Paypal and Coastal

Discussion in 'Coastal Vacations' started by cgmom, May 6, 2007.

  1. cgmom

    cgmom Member

    FYI for those Coastal Members utilzining Paypal as so many of us do. I just found out last week that Paypal is no longer allowing Coastal members to use paypal. Unfortunately, even though our company is not mlm or network marketing, Paypal has a new "policy" (that no one has heard about it so I am assuming that they failed to let us in on it) that no business that is affiliated with travel that is not a licesened travel agent can use paypal. One member actually had 10,000 frozen in their account as they said she had violated this policy and were told that it may take up to six weeks for them to receive it in the form of a check. Please let me know if anyone else has had any "issues" or have been notified of any policy changes. Have a great day!

    To your success!
  2. luvtravel

    luvtravel New Member


    Where can we read about this new policy? I haven't received anything from paypal about this.

    Goodness, many of us use Paypal,
    but I also have a merchants account as well.

    Thanks for the heads up.

  3. cgmom

    cgmom Member

    Yeah, I haven't exactly figured that one out yet. My director was on the phone with paypal for hours regarding the issue. She didn't tell us exactly where that was listed. I will look around the site and see exactly where it is on their site! I don't have a merchant account and of course, can't afford it yet as I am still building my business.

    None of us received an email so that would be why we are so frustrated. No one knew about the policy and no one was notified!

  4. luvtravel

    luvtravel New Member

    On another thread Tony Rush said that ALL home businesses are targeted by Paypal not just Coastal.

    He suggested that if you are a home business to withdraw any payments received immediately.

    I too will research paypal's policies.

  5. cgmom

    cgmom Member

    All Home businesses, huh? Well, why was paypal created then? Aren't most users home business owners, i.e., those who sell products via online auctions, internet based businesses, etc? These seems ridiculous to me. Well, if I had the knowledge to do so, I would create a paypal like website, just for home business owners. This information does make me feel better, though! I was wondering what they had against the travel industry!

  6. hsimpsonjr

    hsimpsonjr Silver Member

    This has been this way for a long time. If they know you are a home business then they will cause you problems. Just start another account with a different email address and change some of the identifying info that might tip them off that it is you and NEVER mention your business in the comments section. It really doesn't make sense that the people who own ebay and paypal would have a problem with legit home businesses using paypal. I guess that so many scams use it and they probably get tons of charge back attempts. I only use if for American Express because I have a merchant account also but I do use it on occasion. Just make sure not to mention COastal when using it and ALWAYS transfer the money IMMEDIATELY into your bank account after it hits your paypal account.
  7. cgmom

    cgmom Member

    Thanks so much for the info! I had no idea it was this way. This definitely changes things for me!

  8. CoastalToday

    CoastalToday New Member

    Hi Harold,

    The problem with the scenario you outline is that PayPal has access to your bank account as well - so it's not really safe whether you put your payments there right away or not.

    Personally, I haven't had any problems with them, but I just cancelled my PayPal Pro account and am switching to a merchant account. It costs a little bit more, but I'd rather be safe than sorry.

  9. cgmom

    cgmom Member

    Hi Tonya,

    Is there any reason you cancelled your paypal pro account? Just curious?

  10. hsimpsonjr

    hsimpsonjr Silver Member

    Getting a merchant account is the best way to go. It does have a monthly fee but it cost you less in fees per transaction than using pay pal does. Tonya, are you saying that paypal can go into your bank account and take money out without you authorizing it?
  11. CoastalToday

    CoastalToday New Member

    PayPal Pro has a monthly fee as well, but everything was simpler than a merchant account when I first signed up. Their loss now, if they want to play this way.

    Yes, it is my understanding that they can. At least, I have seen several reports about this from various sources.

    I think that this is why they are able to offer the PayPal guarantee - even if a seller doesn't agree with a refund, PayPal has recourse to get it through your the bank account that is attached to your PayPal account.

    You might check this out for yourself, just to be sure, though. As I said earlier, I'm convinced enough to quit using them.
  12. matiasmommy

    matiasmommy New Member

    Also remember that there are alternatives to paypal.. stormpay comes to mind right off the top of my head.

    I personally like paypal, as people generally have HEARD of them, and trust them. I think provided you don't have charge backs or whatnot it should be fine. Again, if you have built a relationship and explained everything with your team member personally prior to their joining and they have all their questions answered, this should not be an issue. Talk to and hand pick your associates folks, saves you a lot of headache when you decide to work with the right people from the get go. Everyone is clear, there is a good foundation for a working relationship and therefore the best opportunity for SUCCESS all around!

    Also, with the CSG people need a paypal account to get their E2Impact monthly commissions, so I prefer to get that set up for them right away. I like their verification system, too. Also, with their debit card feature, I can make my business purchases as well and then have a nice report to print monthly for my accountant. It costs a bit more, granted.. but hello EASY record keeping! I'm all about one stop shopping and ease of use, wherever possible.

    Another great option to consider is bankwire. WAY less fees, and also very secure. Of course, you and your client don't have that security and convienice that paypal offers BUT its quick and simple.

    Hope that helps!

    Jani Teeter
    L3 Director, CSG
  13. roger

    roger New Member

    I also find once people have decided on doing the business they have no problem in buying a money order/bank draft.


  14. CoastalToday

    CoastalToday New Member

    Good advice, Jani, but I want to mention one thing - that PayPal has frozen account funds *even without any complaints*, based on their assessment of the "legitimacy" of your business.

    So, happy, well-informed team members or no, there may still be a potential for problems. Especially with the high dollars that come with a Coastal purchase.
  15. matiasmommy

    matiasmommy New Member

    Hmm.. that is interesting... Well, live and learn I suppose!

    If they want to play that game, they are simply hurting themselves. They do charge a rather pretty penny for their services, so I'm sure no one else has a problem going elsewhere. Silly of them really, but then again- perception is reality in most people's worlds! Funny though- they have this "policy" and no one to date has called them on it. That too, may come to pass if their policy affects a critical mass.

    Interesting to note however. I'm sure that they won't be able to stop anyone from succesfully helping others to success in this business! Talk about cutting off your nose to spite your face!

    You are right Roger, it doesn't matter how you accept payment. People that are serious about the business WILL do WHATEVER it takes to get started! Its nice to have the power and ability as an independant business owner to offer all sorts of options. Once people make that decision however, its nice to be able to get them started and their package out to them straight away. God Bless overnight courier services!


    Jani Teeter
    L3 Director, CSG
  16. ibizniz

    ibizniz New Member


    it seems that paypal does this every now and again

    if you withdraw or transfer funds quickly after being paid, this throws up a red flag to paypal.

    I have actually used them for many years and have never had a problem, but I fear that it is only a matter of time.

    I use my merchant account more than I use paypal. You can sign up with coastals and get a good rate and the application is free.

    But Jani and Roger are right, the director can dictate how he or she wants to get paid.

    hope this helps
  17. jlDunn

    jlDunn New Member

    Hello all,

    I am a paypal user, having a hard time finding a decent merchant provider with decent prices in Canada - and I have had problems with them!

    I had an account and got my funds frozen, you can still issue your client a refund, and have them pay to a different paypal account if you wish, that is the only way they will let go of your funds.....when I did this, the exchange rate had changed, and there wasn't enough in my account to issue the refund so they released my funds to me.....

    They can hold your money for up to 180 days - so look out, and they don't let go.

    If you give them a customer issue to release your funds, then they must do so, they don't want you to loose business over it, because they can actually get in trouble for that....

    You will find that it is under their Acceptable Use Policy that it states about the MLM and pyramid businesses, or about recruiting others to make money, and they don't waver from this at all!!!!

    You can use another paypal account, or the one you have, but I would suggest not puting anything in it about your business as this is optional.

    You can get a premier account - a personal business account, and just put your name in - that way there are no problems with business....

    Hope this helps!
  18. ibizniz

    ibizniz New Member

    your new members can also send money using
    westernunion and moneygram
    both .com if that helps
  19. jlDunn

    jlDunn New Member

    And Herold, and any others, Paypal can definitely go into your account without your authorization - if you issue a refund, or send money when you don't have the funds completely in your paypal account they will debit your account for the ENTIRE amount! They can only do this if you have a "Confirmed" Bank account!

  20. ibizniz

    ibizniz New Member


    has anyone had any dealings with alertpay dot com ?

    I can not really use stormpay (very restricted transaction) and safepaysolutions (not at all) as I live in TX


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