Paypal gifting

[biglongpapi]

Is it true if someone keeps sending large amounts of money $1000+ in gift, paypal can flag both the accounts?
and depending on the account they can hold the funds
I read somewhere that PayPal holds funds for up to 6 months to "investigate" if they feel a gifted amount is suspicious

so would the only possible way to keep receiving this amount of money through the goods and services method or is gifting perfectly fine?

[angelleye · Accepted solution]

There are a number of things that can trigger funding holds or account restrictions. High dollar gift transactions are one of these things because fraudsters often ask people to send as "friends and family" to avoid fees, but this also means you cannot dispute the transaction if you don't receive your goods/services.

Of course, if it's truly a gift then this doesn't matter, but most gifts aren't that high dollar, so when the PayPal system sees this it can trigger a red flag and potentially put a hold on the funds.

This same thing could happen with regular "goods and services" payments, too, but may not be as likely. Again, there are many variables involved like the history of the buyer and seller, the type of product being sold, etc.

[biglongpapi]

thank you!