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

Temp20230525FZ
Contributor
Contributor
They will never answer you due to COVID-19 apparently they can get through phones no ones working. Also millions of people have received this message that their accounts been permanently suspended and they have wait 180 days for their money. Most are not able to get their money after that. PayPal is robbing all of us! I say let’s start a class action suit all of us get what we’re owed and shut down the stealing pos their company really is!!!
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pjc4
Contributor
Contributor

I share my current situation just in case it helps. I had my account limited twice in the past month. First time very simple process (online) to get myself underway again - took 48 hours. 2nd time a lot more frustrating, and the "self help" web based process didnt help at all. Tried 3 or 4 times to follow the right process - with no success at all. In frustration after being locked out of my account for more than a week (they have my money), I decided to ring and find a human. Process wasnt easy (only way to find a contact number was google search - no way to find on the paypal website) and after waiting for 15 mins on hold with no progression in the queue, I opted for a "call back" as the support team were overloaded. After waiting another 30 mins I got my call back.

 

Support guy was very patient with me, as I kept venting and telling him how frustrating this all was, but when I finally shut up and listened, he walked me through the process online to validate my identity (upload 1 govt issued photo id0 and to validate my address (upload one utility bill). I submitted, he checked and confirmed that everything was fine, and then said he would do his best to push it through the system (normally a 3 or 4 day  process). Within 12 hours my account was back online.

 

All this seems to be because of new requirements for anti money laundering and fraud protection (thank your local government) - but the deployment of this by Paypal has been a train wreck for everyone!!

 

So my takeaway - prepare what you need in advance for ID, if you dont have it they cant help you, and second, I think even if it takes time, make the phone call, the support team are all human - they will do their best to help you if they can. It is not them **bleep**ing things up - but hopefully they sack the knucklehead that came up with the automated process locking all the accounts 😄

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kofataman
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Contributor

Over month my account is hold. I sent all info before 35 days and each week agent say: please wait 3-5 days, but this week even the agents not respond to my messages.

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Bibobello
Contributor
Contributor
This is exactly what they are doing! Robbing us! I have thousands blocked and they don’t care about us being in need or having no resources at all! All they say is that their decision is final!
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PopsicleLover
Contributor
Contributor

stfu scammer, you and this whole company is getting sued 🙂

yall's money will be put into court. Thanks for being hired as a scammer.

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Barksla
Contributor
Contributor

Our story:

 

We're a small business in Idaho. We had been selling on eBay for well over 10 years. We only accepted PayPal during this time. We've done millions in business through eBay and PayPal. In October of 2019 we received a closure email for violating PayPal's AUP policy. After hours of trying to figure out what or how we violated the policy we finally gave in and accepted our fate. 

 

Our account had a positive balance which would be help for 180 days. That date came up. I received an email requesting I change the password on the account, which I did. While logged in I checked on the status of the balance. I was horrified to see the following transaction: $8,345.76 USD;PayPal Posting Date:Mar 18, 2020;Payment to:Paypal;PayPal's damages caused by Acceptable Use Policy violation;.

 

PayPal, without even sending an email or any sort of correspondence (no transaction receipt email) simply took the money. After numerous numbers of emails trying to understand how this worked. I received this message through the message center:

 

"Thank you for contacting PayPal.

PayPal maintains an Acceptable Use Policy to identify the types of products and services that are prohibited and those that require pre-approval.

Ultimately, it is the responsibility of the buyers and sellers to ensure they are compliant with all applicable laws. All customers are required to conduct transactions in accordance with the Acceptable Use Policy. Sellers should also carefully read both the eBay Prohibited and Restricted Items Policy and the PayPal Acceptable Use Policy if they plan to use PayPal as their payment processor for eBay auctions, storefronts, and websites. Failure to comply with these policies may result in limitations placed on your ability to use the PayPal system.
For further information, please go to the 'Legal Agreements" link located at the bottom of any PayPal webpage and click the "Acceptable Use Policy" link.


If you violate the Acceptable Use Policy, we may hold your funds up to 180 Days, may debit your PayPal account up to $2,500.00 USD  for each such violation and may take legal action against you to recover additional losses we incur. 

 
When you accepted the PayPal User Agreement you agreed that $2,500.00 USD   per AUP violation is a reasonable minimum estimate of PayPal's actual damages, considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate . PayPal may deduct such damages directly from any existing PayPal balance in any PayPal Account you created, own and or control.

The specific activities that may subject you to fines by PayPal can be found in the Acceptable Use Policy"

 

Now, PayPal does NOT actually provide their complete AUP. If you've ever read the AUP they link you to it's so incredibly vague that anyone and anything could violate it at any time. 

 

I have filed claims with the BBB, CA AG, ID AG, and pretty much everyone else I can think of. 

 

P.S. Stop using PayPal. They do not care about you. They will not help you. When they decide you're no longer an asset they will cancel your account and confiscate your money guised under the vague language in their AUP.

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Deborahselleck
Contributor
Contributor
Barksia I red your story and I am so sad at the treatment you have received from PayPal . It is utterly appalling. I am not a seller but like you I have used PayPal for its security in purchasing items online. I have now been scammed aswell and PayPal has treated the matter in the same way by giving me vague answers and closing my case without my consent. I really feel for you as a business owner in these difficult times and I hope and pray you get the justice you deserve. Judging by the amount of complaints on this portal about the same issues I think something terribly wrong has happened with the PayPal company of late. It is time they were investigated by your government. Keep up the fight. Wishing you well. Deborah
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hidaia
Contributor
Contributor

Dear

 

I am totally with you

 Thanks for your support

I hope someone can stop Paypal from scamming people such way

 

Before when we had problem they treate us very well and solve the problem. Now they close our accounts in rubbish way without reason and without one fault from us

Why that ??

I really dont know

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GabrieMbu
Contributor
Contributor
Hey, PayPal requested for proof of address or else my account would be limited in 30 days. I promptly responded with my bank statement as directed in the resolution centre and further verified my card after which they said it would take 2-3 days to review. Weeks later, it still says the same and my account has now been limited. There is no issue in my resolution centre but the notification to provide proof of address persists and when I click on it, it takes me back to the page saying " Thank you for providing the required information. We’ll get back to you within 2-3 business days." Where it's been for weeks. I've tried contacting PayPal to get further clarification through various means i.e. Message, call, "Name change", Twitter, Facebook and all there was were the automated responses which don't help in my unique situation. I have money in my account, expecting more and have payments to make this week. Please help. Thanks.
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Vocolicious
Contributor
Contributor

Is their customer service support totally useless and shutting down ? My account is limited all of the sudden even though proof of address and stuff had been sent ages ago. Anyone know their call centre for Malaysia ? Their paypal assistant is incompetently af. 

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