Be aware - Paypal can put a permanent limitation on your account WITHOUT any reason!

[pmmarw]

Yes, this has happened to our business. The final response from "executive escalation" says that: "PayPal as a business is entitled to review the services it offers and take the decision whether an account on its system is deemed risky or not. PayPal can use commercial judgement to decide what factors to consider when making that decision and it cannot make these public because it would potentially open up routes for somebody to circumvent its system."

So, it does NOT matter what you are doing or did. It does NOT matter that you have NOT broken any of Paypal's rules. They can deem your business "risky" and withdraw their services from you within minutes, with no warning whatsoever.

Just imagine if banks did it - would there be an uproar? Of course! Especially that the decision could have been taken by mistake, by incompetence or even due to discriminatory matter towards specific nationality (who knows!). The decision is final and you won't get the grounds on why it has happened because Paypal thinks they can do that. Plus, freeze that bussinesses' money.

For all the people interested in escalations towards Paypal - if you have tried your best and can't resolve your issue then REQUEST a final written decision from the management board from Paypal by writing to CRC@paypal.com

If the above does not help, escalate the issue further. Contact CSSF (a regulatory body in Luxemourg - where Paypal is registered). After all Paypal is not some plumber round the corner, who does not like you and will not offer his services to you, it is a multinational corporation whithin FINANCIAL SERVICES - a body which is (or should be) regulated.

[kernowlass]

@pmmarw 

Paypal doesn't limit you for 0 reasons, what would be the point? Paypal want you to open and use a paypal account because that is how they make their money !!!!

Secondly they can certainly decide to withdraw their services as per the user agreement that you agreed to when you opened your account and the same user agreement that was approved by their regulatory body.

Lastly banks do withdraw their services from some businesses or make you jump through hoops just to open a business and get help from them and they also 'risk assess' your business for those risks.

[pmmarw]

@kernowlass 

And that's the whole mistery here - why would Paypal close account and potentialy lose income from it?

They obviously can't close all accounts but since they have so much business they can basically do whatever they want to those customers who for whatever reason (even if not existing) they find not within their "spirit". I imagine there are situations where a Paypal employee spends 2 minutes on a decision to keep your account opened or to close it, since it's reduction of risks. I imagine based on fraud risk. Or maybe an incompetence of their staff and algorithms, which then they do not reverse because they are afraid this would lead to a compensation for claim?

Why would a company with nearly 15 years on Companies House, with other various registrations be risk assessed in that way by Paypal? Who knows? We easilly opened an account at alternative provider, as well as used our bank to accept payments. So why Paypal found us to be a possible risk, or whatever idiotic reason they make up?

Where does it say in the user agreement that they can withdraw their services on NO GROUNDS and with no review etc? Have YOU actually read it? Look at the "closing your Paypal account section" and tell me if there is anything there which applies here.

There is also a different thing for not opening a financial service for a business, as oppossed to closing it without reason, isn't it?

[pmmarw]

@kernowlass 

Do you think that regulators are always great and doing their job to their standards? Then why the hell financial crisis has happened? So saying that a company does it legally because they are regulated is a bit short.

And in respect to account limitations https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full

There are several reasons why your PayPal account could be limited, including where we have reason to believe that:

• Someone could be using your PayPal account without your knowledge, then we’ll limit it for your protection and look into the fraudulent activity.
• Someone has used your card or bank account without your permission, for example if your debit or credit card issuer or bank alerts us to this.
• You have breached this user agreement or violated the Acceptable Use Policy.
• Your performance as a seller indicate your PayPal account is high risk. Examples include: indications of poor selling performance because you’ve received an unusually high number of claims and chargebacks, selling an entirely new or high-cost product type, or if your typical sales volume increases rapidly.
• There is a risk of liability (a non-exhaustive list of examples of such risk is set out in the section Actions We May Take If You Engage In Any Restricted Activities above).

Where the hell is the one mentioned in the reply from Paypal? We can limit your account on the ground we will not tell you about because it is our business decision?

And you know why this is not put officially in writing? It's because if bussinesses knew of these potential behaviours, they would have never used Paypal!

[kernowlass]

@pmmarw 

I can't comment on why they did it as i don't know anything about your company.

All i can do is comment on the fact that they are allowed to and they do not do so for 0 reason.

As for where it is in the user agreement, try reading under the section  >>>>>>>

Actions We May Take if You Engage in Any Restricted Activities

https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full#actions-restricted-activities

Sorry can't get into a debate, there are lots of un-banned users awaiting replies to their posts.

[pmmarw]

@kernowlass 

Thanks for answers anyway.

The issue is that we did not engage in any of the restricted activites and are not told by Paypal whether we did or not. Do you think it's fair?

See below full reply:

And to be clear - we no longer want to use Paypal anymore and never will. I just want to maket this public so other bussinesses know what can happen. If more people were to be made aware, they would double think on whether to take business to Paypal or to other provider.