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

homerlea
Contributor
Contributor

oops...   good luck

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homerlea
Contributor
Contributor

GOOD LUCK, but better throw in a prayer too. You have about as much chance of getting a straight answer from them as you have of winning the lottery.

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aychua11
Contributor
Contributor
The reason for what we experience may be because PayPal customer service people are working from home due to this COVID matter. There is no one to monitor what inefficient customer service agents are doing. Wait until their managers get back to work and let them see how much their customer service agents fouled up over the past few months of “lockdown”. Together with finding higher level management, I’m just waiting to report this incident to their management. Hoping that heads will roll.
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homerlea
Contributor
Contributor

You are dreaming. These problems have been going on for years. It is not the virus causing the problem, it is too much robot use to save them money.

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aychua11
Contributor
Contributor
Yes that’s very true also. I’ve read that they’ve been sued by the US government in the past. The cases also have something to do with unauthorized use of credit and their customer service agents failing to handle the issue’s involved. Just like you said, it’s their incessant use of “bots” to save money, but everybody’s doing this right now and there’s a proper way to do it right. They’ve lost cases and were made to pay penalties and fines. I’m sure these instances partially taught them something to look out for.
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homerlea
Contributor
Contributor

Not everyone uses their AI incorrectly. Companies should have artificial intelligence solutions for common problems but what they are lacking is human oversight. When the PayPal Help Center doesn't help they should have a backup system that you can contact that leads to a person with the authority to decide if the error is on the part of PayPal and fix it. Many companies do. I contacted eBay about my problem having my PayPal account frozen and got a reply from an actual person but she said I would have to work it out with PayPal. She did say good luck and God Bless which I took to be an acknowledgement that she thought prayer was the only way I might ever get PayPal to straighten things out. I have not been to church in the last 65 years so  I don't know how my credit is along that line.

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jbarros35
Contributor
Contributor

they wasnt doing anything before COVID now they have a very good excuse for incompetence.

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Donnaxxx
Contributor
Contributor
I disagree to most of the people you do this to. I believe its wrong your choosing to use other people's money then keep it.i call it blatant theft
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homerlea
Contributor
Contributor

Actually , I think the correct term is embezzlement rather than theft. 

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KipC123
New Community Member

I am FURIOUS with PayPal and cannot get a person via email, chat or phone! I CANCELLED a 7day free trial with a vendor and make screen shots to PROVE IT! The vendor then billed me for a year subscription that I did NOT authorize. To my surprise PayPal did NOT FIGHT FOR ME, THE CLIENT! I am livid and have reached out to my staff and friends who use PayPal and asked them to reconsider. This treatment is unacceptable and I expected and deserved better! I may have to transact EVERYTHING via American Express, since they will go to battle for me to keep my business. This shady vendor caused my account to be overdrawn because of this FRAUDULENT transaction. The worst part is I told PayPal to close my account and they did NOT. Now I have client money tied up in this horrible company. I wish I had been warned!

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