You can't use PayPal anymore....


Hello, hope all is well. On Saturday 4/13/24 I got a message from PayPal saying "You Cant Use PayPal Anymore". I have a $900 transaction that is stuck. PayPal said money in my balance will be held for 180 days. What's odd is this:

1. My account is new. This is the first transaction ever. 

2. I downloaded the disputes going back to April 2021 and there is no detail in the reports.

3. My digital product has been delivered and confirmed.

4. PayPal surely didnt have issues when I purchased the digital product from a friend (also using PayPal) and he had no issues with my money.

5. I provided all the required documents such as drivers license, US passport, invloice sent to customer and the details of the digital product. I even sent PayPal the transaction showing when I purchased the product from my friend which clearly is the same business model/transaction.


I have Master Resale Rights (MRR) so can someone please explain why its ok for me to buy the same product yet when I resell it, PayPal limits my access?


Message From PayPal

We're unable to continue processing payments for this account

We strive to provide our customers with seamless and user-friendly payments solutions. Unfortunately, sometimes we can't process activity for a variety of reasons, including local laws, our policies, or the policies of our partner banks and card networks.

Based on the information we have today, it looks like there was activity on this account that we cannot support.

What can I currently do with my account?

Unfortunately, at this time most of your account features have been deactivated.

We may hold any funds in your account for up to 120 day(s) to cover things like chargebacks or other financial liabilities. We'll review the account periodically to see if we can release any remaining funds sooner. We'll email you the outcome of each review.

You can still view your transaction history, download account statements, or request copies of your data.

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Esteemed Advisor
Esteemed Advisor


PayPal does review accounts regularly, and any concerns with security, violations of the User Agreement or Acceptable Use Agreement, compliance obligations, etc., could lead to a permanent restriction. Additional information beyond what would have been provided to you in a notification and/or email would not be available due also to security other words they do not give you an exact reason, they just direct you to the user agreement or acceptable use policy. I guess having a reason wouldn't make any difference if they have permanently banned you.


Most common reasons (not anything like all the reasons) for an account limitation are:-

1. You have a previously limited account (temporary or permanent) and you have tried to open a new account and not resolved the issues with the other account first.
2. Using a VPN.
3. Not living in the country where you opened your Paypal account.
4. Being under 18 / minor account.
5. Having 2 Paypal accounts or more of the same account type.
6. Not having your legal name on your Paypal account.
7. Selling items (often virtual or digital) that Paypal consider a high risk of disputes/chargebacks.
8. Using the friends/family option for sales transactions to try and evade Paypal fees and risk of disputes.
9. Too many disputes/claims.
10. Violating their acceptable use policy.

You can rarely appeal a permanent ban but if you want to try an appeal then contact customer services.

They 'may' pass it to the back office but the chances of the appeal being successful are slim. Paypal state that the decision is not made lightly and once made is usually final.

Advice is voluntary.
Kudos / Solution appreciated.
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Thank you. I would suffice in saying it is #7 giving me the headache. Paypal saw ABSOLUTELY no reason to restrict the sellers account when I purchased the digital service from them. The SAME digital product!  I even sent them the transaction id from the March 2024 invoice payment and oddly enough they thought it was ok for me to purchase.

We have had this issue in our community of 13K members and it has happened and "has" been resolved. 


I believe in consistency.

1. Paypal said on their website it may be limited up to 180 days. Yet their email says 120 days. WHich one do I believe?

2. Paypal allowed me to purchase the same digital product in which the seller had absolutely no issues. In turn I sell and they do this.

So upset with their response. No company should withhold a sellers money with no just cause. Be upfront and just tell me. I don't need a bullet point list of possible scenarios. If there is an issue, lets correct it. Seems pretty logical to the normal guy right? If we allow that than its obvious you are guilty until proven innocent.


Thanks again for your time. Terry

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