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PayPal closure of my account

New Community Member

PayPal closure of my account


I'm very confused by the closure of my PayPal account. I made an account to accept money from my friend since we are buying something together.

He sent the payment as products and services. Which was his mistake, so i refunded, and he sent it again but must have forgotten to pick friends and family. So eventually he sent it as the right option but had to send in small amounts because at that point he was having an issue with his card.

In the email, it says my account is closed due to the fact "to protect us from potential financial losses." I believe this has been trigged because he sent the money two times as product and services which have been refunded by me so this can't be the case.

So i fail to understand why the initiating closure of my account when i have already provided all my vaild documents and the rest so very confused.


This was the email:


"""""""""""""""""""""""""""""""""""""""""""""""""""Dear commodus nero,


We regret to inform you that we're initiating the closure of your PayPal account. This measure is necessary to protect us from potential financial losses.


Your right to appeal:


We always perform a thorough investigation before deciding to initiate the closure of an account. However, we appreciate that from time to time misunderstandings can happen. If you wish, you can appeal our decision. Just get in touch with us and let us know. To do so, log in to your PayPal account and click 'Contact' at the bottom of the page. Select 'Managing My Account' as the topic and 'My account is limited' as the sub-topic, then send your message.


Your account balance during the account closure period:


This decision means we must oversee the appropriate movement of any money currently in your account. A gradual approach to account closure allows us to part ways, while considering any liabilities that may arise. Our aim is to review any valid buyer claims lodged against you. We must allow enough time for claims to be opened as these can take several months to be reported and resolved.


How will the process work?


1. We'll hold any money currently in your account in accordance with sub-sections 1-3 below. We do this because it provides sufficient time for most claims, such as chargebacks, to be opened by other parties. These claims can result in financial loss. If your account balance is below zero, you'll have to settle the amount owing on your account to avoid further action. 

2. Our first review at 30 days from the date of this email will calculate our exposure and we'll release any excess money to you at that time for withdrawal. We'll communicate this to you at the time. This review can result in 3 different outcomes as detailed in sub-sections 2(1)-(3) below. We'll always communicate the outcome of our reviews to you. 

   1. We'll release your entire remaining balance to you for withdrawal. Please note that if you choose not to withdraw the money at that point we reserve the right to re-coup any money at the next review; or 

   2. we'll release a part of your remaining balance to you. If this is the case we'll inform you about how much money can be withdrawn. We'll then conduct another review 30 days later that will repeat the process detailed under section 2; or 

   3. we won't release any money to you if we deem our exposure to be greater than or equal to your available balance. 

Your account may be reviewed up to 5 times; at 30 day intervals until day 180 from the date of this email. If any money remains in your account at day 180 it will be made available for withdrawal at that point.


Accounts with a balance owing to PayPal:


If your account shows an amount owing to us, you must add money to ensure that the balance returns to zero. Please note that we reserve the right to recover the amount by legal means.


A copy of our User Agreement can be found by clicking 'Legal Agreements' at the bottom of any PayPal page. Our right to close your PayPal account, and the retention of money, are covered in our User Agreement under sections 10.2 and 10.3.


Money in your PayPal account will be held for 180 days. After 180 days, we'll email you information on how to receive your money.


We regret any inconvenience this may cause.""""""""""""""""""""""""""""""""""""""