Account Limitations: What You Need to Know

PayPal_Mark
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.

 

Login to Me Too
1,050 REPLIES 1,050

s-pime
Contributor
Contributor

I've had the same problem with no explanation why this has happened. This is so disappointing, Ive used paypal since 2004 and I can't understand why they don't even make contact with you before limiting your account.

Login to Me Too

Arkron
Contributor
Contributor
My accout is permanently limited what can i do please help me please
Login to Me Too

ECO87
Member
Member

Paypal has restricted my account and is requesting a photo ID. Why do they need a photo ID? All I am doing is selling some music gear across the globe. There is no suspicion. Everyone is happy with their items received. Now they blocked me from obtaining my funds for the sold goods and shipping costs!? What sort of platform is this? Is there any alternative to Paypal you guys are aware of? Paypal is totally unprofessional about this. They are probably discriminating against me being in Romania which is assumed to be "fraudulent" but NOT EVERYONE IS THE SAME @Paypal

Login to Me Too

OlgaC10
Contributor
Contributor

Hello!  Please help me, I have a problem with my account! My Paypal account, created just over a month ago, has been permanently limit by Paypal! Please tell me what I need to do to remove the restrictions! I am new to Paypal and may have done something wrong. You can point me to my mistakes to correct the situation!
I linked my bank card to my Paypal account, it was verified by you and all restrictions were lifted.
I even wrote to the support service to find out my limits, to which I received the answer: "You have no restrictions on accepting, paying and withdrawing funds!"

I cannot understand what the problem is, maybe by mistake my account was limited forever!

I would be grateful for your helps!

Login to Me Too

Kenpodoctor
Contributor
Contributor

Absolute joke. I was told my account is on permanent hold because I use a VPN. I can't wait to work directly with customers and bypass this schitt storm of a company.

Login to Me Too

cnc94
Contributor
Contributor

Do you know if using a VPN while using PayPal is against their terms of use? I was also blocked and I'm wondering if it was because of my VPN. I don't use it while using the app, but I'm wondering if there is any problem with them just having the software.

 

EDIT for clarification.

Login to Me Too

OlgaC10
Contributor
Contributor

it is strictly forbidden to enter Paypal through VPN

Login to Me Too

iTesla
Contributor
Contributor
Hello, do you know if is prohibited to use Proxy?
I use Epic and have logged in using Proxy from US now my PP is locked and they ask proof of my address an none were accepted, maybe they think that i lie and live in US but this is wrong i was using Proxy.
Login to Me Too

Vitalice-oloo3
Contributor
Contributor
Okay thank you so much I will do it.
Login to Me Too

mariachahin
Contributor
Contributor

It's funny how it says "we will help you" but I have been waiting for someone to answer since August 2020 and no one has contacted me or responded my calls/ emails. 

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.