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[QUESTION] How to Keep PayPal from Limiting/Freezing Your Account During a Launch...

by Spartan480
18 replies
Hello, I've been lurking on the WF for years and finally made an account because this is the year that I am taking action after buying one of the latest WSO's that I really love.

I've done a search and can't find any info. I know that many people have had this problem, you're in the middle of a big launch and you start getting lots of sales, then "BAM", PayPal freezes your account because you've never had that many sales before and it comes up as a red flag on PP's end which results in lost sales for you.

Is there a legitimate way to deal with this? Should you contact PP before a launch to let them know you might have an influx of orders coming in so they won't freeze or limit your account?

Any thoughts appreciated especially if you've gone through this and know how to handle this situation. Thanks.
#account #launch #limiting or freezing #paypal #question
  • Profile picture of the author Irvan Mhd
    You should have a Business PP account, not Personal.

    Why not contact Paypal directly to enquire about the issue? I'm sure they'd provide a more in-depth response than anyone here.
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  • Profile picture of the author petemcal
    I've not heard of this happening before, as said before you need to make sure you have a business account. Link it to a band account or card as this should verify your account. Once all this is done there should be no limits.

    Other than taking the actions above and contacting paypal there's not much you can do.
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  • Profile picture of the author Chad Heffelfinger
    There's been a lot of talk about this lately with some prominent marketers getting accounts frozen. You always used to hear that about letting Paypal know ahead of time, but I've heard of some changes that makes that seem like a bad idea. It kind of tips them off at the risk department of what type of work you're doing and they may not like that.
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    • Profile picture of the author petemcal
      Originally Posted by Chad Heffelfinger View Post

      It kind of tips them off at the risk department of what type of work you're doing and they may not like that.
      Are paypal against internet marketers using their services for processing payments?
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  • Profile picture of the author thorster
    Originally Posted by Spartan480 View Post

    Hello, I've been lurking on the WF for years and finally made an account because this is the year that I am taking action after buying one of the latest WSO's that I really love.
    Great that you're taking action!
    I'm curious, what was the WSO?
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    • Profile picture of the author Spartan480
      Originally Posted by thorster View Post

      Great that you're taking action!
      I'm curious, what was the WSO?
      Thanks! The WSO was "WSO Launch Code". Awesome product.

      Thanks to everyone for the replies. That's what I hate about PP, it seems like you have to walk on eggshells when dealing with them and just hope and pray that they don't freeze your account. I got verified and got the business account so hopefully everything goes smoothly.

      I've read horror stories about people making thousands a month through PayPal and then getting their accounts frozen all of a sudden. I'm just trying to get as much info as I can so I can take preventative measures.
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      • Profile picture of the author Spartan480
        Originally Posted by Gengis View Post

        This is a question i also have because wso's pay you with paypal and i soon am releasing my first one..
        Exactly, me too.


        Originally Posted by michaelcorvin View Post

        I would not do a launch with paypal. That is the first step.

        Michael
        How can you do a launch without Paypal? Isn't that the only way to get paid when launching a WSO? I want to use Warrior Plus and the only payment option I see is PayPal. What other alternative is there?

        I have Google Checkout which I love and use for my main business but mostly everyone uses or requires PayPal.
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  • Profile picture of the author Gengis
    This is a question i also have because wso's pay you with paypal and i soon am releasing my first one..
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  • Profile picture of the author michaelcorvin
    I would not do a launch with paypal. That is the first step.

    Michael
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  • Profile picture of the author Chad Heffelfinger
    You never know what they are going to do, but for WSO's it's pretty much the only option for any serious sales.

    The biggest thing would be to take out the money as soon as you can, that way if there was any kind of problem you'd not loose it all to their freeze.
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  • Profile picture of the author BestSEO
    EVERY TIME I launch I call them FIRST and tell them there is going to be a big spike and that stops any issues....
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  • Profile picture of the author Silas Hart
    If you expect a large spike, I personally recommend getting a merchant account and setting up PayFlow Pro as your payment gateway so you can accept PayPal payments. A lot of people say to call them ahead of time and let them know, but there's a good chance that's not going to change anything. Anybody committing some kind of fraud could call PayPal up and say "Yeah, I have 20 thousand coming into my account tomorrow" but it doesn't mean it's not going to throw up some red flags for some further human inspection.

    Continuing to use PayPal is like traveling cross country on a 10 speed bicycle. It's possible, but not very practical due to limitations.
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    • Profile picture of the author WillR
      Originally Posted by BestSEO View Post

      EVERY TIME I launch I call them FIRST and tell them there is going to be a big spike and that stops any issues....
      Never do this. It stops nothing and only increases the chances of them putting you in the high risk category. Anybody could call up Paypal and warn them, even scammers, so this step prevents nothing at all. If your account is flagged by their automatic fraud detection then it will be flagged regardless of whether you called them beforehand or not.

      Also don't be selling 'get rich quick' type products because Paypal do not like these.

      Originally Posted by Chad Heffelfinger View Post

      The biggest thing would be to take out the money as soon as you can, that way if there was any kind of problem you'd not loose it all to their freeze.
      Really bad advice and this is much more likely to lead to your account being frozen. Real businesses don't make all their sales and then run off with their money in a hurry... not unless they have something to hide.

      You should keep as much of your money in Paypal as possible. Not only does this make you appear like a more legitimate business that has nothing to hide (why would you take out all your money unless you had something to hide) but it also reduces the risk you pose to Paypal. If you took out all your money then all of a sudden you have no money left to cover refunds, chargebacks, etc. Paypal know this and your account is likely to get flagged as a result.

      It's also worth mentioning that Paypal have the power to take back any money from your linked bank account, even if the balance of that linked bank account is zero dollars. So taking out all your money is NOT a good idea at all and will not stop them from getting that money back.

      Just like any other business, Paypal is all about minimizing their risk. The more risk you pose to them to more likely it is your account will get frozen.
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      • Profile picture of the author petemcal
        Originally Posted by WillR View Post

        Just like any other business, Paypal is all about minimizing their risk. The more risk you pose to them to more likely it is your account will get frozen.
        I guess this is true, I feel they are clamping down like Nazis on good and honest people's account too easily. Just because they are taking a spike in payments or selling information services. It could ruin a business who has done no wrong and paypal are not effected because of their size.
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  • Profile picture of the author hustlinsmoke
    Yes I have had three paypal accounts frozen at times. One was for fiverr sayiing gig was there trademark, which wasnt true, they have a pending trademark and it will never go through you can't trademark a word in the dictionary.
    Two other tiimes I was selling an im product and on launch day had so many sales paypal locked me up. I did notify them. I did get the money but paypal felt my ad was deceptive, I never said get rich quick but I did say make money lightning fast.

    That little paypal button links to your sales page. I did try to alert them before the last freeze and they yaddi yaddi yaddi and still froze it. Each time was about 45 days. No the fiverr thing was 21 days.

    Oh and the fiverr account and the other two were business accounts.
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  • Profile picture of the author Ben Gordon
    Simple. Don't use PayPal. Use another payment processor such as Clickbank or Plimus. You can even consider 2Checkout or other major payment processors that consumers are willing to use.
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  • Profile picture of the author thorster
    Does anyone know what the limit is for PP before they flag you? I'm guessing it's a $x amount before any bells go off.
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