PayPal are no longer talking to eBay when considering account reinstatement

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A worrying issue has arisen for one retailer on eBay where their eBay account was suspended over an issue swiftly followed by a PayPal account restriction. Their eBay account reinstatement was quickly dealt with and eBay restored their selling privileges in full following an appeal. PayPal aren’t playing ball though and have decided to permanently close their PayPal account and refused to consider further appeals.

Of course it’s practically impossible to trade on eBay without a PayPal account. Whilst eBay are perfectly happy to allow the seller to carry on trading, if PayPal close your account there’s pretty much nothing you can do. In the past when PayPal was an eBay company the two support teams would talk to each other, but correspondence the seller has received suggests that PayPal have no further interest in talking to eBay and won’t be influenced by eBay’s decisions.

The issue in question is almost irrelevant in this case, although for the sake of completeness it involved alleged copyright and trademark infringements. Sellers should of course make certain that there are no rights issues with the products they list and sell, but what’s extremely concerning is that PayPal might close your account and that effectively kills your eBay account too. PayPal appear to refuse to be swayed by any eBay decisions and if they consider you account to be an excessive risk there will be no eBay PayPal account reinstatement Brick Wall and that’s the end of your eBay career.

Sellers who are slating eBay’s decision to dump PayPal and move to their own eBay Payments service with Adyen should consider this case and consider the benefits of an integrated payments and marketplace solution. If payments and marketplace are the same account then a successful appeal against selling restrictions would automatically result in account reinstatement for both services.

For this particular seller there doesn’t appear to be any solution. There’s no point trying to con PayPal and open a new account as that would break their terms and conditions of service and if you use the same name, same address, same bank details, same IP address or even potentially log in from a device you previously used for your last account then PayPal will almost certainly link your accounts and close the new one.

The only realistic solution is to set up an entirely new business entity at a new address with new computers, new phone numbers, a new bank account. Sellers shouldn’t have to resort to subterfuge, but if eBay say it’s fine for you to sell on their marketplace and PayPal refuse to offer their payment service realistically what do they expect sellers to do? What would you do, in similar circumstances, would you quit eBay or would you try to surreptitiously open a new set of accounts?

10 Responses

  1. I do not think this one case, possibly isolated, should be seen as a reason to herald the arrival of Adyen as the Second Coming. Yes, there is the potential that an issue my be easier to resolve, though internal eBay issues are not easy to resolve…..and eBay and Adyen will no doubt be different profit centres or have different reporting lines, so things could be just as tough.

    No doubt Paypal are now on notice, and whilst I don’ see them as being so petty as to not help restore an account, it does depend somewhat on how the break-up has been handled……by both parties. ie an acrimonious separation is never going to ease the path to good customer services.

    But I would see this more as a difference between Paypal’s rules and eBay’s rules, one where perhaps Paypal view this alleged “copyright infringement” in a more serious light than eBay.

    Though with the over-simplification given above by Tamebay we cannot be sure, more detail is needed.

    Personally I have had no issues with Paypal over the many years I have been with them, and I see the change to Adyen as mainly beneficial to eBay………no firm ever does this huge move to benefit it’s customers.

  2. What a ludicrous position. ebay really need to get their act together immediately, to permit alternative payment options for this seller and remove the REQUIREMENT to use Paypal in eBay, and simply have that as an option!

  3. “The only realistic solution is to set up an entirely new business entity at a new address with new computers, new phone numbers, a new bank account. ”

    That isn’t correct, at least for individuals. All you have to do is set up a second e-mail address, which is simple ; then re-register on Paypal using the new e-mail address. I did this a few years ago. Their computer won’t challenge the postal address being the same, because many households have multiple occupants. If the Paypal computer puts up an objection about the bank account being already in use, just open a new account with a different bank, which is annoying but still a long way short of the measures stated in the article.

  4. The saying
    “Don’t put all your eggs in one basket” kinda springs to mind, yet it’s hardly a new concept now, is it. Oh how I’d love to see a GOOD clear-out at eBay Towers. If nothing else, it would wipe the smug smiles of their “Fat cat” faces.

  5. It is just plain stupid that these two cannot communicate. We had the joys of having to WIN 2 ebay INR cases last week, then the scammer ends up trying it on Paypal LOST that also , then wanted to appeal carry on and time it all costs. Suppose that will be one of the benefits of not having to deal with Paypal. One set of rules.

    They should at least be sharing information for the security of users but am sure that is not high on their agendas.
    Always thought the likes of eBay and Amazon have far to much control over UK biz, and you should not put all your eggs in an eBay or Amazon basket. There are plenty of other areas and platforms to trade on.

  6. My paypal closed two weeks ago due increase in sale
    They are holding 19k for 180 days
    All items were dispatched through tracked service
    They are saying highly risk involved in doing business with us
    Luckily ebay account is fine
    So PayPal needs to go now time is over for paypal
    Can’t wait for adyn system

  7. Paypal are nothing but financial bullies and eBay are becoming the same. Companies that become too big will always do exactly what they want. It is known as corporate greed. Go to your local charity shop or go back to the high street. You will be doing your community a favour and you will also enjoy your browse and the walk will do you good

  8. Paypal is rip off company. They have monopoly so can do what they like to do. When you do refund they don’t give you back your 20p. When I called customer service I been told this is how their computer system work which will not refund you 20p unless you call us. Do PayPal really think that seller is going to call them just for 20p?. This is how they making millions in profit just by ripping off sellers. I’m so happy to see PayPal go hopefully new system will be better

  9. I cant use paypal to pay for things on ebay. I have contacted paypal on numerous occassions who have said there us nothing wrong and that im to find other means to pay for ebay items. Its annoying and frustrating!!

  10. I hate PayPal, they stopped my account and held my money for 6 months, all because I was visiting my partner in another country and did a transaction , boom, gone account closed , have not used eBay in 2 years , cant wait til ebay has better options , amazon has been my go too since


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