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Has Paypal Gone To War With The Warriors Forum?

May 29, 2012 by Larry Dozier divider image

Will Paypal Close Your Account for Marketing on Specific Discussion Boards?

Some members of the Warrior Forum believe that they are being targeted by Paypal for simply marketing their products on that particular discussion board.

The Warrior Forum is an online discussion board which caters to Internet marketers. There is a specific area of the forum where members may market their products and services to one another. Such marketing efforts are called “Warrior Special Offers” or “WSO’s” for short. Members of the forum are known as “Warriors”.

One recent post by forum member Tristan Bull claims that Paypal has closed his Paypal account, leaving his business cash strapped and unable to make refunds to customers. Tristan describes several phone calls with Paypal where he attempted to resolve the problem. After jumping through several hoops and having his account suspended and unsuspended a few times, he was finally told why the account had been terminated.

“By the way the reason I got told for my account being closed is that PayPal are updating their business practices and have identified the Warrior Forum as a place where there is no real value being sold as someone can come into the forum and buy a product and then turn around and sell it. In PayPal’s eye’s this is not a legitimate business model.”

Another Warrior who had his account closed by Paypal is Anthony Aires, who recorded his conversation with a senior Paypal agent. During this conversation, He was told that his account had not been closed because of any infraction of the Paypal Terms of Service, but because of his marketing on the Warrior Forum. In an amazing phone conversation which Anthony Aires taped, Paypal was fairly forthright about that.

For your convenience, I’m including a partial transcript of the call where Aires attempts to get his Paypal account reinstated. He is talking to a gentleman named Tony:

Tony: “Basically, the risk we see is far too great for us to even extend that offer.”

Aires: “I would like to get clarification on that”

Tony: “How so?”

Aires: “So…I’d love to get details as to why because we’ve looked at your user agreement, policy agreement and it doesn’t say anything specifically about what we’re doing as wrong or high risk like there’s nothing in there that say’s Internet Marketing is high risk…that doesn’t make sense to me. It requires that we set up an account with a real social security number, which we did, have full business details, which we do,have an EIN number, which we do. We’ve got all the right privacy policies in place, all the right disclaimers in place, we’ve been a legitimate customer since 2004, we’ve got legitimate office space, we’ve got a thousand minimum in all our bank accounts to officially capitalize you guys, we’ve verified all the info on our product pages to make sure they’re complient with what you guys want, we’ve called in to verify our business accounts with you guys – everyone said it was okay, that it was accurate, umm, we have no violations in any of the sections, there are no statements that say that the Warrior Forum or Internet Marketing product sales are a violation. We have a credit card attached to one of the Paypal accounts…We’ve been nothing but complient…It’s crazy that I’m getting penalized without any warning whatsoever..”

Tony: “Well, I certainly respect your point of view and I’m glad that you did take the time to read through our user agreement. It’s sadly something that a lot of people don’t do. But, the point in fact in that user agreement is it states that we do reserve the right to terminate the service if we see risk beyond what we’re willing to accept, and in this case, that is true. Now, also in the user agreement you will note that at no point does it really name out specific industries or business models that we simply don’t do business with. It’s more or less left to our discretion based upon what’s profitable and what’s not.”

Aires: “Okay…so specifically what makes us high risk?…I would like to know specifically why. My customers don’t think I’m high risk…”

Tony: “Okay, well, I’ll be very honest with you. It’s a frustrating process and I know that. We recognize that going through this step is definately an inconvenience and can very much disrupt business, but the thing that I ask that you, um, think about is that for every payment that you process we are a hundred percent liable for – everything, every single payment that you process, for, at the very least, six months after you receive that payment. So even if you’re leaving a balance in the account, we are still liable for it, for everything.”

Aires: “I get that and I want to do everything in my power to help you guys with that. I even did that without you guys asking me. We always left significant balances in there because we knew how important that was to you guys.”

Tony: “Okay, and simply by the product and service that you offer. Yes, I’m sure that your customers are very happy and very satisfied, but we also know that the customers that are buying from you, are also taking that same product and, in turn, selling it to other customers. It’s just a circle that we see that you’re selling to buyers who are also selling to the same buyers and it’s just another circle. So, at what point does it really serve value if the same people already know what you’re serving them with?”

Aires: “I’m not sure I understand that…”

Tony: “Because we see that your buyers are coming out of the Warrior Forum, we see that your buyers are also selling product within the Warrior Forum and advertising to more buyers who are also in the same position that they are. And, I guess that at what point does it look like that there’s really no value…”

Basically, I believe Tony is saying that Paypal has decided that sellers who sell info products in the Internet Marketing niche, specifically those who sell on the Warrior Forum, are just too high risk for Paypal to handle.

Justin Brooks from sitefling.com, another Internet Marketer, see’s Paypal’s efforts as being a good thing for the Internet Marketing niche as a whole. In his view, there are too many abuses and not enough oversight. He applauds Paypal for actually taking a stand.

“Paypal is taking a stand against IM and I think that’s great…I’m in that market and I could possibly get my Paypal account shut down. But, I love what they’re doing, I love that they’re taking a stand because somebody needs to. The people in power weren’t and now the people that are above them are taking a stand and this is good because I care about this market and I want to see it cleaned up.In the long run, this will be a good thing.”


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