PayPal to Make Huge Changes to its ‘Frozen Funds’ Policy in 2013
Posted on January 21, 2013 10:15 AM by Rob Williams
Despite its enormous size and success, the Internet has proven that a lot of people don’t like how PayPal handles itself as a business. We’ve reported many times over the years of how its users, often in conjunction with eBay, can get screwed over. We in fact talked about one such example just last month. So why, after all these problems, do so many rely on the service? I don’t think it’s so much about the lack of competition, but instead the lack of support that these alternatives get by those accepting e-payments.
Regardless, that could change in the future, and PayPal realizes this. As such, the company has finally decided to investigate better ways to avoid situations where someone’s legitimate account gets frozen due to a sudden influx of payments. Charities have been bitten the worst by this. One moment, you’re bringing in many much-needed donations, and the next, the account is frozen, with all funds left inaccessible. Hardly a great situation to find yourself in.
It’s hard to say exactly what kind of solution PayPal will have for these problems, but the fact that the company is finally beginning to take things seriously is good to see. To its benefit, the company really isn’t sugar-coating the fact that changes have to be made. Anuj Naya, PayPal’s Senior Director of Communications, has said, “We are committed to getting back to being the center of our customers’ financial lives … Big changes are coming.“