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

jwhizzle
Contributor
Contributor

Same thing happened to me today. Account was closed, no explanation other than "we have reviewed your account and determined to close it". I have been using paypay since 2006 and have never violated the terms. Kind of seems ridiculous to not give an explanation. 

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homerlea
Contributor
Contributor

Same here but mine is since 2000. Their system is broken but nobody is paying attention. I just dropped my nuclear option on them so hope they will wake up. I have made a ton of money on their stock but they have now automated to the point where it may come crashing down on them and they won't even see it coming. Their operation reminds me of near the end of the movie War Games where the kid has just about started WW III playing a game on the NORAD computer that has replaced "imperfect humans". He can't stop the computer so he asks the computer is this a game or is it real? The computer replies "what's the difference?"

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paggle
Contributor
Contributor

My account was closed without warning 2 days ago, I contacted them  by email and was told

 

"We appreciate your interest in PayPal. Unfortunately, our decision to close your account is final."

"PayPal reserves the right to close any account reported to be involved in possible fraudulent or high risk behaviour."

"In order to protect the integrity of the PayPal service, we cannot disclose the specific criteria that we sometimes use to limit access to accounts. "

 

And that's it, no appeal, I've been with PayPal for 11 years with no problem then suddenly I'm **bleep** and I don't know why

 

This is obviously a mistake but there have no desire to fix it. Judging by the other posts here I'm not alone, it seems they are a law unto themselves with no accountability or consideration for their customers

 

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jwhizzle
Contributor
Contributor
In the end we will be better off for having been booted off. I'm moving all of my payment services to another platform and will be going on an anti Pay Pal crusade. Don't forget to file a complaint with the Better Business Bureau if they are holding your funds. You will have an increased chance of actually getting them.
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d256
Member
Member

What about the funds in you're account was you able to withdraw?

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Temp20230525GU
Contributor
Contributor

PayPal is the biggest joke I've ever seen when dealing with other people's money! If I would have known it would take this much just to get access to my  own money I would never have used this Cash card. I will never recommend PayPal Cash Card for anything!

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homerlea
Contributor
Contributor

The list of reasons to freeze your money is complete nonsense. They freeze many people's accounts using a fraud algorithm and have no idea why people have been bounced so they can't tell you how to fix it. PayPal will never help you once they freeze your account. You are pleading with a mindless computer. I am counting on my NUCLEAR OPTION as the only possibility other than an expensive lawsuit. Buy a share of PayPal stock so you can vote on it at the next stockholder meeting 10 months from now.

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Temp20230525GU
Contributor
Contributor
I like how you think!
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Mangwana
New Community Member
My account is limited too my you help me to open it , I have already resolved the issues which they asked me to answer
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Andrea174
Contributor
Contributor

Paypal Community @ links to members, content

As so many of us have account limitations, as do I, I have reached out to two class action firms. One called back promptly to respond, but unfortunately, I missed his call. When I called back , he was limiting his calls. I will keep trying.

I saw that they have made in the billions of dollars and are a recommended stock to buy. They are finding clever ways to steal our money ,and use it to for their own investments;r also  setting us for identity theft/fraud. eBay and PayPal are splitting up at the end of current agreement. Accounts and Limitations is one tactic.

 

Where is upload link on their web page?  Thanks. A. <removed> Esq. Retired 

 

PS Who is really interested in joining a class action?

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