Account Limitations: What You Need to Know

[PayPal_Mark]

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.

[shez2020]

yes obviously there issue I have been waiting nearly 3 hours too bloody ridiculous

[MrPicky]

I'm not going to waste my time. I'm closing my account. I'm going to open a new one in the future whenever I need one. They lost a client who's been with them since 2003 (buyer & seller).

[Bibobello]

I was a client since 2003 too, and I spend my days trying to explain my situation and beg them everyday to let me access at least a portion of my money to pay for rent, tuition and food! They are not willing to help in any way! If you open a new account you will be in the exact same situation. The problem they are using to limit my account is that I had previous accounts in the past. The reason I had to close these accounts is always the same! They closed my accounts and PayPal representatives told me to open a new one.... then again they close it and I am permanently limited, penniless and not able to survive! 13 year PayPal customer!

[jpudlz]

We've never sold ANYTHING from our PERSONAL account (literally NOT LISTED AS A BUSINESS) & received an e-mail this evening asking for photo ID & purchase receipt from supplier. 

PayPal.... get your "stuff" together please. 

[notconstant]

It's a bug. Thousands are affected. The reply I got is this: 

---

Hello there! Thank you for contacting PayPal. Sorry to know that your account is limited. We are currently experiencing a known issue related to certain limitations placed on accounts. Our system is automatically reviewing and removing the affected limitations within the next 24-48 hours. If your limitation is not removed within the next 48 hours, please follow the steps in the resolution center to resolve the account issues. Thank you!

---

So I guess we need to wait. 

[shez2020]

thanks I hope they do, I have been trying to call them over 3 hours am disabled and use PayPal daily as housebound

[shez2020]

So my account was one of the many thousands effected, after spending 3 hours om phone, I gave up and messaged them. I also uploaded driving licence and were it requested information in error ie seller. I just typed your error etc. I also uploaded proof of address in the option for reciept. That hopefully speeded the lift on my account as it is now back to normal 2.30pm.

[Turbobuddah]

Nothing so far, limit was placed last night out the blue, no resolution cases or complaints, literally bought something fine without issues a couple hours earlier. Uploaded the details before finding out it's wide spread, just playing the waiting game now

[shez2020]

thousands of accounts had same issue. Mine included. error on there part. I tried calling gave up after 3 hours. I uploaded driving lic, and typed error in the information request field. I also submitted proof of address in the reciept field. I additionally messaged them . Around 2.30pm my account was finally back to normal. try the above they are working to restore them thoe.

[Anonymous_User]

Yes, this seems like it was some kind of system error as Paypal has suggested.  It still makes me suspicious though, that perhaps they are just trying to collect more personal info for whatever reason.  I gave them my license and a utility bill and my account was restored the next day.  I did not upload anything to the "receipt from supplier" request, as other forum users had suggested I do.  I'm not a seller so that didn't apply.

I used paypal frequently to send funds to my roommate so he can do the grocery shopping.  That's really all I use paypal for except for the odd independent software or service purchase here and there where the merchant only takes paypal.  It's not even necessary to usePayPal on EBay any more, for the most part.

In the time that I couldn't access my paypal account, my roommate and I set up <a competing service> and that worked just fine.  (And with much lower fees, I should add!)

Not to digress too much here, but when the whole Sargon of Akaad scandal happened I vowed not to use Paypal any more.  For the record I don't support almost anything that guy stands for, but I found PayPal's "response" to be quite un-American.

Long story short I started using Paypal again because it was just the easiest way to send money to friends and family.  After this fiasco, I won't be using it anymore unless it's really the only option.  I think I've given these jokers enough of my money in fees over the last almost-two-decades.

Vote with your wallet.  Paypal is not the monopoly people think it is.  There are plenty of competitors.  Heck, even EBay dropped them!

I'm getting older, and quite frankly I just don't have the time to waste on nonsense like this anymore.  Life's too short.