Victim of Braintree fraud by paypal

Kievcash

Building Trust
Entrepreneur
Hello,
I am interested to know if people here get locked Money with braintree payments own by PayPal.

And did this damage your company ?

Regards
 

Lejla

Building Trust
Entrepreneur
It would be helpful and informative for you to tell us if that happened to you or someone you know? Just to precise in sharing those kind of information and for us to know to on-board or stay away;)
 

Kievcash

Building Trust
Entrepreneur
you can google it, we are looking for people because we want to joint court action against paypal group in UK that is organized against braintree payments.

To be fast it s like pp, they accept your application and after shutdown your gateway for risk reason (peviously they accept applications and you must send them contract with your supplier) but after anyway when even several hundreds euros arrive to Merchant gateway they close down and keep the funds.

They also work i think in illegal way in the UK, they told Paypal Europe license, but braintree is located in Uk with office, in USA for high risk department.
I think people did not understand but Braintree is like paypal, the same methods.
 

c4labs

Building Trust
Entrepreneur
Braintree is owned by Paypal (Europe) S.à r.l. (Luxemburg for European merchants/US for US merchants/asian clients depending on the country but usually HK), so when you sign the contract as a EU client, you sign with the Lux entity.

this method to block funds is unknown by authorities and start to be discovered by Stripe and Braintree competitors. So far, nothing and I am convinced it will stay like this for some time.
Braintree/Paypal will tell you that you sign a contract and they warned you (which is abusive ofc)

How can they do it?
When a PSP/acquirer onboards a merchant, they create a unique MID for each merchant (where you are the only one to process payments on it).
However, the merchant needs to pass the KYC process (with all the documents etc.)
Braintree are doing it a bit differently to be able to accept clients faster. They own aggregated MIDs where they place many merchants on it for some weeks/months so each merchant can pass the KYC and then having their own MID.

It is supposed to be very limited and almost illegal by Visa and Mastercard but... I will say that Paypal is big enough to decide about some rules.

Good luck for your initiative, it will not be easy.


Btw
Stripe is doing the same when they accept your business and then block it for several reasons.
 

Kievcash

Building Trust
Entrepreneur
I am not full
Braintree is owned by Paypal (Europe) S.à r.l. (Luxemburg for European merchants/US for US merchants/asian clients depending on the country but usually HK), so when you sign the contract as a EU client, you sign with the Lux entity.

this method to block funds is unknown by authorities and start to be discovered by Stripe and Braintree competitors. So far, nothing and I am convinced it will stay like this for some time.
Braintree/Paypal will tell you that you sign a contract and they warned you (which is abusive ofc)

How can they do it?
When a PSP/acquirer onboards a merchant, they create a unique MID for each merchant (where you are the only one to process payments on it).
However, the merchant needs to pass the KYC process (with all the documents etc.)
Braintree are doing it a bit differently to be able to accept clients faster. They own aggregated MIDs where they place many merchants on it for some weeks/months so each merchant can pass the KYC and then having their own MID.

It is supposed to be very limited and almost illegal by Visa and Mastercard but... I will say that Paypal is big enough to decide about some rules.

Good luck for your initiative, it will not be easy.


Btw
Stripe is doing the same when they accept your business and then block it for several reasons.
I am not fully agree with u.
PayPal structures are complexe, Braintree has no link with Luxemburg.

No office, no support nothing there.
The Braintree contact is from UK , and the risk départment located in usa.

Also PayPal UK is a subsidiary of PayPal inc.
The same PayPal Europe is a subsidiary of PayPal inc holdings.

PayPal have to stop their frauds, they must check people before open account not After, like this do stripe now, i think they are due too.


Its Also illegal to open merchant account without KYC check . And PayPal is not upper rules, even banks are not.
 

Kievcash

Building Trust
Entrepreneur
You Can believe they are scared they even lock registration in Braintree now.

They will need to give evidence i sign with PayPal Luxemburg, according to documents nothing show this, even After registration approval. Several others people want claim too
 

c4labs

Building Trust
Entrepreneur
I am not fully agree with u.
PayPal structures are complexe, Braintree has no link with Luxemburg.

No office, no support nothing there.
The Braintree contact is from UK , and the risk départment located in usa.

Also PayPal UK is a subsidiary of PayPal inc.
The same PayPal Europe is a subsidiary of PayPal inc holdings.

Its Also illegal to open merchant account without KYC check . And PayPal is not upper rules, even banks are not.
No, I can guarantee you.
EU merchants sign with PayPal Luxemburg and Cie Sarl which is the main legal entity for paypal in europe. You will never sign a contract with PayPal UK. Their main office is not in the UK but Dublin. You are right, they have no one in Luxemburg (of course :))
Braintree is PayPal so its the same, they even hire Paypal account managers to work for Braintree, big reason why they suck.

Also, its not illegal to onboard a merchant without KYC if the merchant does not reach the processing limits. I am not sure about the exact limit but it should be around 50k€ per year.
Many PSPs prefer to ask it at the beginning so its done and the merchant can process.
 
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