Stealth gone wrong. Horror Story. PayPal now wants to keep 36k

[smartguy]

I have a client from Pakistan that created an US stealth as PP is not allowed in his country. He have a software company so he use PayPal to outsource some work,etc.

He sent me payments to 3 of my accounts, for some website templates. PayPal somehow discovered yesterday he have a stealth.
So guess what they did? They reversed "Inquery by PayPal" every single payment he did in the last 6 months + limiting any accounts he sent money to. So now they want to keep around 36 000$ back as he is not "the real account owner". They just reversed all the payments he did in his lifetime putting him at even a sue risk/police raid risk,tc.

[shad0wd0wn]

I don't know if they can reverse payments from others... I'd call PayPal about that. As for him, it's his issue not yours for what happened, so I'm not sure what your real question is?

[smartguy]

Well ...they also took money from my accounts... in order to keep the money in his account.
No question. Just opened a topic about it.

And yes they can reverse payments by themself... then you will see "Inquery by PayPal" in the resolution page

[phaz0rz]

If he was using a USA Paypal, and has processed $36k in payments as a Pakistani, he was most likely using a made up SSN or EIN as the tax ID. This is the time of year the IRS tells Paypal which tax ID's Paypal has reported on were invalid. I've never heard of Paypal taking such severe action. So it would make sense. Just a guess though.

Your guy needs to work on his stealth. Nobody to blame but himself. Why would he choose to use a USA account with all the regulations?

[smartguy]

Originally Posted by phaz0rz

If he was using a USA Paypal, and has processed $36k in payments as a Pakistani, he was most likely using a made up SSN or EIN as the tax ID. This is the time of year the IRS tells Paypal which tax ID's Paypal has reported on were invalid. I've never heard of Paypal taking such severe action. So it would make sense. Just a guess though.

Your guy needs to work on his stealth. Nobody to blame but himself. Why would he choose to use a USA account with all the regulations?

PayPal is not available in Pakistan. He could enter an INVALID SSN or he could just get payments for friends of family. I think you can easy go over 50 000 if you get many payments of friends and family. If your account is aged... it will make sense.

[rsot]

How much did they take from you smartguy?

[phaz0rz]

Originally Posted by smartguy

PayPal is not available in Pakistan. He could enter an INVALID SSN or he could just get payments for friends of family. I think you can easy go over 50 000 if you get many payments of friends and family. If your account is aged... it will make sense.

No, I'm afraid it doesn't work like that. Paypal requires a valid tax ID for any USA account that receives $20k or more in a year. You would never get even close to $50k in F&F payments because Paypal will limit your account after the first couple of payments. Nobody in the world sends $50,000 to their friends through Paypal.

EDIT: I know Paypal isn't in Pakistan. My point was he chose a terrible country's Paypal to use (USA) when there are much better county's to use for someone in his situation (such as a country that doesn't require a tax ID and allows withdrawals to a card).

If he did use a ⊗⊗⊗⊗ tax ID, then that is unacceptable. However, the IRS should only send a match/no match to paypal for the tax ID and they have no matches all the time since it must be 100% identical.

So there seems to be a deeper problem going on