In addition to the above and money spent on bolstering run sizes, operating expenses, and refunds, PayPal is currently holding on to $21,000 (and growing). They say this hold is meant to be in case of refund requests, but then they won’t let us use the funds for any of the refunds that I issue. So it just sits there growing with each new PayPal purchase, until they start trickling some of it back to us in a few months. Here is a quote from the email we received from them:
“The decision regarding your reserve setting was based on our review of the level of risk associated with your account. We looked at several factors to determine the high level of risk associated with your account. These factors include:
· Delivery timeframe - Extended length of your delivery timeframe.
· High risk industry - You are selling merchandise or services in what we consider to be a high risk industry.
· High risk or changed business model – There has been a change in your business model or your business model is considered high risk due to one, or a combination of the following (list is not all inclusive) – how and when items or services are delivered, items or services being sold, or inventory management.”