PayPal Freezing Business Accounts

[superchillin]

Hey all,

So I had my business account and subsequently my personal account frozen along with it for no good reason. I was selling intangible or digital goods and nothing about that was illegal or violating the terms of any of the agreements then boom suddenly I get the business account frozen for no reason at all and also because my personal account was under the same firstname/lastname that was also frozen - both for 180 days.

I have heard in recent months that PayPal has been periodically freezing business accounts for no actual good reason. Some people have stated that they were doing quite a bit of business through theirs selling just simple things like tailored clothing or jewellery online on their own site and then after quite some time of using PayPal they suddenly had theirs frozen.

Can anyone offer any reasons or share any experience of this happening because it just seems to me that all PayPal wants to do is shut down any business that doesn't use eBay for selling goods or services. If this be the actual case then a stop needs to be put to what they're doing and they need to be taken to court by someone with the resources to do so and literally TOLD that they DO NOT have the right under the law to just stop people doing business because they don't agree with what they're selling or because they're doing more business than ebay is doing - that is called a monopoly and that is illegal! 

[kernowlass]

@superchillin

1. Ebay and Paypal are 2 separate companies and Ebay are using other options than Paypal for their users.

2. Why would Paypal 'want' to freeze business users Paypal accounts for no good reason? Paypal want us to open Paypal accounts as sellers make them money from fees and buyers make them money by using sellers that offer Paypal.

They don't just freeze accounts for no reason.

[sharpiemarker]

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@superchillin wrote:

Hey all,

So I had my business account and subsequently my personal account frozen along with it for no good reason. I was selling intangible or digital goods and nothing about that was illegal or violating the terms of any of the agreements then boom suddenly I get the business account frozen for no reason at all and also because my personal account was under the same firstname/lastname that was also frozen - both for 180 days.

I have heard in recent months that PayPal has been periodically freezing business accounts for no actual good reason. Some people have stated that they were doing quite a bit of business through theirs selling just simple things like tailored clothing or jewellery online on their own site and then after quite some time of using PayPal they suddenly had theirs frozen.

Can anyone offer any reasons or share any experience of this happening because it just seems to me that all PayPal wants to do is shut down any business that doesn't use eBay for selling goods or services. If this be the actual case then a stop needs to be put to what they're doing and they need to be taken to court by someone with the resources to do so and literally TOLD that they DO NOT have the right under the law to just stop people doing business because they don't agree with what they're selling or because they're doing more business than ebay is doing - that is called a monopoly and that is illegal! 

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They close or freeze accounts if their security system deems an certain selling activity is a high risk in loss. Maybe not you as I’ve no idea about your selling history but in general selling digital goods are high risk for disputes in the form of scams. So one rotten apple spoils the barrel. PayPal has right to revoke the user agreement with you or anyone they want when you signed up and agreed to the user agreement. If you need to discuss your account, then contact PayPal customer service. No one has access to your account here and no customer service agent reps discuss specific account details here. These forums consist of other PayPal users. There are mods but they do not discuss specific account issues here either.

[superchillin]

Thanks for replying back to me. That kind of makes a bit more sense for me but that is still ridiculous if someone is selling digital goods that aren't a scam. I'm a software developer so was selling my services as such. It is such a shame that PayPal is shutting down people trying to make an honest living. I've already been in touch with customer services on the phone and they were absolutely no help at all. The guy wouldn't give me the reason why my account was frozen and wouldn't help with appealing against the decision either. They are useless!

[GlassPuppy]

So let's say I start selling an intangible good through PayPal. You are selling "code services", and I will sell something similarly intangible, let's say for the purpose of example I decide to start selling prayers.

So I tell my customers, send me money through PayPal, and I will pray for you 100 times.

So business is good for a while, but then after a while people's prayers don't arrive and they start complaining to PayPal, who ends up with a headache on their hands because they have to refund a bunch of money and spend resources on disputing claims.

After a while, I guarantee you, PayPal will shut down my Prayer Business. I promise. They just don't want that kind of business taking place on their financial platform because it's a bunch of smoke and mirrors.

Not sure what kind of "code" you are selling, but these days, when anyone can copy and paste code, the transactions could reek of fraud.

Kinda like when a bunch of Indians pressed me to "develop" a web site for $2000, and when they showed me what they could do, all they had was a stupid template they downloaded for free and then edited it quickly to stick my business name on it. Stupid. Fraudulent.

[janetseo]

We were selling SEO SERVICES and paypal froze our accounts for no reason. No disputes from customers but still they think its risky and decided to limit my account forever. Such a shame.I only reason i see is my account is Indian and they seem to play with us(4 of my friends accounts who have been using Paypal for over a year have met the same outcome last week). NOTE:IF YOU ARE FROM INDIA OR ASIA DON'T EVEN BOTHER OPENING PAYPAL BUSINESS ACCOUNTS WITH PAYPAL,YOU WILL BE DOOMED. Instead Try opening a US bank account and get a Credit Card Processing Partner such as Stripe or similar. Cheers!