The full explanation behind the PayPal limitation has been given.
Jason Gardner, Traffic Monsoon's PayPal account manager, gave the following reason for the PayPal limitation, "The reason for PayPal’s decision to part ways with your organization is due to the size of growth in a very short time frame. Due to the amount of growth in the short amount of time this creates too much risk for PayPal."
Jason Gardner, Traffic Monsoon's PayPal account manager, gave the following reason for the PayPal limitation, "The reason for PayPal’s decision to part ways with your organization is due to the size of growth in a very short time frame. Due to the amount of growth in the short amount of time this creates too much risk for PayPal."
FULLY EXPLAINED:
PayPal has a risk window of 180 days from any purchase date. When sales are steady or incline slightly, old sales drop out of this window while new sales of services enter this risk window. With steady sales or a slight incline, PayPal can more easily gauge trends to predict future sales volumes as they assess their risk potential.
Their risk potential is based upon 100% chargebacks, which is silly when considering that before this limitation the dispute/chargebacks were less than 1/2 a percentage based upon a 22 Dec 2015 review.
Traffic Monsoon's sales through PayPal had been experiencing a sharp increase (as a result from traveling to more countries, meeting with more people, and working hard to sell more services). So the amount of old sales dropping outside the 180 day window weren't sufficient to cover the flow of new sales of services. With this increase, PayPal determined that it was unpredictable whether sales would continue to rise, stay the same, or drop down. Since PayPal felt uncertain whether sales would drop, they disabled the ability of any funds to go out of PayPal starting 11 Jan, and kept purchases for funds to come in turned on for 30 days. They kept sales turned on for 30 days in order to give themselves additional wiggle room.
So basically, with Traffic Monsoon's growth.. they chose to conclude that they needed to part ways, because the growth curve was too high and trends unpredictable. This increase in sales was interpreted by them higher potential risk which couldn't be reduced by dropping off of 6 month old sales, and holds the possiblity that it also couldn't be covered by a continue flow of new sales of services at the high level that was being experienced.
So the baffling move on PayPal's part was believing they needed to protect themselves from the impossible 100% chargeback potential, when in fact disputes/chargebacks were less than 1/2 a percent.
PayPal has a risk window of 180 days from any purchase date. When sales are steady or incline slightly, old sales drop out of this window while new sales of services enter this risk window. With steady sales or a slight incline, PayPal can more easily gauge trends to predict future sales volumes as they assess their risk potential.
Their risk potential is based upon 100% chargebacks, which is silly when considering that before this limitation the dispute/chargebacks were less than 1/2 a percentage based upon a 22 Dec 2015 review.
Traffic Monsoon's sales through PayPal had been experiencing a sharp increase (as a result from traveling to more countries, meeting with more people, and working hard to sell more services). So the amount of old sales dropping outside the 180 day window weren't sufficient to cover the flow of new sales of services. With this increase, PayPal determined that it was unpredictable whether sales would continue to rise, stay the same, or drop down. Since PayPal felt uncertain whether sales would drop, they disabled the ability of any funds to go out of PayPal starting 11 Jan, and kept purchases for funds to come in turned on for 30 days. They kept sales turned on for 30 days in order to give themselves additional wiggle room.
So basically, with Traffic Monsoon's growth.. they chose to conclude that they needed to part ways, because the growth curve was too high and trends unpredictable. This increase in sales was interpreted by them higher potential risk which couldn't be reduced by dropping off of 6 month old sales, and holds the possiblity that it also couldn't be covered by a continue flow of new sales of services at the high level that was being experienced.
So the baffling move on PayPal's part was believing they needed to protect themselves from the impossible 100% chargeback potential, when in fact disputes/chargebacks were less than 1/2 a percent.
The Impact:
Since Traffic Monsoon is in business to sell services, and pay its members earnings from the sales of services sold, PayPal's limitation resulted in people accusing the business as being a scam, because they couldn't be paid through PayPal. Additionally, since there was a limitation, those funds couldn't be moved to other payment processors in order to pay people what they have earned towards their balances. Commissions and sharing revenues from these PayPal purchase were earned by people who didn't use PayPal. So people are also not getting paid on pending balances through Payza or Solid Trust Pay either.
And additionally, because Traffic Monsoon lost PayPal, people circulated their belief that PayPal only limits accounts of fraudulent or illegal companies in order to protect people. So their limitation is sending a wrong message to the public.
The inability to pay people because PayPal is temporarily holding funds to cover their risk potential of 100% chargebacks, is causing people to have fear, uncertainty, and doubt. They worry whether they will get paid. They are uncertain whether Traffic Monsoon is legal. They doubt that what I'm telling them is true.
Since Traffic Monsoon is in business to sell services, and pay its members earnings from the sales of services sold, PayPal's limitation resulted in people accusing the business as being a scam, because they couldn't be paid through PayPal. Additionally, since there was a limitation, those funds couldn't be moved to other payment processors in order to pay people what they have earned towards their balances. Commissions and sharing revenues from these PayPal purchase were earned by people who didn't use PayPal. So people are also not getting paid on pending balances through Payza or Solid Trust Pay either.
And additionally, because Traffic Monsoon lost PayPal, people circulated their belief that PayPal only limits accounts of fraudulent or illegal companies in order to protect people. So their limitation is sending a wrong message to the public.
The inability to pay people because PayPal is temporarily holding funds to cover their risk potential of 100% chargebacks, is causing people to have fear, uncertainty, and doubt. They worry whether they will get paid. They are uncertain whether Traffic Monsoon is legal. They doubt that what I'm telling them is true.
The Good News:
Traffic Monsoon does operate legally. PayPal will be releasing the funds. Exactly when we don't know, but they will not hold them longer than 180 days. When PayPal releases the funds, your pending balances and sharing positions will be placed into ACTIVE status.
These pending balances and positions are only pending because PayPal is temporarily holding the funds that back these balances and earnings.
While balances are placed into pending, the business is progressing forward as normal. We're currently using Payza and Solid Trust Pay, and soon will be integrating other methods of payment for both purchases and to send you your earnings.
Traffic Monsoon does operate legally. PayPal will be releasing the funds. Exactly when we don't know, but they will not hold them longer than 180 days. When PayPal releases the funds, your pending balances and sharing positions will be placed into ACTIVE status.
These pending balances and positions are only pending because PayPal is temporarily holding the funds that back these balances and earnings.
While balances are placed into pending, the business is progressing forward as normal. We're currently using Payza and Solid Trust Pay, and soon will be integrating other methods of payment for both purchases and to send you your earnings.
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