On Monday, Daniel Anderson, founder of Freedom Cell Phones, revealed that a PayPal ban ‘ruined’ his existence and that of his business partner’s over the course of the past year.
This revelation comes after 1330 WFIN radio interviewed Anderson about the illegal actions perpetrated by the tech giant. According to Anderson, the ban prevented the company from processing payments for the goods and services that the business provided.
The ban, which allegedly had no clear explanation, meant that the company lost over $400,000 in income for the year in question. This caused a significant dent in the company’s financial security and put the business under severe strain.
This was made worse by PayPal refusing to provide any further explanation or communication over the nature of the ban. Despite repeated attempts, Federal Trade Commission intervention and significant legal expenses, Anderson and his partner unsuccessfully tried to get the ban reversed.
The frustrating and time-consuming process over the space of a year meant that the business lost out on customers and missed out on sales opportunities during the crucial holiday season of 2016.
When asked what lessons he learned from this experience, Anderson was adamant: “Business owners have to do their due diligence when selecting a payment processor. We did not”, he said.
In the aftermath, Anderson said that he tried to ensure that no other business owners suffered a similar experience, and has since offered up his services as a regulatory consultant for merchants in similar situations.
Anderson concluded that the impact of the PayPal ban was immense, and that new businesses should always read the small print if it can help to protect their business from a similar situation.
A PayPal ban ‘ruined’ Independence Cell phone founder’s lifestyle for a year 1330 WFIN