There’s nothing more annoying that not having access to your own money. It’s even more frustrating when that access is blocked for no good reason, and without warning. It’s a problem that can rear its head far more often on the internet. For all the potential the internet has to increase transparency, when a problem arises with a virtual service provider it can cause major difficulties for individuals and businesses. What do you do when PayPal decides to deny you access to legitimate receipts from ticket sales?
PayPal – It’s Easy, Everyone Trusts It, Everyone Uses It
The Just So Festival is a family oriented weekend event scheduled for this August, “an unforgettable weekend of adventure and enchantment set in sixty-five acres of ancient English woodland.” This not-for-profit, community interest event has received lottery funding from England’s Arts Council and includes major sponsors such as Waterstone’s and Puffin Books.
Like so many businesses, they chose to use PayPal as their preferred method for selling tickets via their website. They have a business PayPal account, clearly identify their products as “concert tickets” (the closest equivalent PayPal has to “event tickets”), and have read carefully through the terms and conditions. Most particularly they focused on terms and conditions related to events ticket sales, which read;
Event Tickets – The resale of entertainment event tickets (including sporting events, concerts and plays) must comply with all laws and regulations in the applicable jurisdiction.
No problems there. They are selling tickets for a legitimate event, and fulfilling all the necessary conditions as required by UK law.
Tickets went on sale in autumn. Money was received for ticket sales via PayPal, and subsequently withdrawn by Just So Festival without any problems. That was until the event was featured in The Guardian newspaper. A national publication featuring the event unsurprisingly led to a rush on ticket sales. Great news!
…Until They Try And Keep Your Money
At least it was great news until PayPal decided to move the goalposts. Just So Festival found themselves unable to withdraw any of the money from these ticket sales. They contacted PayPal and were told that PayPal has decided they are selling “pre-order merchandise”. So PayPal won’t release any of the funds until 21 days prior to the event. Just So Festival pointed out that they were providing tickets to purchasers, but PayPal told them that tickets don’t count as merchandise, only the event itself does. PayPal’s alternative solution; to refund all the tickets, contact the buyers and suggest they make alternative payment arrangements. Just the kind of thing that’ll make those buyers think well of Just So Festival, isn’t it?
Just So Festival are lucky. With their government funding and sponsorship, organization of the event isn’t dependent on money from ticket sales, so they can go ahead with planning and running a great festival. Many other small companies trying to organize events might not be so lucky. For many (most?) event organizers, ticket sale receipts are vital to the event going ahead at all. If they found themselves in the same situation they might have to cancel. That wouldn’t just impact their finances for that particular event, but their future reputation and business viability. Just So Festival are faced merely with an annoying inconvenience, for others it might legitimately threaten their entire business.
It wouldn’t be a problem if this was a listed policy from PayPal, but nowhere do they seem to make any statement of this kind about event tickets. And it’s not as if they aren’t allowing people to pay, they’re still accepting ticket sales for the Just So Festival after stating they won’t release the funds. In fact they’re doing pretty well out of Just So Festival, because PayPal itself will be the one making six months’ worth of interest from the funds they are holding. A handy little bonus for them.
Clear Policy, Communication, Consistency – As Important Online As Anywhere
Customer service, transparency and clarity are vital in all business. Often it’s assumed that the nature of the internet means such transparency exists, but that’s not true. And with a company like PayPal, one of those success stories that have found themselves as the near monopoly on a particular online service, it’s even more frustrating when they abuse that position.
Still, I’m sure it was a great consolation when, after refusing to give Just So Festival money they have legitimate claim to, PayPal customer service told them “best of luck, it sounds like a really lovely event.”
Further information about the Just So Festival, including events, tickets and contact information, is available at justsofestival.org.uk, or on Twitter @justsofestival.