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

NicolaB83
Member
Member
They have shut my account down too No explanation given and no ability to appeal. This is highly suspicious and they lock up our money for 6 months!! Don’t answer the phone and just send unhelpful scripted responses that have no clear reason for the closure of my account. This cannot be legal to treat peoples money and business like this
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1tired
Contributor
Contributor

Another person on here advised to start a Class Action Lawsuit.  Please go to Top Class Actions.  Please join the lawsuit that I filed.  Joining together is the only way to make something happen.  They just abuse the person alone.  Just like the short squeeze there is strength in numbers.

 

<removed>

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Cleeis4me
Contributor
Contributor
There is a clause in their Acceptable Use Policy that we all agreed to when we clicked accept in the beginning that we can't file a Class Action **bleep**- that everything will be handled through Arbitration
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Anonymous_User
Not applicable
It's the same as I would write my own user policy that I am allowed to kill a person and go shooting down people on the street. It doesn't allow them to scam people, to steal customers money.
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HoaHoa
Contributor
Contributor

My Paypal is permanently locked for no reason, can't complain.
I cannot get my money back.
My account does not have any service bill related claims.
Paypal scam takes money from customers.

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clearlycheri
Contributor
Contributor
You have to fill out arbitration paperwork. It's in their User Agreement that we cant file a Class Action Suit
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Stayhighalday
Contributor
Contributor
Count me in paypal was my payroll and how I got paid and they took over $1467 from my company and said wait 180 days no one an fix it that's bull **bleep** let's sue this company
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SatahM
Contributor
Contributor
Mine is a personal account and for reasons unknown my account has been permanently closed. It has been over 180 days and still no money. I had no disputes or issues of any kind therefore I have no idea why mine has been closed. I wouldn’t recommend PayPal to anyone what so ever.
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TrendyHoods
Member
Member

have you received your money yet after the 180 days?

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Saman0511
Contributor
Contributor
I think no one has ever did, mine has been held more than 200days
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