Account Limitations: What You Need to Know

PayPal_Mark
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.

 

Login to Me Too
1,082 REPLIES 1,082

buttaflybronx97
Contributor
Contributor

MEE TOOOO IHATE THEM...WANNA SUE THERE **bleep**

Login to Me Too

commiefornia
Contributor
Contributor

Check the many ongoing class action lawsuits pending against PayPal. Surely there's one that covers this sort of issue that you can join. I wish you the best of luck. With the way they treat paying customers, they deserve to be taken down a peg or two.

Login to Me Too

Justbendmeover
Contributor
Contributor
Unfortunately PayPal still has not learned from their obvious deceptive practices and they most definitely need to be taken down several notches. Maybe they will learn once enough consumers come together and put them in their place. Again shame on you PayPal. Shame on you
Login to Me Too

Justbendmeover
Contributor
Contributor
Hope you find an attorney to help you on this matter. The more consumers that stand up against this illegal limitation BS the better. Contact your States prosecutor and see if they can help also file complaints with the better business bureau and consumer protection agency. Maybe then PayPal will do what is right and legal. If not stick it to them. Shame on PayPal keeping people’s money just so you can collect interest payments for your own profit. Corporate greed it happens PayPal is a perfect example of what that is.
Login to Me Too

Dal7
Contributor
Contributor
2 years for me. The money is still locked ans if limited, you aren’t allowed to call them.
Login to Me Too

Justbendmeover
Contributor
Contributor
Did you ever get your money back? If not please contact your local State Prosecutor and see if they can help. I would also file complaints with the better business bureau and other consumer protection agencies. PayPal needs to learn the consumer will not allow this to continue. Enough is enough and shame on you PayPal. Corporate greed should be stopped.
Login to Me Too

AH305
Member
Member
I know it's been some time but have you been able to get your money??
Login to Me Too

lbmray
Member
Member

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

Login to Me Too

AnnabellaW
Contributor
Contributor

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. 

Login to Me Too

Temp20201204e
Contributor
Contributor
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.
Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.