Just as the title says, I’m still in shock.
I was informed that they’re closing my account with no explanation and that the decision is final. All my subscribers with them will be automatically canceled, and I’ll need to contact them to set up new subscriptions on a different platform, probably Lemonsqueezy.
It looks like churn will be higher than usual this month…
Honestly, this is incredibly frustrating.
Edit: From the comments, it’s clear I’m not alone in this. If you’re thinking about using Paddle as a payment provider, I’d advise against it. While I understand fintech companies need to manage risks, their handling of customers is unacceptable. I spent a lot of time getting verified, reading their documentation, and integrating their system, and now I’ll need to spend even more time migrating to a new platform. This also has a significant economic impact. I still don’t know why this happened, as there are no “force-issued” refunds in my dashboard, and my users are satisfied with my service. I’m stunned by this situation and the lack of explanation.
Edit 2: For those questioning the legitimacy of this post, while digital evidence can be manipulated, I hope this screenshot will verify my claim: https://imgur.com/a/W911Jz1
Paddle also closed my account last month with $1,000 USD pending payout, and now I have to wait 180 days to get those funds released.
They refused to explain why they shut down my account, but I suspect it’s because I made a substantial amount of money quickly. During the onboarding process, I made it clear that I wasn’t new to processing payments and had used PayPal and LemonSqueezy before them (even showing them my transaction history). Despite this, they accepted me and then shut down my account a few weeks later. This behavior reflects poorly on them, suggesting they are not trustworthy.
I also had zero chargebacks, as I usually don’t encounter chargebacks even with PayPal and LemonSqueezy.
In this case, too! Today, I got a questionable email. I initially believed their account had been hacked, but after I filed an appeal, I received an automated answer stating that the outcome was final.
Similar situation here, just integrated, no chargebacks :/. Upon viewing this topic, I realised there was a problem, even though I had modified my homepage to advise visitors that I would be doing token airdrops.
It’s getting increasingly obvious that there is a major problem with Paddle at the moment as more people join this topic reporting the same problem. We ought to get together to talk about filing a class action lawsuit against Paddle, perhaps over on Discord. The fact that recently approved firms are being cancelled only weeks after being vetted would also be helpful to others.
Paddle genuinely declined to accept your subscribers? There must be more going on here than just paddling. I’m assuming a recurring infraction. No account is closed by Paddle or any other card processing company unless there is a suspicion of fraud or responsibility.
For what reason would they turn down money?
They explained to me that they were “reviewing our risk tolerances” this time. This could indicate anything at all or nothing.
When there are too many chargeback requests or simply transactions from particular nations that the paddle does not like, it cancels the account (money laundering restrictions).