Account Limitations: What You Need to Know

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PayPal Employee
PayPal Employee

 

Keeping your business and customers safer

To ensure PayPal remains a safer place for enabling payments, we regularly review all accounts. Sometimes, limitations may be placed on your PayPal account, which could restrict you from completing certain actions: such as withdrawing, spending, or receiving money. Limitations are in place to help protect all our customers, and in some cases to meet our regulatory obligations. Protecting your account and money is important to us.

 

Account Limitations: What might cause it, and how to help avoid it?

If your PayPal account is limited, you may be unable to withdraw, send or receive money. There are a number of reasons why your account could be limited:

 

Suspicious & unusual activity

  • We suspect someone could be using your account without your knowledge.
  • Your bank alerts us that someone has used your credit/debit card linked to your account without your permission.
  • There are unexpected changes to your selling activities such as a sudden increase in your typical sales volume.

In such cases, we do what it takes to protect you from potential fraud prompted by the unusual activity– through limiting your account, and investigating.

 

You can safeguard your personal information and help protect yourself against fraud through some simple measures.  For example, don’t enter your personal or financial details when describing items for sale or in response to emails, and log out of sites you’ve entered your personal information into.

 

Regulatory reasons or business is not compliant

Your account could be limited for regulatory reasons. For example, India PayPal sellers need to include additional information to be able to accept payments in their account. Also, reaching a certain transaction value in your account may trigger a limit, which can also be removed by providing information required to PayPal.

 

There are also restrictions on what a PayPal account can be used to accept (and make) payments for. For example, PayPal doesn't allow the sale of counterfeit goods or banned items. So, ensure that your business is compliant with PayPal’s Acceptable Use Policy .


Increased buyer issues

An increase of complaints, claims and chargebacks from buyers can lead to account limitations.

 

Following some simple guidelines can help you improve your performance and reduce the likelihood of limitations. Overall, communication is key. You should:

  • Provide detailed product descriptions and photos.
  • Be upfront about policies such as shipping and returns.
  • Ship orders promptly and track shipments.
  • Respond quickly to any messages from buyers.
  • Work to amicably resolve any problems.
  • Ship to the address provided in the transaction details page.
  • Use quality shipping materials to prevent damage.

 

Removing limitations

 If your PayPal account is limited, here’s what happens:

  1. We’ll email you to let you know –  we’ll ask you to log in to your PayPal account and go to the Resolution Centre for details on how to resolve the issue quickly, usually by providing information.
  2. Once you’ve submitted the information required, we’ll review and reply via email.
  3. We’ll remove the limitations once we have verified your account. At times, limitations can be removed by simply changing your security questions and password.

Here are the types of information and documents we may need from you:

- Supplier’s invoice with contact information

This helps us determine the inventory source and validate that you have the items that you’re selling in stock.

 

- Payment information

When an invoice is unavailable, we’ll review the following information about your payments:

  • The item or service that was sold
  • The buyer’s name and shipping address
  • Proof of shipment to verify that an order was delivered

- Shipping or Tracking information

This helps us to verify that customer orders are being fulfilled.

 

- Proof of business
This provides evidence of a valid business registration and business ownership.

 

- Information for India sellers
This is to comply with our India regulatory obligations. Provide a valid PAN, a local bank account and the purpose code in your PayPal account task board.

 

- Proof of address such as bank statement or utility bill, Proof of identity such as passport or driver’s license
This helps us verify your identity when there is unusual account activity or to comply with regulations.

 

Once you’ve submitted your information, look out for any more emails from us as we may need additional details. We’ll do our best to confirm your information and remove the limitation within 2 business days, but sometimes it can take a little longer.

 

Quick Tip: If your PayPal account is limited, don’t open a new account. It could be traced back to the limited account.  It’s always best to resolve the limitation. We will guide you through it and restore full access to your PayPal account as quickly as possible.

 

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1,051 REPLIES 1,051

BMW328I
Contributor
Contributor

HI, 

 

I have been using my PayPal account since 2010 in the past 3 years I start my own business and I become self employed by reselling online on some website in June my account was limited and I really don't know what the straight reasons the only things I got on the email says my account has risk . 

 

in my account as seller almost 200-250 transaction and 100 - 150 transaction as buyer . As seller I always stand behind my sale and I solve all the disputes against me immadeitly . 

 

in April I have received like 3-4 transaction for items I'm selling over $2K each transaction has same names with different address so the site I posted my item in, they contact me and advice to refund all transaction cause it's fraudulent which I did immediately . 

 

on May I purchased an item for $660 and when the mail man came to deliver the package it was looks weird so to protect my self I refused the package and I asked the mail man to return the package to the sender which they did and tracking number was showing as refused and its on the way to the sender and I raised dispute told the seller I didn't feel comfortable about the package so I refused to take it and its on the back to you . He/She told me no worries as soon as I receive it back I will issue you full refund I waited almost 6-8  days and I never heard back from the seller so I escalated the dispute to force the refund after 10 days the seller never responded so PayPal they decided it on my favor and refund my money two days later after I got the refund that limited my account . 

 

what I have done wrong if I refused the package what I have done wrong to deserve the limitation ? I believe you guys should go further on the dispute and see if the seller was honest he/she won't ignore the dispute and never response to PayPal request . Please someone help me to get my account restore cause this is my main household income and this decision hurt my life . 

 

other than those issue I have nothing in my account to make call it risk I have 5 stars review in all sites I was selling in and I have many return customers cause they are happy with their purchased . No questions if any buyer report any kind of issue in the item I approve the return on the spot I worked hard to earn trusted seller on all site why would fraud buyer or dishonest seller turn my life upside down if I'm not in fault .

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PayPal_Siobhan2
Moderator
Moderator

Hi BMW328I, 

 

Thank you for contacting the PayPal Community Forum. 

 

Your issue is very account specific and we would be unable to assist you over a Community Forum. In general, if your PayPal account has been permanently limited the reasons why this decision was made will not be disclosed. When our review team deems it necessary to permanently limit the PayPal account, it is because of an evaluation of all the information available on the account and may not be for one specific reason. 

 

- Siobhan 

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LuisS1
Contributor
Contributor
I guess you didn't see my post (maybe capitals not big enough) since you replied only to the other person. 21 days of money robbed and still not a whisper from your ... banking, investment management, money dry cleaning company or whatever that is
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BMW328I
Contributor
Contributor

what your suggestion ? should I call customer service for further info to solve the issue ? 

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LuisS1
Contributor
Contributor

BMW328I I suggest you call the police. These people are disgraceful. I wonder how many millions from people and businesses they keep at any given time and what they do with it. Certainly no interest added when (IF) they give it back to you! 

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rypmil
Contributor
Contributor

We know it's interest bearing on their end. Can you imagine all that cheddar? Maken' money on the float and making sure your former clients cannot withdrawal.  On top of that, making sure there's a policy of silence. Bunch of thugs PayPal is. 

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temp202001301f
Contributor
Contributor
This doesn't help at all due to there NEVER being any "tasks" to complete. My account is a personal account at that.
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happyk
Member
Member

Hello you have permanently banned me from using PayPal without going thru your steps that you show you follow here on your site.

I did not get an opportunity to even know there was a problem . I woke up and got a nasty note saying I could no longer use your services because I  

violated your use policy . I have no idea what I violated.  You say on your site that you have a resolution center and we get to go in and find out if our account has been compromised or hacked you have not even given me a chance to find out what the heck is going on I do not sell anything.

I had some online company rip me off a month ago and now you are banning me  permanently and not even letting me find out what it is all about this is very unfair at not a very nice way to run a business. The least you should do is follow your own steps that you state you give your customers before 

making a final determination . You are not the law . You have your facts wrong.

 

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nguyenlinh2606
Contributor
Contributor

i need to help 

 

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seoraju
Member
Member
I have also the same issue. Please help me how to resolve this. May be this issue is due to as I have created another PayPal account. I accept my mistake. I request you to please resolve my issue.
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