PayPal Glitch Keeps Money From Sellers

For several hours on Wednesday (Oct. 1), PayPal transactions disappeared and PayPal, while acknowledging that something happened, hasn’t yet shared what that was.

“Sellers all over the Internet were scrambling when payments went missing from their PayPal accounts for hours on October 1. And it impacted not just sellers on eBay, but on Etsy, Bonanza, and even people who transferred their money from one account to another,” reported ECommerceBytes. “Sellers reported the issue on Wednesday morning on the Ecommerce EKG board beginning at about 12:30 am EST: ‘Item shows paid in eBay but payment is not in PayPal.’ ”

The story reported that one Etsy moderator acknowledged the issue at about 4 PM East Coast time: “Hey there! Thank you for the reports here. We’re keeping an eye on this. Be sure to check PayPal’s site status for more details.”

The only thing the PayPal site reported was an event notification of unspecified errors: “We are experiencing a system issue which is affecting PayPal APIs on the PayPal Live Site. PayPal Merchants may be experiencing a higher than usual error rate for: 10001 Error – Internal Error. Our technical teams have been engaged and are actively troubleshooting the issue.”

Oddly, PayPal reported the situation resolved at 9:43 AM EST, which was “hours before reports came flooding onto boards around the Web,” EcommerceBytes noted.

Later that night, PayPal issued a statement: “We are aware of an issue where some customer transactions were not showing up or were delayed in posting to the customer’s transaction page. We have addressed the issue, and customers should start seeing their transactions appear soon. We apologize for any inconvenience.”

Asked by EcommerceBytes what caused the issue, PayPal’s spokesperson E-mailed backed: “We have no additional information to share at this time.”