Hello I got this message from paypal saying
"At PayPal, we value a safe community for our customers to do business. We noticed activity in your account that’s inconsistent with our User Agreement and we no longer offer you PayPal services.
Any bank or credit card information linked to your PayPal account cannot be removed nor can it be used to create a new account. You can still log in and see your account information but you can’t send or receive money. Any money in your balance will be held for 180 days, after which we’ll send you an email with instructions about transferring your money."
I will explain my situation, so for about half a year my girlfriend and I been using this advance loan method so she could avoid overdraft fees with her bank, since she doesn't spend money wisely and I refuse to loan her any money as she will spend it.
How this works is that around 10:00PM EST is usually the cut off time when you can make a transaction and the paypal payment won't come out until the next day (I.E. She sends payment out on May 1st 10:00PM EST, the payment won't get processed until May 3rd)
So what she does is send a payment to me through paypal using her bank account at 10:00PM EST, I send the payment right back to her, she then instant transfer "x" amount back to her debit card so it instantly goes into her bank account putting her into the positive, then in a few days when the paypal transaction hits her bank she repeats the process.
Example: Her bank is -$500, she sends payment through PayPal to me for $506, I send it right back to her usually. She instant transfer $506 eating the 1% free ($10 max) into her bank account (500.94). Her bank balance goes from -$500 to +0.94. Now she is no longer in the negative and won't have to eat a overdraft fee. We share the same banking, so sometimes I just instant transfer it to my card and send her money through the bank.
Why do this you ask, her bank charges her I believe $30~ for overdraft fee then I believe a reoccuring $15~ for extended overdraft. So she would rather eat the 1% paypal fee then take overdraft fees constantly. We had no issues doing this for the past year, she stop working for a two months and her debts became too big where she started to send around $1000-$2000 now instead of $500. I then reached my limit on paypal, and I asked my little sister to borrow her account to do this "advance loan" with her account. After using my sister account for 3 days all out account became limited and paypal wanted us to send in documentation. I sent in everything and my account was denied and I am now I can no longer use PayPal services.
What can I do about this, I've been using paypal for almost 8 years. We didn't gain any money doing this, if anything she loses like $10 every two days to paypal. I have a side business where I sell trading card game and funko pops, and I can longer us paypal as payment method, which is one of the most popular way to pay for goods. I sent a email and they sent me a automated response saying my account will remain limited. I didn't actually do anything wrong, and is what she doing even against the TOS. How am I a high risk, I've been on this platform for a long time. I hardly have any disputes.
