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Account Limitations: What You Need to Know


Re: Account Limitations: What You Need to Know

I provided all the necessary documents and it's been 3 weeks already and nothing happens


Re: Account Limitations: What You Need to Know

It's official. PayPal is a scam. No not the scam/spoof emails. The actual company is an all-out SCAM!
Not applicable

Re: Account Limitations: What You Need to Know

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I hope you are wrong on this. But surely paypal operates as a bank, so the FSA should have some form of control over paypal, such as not being able to permanently limit an account and hold funds for 1 month let alone 6 months, This is not a twitter account or some online account they hold actual funds. Paypal is licenced as a bank in the EU and the UK is a current member of the EU.


When I am not receiving funds, I also pay other sellers via paypal and frankly I do appreciate the form of protection paypal provides as a buyer, but as a sellers it seems to be a completely different rule. Its almost impossible to shop online without paypal, it's a worrying monopoly.


I have to pay my ebay monthly final value fees, accrued from my total sale for May 2018, ebay is set to automatically withdraw funds from my connected paypal account between 30 May 2018 - 1 June 2018. Paypal has at their sole discretion limited my account on 26th may 2018 and I can't pay ebay. So I'll also lose my ebay account.


Does anyone think this is right? I have all proof of purchase of the said items and also the manufacturers number / UPC number to show it's genuinity, should they require it, they've been attempting to **bleep** me over for a long time, I should have known and withdrew all my funds well on time. I kept getting error status on my account, including being unable to send money, I called in on more than one occasion and the problems were resolved.


Lately within the week gone past, I received some odd payment, on two occasions before my account became limited, I was paid by two of my customers and their fund were marked by paypal as 'payment received but fund currently unavailable' the availability date on paypal came up as '1st of January 1970'. I already have a screenshot of this as proof, which I have uploaded here, I rubbed out the customer's name for privacy reason.


This was an alarm bell, I rang up paypal customer service to ask if it was ok to ship these items to the buyer, he was a really nice fella by the name of John and he said yes, I should and to upload a tracking number as proof of delivery afterwards, to enable this fund to be released into my account on the 3rd day of delivery confirmation, or in one month without a tracking number and no dispute from the buyer.


I promptly did as I was told and uploaded the tracking number to get my money released to me, on the 3rd day of delivery confirmation. I initially added the wrong courier, after my account became limited, I noticed I've added the wrong courier and I corrected this unapparent mistake.


The next day, I received an email from paypal stating this same transaction I rang in to confirm it's safety, has led to my account being permanently limited. Because this item was deemed a violation of paypal acceptable use policy.


A fair company / customer service should have warned me well before hand when I called in without resorting to seizing my fund, and limiting my account. I have also sold this same item before.


This is absurd. An apology from paypal, re-instating my account and making my funds immediately available would be a perfect response from paypal, this is their community forum after all and I'll expect someone from paypal to read my post. Or perhaps it's simply a case of reporting the culprit to the culprit.


All I have got over the past few days in light of my urgent situation, is automated messages from euaup emails. 


This is the worse I have been treated by a company allowed to trade in the UK, it's absolutely appalling behaviour from paypal.


Should I keep getting ignored by paypal and receiving automated email response, I'll take this further to an ombudsman in due course and I'll make use of all the complaint avenue at my disposal including up to claims court.

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Re: Account Limitations: What You Need to Know

My account was permanently limited no explanation just "we feel like it" and you agreed to our TOS. PayPal then has the nerve to say they must hold any money that's rightfully mine for 180 days. This service is an absolute joke and robbery.

Re: Account Limitations: What You Need to Know

Similar thing happened with me yesterday. I'm a new user. I have transferred money to my paypal account even though i haven't confirmed my identity. Silly me used my nick name (it was shorter and closer to my legal name). Now Paypal has closed my account and keeping my money for 180 days without paying any interest. Their procedure is very wrong. They are able to receive money into an account that is not activated but then unable to return that money.


So ridiculous!!!! 

Re: Account Limitations: What You Need to Know

Yes I agree IL be opting out of pay Pal once this is sorted they have been a joke from start to finish !

Re: Account Limitations: What You Need to Know

Continue to write PP and sellers- P.O. will take care of you

Re: Account Limitations: What You Need to Know

@Rachaeld1980 wrote:
Agree with the whole concept and reasoning behind limitations and happy to provide evidence, however I'm not a business so can't provide evidence I'm just selling unwanted goods from home. How do I resolve this PayPal give scripted answers on phone and email and aren't responding to my dm on Twitter.

i would try the facebook page and message them

you might get a robot at first but keep going they will ask if you want to talk to an agent

to be truthful they are better than going through PayPal site

and they did help me resolve my problem of limited account

if they ask for photo I.D you need a passport / driving licence / or military I.D 

i had none of the above so had to sent a copy of my birth certificate and a tax form which i luckily had

and it has to be in within the last 6 months

also proof of address is a utility bill, again it needs to be seen  front and back

so place it on a table keep your hands off the page so you don't accidentally obscure any writing or logos

with your fingers


good luck




Re: Account Limitations: What You Need to Know

Well i still don't understand why my account got closed. And many users worldwide don't understand that too!

Any way already prepared a document to send to your regulators cssf, the european comission and european central bank.

There are many questions that i have for example if there is a risk associated that means that there is a rating or scoring for each account right?


Why we has merchants don't have that information?


If paypal because of the risk of potencial loss closes the account then every merchant account should be subject to a compliance and risk analysis before accept any payment on behalf that merchant.

If payment received from paypal is considered a credit risk to paypal and some sort of loan to a merchant for 180 days then paypal must make the necessary capital reserves for each considered payments to follow the prudential financial risk management 


If my suspicion is right PayPal does not have capital adequacy ratio above the required 8% if every transactions and payment to a merchant is considered has credit/loan.

That makes and interesting perspective how leveraged is PayPal at their recent M&A operations.

By summing a such huge amount customers can their solvency be at risk?

Does PayPal has their provisions against a potential lawsuit/fine for abusive of dominant position i think that should be really interesting debating subject at the European Commission and specially at the Central Banks where PayPal operates

because if there is a 180 days chargeback risk that is transferrable to PayPal so it means that this a loan/credit that paypal is grating to each paypal receipient.


So in this case only last year 2017 PayPal volume of transactions was 451.27 Billion Dollars if we add their pure finance operation the loans that they perform to their clients and their recent M&A less holdings that should not be considered has capital but reserves or provisions

How much capital does really PayPal has? Is it solvent?



Re: Account Limitations: What You Need to Know

No I meant escalating to FCA - quite frankly the PayPal system seems to be a series of robots with anodyne responses and no action. Just file an official complaint to PayPal using their channel then follow it up immediately in writing. The good news (for me at least) that they have within the last hour released my money. Complaining elsewhere may help google **bleep**-PayPal for email addresses. I did this and it may have helped.