1/5

posted Aug-15-2011
Update 9/6/11 I have changed back to a one star.
DO NOT USE PAYPAL FOR LANDLORD/TENANT PAYMENTS! Do not use paypal for any service, other than an item that you can hold in your hand. The remitter can lie as much as they want, and paypal will IGNORE substantial data. I have been happy with Paypal with Ebay transactions.
Indeed, their complex contract states this, so I have no recourse except for the Court which I will use with this tenant utilizing civil fraud.
I'm still unhappy with the complexity of the resolution and I will still keep the 1 star.
I sent Paypal by fax enough proof that the tenant had signed the lease, received a signed lease, that I had pulled it from the market and that the tenant paid rent/deposit by paypal.
Tenant Perrin Tellock then alleged "unauthorized use" and payal IGNORED all of my substantial data. Faxed signed copies of the lease plus copies of communication going from "I want it and have paid you" to "I can't take it" to "Unauthorized use of Paypal" is proof enough to convince a jury, but not Paypal. And a jury or judge will ultimately decide this.
Paypal rubber stamped "unauthorized use" even when documents show clearly that he was the one who paid.
In short: DO NOT EXPECT A FAIR JUDGEMENT FROM PAYPAL, regardless of the proof you submit.
Paypal is fine for Ebay, but in my opinion do NOT use it for Landlord/Tenant payments.
Update 8/24/11 I have changed my rating from a one star to a five star.
Summary: Tenant signed lease and sent me rent via Paypal. Tenant apparently alleged that he was being defrauded (probably alleging that I was defrauding him) thus Paypal put a hold on the funds.
I sent Paypal all communication and a copy of the signed lease arguing "buyer's remorse" is no reason to chargeback, and that the service was given upon receipt of the rent.
Much to my surprise Paypal agreed and freed the money sending it through to my account. So it goes to show if you have a problem do the leg/paperwork and send Paypal a clear history with documentation.
I'm so pleased that I'll give Paypal 5 stars, but they need to streamline their claim process as several emails asking for info, when used, were returned as unsendable. But I found alternative addresses.
From 1 start to 5...that's pretty impressive, I think.
Update: 8/19/2011
I am now led to believe that the tenant instituted a charge-back (or rather a hold) and may have alleged that I defrauded him.
I am dissatisfied with Paypal still since they will not divulge information. I have asked that the case be advanced to a claim. Tenant received the goods (signed lease, the apartment was pulled, advertising closed, and two tenants denied rental).
I believe that Paypal now has an obligation, since I acted in good faith and "sent the goods," to take the funds on hold and disburse them to me.
I will likely institute a court claim against the renter, and will ask the Court to grant a Court Order to force Paypal to divulge the entire chain of events.
This case does show that Paypal may not be a good idea for the receipt of Landlord/Tenant funds.
This will be updated. I have changed my rating to neutral for the time being.
The following is my original posting:
Beware! Do not use if you are a landlord! Your money will be held by Paypal.
I had a new tenant and suggested that he send me rent/deposit via Paypal. I've been with Paypal for many years with never a problem but this $1300 was placed "on hold" by Paypal (not by the sender!) as a "high risk transaction."
I am a verified Paypal member, so is the remitter--how this can be "high risk" is beyond me.
There is no way to contact a person that you can find on Paypal but I did find a person number: 888-221-1161 and now I must jump through hoops and have my payment held up for who knows how long. Again, the sender did not do anything to stop this, the funds from his account are good, I did not do anything, Paypal put this stop on their own. Why? I haven't a clue. I will avoid using Paypal again this way.
Further the agent that I talked to was curt and bordered on the edge of being actually rude. I do not appreciate that sort of customer service and expect better.
Lastly in a recent foreign (Australia transaction) I noticed that the exchange rate was $1US to 0.944 Australian when the interbank rate at the time I sent was $1:0.994+ In my opinion a 5% currency translation is far too much.
I have used Paypal for many years when selling on Ebay. Years ago they would double charge your account (put a hold for $xxx) then actually charge $xxx, and the hold would not be released for many days, thus a $200 charge would deplete temporarily $400 from your account, once causing me to overdraft. I am not sure if that is still a problem.
I have not had any problems with Ebay/Paypal.