A Paypal Pre-Order story
Back in November, when we started taking pre-orders for our Decent Espresso machines, we were accepting Paypal and Stripe payments. Almost immediately, Paypal freaked out at our sudden rise in sales, and froze our account with $100k of sales in it.
We were told (whoops!) that presales were forbidden by Paypal and that we had to ship everything within 20 days or provide refunds.
Here's paypal's policy on pre-sales.https://www.paypal.com/us/selfhelp/arti ... ms-FAQ1488
What we ended up doing is offering $100 in free accessories to anyone who had bought on Paypal, and who was willing to repurchase their DE1 with their credit card (and be refunded on Paypal), as Stripe has no problem with pre-orders. All but one pre-order took us up on that offer, and they wanted a refund because they didn't want to wait (fair enough).
With the shipment of the Barista Kits last week, we were finally able to get access today to our paypal account (everything ordered has either shipped or been refunded).
We're not yet accepting payments via paypal, not until all our items are in stock and shipping, so that we don't run afoul of Paypal's rules. I'm hoping to find the time to program a more nuanced shopping cart, that allows paypal if you are only ordering currently-shipping items.
Bugs is jumping for joy at the moment, as this Paypal fiasco happened when I was on tour, and she was managing the company, and doing all the tech support I do, and all the accounting. It was not a good moment for this Paypal mess, but we're happy that it's in the past now!
All part of starting a business.