Account locked out for no reason. PayPal won't address the issue

[Dommahoney]

Hello,

I have opened a new account and used it for about two months. Our customers would sometimes want to pay by credit card, we would process their card against an order that we had dispatched to them. PayPal put a hold on the account on two occasions and asked us for information including shipping information and invoices. We furnished this information straight away. Then PP put a permanent hold on the account and we are unable to use the account. they have $4k of our money frozen in the account that they say they won't refund for 180 days.

I have called 3 times and no-one will explain why, just that the backroom staff made the decision and you can't talk to them. I explained that I had a PayPal account for more than ten years that would have over $.5million every year paid buy credit cards. There was never any fraud. They also have my SS number, Driving license, home and work address and Bank information. Im sure they mention that they can hold money to prevent them form being at risk of loss but this makes no sense at all. There is no risk. Im sure many others have been caught by this dubious practice

[kernowlass]

@Dommahoney 

PayPal does review accounts regularly, and any concerns with security, violations of the User Agreement or Acceptable Use Agreement, compliance obligations, etc., could lead to a permanent restriction. Additional information beyond what would have been provided to you in a notification and/or email would not be available due also to security concerns and due to such information being proprietary.....in other words you do not get an actual reason.

If you have been told your Paypal account has been permanently limited then Paypal tends to hold any funds for 180 days. This is the same time frame that buyers have to open Paypal disputes.

If no disputes are opened in 180 days then normally you are allowed to withdraw the funds. That is as long as you are over 18, the account is in your legal name and registered in the country where you reside.

Sometimes they confiscate funds under this policy.
https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#actions

Paypal also may request further documentation from you before you can withdraw those funds.