1st time use then received"You can no longer do business with PayPal" funds on hold for 180days

TomAlley
Contributor
Contributor

- I have a paypal business account which I registered with my company in Hong Kong I think two years ago but never used it. Recently I opened an online dropshipping store, today one of my customers from the US paid by Paypal, so I login to paypal a/c, then paypal poped up requests to upload relevant business documents and personal ID etc. (quite complicated and annoying), which I submitted everything as requested then wait for review. All the documents I submitted are correct and legit as a registered company. 

- In one of the Q&As I left a note said due to the high service fees and complicated process we will avoid using Paypal;

- Later today I got an email from Paypal said "You can no longer do business with PayPal; After a review, we decided to permanently limit your account as we found potential risk associated with it. You'll not be able to conduct any further business using PayPal.  Based on this decision, if applicable, you are no longer eligible for PayPal Seller Protection as per our User Agreement. You'll also be charged a High Volume Dispute fee based on your activity for all existing and future cases you receive. If you have funds in your PayPal balance, we'll hold it for up to 180 days. After that period, we'll email you with information on how to access your funds."

- Here is the query, today is the first time I use paypal and received USD$38.5 from MY customer for an order, I login and I found out Paypal charged $2  as service fee hence I receive $36.5, which I am supposed to use this money to fulfill the order from my supplier! I don't mind canceling Paypal as one of the payment methods for my online store, but how can Paypay hold MY money in my account for 180 days? Is this international payment gateway a scam? Should I report to Police in HK and local Monetary Authority?

 

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2 REPLIES 2

TomAlley
Contributor
Contributor

Then I followed the instruction at Resolution Center, clicked "Visit the account limitation page", the same message appeared and there is no way to resolve the problem nor contact a representative. 

 

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PayPal_RachelK
Moderator
Moderator

Hi @TomAlley,

 

Welcome to the PayPal Community!

 

I am sorry to hear your account has been permanently limited. I know this must be frustrating. Please be assured that we do not take the decision to permanently limit an account lightly. 

 

Unfortunately, if a decision has been made to permanently limit your account, this would be a final decision and not something we could change. You would need to use an alternative payment provider going forward to process online transactions.

 

Once the 180 days have passed, you would be updated via email. You will then have the option to withdraw your funds. 

 

I hope this helps!

 

- Rachel 

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