They have put 20% on my account for 60 days. We are a UK company and i'm pretty sure this is illegal for merchant banks to do. We put £1M through our merchant bank each year and have never had a reserve put on our funds. We are a very good customer and they would never consider doing this. Paypal on the other hand have put this reserve on our account for no aparent reason. They will not respond to any emails ( 5 sent). This is pure greed as they are ONLY doing this to increase their own investment funds.
If they were doing this properly and were not doing it PURELY FOR GREED they could easily look at each accounts previous 6 month sales history and look at the % of chargebacks. I would guarantee that 99% of accounts would not be over 1% chargebacks - so why have we been hit with 20%.

Paypal are a monopoly on eBay and this needs to be seriously looked at. It is basically criminal activity and theft.

I have been hit with some kind of PayPal hold. I will not link a bank account to my PayPal account for security reasons, I can only make withdraws by check.

PayPal has demanded a copy of my driver's license, my credit card statement, and my telephone bill. I have Faxed them all this information to them, but they still will not send me a check and they will not respond to any of my e-mails.

I don't think PayPal is holding all of this money to receive a few percent interest on the money. I don't believe PayPal is depositing this money into a bank account. eBay is buying back a lot of their stock, they could be using the money to buy eBay stock.

Also, what are the benefits to switching to a merchant account.

I’ve been using Paypal since June 2001, got 100% eBay feedback, average monthly sales $5,000/month. How in the world I got 30% Rolling Reserves?
I need justification please…