I just got a letter from PayPal saying that from now on they are holding any payments customers make to us for a period of 21 days or until the product ships so that they can cover any returns. We have never had any return problems, we are not a high risk business nor has what we do or our patterns changed.
They told us we are to continue to ship* product as usual despite the fact that they are not going to pay us. The few payments we receive are for deposits on roaster pigs and CSA’s. Those deposits are typically made months in advance because they are reservations. Prepayment of a portion of the price is part of how it works with CSA’s and such. The farmer gets paid ahead and it takes time to grow the pig. Apparently PayPal’s CEO isn’t with the program.
This unilateral behavior by PayPal.com is unacceptable so we’re simply no longer accepting PayPal payments. They’re a gorilla that has gotten to big for their shorts.
Since actually don’t use PayPal much I have decided to simply stop accepting PayPal payments. Not hard since 99% of our customers pay with cash or a check. PayPal loses since they normally charge almost 5% on each payment. Frankly, I would rather not give them that 5% and I’ve told customers all along that I appreciate when they pay with a check or cash because it means the farmer gets the full payment rather than the bank (PayPal) taking it’s tithe.
I am curious if anyone else has gotten a similar letter and what is up with PayPal.
This raises a number of questions in my mind. Is PayPal going through financial hard times such that they have to hold onto people’s money for 21 days to earn interest on that money to pad their cash flow? Is PayPal perhaps failing and about to go into bankruptcy?
PayPal is tightly integrated (and owned?) by eBay so this raises the question of is eBay.com perhaps in financial trouble as well? Will we be soon be seeing eBay go bankrupt too? I’ve heard warnings of a next tech bubble collapse and maybe these are early warnings that the companies are under financial stress. If you have a 401K it may be time to divest from companies like these and put your money in more local, stable investments.
In any of these scenarios I don’t want my money sitting in my PayPal.com account so I have cleaned it out and won’t be using it until I see this issue resolved and feel more secure about their financial stability and their ability to deal fairly with customers. Ergo, PayPal is not accepted here.
Outdoors: 82°F/48°F Sunny
Tiny Cottage: 75°F/67°F
Daily Spark: Tofu: The favored health food store product of GMO, intensive farming, Big Ag, large water consumption, energy intensive manufactured to remove toxins and highly processing. All of this bad yet the stable of the vegan diet. I like tofu but natural it ain’t.
*We don’t ship, we deliver or people pickup at the farm. This makes PayPal’s letter all the more odd. Update: We are starting to ship – see the Kickstarting the Butcher Shop post.