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

kfamceo
Contributor
Contributor

I seen there are people getting scammed over their money. 180 day lock? Reserve funds? They locked my account up by holding $564 until I show them some paper work for my business. I done that and it is still stuck in review. PayPal Twitter is useless. Facebook doesn't work. All they do is say this same message:

Apologies for the inconvenience again. Can you please respond in DM with the details of the issue you have so that we can assist you further? ^RS

That's a freaking bot talking. What's worse is that no matter how many times you complain to them, they don't care. They are a multi-billion dollar company.

This is what Ashwini from the Merchant Risk Review told me on 8/28/2021:
Thank you for contacting PayPal regarding the reserves added to your account. We have completed our review of your request to adjust your account's reserve settings. Unfortunately, we are not able to approve your request at this time. You may contact PayPal  days from today's date and we will conduct a new review of your reserve settings.
 
The decision regarding your reserve setting was based on our review of the level of risk associated with your account. We looked at several factors in determining that there is a high level of risk associated with your account including: (It's long)

I reported them to the BBB and this lady named Chaitanya from Office of Escalations told me they will not release funds until I pay a balance to a linked account I have nothing to do with (from 11/30/2020)

I have been fighting PayPal since March 2020 and they will not budge. They limit your account and not look back. So what did I do? I'm reporting them and filing complaints to the following:

ROB BONTA Attorney General Consumer Complaint Against A Business/Company
What do I need to know before I file a complaint? | Federal Reserve Consumer Help

And apparently this company named Fairshake helps deal with PayPal complaints If Fairshake does not work or PayPal doesn't release the funds, I will seek Arbitration and possibly Small Claims Court. You should too. I will make an update when they respond with the FTC, California Attorney General and Fairshake. I will add additional resources to help with this injustice.


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M0nicaLee
Contributor
Contributor
Me too!! They refuse to answer my emails and I just get put on hold for hours when I call! This is such a scam!!!!
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victim1222
Member
Member

They are not here to help. It looks like they are stealing money the energy you expend trying to get someone on the phone is ridiculous.  The chatbot is saying to contact support during business hours.. its 3:35 pm EST. I called in but I've been on hold for 1hour!!. The representative said hold on for my manager "Que" and put me on hold she was already uncooperative and would not help get someone with more knowledge. They will not tell me why my funds are on hold. There are no risky transactions. Just recent payments to walmart and aliexpress.  

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Temp20210903A
Member
Member

This company is dog **bleep**. You don’t have a way to easily add funds and half the **bleep** time you can’t even complete a transaction then you limit my account for sending myself money from a different account so I can use the PayPal cash card you supplied me so I’d be able fo pull cash out of an atm. Then when I respond to the look limitation honestly and tell you I’m not selling any **bleep**ing thing my account gets permanent limited and I’m told I’m unable to access my funds on my account for at the very minimum a length of 180 days. what kinda horse **bleep** is that. If I borrowed money from your company and told you you couldn’t get any payment from me or get any of it back for at the very earliest 180 Days y’all would have my **bleep** in court so fast not to mention if I said even after the 180 period I’ll review the situation and decide if I want to give you back your money. Y’all are the definition of blue collar criminals and I will be taking this to court. Biggest crock of **bleep** company I’ve ever seen

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Cosmo30
New Community Member
I confirmed my identity in the last 9 months and I was to to wait for confirmation within 7days. The account review icon has remained since and there's no way l can review my account information. My money has been locked and I can't access it anymore. Kindly how can I access it
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kfamceo
Contributor
Contributor

UPDATE 09/28/2021

After I contacted the Better Business Bureau a week ago, the Escalations team finally released the hold I waited for a year and a half and I was able to withdraw from my bank account. My last resort was arbitration and I did not have to go through it. This was my 4th BBB report I reported before the resolution

So my advice for all: Everyone's case is different, but you should never give up on your money, no matter how big or little the amount is. You're entitled to it. Always use the BBB and make updates and never use social media or call them. They will not help you. Take it to higher up. NEVER accept any response they make you don't find acceptable.

Here's my case: https://sanjose.app.bbb.org/complaint/view/960715/c/e3nh6m

 

kfamceo_0-1632864110061.png

 

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frio38
Member
Member

imagine how much money they're hold for 180 days and use it for other things.... 🙄

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Sherrypollock77
Contributor
Contributor

Imagine the interest they are drawing on all of OUR MONEY.  FILE A COMPLAINT ITH THE BETTER BUSINESS BUREAU!!!!!!!

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RopJonah
Member
Member
I have provided the information requested but still no action..
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leavesoon
Contributor
Contributor

me too got the same message immediately after registering a business account, not even asked for documents, these bullshits of account limitations need to be clarify the reasons of limitations, we as customers have the right to know the reasons of the "potential risk", our business is established in one of the world top five economical countries with over five years and working international without a problem for years, What's wrong with you guys on paypal? if you can offer you service for some limited countries or some specific nationalities (which is i assume is related to my case) please say it clearly and remove not accepted countries or nationalities form your **bleep** list, don't let us spent our time in filling forms and giving personal details which obviously not excepted. 

 

 

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