PayPal account now limited to $5,000 per month after processing refund.

aDarkRedJungle
New Community Member

I am from the United States and live overseas. 

 

I receive regular payments from several law firms for contract-related work. I do not sell merchandise or issue payments on PayPal. 

 

Toady, one of my clients accidentally issued a duplicate payment for an invoice that had already been paid. I promptly informed them of the mistake and issued a refund. Immediately after issuing the refund, PayPal sent me a notification saying that my account would be limited to $5,000 per month to ensure I have "adequate funds." I cannot find an appropriate option to appeal this decision in my account. When I select "Request an Increase" in the resolution center, the link will not open. 

 

Is there any way to amend this? I don't understand why PayPal is suddenly restricting my account. I only receive payments; I do not disburse them. This was an exceptional circumstance. 

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1 REPLY 1

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@aDarkRedJungle 

 

They probably mean your immediate “release amount” is $5k a month. Anything exceeding that amount would be subject to the 21 day hold.

It doesn’t matter if you receive money for intangible services, physical items or digital items. Payments can be subject to 21 day funds availability hold. You just happened to issue a refund of probably a sizable amount and spooked them so they are doing this as a precaution. If you don’t have another refund, perhaps the amount will change the next month or apply for an increase then.


Kudos & Solved are greatly appreciated. 🙂
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