As many of you know who have been in the Internet business world for some time, PayPal has always had one of the worst reputations for third party payment processors. This reputation was well deserved. There were thousands of cases in which PayPal, without warning, shut down business owners’ PayPal accounts for no apparently good reason, and if there was a reason, PayPal had no intention of telling them what it was. That’s how dictators operate – in a realm of secrecy.
These despotic, unethical and inhumane actions on the part of PayPal were brutal and devastating to thousands of business owners. People who had spent years building up their businesses saw them destroyed in an instant, at the whim of some jerk who worked at PayPal, who obviously had some sort of pathological inferiority complex which could only be satisfied by the sadistic, wanton destruction of people’s lives. And the owners of PayPal didn’t give a damn.
In fact, the huge negative publicity garnered by this brutish, dictatorial destruction of people’s online businesses was actually good for PayPal’s business. It put PayPal in the headlines and gave them massive media exposure which they never would’ve gotten otherwise. And PayPal could get away with this because they had a monopoly on third party payment processors. The bottom line was, if you couldn’t qualify for a merchant account, which the vast majority of new business owners can’t, you had to use PayPal if you wanted to accept credit cards over the Internet. And if you can’t accept credit cards over the Internet, you don’t have an Internet business.
That’s the problem with monopolies. The create power-hungry dictators who are all too happy to destroy peoples lives for profit. Look at the criminals who run the international pharmaceutical companies peddling toxic drugs that kill millions of people a year, or the thugs who oversee the international war machine which has made trillions of dollars in the criminal war being waged in Iraq, at the cost of untold lives and suffering. These mafia dons have no moral or ethical backbone, and they have no conscience. Sort of like the people in the American financial system who have created a global financial crisis simply because they wanted a larger bonus. And they’re still fighting to retain their outsized bonuses to this very day.
Google has earned a similar reputation with their AdSense advertising network. Again, people who spent years building hundreds of AdSense optimized websites saw their AdSense accounts closed without warning, and often for no apparently good reason. And even if there was a good reason, Google wasn’t about to tell them what it was.
PayPal now under the ownership of eBay. And it appears as if PayPal is up to his old tricks once again. I recently had my PayPal account effectively shut down twice in the span of a single week. PayPal’s rationalization for this brutal attack against my business is that it appeared as if my account had been accessed by an unauthorized third party. Now let me ask you a question. If my account had been accessed by an unauthorized third party, does it seem to you as if the best way to remedy this situation is to punish me by effectively shutting down my account and putting me out of business?
Is there some reason why PayPal could not simply have changed the password on my account and notified me of the change, without shutting down my business? Of course not. What’s really happening is that PayPal is trying to punish me. Within the last couple of weeks, I had purchased some ClickBank products and returned them for a refund. This obviously infuriated ClickBank, which is a large business institution with close financial ties to PayPal, who is responsible for transacting much of their business. In fact, after refunding these purchases from ClickBank, PayPal immediately launch an investigation into these refunds, and “limited”, or in effect, shut down my account.
So you have been warned. eBay, or PayPal, is up to its old tricks again, destroying businesses and lives for what seems like sport – for no other reason than that they can. If you are using PayPal to transact your online business, you should immediately find alternative sources in case PayPal decides that you are expendable. And trust me, unless you’re doing huge business, you’re expendable. And if you are relying on AdSense for your main source of income in your online business, be prepared for the worst.