Victim of Braintree fraud by paypal
- Thread starter Kievcash
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you can google it, we are looking for people because we want to joint court action against paypal group in UK that is organized against braintree payments.
To be fast it s like pp, they accept your application and after shutdown your gateway for risk reason (peviously they accept applications and you must send them contract with your supplier) but after anyway when even several hundreds euros arrive to Merchant gateway they close down and keep the funds.
They also work i think in illegal way in the UK, they told Paypal Europe license, but braintree is located in Uk with office, in USA for︀ high risk department.
I think people did not understand but Braintree is like paypal, the︁ same methods.
To be fast it s like pp, they accept your application and after shutdown your gateway for risk reason (peviously they accept applications and you must send them contract with your supplier) but after anyway when even several hundreds euros arrive to Merchant gateway they close down and keep the funds.
They also work i think in illegal way in the UK, they told Paypal Europe license, but braintree is located in Uk with office, in USA for︀ high risk department.
I think people did not understand but Braintree is like paypal, the︁ same methods.
Braintree is owned by Paypal (Europe) S.à r.l. (Luxemburg for European merchants/US for US merchants/asian clients depending on the country but usually HK), so when you sign the contract as a EU client, you sign with the Lux entity.
this method to block funds is unknown by authorities and start to be discovered by Stripe and Braintree competitors. So far, nothing and I am convinced it will stay like this for some time.
Braintree/Paypal will tell you that you sign a contract and they warned you (which is abusive ofc)
How can they do it?
When a PSP/acquirer onboards a merchant, they create a unique︀ MID for each merchant (where you are the only one to process payments on it).︁
However, the merchant needs to pass the KYC process (with all the documents etc.)
Braintree are doing it a bit differently to be able to accept clients faster. They own︂ aggregated MIDs where they place many merchants on it for some weeks/months so each merchant︃ can pass the KYC and then having their own MID.
It is supposed to be︄ very limited and almost illegal by Visa and Mastercard but... I will say that Paypal︅ is big enough to decide about some rules.
Good luck for your initiative, it will︆ not be easy.
Btw
Stripe is doing the same when they accept your business and︇ then block it for several reasons.
this method to block funds is unknown by authorities and start to be discovered by Stripe and Braintree competitors. So far, nothing and I am convinced it will stay like this for some time.
Braintree/Paypal will tell you that you sign a contract and they warned you (which is abusive ofc)
How can they do it?
When a PSP/acquirer onboards a merchant, they create a unique︀ MID for each merchant (where you are the only one to process payments on it).︁
However, the merchant needs to pass the KYC process (with all the documents etc.)
Braintree are doing it a bit differently to be able to accept clients faster. They own︂ aggregated MIDs where they place many merchants on it for some weeks/months so each merchant︃ can pass the KYC and then having their own MID.
It is supposed to be︄ very limited and almost illegal by Visa and Mastercard but... I will say that Paypal︅ is big enough to decide about some rules.
Good luck for your initiative, it will︆ not be easy.
Btw
Stripe is doing the same when they accept your business and︇ then block it for several reasons.
I am not full
I am not fully agree with u.
PayPal structures are complexe, Braintree has no link︉ with Luxemburg.
No office, no support nothing there.
The Braintree contact is from UK ,︊ and the risk départment located in usa.
Also PayPal UK is a subsidiary of PayPal︋ inc.
The same PayPal Europe is a subsidiary of PayPal inc holdings.
PayPal have to︌ stop their frauds, they must check people before open account not After, like this do︍ stripe now, i think they are due too.
Its Also illegal to open merchant account︎ without KYC check . And PayPal is not upper rules, even banks are not.
I am not fully agree with u.
PayPal structures are complexe, Braintree has no link︉ with Luxemburg.
No office, no support nothing there.
The Braintree contact is from UK ,︊ and the risk départment located in usa.
Also PayPal UK is a subsidiary of PayPal︋ inc.
The same PayPal Europe is a subsidiary of PayPal inc holdings.
PayPal have to︌ stop their frauds, they must check people before open account not After, like this do︍ stripe now, i think they are due too.
Its Also illegal to open merchant account︎ without KYC check . And PayPal is not upper rules, even banks are not.
No, I can guarantee you.
EU merchants sign with PayPal Luxemburg and Cie Sarl which is the main legal entity for paypal in europe. You will never sign a contract with PayPal UK. Their main office is︀ not in the UK but Dublin. You are right, they have no one in Luxemburg︁ (of course 🙂)
Braintree is PayPal so its the same, they even hire Paypal account︂ managers to work for Braintree, big reason why they suck.
Also, its not illegal to︃ onboard a merchant without KYC if the merchant does not reach the processing limits. I︄ am not sure about the exact limit but it should be around 50k€ per year.︅
Many PSPs prefer to ask it at the beginning so its done and the merchant︆ can process.
EU merchants sign with PayPal Luxemburg and Cie Sarl which is the main legal entity for paypal in europe. You will never sign a contract with PayPal UK. Their main office is︀ not in the UK but Dublin. You are right, they have no one in Luxemburg︁ (of course 🙂)
Braintree is PayPal so its the same, they even hire Paypal account︂ managers to work for Braintree, big reason why they suck.
Also, its not illegal to︃ onboard a merchant without KYC if the merchant does not reach the processing limits. I︄ am not sure about the exact limit but it should be around 50k€ per year.︅
Many PSPs prefer to ask it at the beginning so its done and the merchant︆ can process.
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