> Still, things change when they then turn around and offer you a business loan
> It's the fact that they froze our accounts and then offered us a loan
How? Those are surely separate departments at PayPal (possibly even another [sub]company).
Not to mention loaning you money has other strings attached to it which makes it less risky-ish on PayPal's part (they have a clear legal proceeding to take if you default on the loan). If you screw over all your customers and run with the money, PayPal will take the major hit (because your customers will go after PayPal to get reimbursed).
Freezing your funds, and offering you a loan are very clearly "apples and oranges".
Nonetheless, you should have known this was a risk and was likely to occur before it became a critical issue for your business. Clearly you were not prepared nor did your homework on how to operate in this climate.
This sounds harsh, but it needs to be heard. It's difficult to feel sympathy for someone who put all their eggs in a single basket, and was too naive to understand the risks.
Lesson learned - don't put every penny you have into a single account administered by a company you have only recently begun a relationship with. You are a high risk customer for any banking institution. If it wasn't PayPal, surely a similar situation would have occurred elsewhere.
I don't understand why customers would go after PayPal if the merchant doesn't deliver. They should be going after the merchant. PayPal should not be the merchant here. If PayPal does insist on acting like the merchant, then real merchants should use a different payment provider.
I've got to admit, though, I'm not American. The way payments work in the US often seems completely backwards to me. But I really dislike that that backwards way of handling financial transactions gets exported by companies like PayPal, Visa and Mastercard to Europe, where banks do offer reliable payment infrastructure: when I pay someone money, the money ends up with them, not with some middleman.
> It's the fact that they froze our accounts and then offered us a loan
How? Those are surely separate departments at PayPal (possibly even another [sub]company).
Not to mention loaning you money has other strings attached to it which makes it less risky-ish on PayPal's part (they have a clear legal proceeding to take if you default on the loan). If you screw over all your customers and run with the money, PayPal will take the major hit (because your customers will go after PayPal to get reimbursed).
Freezing your funds, and offering you a loan are very clearly "apples and oranges".
Nonetheless, you should have known this was a risk and was likely to occur before it became a critical issue for your business. Clearly you were not prepared nor did your homework on how to operate in this climate.
This sounds harsh, but it needs to be heard. It's difficult to feel sympathy for someone who put all their eggs in a single basket, and was too naive to understand the risks.
Lesson learned - don't put every penny you have into a single account administered by a company you have only recently begun a relationship with. You are a high risk customer for any banking institution. If it wasn't PayPal, surely a similar situation would have occurred elsewhere.