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Comment by tdavis | Hacker News Reader

To follow up on that further: PayPal quickly limited the account, hence the move to Google. PayPal funds remain in PayPal and are used to process refunds.

To make it 100% clear: the only entity to profit from pre-orders has been PayPal, from interest earned on locked funds. We have not made a single dime.

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More bullshit. I ordered through Google Checkout and definitely have a $5 my credit card bill.

Did you confirm the charge was never returned? That's how the $1 authentication charge works on our new store; we charge $1 and if the full amount isn't settled within a couple weeks the $1 is returned and we're charged a small fee (so pre-orders actually cost us money). If that's not the case, it's probably a fluke.

I apologize for the accusation. I have an email from Google confirming that my card will be charged, and an email from my bank alerting me to the ($5) charge, but there is no actual charge on my bank statement (though it was there at one time).

Did they lock the account similar to some of the paypal horror stories we have seen float around? If so, that's another strike for paypal and a reason to motivate everyone to avoid them like the plague.

I had mine locked. I'm pretty sure it's routine.

  * You get a large number, or high transaction value
  * They lock it until you verify bank details/contact details etc
  * It's unlocked

Mine was unlocked in a few days and has been fine ever since.

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