For many of us(Internet Marketers), PayPal is the main way we pay and get paid on the Internet. But after hearing what happened to one of my friend, I'm starting to wonder if the downfall of PayPal is coming. My friend is also an Internet Marketer but with much more experience and sites than me.
In 2007, it was Ades that had the PayPal Limited Account Access email.
PayPal lock out!
Late last year, he contacted them because he was opening a foundation to help people(Pay it forward kind of thing). His lawyer prepared all the paperwork(a lot) needed.
They mentioned it was okay for him to use his current account yet they lock him out of his account a few week later. While he was lock out, the money was still coming in but could not use it. The same account was used for other sites thus locking him out of that money too.
This week, he used another account for a big project with many people. The amount transferred were much bigger and again, they locked him out of his account.
He also have many sites using the affiliate script(PayPal only) I'm using with See Free movies Legally. He build those sites using ebooks taken from PLC. Wednesday was a great day for him since the combined sales of all his sites was about 100 sales of $7 ebooks($700). Again, PayPal locked him out of that account too.
Alternative to PayPal
Back in December, I recommended that he looked at AlertPay as a backup payment processor. With the recent PayPal woes he had recently, he is now switching most of his site to AlertPay and other payment processors.
You may think it's an isolated case but the guy who wrote the affiliate script had such an experience that he sell his script via CB now.
Last summer, one client had troubles with his account and he had to pay me using AlertPay. I was glad I was offering this options when I launched AuctionSiteWriter.
PayPal is the current de facto payment processor but if they don't adapt to their clients needs like Internet marketers(multiple sites), this will be the start of the downfall of PayPal.
Think about this: If Internet marketers start to remove PayPal because of fear of being lockout without cause for some "security reasons", this payment processor will be left with just the multimillion clients. Is it their plan?
At least, when they lock an account, they should stop the entry of new payments.
If you have a few sites with a few sales per day, I don't think you are at risk but I suggest you get yourself an AlertPay Business account (less fees too anyway). You might be mentioned on the net and get 100s of sales in one day. It may also be the day that PayPal decide to lock you out of your account and money because of that.
While the lockout is in effect and you try to correct the situation, they are earning interest on that money.
Go ahead and open that free AlertPay account. ;)
Keywords: affiliate script, AletPay, AuctionSiteWriter, Business, Internet, Money, payment processor, PayPal, PLC, PLR