Account Limitations: What You Need to Know

[PayPal_Mark]

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.

[lbmray]

thanks this helps since iv been waiting a month to get money back so now in counting the days !

[AnnabellaW]

This 'reviewing of accounts' is about collecting copies of our personal information. I was a customer for many years before my account was 'reviewed' recently for no reason. I won't send copies of my DL or bank statement to anyone. Use regular ID verification Paypal!!! - secret questions etc. This practice is intrusive and unnecessary. We are supposed to be your valued clients!!  You are not protecting our accounts. This week I received an email from you telling me that I no longer had to enter a password on my usual device!! Even if you had not locked my account I would always want to enter my password. Now I have to change everything over to my visa debit account as I cannot trust YOU Pay Pal. Read the other messages on this forum about the stress you are causing your customers from these 'reviews' and those are just the people who are able to go on to forums, many more without voices will be suffering out there. 

[Temp20201204e]

Those are unjustified reasons for limiting the clients accounts and suspending their transactions. I think paypal started using the clients money fraudulently. I have been using this service for more than 8 years, spending thousands of dollars a year and finally my account has been imitated.

[Temp20201204e]

paypal is risky

[Hailsphoenix]

I am having a similar issue with restrictions. I am our business Paypal account owner. I don't have shares in my company but I am listed as director on companies house, I am authorised signatory on our bank account and I do have authority to make decisions on behalf of the business. A limitation was put on becasue a customer paid an Invoice by Paypal. Usually we do BACS and paypal is only used for our ebay small items sold. i was restricted immediately and unable to withdraw the money to the approved bank on our paypal account to allocate the money to Invoice. I had to then refund my customer, prove who I was (driving licence) provided a utility bill with my name, company name and addess on, a letter of authorisation from the main shareholder of the company to prove I was authorised to make decisions for the company. I did all this 5 times! 5 Times talking to 5 different people in cutsomer services and none of which were able to lift restrictions without the main company shareholders home address and photo ID. Both of which he is refusing to let PayPal have. After the hell I've been through and hoops Ive jumped through to sort this out, without even being able to speak to a human being with any common sense, now all i want to do is close this riduclous account!! It has been a horrendous and stressful experience for 3 months!! While there is restrictions, they wont let you close it. So I am now in no-mans land what can I do now?

[Mickmt]

I know , it is sickening.I would suggest legal action.

Alternatively take it to the press & give them some bad press. We have in Ausralia a tv. show - 60 minutes that will pressure misconduct.

[urbaknight]

You need to take it to the court. It seems to be the unanimous recommendation from those who won their case against PayPal and I am going to do the same to get back my money. 

[NicolaB83]

They have shut my account down too No explanation given and no ability to appeal. This is highly suspicious and they lock up our money for 6 months!! Don’t answer the phone and just send unhelpful scripted responses that have no clear reason for the closure of my account. This cannot be legal to treat peoples money and business like this

[1tired]

Another person on here advised to start a Class Action Lawsuit.  Please go to Top Class Actions.  Please join the lawsuit that I filed.  Joining together is the only way to make something happen.  They just abuse the person alone.  Just like the short squeeze there is strength in numbers.

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[Cleeis4me]

There is a clause in their Acceptable Use Policy that we all agreed to when we clicked accept in the beginning that we can't file a Class Action **bleep**- that everything will be handled through Arbitration