The fact that Paypal doesn't condone virtual goods trading has been set in stone in their TOS since 2007-2008.
However they haven't been seemingly caring about it and have kept a "looking through the hand" kind of mentality.
We sell virtual ingame currencies for certain games and have been doing so since 2016.
Now a month ago, Paypal decided to close our Paypal account because we acted in violation of their terms of use.
Our revenue was around €150.000 eur per month, so we were raking in decent profit for Paypal which came from acceptance fees.
Ontop of refusing to do business with you / your company, Paypal also freezes your funds for 180 days incase of chargebacks that might arise in the future.
Our company account has around €42.000 locked in it at current time.
After those 180 days they have been known to remove some of the funds that were left in the account for "Damages caused to Paypal".
Sometimes this is a portion of the money or sometimes even the full balance.
My story isn't the only one, this isn't a stand alone case. Alot of the websites operating the same business model have gotten their Paypal locked in 2020 and a lot of my friends who are drop shippers (even though they don't deliver virtual) have faced the same issue.
This goes as a warning to everyone who tries to make a buck on the internet whilst using Paypal.
- S
However they haven't been seemingly caring about it and have kept a "looking through the hand" kind of mentality.
We sell virtual ingame currencies for certain games and have been doing so since 2016.
Now a month ago, Paypal decided to close our Paypal account because we acted in violation of their terms of use.
Our revenue was around €150.000 eur per month, so we were raking in decent profit for Paypal which came from acceptance fees.
Ontop of refusing to do business with you / your company, Paypal also freezes your funds for 180 days incase of chargebacks that might arise in the future.
Our company account has around €42.000 locked in it at current time.
After those 180 days they have been known to remove some of the funds that were left in the account for "Damages caused to Paypal".
Sometimes this is a portion of the money or sometimes even the full balance.
My story isn't the only one, this isn't a stand alone case. Alot of the websites operating the same business model have gotten their Paypal locked in 2020 and a lot of my friends who are drop shippers (even though they don't deliver virtual) have faced the same issue.
This goes as a warning to everyone who tries to make a buck on the internet whilst using Paypal.
- S
