PayPal Cracking down on Customer Accounts

[Blowfish]

I received this E-mail from PayPal yesterday. Everyone using PayPal be on the lookout.

Dear ****,

PayPal is constantly working to increase security for
all of our users. To ensure the integrity of our payment
network, we conduct frequent checks on our system.

Your account has been placed on a restricted status, pending
further review. Restricted accounts are limited in their
ability to send or withdraw funds.

For more information about the status of your account
and for full instructions on how to restore your account access,
please log in to your account using the link below:

https://www.paypal.com****


Thank you for your prompt attention to this matter.

Sincerely,

The PayPal Account Review Department


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Please do not reply to this e-mail. Mail sent to this address
cannot be answered. For assistance, please visit the link below.
All of the information necessary to restore your account access is
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[The Prophet]

PayPal restriction....

I've been put on restriction twice by PayPal in the past year, and a couple of my clients have as well. From what I understand, however, its not directly related to betting activity. The first time I was put on restriction was my own fault--I was trying to pay a bill and made the mistake of requesting a transfer from a bank account that I closed a couple of months earlier. The transfer was, of course, rejected and that resulted in my account being restricted.

The second time was pretty much my own fault as well--I wanted to get down on a bet and tried to fund my PayPal account with my credit card. My primary card was an American Express, and I got a note that they don't allow use for gambling transactions (even via PayPal). I got the bright idea(?) to send my wife the money (she has her own PayPal account), have her send it back to me, and then send the payment to the book. It worked, but shortly thereafter my account was restricted. I never got them to admit that it was this specifically--they just said it was "an unusual pattern of transactions" but my hunch is it was.

My mom's account was restricted a few months ago as well, and she's never laid a bet in her life. She changed the billing address on her credit card without updating her PayPal billing address and it raised a red flag of some sort.

In any case, both times my account was restricted I just did what they requested--faxed them the identification and bank statement they wanted and my account was restored without problem. They've never mentioned any problem with my offshore gambling activities in any of my discussions with them re: my restrictions. I've even come out and asked them if transferring money to Carib or whomever was the reason for the restriction and they've claimed it wasn't.

Now having said that, and while there might not be any inherent issue with gambling offshore via PayPal there may be certain types of transactions that are typical for us sports bettors that look suspicious. Multi-thousand dollar transfers to and from International accounts on a recurring basis might look fishy for reasons having nothing to do with gambling.

It's a pain in the ass when you get put on restriction, but more often than not PayPal acts like they could care less to whom you're sending money to/from and what for. That's the way it should be, of course.

FWIW, once PayPal's security system becomes familiar with your money transfer habits you won't get flagged for restriction. Without knowing your particular situation I can't say conclusively, but I'd seriously doubt that just using PayPal for gambling transactions is what brought about the restriction.

JRM
THE PROPHET
www.netprophetsports.com

[Blowfish]

Prophet

I think you cleared it up for me. I believe the credit card I used to verify my account has been changed. I lost the card and was issued a new one so the number is different. They may have been checking and saw that the credit card did not work.

It's good to know they are on top of potential fraud issues; however, unnerving to hear that they can just shut your account down in the wake of all the financial restrictions taking place in the industry.

[The Prophet]

Tell me about it....I found out about my first restriction when I had taken my wife's family out to dinner and tried to pay with my PayPal Mastercard debit card! All in all, I think PayPal is a decent outfit and they're trying to do the right thing. Clearly, the risk of fraud in their business is significant and since their entire business model is so new they pretty much have to err on the side of being overcautious. It really sucks when it happens to you though! PayPal is becoming a pretty respected payment method online, and their invovlement in the offshore gaming adds a little more legitimacy to it. And every little bit helps!

JRM
THE PROPHET
www.netprophetsports.com

[Dragon]

Pay Pal makes me uneasy. I just don't like the fact that they can seemingly grab your funds and freeze your account for basically nothing. I have heard and read too many stories where this has happened. I use pay pal as little as possible.

[The Prophet]

That definitely does suck....the way its always worked for me, both times my account was frozen I had big balances and was counting on being able to pull some of the money out for one reason or another.

The thing that I *do* like about PayPal is that they're obviously embracing the offshore gambling market. Any sort of legit payment system that lets me do what I want with my money without making some sort of judgement about the propriety of it is fine by me. I'll admit that they've got a few kinks to work out in the way that freeze accounts, but on the whole I think they mean well and want to work with the offshore gaming industry.

JRM
THE PROPHET
www.netprophetsports.com