PayPal e-check Glitch is Compounded by Another PayPal Error

Posted on October 30, 2008. Filed under: Paypal | Tags: , , |

Timeline:

1. Sold an item on eBay on October 25, 2008.  Total for item and shipping was $22.95

2. Buyer submitted a PayPal e-check on October 25, 2008 and we received notification of that pending e-check.

3. On October 27, 2008 PayPal sent email to us (see below) telling us that we would have to “claim” the payment.  According to Paypal, the email was sent in error and was the result of a glitch.

4. On October 29, 2008 we were sent an email from Paypal notifying us that the buyer’s e-check had cleared.

5. We called PayPal on October 29, 2008 because our account showed the transaction as “unclaimed” and our account had not increased by the $22.95 despite the email that was sent telling us that the e-check had cleared.  The PayPal account representative informed us that they would have to manually add the money to our account.  Okay, no problem.

6. Instead of increasing our balance by $22.95, PayPal actually DECREASED our balance by $22.95.  Having been on hold with PayPal so long waiting to speak to a representative, we decided to blog about our problem while we waited.  We have been on hold for 30+ minutes now, more than enough time to complete this blog.

This is the email we received from Paypal (names and email addresses have been removed for privacy reasons):

From: service@paypal.com <service@paypal.com>
To: xxxx@xxx.com
Sent: Mon, 27 Oct 2008 7:47 pm
Subject: Don’t forget to claim your money from XXX XXXXX

Dear XXXXX,

Claim your cash

You received $22.95 USD from xxx@xxx.com on Oct. 25, 2008. If you do not
claim your money by Nov. 24, 2008, this transaction will be cancelled and the
money will be returned to xxx@xxx.com's account.

Log in to your PayPal account to view the details of this transaction.

You need to manually claim this money because:

You are one of our high-volume customers. We ask PayPal users who receive more
than $10,000.00 USD per month to complete our Supplemental Merchant Information
form.

To fill out the form, click the link below:
https://www.paypal.com/us/MERCHANT

The information you provide helps us protect the integrity of our network.
Payments sent to your PayPal account will be held as "Pending" until you
complete this form.

If you have questions about this payment, log in to your PayPal account and
click on the History subtab. Click the details of the payment in question for
more information, or to accept or deny this payment.

Thank you for using PayPal!
The PayPal Team

----------------------------------------------------------------
PROTECT YOUR PASSWORD

NEVER give your password to anyone, including PayPal employees. Protect yourself
against fraudulent websites by opening a new web browser (e.g. Internet Explorer
or Netscape) and typing in the PayPal URL every time you log in to your account.

----------------------------------------------------------------

Please do not reply to this email. This mailbox is not monitored and you will
not receive a response. For assistance, log in to your PayPal account and click
the Help link in the top right corner of any PayPal page.

PayPal Email ID PP288

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18 Responses to “PayPal e-check Glitch is Compounded by Another PayPal Error”

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Get the stiff drink. There is absolutely no reason that the correction could not be made immediately. The constant glitches on eBay and PayPal lead me to believe that the site is headed towards meltdown.

This so called Glitch is also being made on regular Paypal payments; email arrives normally 3-5 days after payment has been made.

I have received the very same emails to claim Paypal payments from both the UK & OZ (totally different Paypal accounts)

On 1 echeck payment I have now received 3 of the emails to claim…the echeck has still not even cleared ????

What a mess Paypal/eBay is

A billion $ company that is just screwed up

My guess is every day they can hold onto YOUR money generates interest/revenue for them. Just wait until they tank and everyone’s Paypal funds disappear, Are they FDIC insured? Are they a bank? What about those 21-day holds some people are dealing with? If you MUST use Paypal to receive money, for cryin’ out loud withdraw your funds the instant they appear in your account.

I am also stuck in the Paypal Mess. Paypal also told me that:
1) No we will not refund our fees for the affected people
2) No we will not send out an e-mail telling buyers and sellers what is going on
3) No we do not care if the buyer cancels the transaction
4) No you will not receive the credit in 24 hours, it will take 4-5 days.

Same problem here – Unclaimed $300+ Also, Have bought many items that sellers can’t receive credit card funds either – This is huge – as of 8PM Eastern 10/30

I’ve had 4 or 5 of these in the past week. Haven’t checked if PayPal is taking the money away after the e-checks clear. Haven’t contacted customer service. PayPal is not a bank, they can do what they want, we shouldn’t complain.

Google your problems and you will usually find company in your misery, heh.

Just spoke with Paypal (10/30) and they have no clue what’s going on. They just advised me not to ship anything until payments show a cleared status. No ETA on fix.

So – is this an upgrade glitch, or is it the credit crisis? Guess I’ll take a week off from selling to wait and see.

I got one of these today and then a few hours later I received a notice that it has cleared and is ready to ship. I haven’t looked in my PayPal account though.

I did do the mock revision like we have to do often to send our items to core on eBay. Maybe it works for PayPal unclaimed e-checks too.

Have you noticed that they are transitioning from glitches to bugs? I’ve noticed that in the system is s****ed up again announcements.

I am having the same problem with a transaction. The payment has cleared – but remains unclaimed and there is no option for me to claim it. I have sent an email to PayPal to try and resolve it and still have not received a response.

same here, only 8.34 ebay transaction though. i guess we will have to wait and see. don’t you love paypsl?

Same story with the same answer from Paypal. Mechelle, what is the “mock revision” you mention? Has anyone tried this? If this goes on, I might refund the money and ask the buyer to send me a cashiers’ check. Is the refund working?

CAUTION BEFORE DEALING WITH PAYPAL !!

Sellers out side United States are facing more music as when we call Paypal the system asks for a local US tel no!

The Customer service acknowledges the glitch – but just imagine that a giant like paypal cannot even solve it overnight and just inform that they cannot say how many days to solve it !!!

Moreover, each time a new CS comes they use the same line and language thanking profusely for our understanding and patience.

I think a legal action is very much in order as while they enjoy our funds – we are making loss in reputation, sales, interest and exchange rates !!

I think all sellers should opt for payment methods other than Payapl as eBay is not going to help for any problem with Paypal – though it is their own copmany – the standard and clever reply you can expect from ebay is: : “They are two separate entities: !

SAME PROBLEM HERE.SOLD AN ITEM ON 10/25 AND AS OF TODAY THE PAYMENT IS UNCLAIMED. PAYPAL SAID IT WOULD TAKE 3 DAYS FOR THE PROBLEM TO BE FIXED AND THAT WAS ON 10/28.THEY NEED TO HURRY UP AND FIX THIS STUPID PROBLEM.

Wow, an e-check that clears in 4 days! I’ve never had one take less than 2 weeks. My bank clears out-of-state paper checks much quicker than that, so I don’t know why PayPal drags it out so much. I never leave my money in my PayPal account any longer than I have to. I’m keeping my fingers crossed that I don’t gain any personal experience with this latest set of glitches.

I hate that they won’t let you set it up so that you don’t accept echecks. They’re almost always a disaster. It’s kinda hard to specify that you require payment within 3-5 days and then when a echeck shows up you have the option of either waiting for 2 weeks to see if it bounces or paypal screws it up or you can refund the original payment (which they tack fee’s onto if it’s like making a refund for a normal paypal transaction, I’ve never done it tbh) and ask them to send it another way. So so sooooo frustrating, don’t even get me started on the 1-2 punch of fee’s ebay is getting by owning paypal.

I’m a 3000+ 99.9% pos feedback silver powerseller. I’m sitting on 2 of these unclaimed money fiascos from the last few days 11-08-08. I will not list another item until this is sorted out. The fact that paypal refuses to acknowledge the problem and can’t fix it tells me they are in a panic state. They are either being hacked or sabotaged from within and are unable to stop it. Or worse, if they are doing it on purpose it’s a desperate last chance attempt to cook the books before they fail like AIG, WAMU, Bear Stearns, etc. They need to post an announcement / disclosure, make a personal contact, and remedy the situation asap or I’m done with both ebay and paypal.

Ain’t it great that eBay made dozens of negative changes just before the holiday selling season, including requiring PP only, and now PP is holding funds and e-checks and who knows what else? Hey eBay & Paypal Boards and shareholders: why don’t you vote these losers out and get back to business????

I am having a slightly different SET of Ebay/Paypal/Skype problems. First, I have bought hundreds of things on Ebay, using paypal to facilitate the purchase. The payment was drawn from my account immediately and payment was transferred directly to the vendor and the deal was done. When did they start calling that E-check? And why did they change this method (not to mention having no notice or FAQs about it)? I am not interested in waiting, and the only two reasons I used Paypal were that the payment went directly from my bank account, so it was not a credit transaction, and it went quickly!
Most recently, SKYPe – which I need as a resource because I am from the USA living in Europe at the moment – kept rejecting my efforts to ‘top up’. It gave as reasons that Paypal had no good account ‘funding source’ for me. Simply not true. I could NOT find anyone to call at Paypal about this. Went into my account, source is still there- no evidence of problems, and just in September had been working smoothly – no E Check B.S. This happened multiple times. So, I went into my Paypal account and moved money directly into paypal from my bank, so there was money sitting at paypal in my name. Though the pages say this takes (I think it was) 3-5 business days, it took seven, and that was only after I started emailing paypal to see why my bank had released the money 5 days earlier but it was not showing as money I could draw on in Paypal. No explanation – they just did something manual to move it. I completely agree with the writer who suggested that Paypal is earning money on our money – and, frankly, it sounds illegal (I’m an attorney). Banking law and consumer law should protect people against this – especially in the absence of notice. It is ripe for a class action law suit. If I were in the U.S., I’d start one!
In addition, I made a mistake and used Paypal today to purchase a book and the system reported that it is this E Check thing happening. Why? I do not understand. As a result, though on Dec. 5th I purchased the book (or did I? good legal question as to when the purchase is actually made if the payment is not actually transferred/made) . . . it now appears the payment will not go through until Dec. 10th – pretty significant if I am trying to purchase a book to go from Europe to the U.S. after I receive it (seller had no option to mail direct to USA). THEN, paypal provides the seller with an incorrect address for me. I checked. I’ve used paypal almost every month for the last four years. I’ve lived in Denmark for the last three. And I had made sure during the earlier problem that my account had correct information. Nevertheless, Paypal gives the seller an address for me that I haven’t lived in since 2003 or early 2004!
I therefore agree with the writers who have said they think paypal is going down fast. Sure glad that McCain didn’t win and make the CEO a government advisor as he had suggested during a debate. With paypal and skype going down, one can only hope that competitors will up the anty (not the prices though!) and the competition will be good for sellers and consumers. Meanwhile, I hope the folks renting the house we lived in in 2003 will enjoy trying to read a 662 page book in dutch (as translated from original language of Danish)!
RIP paypal!


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