PayPal Update – Questions Answered, Subscriptions Still Down

It is now day 4 of the PayPal Subscription disaster that has been crippling small businesses all over the world. When I wrote that post yesterday I couldn’t find a documented case of the problem anywhere online. I decided I was going to social bookmark my post on every popular social bookmarking site to try to get the word out. I also sent it to places like TechCrunch (although they credited someone else with the story…no biggie, just happy it got out) and sent it to The PayPal Blog.

Within hours, my post was #1 on Google for the search term “PayPal Subscriptions Down” (via Digg of course):

PayPal Google Search

Thankfully, we have some answers. At 6:51 PM I was contacted by someone at PayPal:

Dear Adam McFarland,

My name is Leslie and I am a member of PayPal’s Executive Escalations team. It is my understanding that you expressed concerns on the PayPal Blog regarding subscription payments that you did not receive. I apologize for the concern this matter has caused. You are correct that there is a known concern regarding subscription payments and we are working to resolve that matter. Unfortunately, we do not have an estimated time of resolution but we are working to resolve this matter as quickly as possible. I will continue to monitor the situation and we will contact you when the matter has been resolved.

If you have any further questions, please feel free to contact us again at My direct number is XXX-XXX-XXXX if you wish to contact me directly.

Executive Escalations
PayPal, an eBay Company

And later on I saw this on the PayPal Developer Blog:

Paypal wants to notify merchants that subscriptions are experiencing some delays and that will be back to normal around September 5, 2007 (Wednesday) or September 6, 2007 (Thursday). Please be assured that no subscriptions will be missed, just that the payout will be delayed.

We apologize for any impact caused by this incident.

PayPal Merchant Technical Support Team

Contacting PayPal

Whew. We can all breathe a sigh of relief. My biggest question was answered – all of our customers will be back-billed and we will not lose any business. Nice to see PayPal FINALLY comment on the issue…something that should have been done on August 30th! I want to thank everyone who commented, emailed, and posted themselves to help spread the word. It’s nice to see a collective group of people harness the power of the web to shed light on a bad situation and some horrible customer service.

Now let’s see if the service is ACTUALLY up and running by Wednesday or Thursday.