Yesterday morning our Paypal account was blocked by Paypal. There was no prior notification, no questions were asked and no warnings were given. Just like that: No Soup For You!
Users that tried to signup to our service got this error message:
When we tried to sign in to our paypal account we got this error message.
Needless to say how shocked we were as nothing on our account was against the Paypal TOS, not even close to the gray zone. Lucky us we have just opened a new Paypal account and the old account is still active. We have switched back to the old account and got back to full service in just a few hours. We are still working on unblocking that new Paypal account, hopefully we will be able to save the money in the account and keep the subscriptions running.
It is pretty frustrating to build a business using a 3rd party pendor and get a punch in the face just like that without any prior notification. It has been just 3 months ago that my friend Hilit got her Gmail banned, and now it’s Paypal doing the exact same thing.
We have learned an important lesson here, and we’re working hard to add another billing vendor besides Paypal. Since some users trust Paypal more than others, we’ll leave it as a secondary payment method for users that ask for it. We have started integration with Authorize.net and I hope to have it up and running ASAP, hopefully early next week.