Paypal holding your PS3/Wii funds till 11/17?

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Ghaleon

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I was just reading article on:
http://www.consoleconnector.com/blo...aypal-holds-funds-from-ps3-wii-sales-on-ebay/

Here is what it states:
Breaking News: PayPal Holds Funds from PS3 & Wii Sales on EBay
27 October 2006

Turns out getting qualified to auction your PS3 or Wii on eBay was only half the battle - reports are now coming in that PayPal is holding all the funds from PS3 sales via eBay.

Funds are held and accounts essentially froze until at least November 17, 2006 or when the seller can provide PayPal with a tracking number. Since PayPal is the only payment option allowed for PS3 and Wii auctions, even qualified sellers are left with no access to funds for almost a month, if not longer.

Earlier today we received a report from a seller who had been with eBay since 1998 and with PayPal since 2000. He has over 500 feedbacks with a 99.8% rating. Easily enough for the eBay console pre-sale restrictions. Here is his story:


“So I listed my PS3 on eBay 3 days ago and last night it finally sold for $2025. Immediately the buyer paid me in full via PayPal, as per eBay’s requirements I had to take PayPal as my only method of payment.


Today I got a call from PayPal. They wanted to confirm that I sold a PS3 on eBay and that it went for $2025. I confirmed it was correct. Then they tell me that the reason for the call is to inform me that they have put a limit on my account until I ship the item. They also said I could continue to receive payments and add money to my PayPal account, but I could not spend any money from it or withdraw funds until the 17th or when I provide a tracking number proving that I have shipped the goods.


In the end eBay forced me to take PayPal for my PS3 listing and there is nothing I can do. PayPal isn’t regulated like banks so they can get away with this kind of thing.”

Sellers are now scrambling to find other ways to auction or sell their consoles and even those able to qualify will be at the mercy of PayPal. While the rules are in place to combat fraud, they essentially make it impossible for everyday people to sell their consoles via eBay.
 
I hate PP and I don't think they should be allowed to hold any body's money without the person's permission. But in this case, I fully support PayPal. After all the scamming and whatnot from the 360 fiasco PayPal is only protecting their own and their buyer's asses.
 
Note being able to to spend the money from the system sale makes sense but I don't get why they are freezing the whole account.
 
yeah that sucks if they are selling shit weekly, and happen to have a ps3 sale and it freezes there paypal account
 
I'm sure they are enjoying the intrest the are earning with that cash sitting there.

Just I wonder if it will hurt them in the long run if some of their busy sellers now don't have as much cash flowing in because of the rules.

Though I think the harder they make it for people to do this the better anyway.
 
Well... On the one hand, people that buy them just to sell on ebay are total dick heads...

On the other hand, it bothers me that PP/EB can just say they're going to do what ever they want with large sums of people's money...

I also wouldn't be surprised if there was an added "holding tax" or some other fee tacked onto this ordeal.
 
I don't see why paypal can't just hold the money recieved from the auction but ehh i don't care. I mean this way people can't get scammed. The only problem I see is all you have to do is send a box of rocks with a tracking number to get your money and then run.
 
I can only hope there are tough restrictions for sellers POST launch. The harder it is for Joe Everyman to sell, the higher the price will be driven.
 
[quote name='NamPaehc']I'm sure they are enjoying the intrest the are earning with that cash sitting there.
quote]

Good point.
Thats what I was just thinking about, they are essentially taking a free loan on your money and sitting on the interest. Its like a rebate.
 
Its not really a frozen account because that would mean no money could come in or out. Its just limited one way the way that doesn't benefit paypal. :D
 
[quote name='Morpheus']Its not really a frozen account because that would mean no money could come in or out. Its just limited one way the way that doesn't benefit HURT paypal. :D[/quote]

They have a big money pit where they keep all our lewts that gains interest. Subsequently, this allows them to channel large lump sums from PS3 sales --in addition to anything else that seller sells-- into said money pit. Thusly, they earn a whole shit ton of free money with the interest of all this money just sitting there for a HALF OF A MONTH.

Figure there are 1000 PS3 pre order sales at 1000 dollars. Thats $1,000,000.00 fucking dollars! Then you figure they get atleast 5% interest on that. 1mill * .05/365*20= $2739. (1mill * interest rate/times its probably compounded in a year * the number of compoundings)

Now, thats all just a guestimate as there will probably be more auctions that that selling at a much heigher amount. Additionally, you then have to figure in the amount of money they're holding from sales that have nothing to do with the PS3/wii except for the fact that their from the same seller. It could quite possibly be several tens of thousands of dollars in interest they're "stealling".
 
Wow I had not looked at the auction prices untill now, looks like $1500 is the average lately. I wonder what these idiots do for a living that they'll pay triple+ retail for a video game console. If you want it that bad you can buy one hell of a nice tent with suppiles and cookout at Best Buy while you wait for a day and still have money for games and stuff.

I've got friends who will be camping and looks like i'll be taking off work to join them now. Ebay and Paypal look to be a scarier place with these than they normally are selling high priced items so maybe I can just wait all night and then sell my spot in line once Best Buy passes out the guarantee slips first thing on launch morning. Several people were doing that last year for the 360....
 
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