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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1,050 REPLIES 1,050

Helene2817
Member
Member

 I have submitted all the requested documents and all of them are already tagged as complete. Also checked my email for additional requirement needed for it to resolve the issue, still my account is limited.  Messaged and emailed customer service for assistance but no reply. Please let me know what are my options.  Thank you.

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homerlea
Contributor
Contributor

They don't even ask me to supply anything. They just say I am out for good and they don't have to tell me why. I just sent the Enola Gay after them to drop the big one on them and hope it will get them to pay attention to the misery they are causing. If they don't want to send all the stockholders my proposal pointing out their unethical behavior they will have to fight with the Securities and Exchange Commission. Wish us all luck.

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JTAllday11
Contributor
Contributor
Please tell me how I can file something more. I smell a class action in the works!!!! I AM IN!!
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Temp20220217ax
Contributor
Contributor
Unfortunately they banned class action lawsuits. It's in the terms and agreements as of 11/1. They demand Arbitration etc. It sucks.
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JTAllday11
Contributor
Contributor
I have personally filed a complaint with the federal Bureau of Internet fraud. I don’t know what I’ll get out of it. I hope we all get our money. I’m just so hopeless. I feel duped, deceived, betrayed, and raked over the coals
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Temp20220217ax
Contributor
Contributor
Let us know what they say. I believe some of us will back up your claims
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JTAllday11
Contributor
Contributor
I will most definitely keep posting updates. And I appreciate the sentiment. Thousands of dollars, I’d not more are being held from their account owners. Money earned in honesty and in good faith by many sellers with PayPal’s platform. It sucks! Truly sucks!!!
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BBrian0177
Contributor
Contributor

@JTAllday11  Did you later get your complaint resolved and how long did it take for BBB to get back to you?

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JTAllday11
Contributor
Contributor
No nothing!
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CVisser
Contributor
Contributor

@PayPal_paula Hi Paula, could you please help me. My account has been restricted for 3 years now! I've never used my account illegally and I've never understood why this has happened.  Can you please review this issue, I only want my remaining funds transferred to me. I've tried emailing, messaging, all the resolution steps, calling.. And still don't understand the problem or how to fix it.

Reference ID is PP-005-853-823-314

Thank you!

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