Account Limitations: What You Need to Know

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PayPal Employee
PayPal Employee

 

Keeping your business and customers safer

To ensure PayPal remains a safer place for enabling payments, we regularly review all accounts. Sometimes, limitations may be placed on your PayPal account, which could restrict you from completing certain actions: such as withdrawing, spending, or receiving money. Limitations are in place to help protect all our customers, and in some cases to meet our regulatory obligations. Protecting your account and money is important to us.

 

Account Limitations: What might cause it, and how to help avoid it?

If your PayPal account is limited, you may be unable to withdraw, send or receive money. There are a number of reasons why your account could be limited:

 

Suspicious & unusual activity

  • We suspect someone could be using your account without your knowledge.
  • Your bank alerts us that someone has used your credit/debit card linked to your account without your permission.
  • There are unexpected changes to your selling activities such as a sudden increase in your typical sales volume.

In such cases, we do what it takes to protect you from potential fraud prompted by the unusual activity– through limiting your account, and investigating.

 

You can safeguard your personal information and help protect yourself against fraud through some simple measures.  For example, don’t enter your personal or financial details when describing items for sale or in response to emails, and log out of sites you’ve entered your personal information into.

 

Regulatory reasons or business is not compliant

Your account could be limited for regulatory reasons. For example, India PayPal sellers need to include additional information to be able to accept payments in their account. Also, reaching a certain transaction value in your account may trigger a limit, which can also be removed by providing information required to PayPal.

 

There are also restrictions on what a PayPal account can be used to accept (and make) payments for. For example, PayPal doesn't allow the sale of counterfeit goods or banned items. So, ensure that your business is compliant with PayPal’s Acceptable Use Policy .


Increased buyer issues

An increase of complaints, claims and chargebacks from buyers can lead to account limitations.

 

Following some simple guidelines can help you improve your performance and reduce the likelihood of limitations. Overall, communication is key. You should:

  • Provide detailed product descriptions and photos.
  • Be upfront about policies such as shipping and returns.
  • Ship orders promptly and track shipments.
  • Respond quickly to any messages from buyers.
  • Work to amicably resolve any problems.
  • Ship to the address provided in the transaction details page.
  • Use quality shipping materials to prevent damage.

 

Removing limitations

 If your PayPal account is limited, here’s what happens:

  1. We’ll email you to let you know –  we’ll ask you to log in to your PayPal account and go to the Resolution Centre for details on how to resolve the issue quickly, usually by providing information.
  2. Once you’ve submitted the information required, we’ll review and reply via email.
  3. We’ll remove the limitations once we have verified your account. At times, limitations can be removed by simply changing your security questions and password.

Here are the types of information and documents we may need from you:

- Supplier’s invoice with contact information

This helps us determine the inventory source and validate that you have the items that you’re selling in stock.

 

- Payment information

When an invoice is unavailable, we’ll review the following information about your payments:

  • The item or service that was sold
  • The buyer’s name and shipping address
  • Proof of shipment to verify that an order was delivered

- Shipping or Tracking information

This helps us to verify that customer orders are being fulfilled.

 

- Proof of business
This provides evidence of a valid business registration and business ownership.

 

- Information for India sellers
This is to comply with our India regulatory obligations. Provide a valid PAN, a local bank account and the purpose code in your PayPal account task board.

 

- Proof of address such as bank statement or utility bill, Proof of identity such as passport or driver’s license
This helps us verify your identity when there is unusual account activity or to comply with regulations.

 

Once you’ve submitted your information, look out for any more emails from us as we may need additional details. We’ll do our best to confirm your information and remove the limitation within 2 business days, but sometimes it can take a little longer.

 

Quick Tip: If your PayPal account is limited, don’t open a new account. It could be traced back to the limited account.  It’s always best to resolve the limitation. We will guide you through it and restore full access to your PayPal account as quickly as possible.

 

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1,050 REPLIES 1,050

Anonymous_User
Not applicable
I hope everyone truly knows why paypal is worse than Comcast and how they conduct business now? They weren't making a profit. People weren't using their services as much. So they add in all these vague arbitrary rules, ban people for nothing illegal (I have proof I did NOTHING illegal), but then start using terms such as "high risk customer" or other stupid terminology to hold people's money. And for a company to not explain why you were banned? It's like the old days when the mafia controlled gambling casinos. They will not let you just unlink your bank account or card, close your account and still monitor you while you can't even use their services. To get them off your **bleep**, go to your bank, get a new account and debit card and credit card associated with the NEW account. Leave your other account open with just enough money to have one open (depends on bank) or close it all together. That might affect your credit more. Opening a new account I dropped like 3 points. That's it. Either transfer all your money to the new account and close the linked one or leave it open with $50. Nothings linked but an account that is never used. **bleep** you paypal. Spying, lying, extorting, and will be filling bankruptcy IF PEOPLE STOP USING THEIR SERVICES. DO NOT LINK ANYTHING. THEY STILL SPY ON YOU EVEN AFTER BEING BANNED. Find another company. And if certain places only allow paypal, they just lost a sale. I still buy on ebay...etc. Setup extra security on your new account as well. I wouldn't put it past them to be calling my bank phishing for answers. Evil company.
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ALIMIL
Contributor
Contributor
Why my message not available
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Shaba32
Contributor
Contributor

My account has been limited for over 3 years and despite following all the procedures, provided proof of identity and proof of residency, my account is still limited to this day, 2021. I haven’t received any contact, nothing in the resolution center and no emails regarding the situation. Im very disappointed in the customer response team since i haven't gotten any service despite my many emails and feedbacks. Kindly help me resolve this once and for all so i can get my money and close the account permanently.

 

whatdo i di?

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urbaknight
Contributor
Contributor

No one is going to review your account and case if you do not initiate a legal enquiry. Just approach any free legal clinic or get a free consultation with a civil lawyer to find out how to initiate the process, assuming you have money taken away from you. 

Once your account is suspended for certain User Agreement violation, none of the customer service officers will be able to open the case again. They may promise you a reply but that seems to always eventuate in non-response. 

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DebbieMoli
Contributor
Contributor
I have sent head office a final letter before court. Nobody has replied. It’s terrible going through this when no violations have been committed. I have proved to them I was sabotaged. PayPal need to act in this instead of ignoring
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Temp20230525HA
Contributor
Contributor

Contact the "Consumer Financial Protection Bureau" (CFPB)..go on their website and you can file a complaint, its a government owned company so they HAVE to answer you (they usually answer in a week CFPB said, I got an answer back in 2days). I filed a complaint, paypal got back to me in 2 days like I had said (you can check the status of your complaint online too), but all they said was they re-reviewed my account and decided its still high risk. Which is ridiculous! I'm a stay at home mom, who's charges are for target, amazon..etc. There's absolutely no reason for this. I did nothing wrong.

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Madamxxx
Contributor
Contributor
Can I get my money early if it's held for 180days when my PayPal account was in good standing prior to it being permanently limited, I was never selling or using my PayPal account as a seller, it's simply unjustified
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raiken0932
Contributor
Contributor

ive already submitted a resolution but its almost a year nothing happened ... they never review it

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Swagby44
Contributor
Contributor
Really because you make more sales they lock your account this is for sure why mine has gotten locked, I call customer service and after going back and forth for an hour she just said Ill be honest I dont think you will be able to use pay pal anymore because I told her my original accounts email I used was hacked and if I could recieve the message they send they dont know what to do. Seems crazy to lock accounts when they bring in more sales for themselves and give paypal money, they honestly just could need funds more than in the past and sold more.
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iTesla
Contributor
Contributor

Hi @Swagby44
There are some factors that can influence your account, the country you live in, if your biz is registered and if you pay tax.
Based on what I know there are countries which are limited in receiving funds and this is the cause of local government laws, that is why I think paypal does not want to process money for accounts in such countries.
The local laws in Moldova where I live are afraid of people who can get rich, because the more money you make the more power you have and can influence later the politics using those money or other things which money can buy.
Try maybe offer crypto to your customers, this is for sure the future of money processors.
This is just a opinion of a user.

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