Stacy was reveling in her recent success.
She just closed the cart on a huge new program launch for which she had massive signups. She had upped her game in a major way and achieved the results she hoped for. Needless to say, she was celebrating.
Until the next morning… when she found her PayPal account locked, with all her hard-earned cash trapped in the PayPal vault.
All too often I hear stories about killer launches and subsequent PayPal disasters. Before you think this is a PayPal bashing email, let me stop you. I love PayPal. It makes it easy for online business owners to accept credit cards, even when they’re just starting out.
However, not knowing a crucial detail about how PayPal works could leave your money locked away.
What Stacy and many other online business owners don’t know is that PayPal and other credit card processors have a few tactics for managing the inherent risk associated with taking credit cards online.
One of those tactics is monitoring transactions, both the dollar amount of a single transaction and the total volume of money going into someone’s account. What does that mean? It means that if you raise your rates or have a big launch and go over and above what you’ve done in the past, you’re raising a red flag. If you raise a flag, your money could be frozen by PayPal or your merchant services provider (from two days to two weeks or more). If that happens, there’s nothing you can do about it.
The good news is that you can take one simple action to help prevent this from happening in the first place.
For those of you using PayPal, login to your account and click on “Profile.”
In “Profile,” under “My business info,” look for “Business information.”
Click “Update.” Then at the bottom of the next screen, click “Edit.” There will be a place for you to edit your expected transaction amount and your total monthly volume.
If you’re using a transitional merchant account, contact your merchant services provider and talk to them about your upcoming sales increase. They can make some notes so your money has a better chance of sailing through.
That’s all you need to do to minimize your risk.
Before your next big launch, rate increase, or other class sales, be sure to go into your PayPal account and update your information. This way you can make sure your hard-earned cash ends up in your bank account!