I’ve been with Paddle for three years, but today, my account was abruptly closed without any warning. Over the past 10 days, I noticed several disputed transactions from the past year that hadn’t been credited to me yet. These disputes were spaced out, which is common in business.
After contacting disputes@paddle.com, I reviewed and won many of these cases, and the payments were refunded. What’s confusing is that I haven’t had any disputes in the past six months, but Paddle now labels my account as “high risk.”
(I initially thought the dispute recredit requests might be the cause, but it seems that many other founders on Reddit have had similar issues.)
I’m not alone in this. Many other SaaS founders have experienced sudden account closures in the past 24 hours. For instance: x.com.
I’ve always been a supporter of Paddle, but this situation is frustrating. To make matters worse, we’re not even in the AI space, unlike some others. We offer DDoS protection (lectron.net) and operate as a US C Corp.
Has anyone else encountered this issue recently?
After just 24 hours of opening transactions on a reputable company, Paddle terminated my account. Even after two months for account construction and verification, it is still deemed high risk. Hence, two months of labour for a day’s compensation. I have yet to get even a single money from them. They no longer answer emails and have disabled the login information. I advise you to avoid it.
Last month, Paddle also closed my account with $1,000 USD in pending payouts, and now I have to wait 180 days to receive the funds.
They haven’t provided a clear reason for closing my account, but I suspect it’s because I generated a lot of revenue quickly. Despite informing them during the onboarding process that I was already established and had processed payments through PayPal and LemonSqueezy (I even provided transaction history), they accepted me only to close my account a few weeks later. This reflects poorly on them and seems dishonest.
Additionally, I had zero chargebacks, which is consistent with my experience using PayPal and LemonSqueezy.
I keep hearing the same tales these days: these apps just take money as if it’s no one’s concern.
When my app integrated with Paddle, I made about 100 euros, and they took a long time to negotiate and eventually refused to give me the money because they thought the transactions were suspicious. I intended to sell the simple desktop application that I had designed. At the end, I got the money, but I was done with Paddle after that nonsense.
Both of them are fucking legal thieves, Stripe Paddle. They are just waiting for someone to drag them into court so that their big asses can finally shut up and stop ruining people’s lives and business goals.
You have a “no refund” policy and use pre-paid “coins” for pricing.
Although first impressions matter greatly, I venture that payment processors would perceive your company differently if you had USD-based pricing, paid in arrears (customers are invoiced for consumption after it occurs), and a refund policy.
In this case, too. Same day, same email. I checked Twitter, and a lot of people are experiencing this.
Paddle made no announcement or offered an explanation. It was quite disrespectful when I got the email on Friday night.
To what extent do you think this affected the founders? I counted the number of Twitter accounts that were deleted.