently as monthly or up to annually based on the risk profile of your business.
In order to complete our review, please supply the following items:
1.The company's most recent two years of audited* financial statements, which includes:
1.Balance sheets
2.Income statements
3.Cash flow statements
4.Notes
2.Interim year-to-date financial statements (same requirements as above).
3.The latest three months of your business’s bank statements. If you have multiple accounts, please include all statements (checking, savings, investments, etc.).
Please also provide the following information:
· * What do you anticipate your processing volume with PayPal to be over the next 12 months?
1.Are any significant changes to your business anticipated within the next 12 months? (for example: name change, shift in business model, growth plans, etc.)
2.Does your company carry inventory?
3.How long does it take for buyers to receive the purchased items?
4.Any other updates or information we should know about?
The spread of COVID-19 (Coronavirus) is causing disruptions to businesses worldwide. PayPal is carefully monitoring the situation and are connecting with some merchants so we can best assist in managing risks associated with COVID-19.
We have the following additional questions:
1.Who are the top 5 vendors your company uses to supply you with merchandise or materials you sell to consumers? Please include their names, addresses, and contact information along with recent paid invoices to these vendors
2.Do you expect any impact on your ability to deliver products or services?
3.Are there any other operational impacts to your business? Examples, staffing challenges, changes in customer support levels, shipping companies or web providers? What contingency plans do you have in place to counteract this?
4.What contingency plans do you have to sustain your operations?
5.Will you be experiencing an increase in refunded transactions?
6.Will your payment volume be impacted? If so, please explain the impact on your total sales processed through PayPal short- and long-terms.
7.Are you making or have you made any changes to your shipping or refund policies in response to COVID-19? If so, please describe the changes you are making along with the effective date these changes start.
8.Do you have sufficient liquidity to cover refunds and dispute cases for the next 3 / 6 / 12 months? If not, do you have alternative sources of cash?
9.If your use of alternate cash source is a LOC, please provide terms (i.e. limit, current outstanding, availability, maturity, etc.). If governed by borrowing base, please send the most recent Borrowing Base Certificate.
*If audited financial statements are not available, we can also accept CPA-reviewed financial reports, managerial statements, and your business’s federal tax returns.
To ensure prompt review, please provide the requested information by 10/15/2020. Please provide the documents within this timeframe to avoid any interruptions to your PayPal Services.
