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.

[Temp20201204e]

paypal is risky

[Justbendmeover]

PayPal is a greedy corporation that is using consumers money to collect interest on monies placed on “limitations” because they chose they can do with your money whatever they want. People need to not let this continue. Step up and file complaints with your local and State law enforcement agencies regarding their deceptive practices and file complaints with consumer action agencies. Write a letter to your congressman or congresswoman. Write to local media outlets write a letter to the President. When enough people come together and hold them accountable for their deceptive actions only then will they stop. It’s obvious this is an ongoing problem with this corporation and it is time they be held accountable. Enough is enough. PayPal is a thief and they lie. Make them stop. Enough is enough

[dkaufman72]

I have been using my personal PayPal account to easily and quickly transfer monies between banks that can't be linked to each other. In the past I have transferred as much as $42000 in one day. Since March of 2024 though transferring even $30000 /day has met with denied transfers and "24 hr reviews". In the last month particularly it seems every 3rd withdrawal gets put on 24 hr hold pending review. These withdrawals are to banks that have been linked for months and even years, banks I've previously sent tens of thousands of dollars to: What is there to review. Support says it to protect me, but as the frequency of 24 hr holds has increased I've wondered if they are just holding up my personal transfers to my banks to shore up their cashflow, or something nefarious. I even mentioned this to Support 2 days ago. Today, my account gets Permanently Limited after trying withdrawals after Support performed override and with Support on the line telling me my account was now open to withdraw.

Btw, I only tried to withdraw total of $10,158.11 today, and was on with Support when Account was Permanently Limited, after Support said they had performed an "over-ride" and account was ok to make additional withdrawals.

[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.

[commiefornia]

Superb recommendation! Best of luck to the OP!

[Justbendmeover]

I completely agree this corporation needs to be held accountable for their deceptive practices on limitations of accounts. They have held my personal account hostage for well over 7 months and still refuse to provide me sufficient documentation that would support their reason for limiting my account. PayPal is using our money to help increase their profits because there are so many class action lawsuits in the process and they know this corporation is going under quickly. They are trying to make the most profit they can before they are hit with lawsuits and made pay for their actions. Really disappointed in them. I have been a customer for a very long time only to have them rip me off for 542.29. They have been denying me access to for over 7 months. Sick and tired of their customer service repeating the same nonsense over and over again. I do not have a contract with the LLC that provided them with a UCC filing on another LLC. I am an individual with a personal account. My name is not even on the UCC filing even the LLC that provided them with the filing refuses to touch my money because they know they legally can not touch it. Why else has it sat there for 7 months? Why because every red cent gains an interest payment and who gets that interest profit?! PAYPAL DOES. THEY ARE THIEVES AND NEED TO BE HELD ACCOUNTABLE FOR THEIR DECEPTIVE PRACTICES. SHAME ON YOU PAYPAL. SHAME ON YOU. YOUR CORPORATION NEEDS TO BE DISMANTLED. THIEVES

[dkaufman72]

Man, My personal account was just Permanently Limited today Oct 9, 2024, after actions I took while on the phone with support, and reading through this thread I am not encouraged about restoring my account, nor getting my $4880.11 available to me in 180 days. How can they do this, get away with it?

[Maihongdiem]

Have you found a solution ? i'm having the same problem with you.

[dkaufman72]

@Maihongdiem,

If by solution, have I gotten my account restored? No.

Someone from PayPal did contact me by phone and did explain the limitation to me. Which is more than it seems other people got.

Turns out, in a way, I asked for it. The support staff that I was on phone with at the time the account was limited was the person who limited the account. I was having trouble transferring money out of my PayPal balance and was on phone with support. They said they would review the account to see what was going on, and why the system wasn't allowing me to make transfers. Her review concluded that I was a risk. She acknowledged that I didn't violate the User agreement nor the Acceptable Use policy, but still limited the account, with no appeal possible. So my account is still limited for my lifetime, and they are still holding my nearly 5k balance for up to 120 days.

It seems if it is a permanent limitation there is nothing we can do, if it's not permanent, then get whatever information they are asking for to them and your account may be restored. Good luck!

Also, be aware that any transfers you made from your balance to external banks in the week prior to the limitation, PayPal may try to "reverse", meaning they will try to get that money you sent out back from your external accounts. If that applies in your case, I would contact your bank and if they don't charge Overdraft or NSF fees, move your money out of those accounts, so PayPal can't get it back, 'cuz then they will hold it for at least 120 days.