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Author Topic: Paypal "withholding 600k EUR" of independent developer's money  (Read 1595 times)

feppe

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Paypal "withholding 600k EUR" of independent developer's money
« on: September 14, 2010, 12:28:09 pm »

As there have been several threads about online payment services recently, this might interest some of you: Paypal limited an indie online game developer's account for unspecified reasons three weeks ago. The account has over 600k EUR on it. Paypal has said it will take up to two more weeks to get the issue resolved, and "that if they decide something bad’s being going on, they’re going to keep the money."

Only source available is the developer himself.

Rob C

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #1 on: September 15, 2010, 10:31:00 am »

Does anybody trade on the Internet via cheque? Does C.O.D. still exist in any parts of the world? I seriously wonder what to do should any print requests come in. I must have a chat with the local bank and see what it suggests. On another matter, it suggested direct bank transfers, from account to account, which it claims can be free. Whether that gives away too much information, I don't know. At least both buyer and seller can always quote and show bank documentation should problems arise from such a method.

I guess ever kind of innovation brings with it its own suspect apples...

Rob C

feppe

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #2 on: September 15, 2010, 01:37:30 pm »

Does anybody trade on the Internet via cheque? Does C.O.D. still exist in any parts of the world? I seriously wonder what to do should any print requests come in. I must have a chat with the local bank and see what it suggests. On another matter, it suggested direct bank transfers, from account to account, which it claims can be free. Whether that gives away too much information, I don't know. At least both buyer and seller can always quote and show bank documentation should problems arise from such a method.

I guess ever kind of innovation brings with it its own suspect apples...

You mean cheques are still in use somewhere? When I moved to the US in the 90s, I laughed when I opened a bank account and they gave me a chequebook. I remember my dad having a chequebook in the 80s, never remember him or anyone else actually using them.

The main problem is that Paypal doesn't really have competition. There's Google Checkout which only does US and UK AFAIK, and some other outfits with geographical restrictions, even higher costs, or other limitations which make them unsuitable for most freelancers and SOHO business owners. Pretty much the only options are Paypal or a CC merchant account - latter can get even more expensive than Paypal depending on business volume.

Direct bank transfers might be free within UK, but they most certainly are not even within the EU. You or the customer will be paying quite hefty fees for transfers outside the EU. COD is probably not a good option due to un-collected shipments, high costs, and doubt it's even possible across borders.

I've been saying that whoever comes up with a viable global microtransaction business model will be filthy rich. I've been saying this for 10+ years, so I'm not holding my breath.

Christoph C. Feldhaim

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #3 on: September 15, 2010, 01:48:22 pm »

Direct bank transfers might be free within UK, but they most certainly are not even within the EU.
They are free, if you supply IBAN and BIC.

feppe

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #4 on: September 15, 2010, 02:01:47 pm »

They are free, if you supply IBAN and BIC.

Good luck getting an IBAN and BIC from the average customer. Or more appropriately in this case, to have a customer who knows what to do with them, who can be bothered with the wire transfer hassle, and be comfortable enough to wire money directly to you with no financially viable dispute resolution method.
« Last Edit: September 15, 2010, 02:09:14 pm by feppe »
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Rob C

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #5 on: September 15, 2010, 02:51:03 pm »

You mean cheques are still in use somewhere? When I moved to the US in the 90s, I laughed when I opened a bank account and they gave me a chequebook. I remember my dad having a chequebook in the 80s, never remember him or anyone else actually using them.



Damn right! It's the best way I know of getting money from one bank in one country into mine here in Spain. I just write myself one, give it to the bank, and then a couple of days later it has been added to my account.

I would be devastated to lose that simplicity of transfer. I also find that anyone here who knows you for a few months is perfectly willing to accept your cheque. There was a period where the banks tried to impose a charge if you deposited someone's cheque; that was killed off by customers threatening to move. There is still a huge business in Bearer Cheques... very convenient.

Rob C

Christoph C. Feldhaim

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Re: Paypal "withholding 600k EUR" of independent developer's money
« Reply #6 on: September 15, 2010, 03:16:32 pm »

Good luck getting an IBAN and BIC from the average customer. Or more appropriately in this case, to have a customer who knows what to do with them, who can be bothered with the wire transfer hassle, and be comfortable enough to wire money directly to you with no financially viable dispute resolution method.

I didn't say free from hassle..... just free from charges.  :P
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