PayPal glitch freezes all Sedo payments to account holders

Sedo says they made all payments today.

Sedo says they made all payments today.

An apparent PayPal glitch has frozen all payments sent by Sedo to account holders today.

According to an email sent out to the parties involved, the situation unfolded as follows:

“Unfortunately we had a security issue with PayPal today. To avoid a potential loss PayPal froze all payments informed all customers we have paid by today (2013-03-26) that they believe that the payments may not have been authorized by the PayPal account holder. We can assure you that we definitely sent you the payments. Unfortunately PayPal needs to review the information we provided to them. To finally solve this issue we therefore highly recommend to give a feedback to PayPal telling them that you expected the payment and that the amount paid is accurate. We are also giving the information about the payments we made to PayPal’s fraud team so that they can double check your information with the payments we sent.”

In other words, PayPal’s fraud department has temporarily frozen the Sedo payments and Sedo is asking its customers to submit positive feedback to PayPal.

The same email comes in German as well:

“bedauerlicherweise gab es heute ein Sicherheitsproblem in unserem PayPal Account. Um den Account vor unberechtigtem Zugriff zu schützen wurden alle Zahlungen des heutigen Tages (26.03.2013) eingefroren. Alle Kunden wurden durch PayPal informiert, dass der Erhalt einer Zahlung vermutet wird, die nicht vom PayPal-Kontoinhaber genehmigt wurde. Wir möchten Ihnen versichern, dass die Zahlungen durchaus von uns in Auftrag gegeben wurden. PayPal besteht jedoch aus Sicherheitsgründen auf einer Verifizierung. Um diese Angelegenheit zu lösen benötigen wir Ihre Mithilfe. Bitte antworten Sie PayPal auf deren Mitteilung und bestätigen Sie, dass Sie die Zahlung erwartet haben und das der erhaltene Betrag korrekt ist. Wir geben unsererseits die Zahlungsinformationen an PayPal, so dass deren Fraud-Team Ihre Antworten mit unseren Abgleichen und freigeben kann.”

Sounds like a messy situation that will hopefully be resolved soon.

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10 Responses to “PayPal glitch freezes all Sedo payments to account holders”
  1. Alan says:

    Have it sent to your bank account like I do, never had a problem and my parking and sales revenue is there every month.

  2. DomainGang says:

    Alan – I don’t use Sedo anymore. This is an email sent by a reader. But agreed, direct deposit (ACH) is the way to go.

  3. Luke Summers says:

    I also got this email about payment issues, but the money from the sale still went through to my PayPal account with no problems.

  4. Ms Domainer says:



    I just changed over to direct deposit. I have heard that Paypal has been freezing accounts left and right, especially if the incoming amount is substantial.


  5. James says:

    Expect a chargeback everyone. Same issue @ another domain sales co that finished in everyone receiving chargebacks

  6. Matt says:

    PayPal is a mess. They limit our accounts every month, we’re just lucky not to be ever limited during the pay period.

  7. lore says:

    Today I’ve received a similar mail from paypal regarding the parking revenue from internettraffic. PayPal’s fraud department has temporarily frozen the NAmedia payments too…

  8. DomainGang says:

    lore – I just received my payment from Internet Traffic without any issues, so I call BS.

  9. lore says:

    Nice, i’m the only one, i’ve received a email from paypall :
    Dear lore

    We believe that a payment you received may not have been
    authorized by the account holder PayPal. Here are the details of the
    transaction we are examining: etc etc

    They ask me to prove that the payment it’s legitimate

  10. DomainGang says:

    OK, I have a hunch that this might be an issue with PayPal when the recipients are in Europe. In the US, no such problem. Follow directions and hopefully they will unfreeze the funds before Easter!

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