How not to get your Paypal account limited/frozen

by 36 comments
Hi. So I'm working on my first WSO which should be ready in the course of next week. I wanted to ask for advise on what to do to avoid getting my Paypal account limited. I know that a sudden influx of money, amongst other factors, that could arise from a product launch (for example) could trigger this.
I would like to know how other WSO sellers that have done thousands of dollars in sales through their Paypal accounts have gone about it. Is it that you notify Paypal in advance or what exactly do you guys do? Thanks in advance for your answers.
#internet marketing #account #freeze #limited or frozen #paypal
  • Profile picture of the author Mark Gray
    That'd a tough one however I have heard that one thing to do is call them and let them know there may be an influx of cash, however I have also read that I.M, money making schemes etc are all against their Terms.

    Hopefully someone with actual experience will answer your question.

    Mark
  • Profile picture of the author FirstSocialApps
    I have used Paypal for around 6 years now and have transferred well over $200,000 through it. One thing to be sure of is that your phone number and other contact info is correct. Paypal will call you before taking any action on your account.
    • Profile picture of the author footbag_man
      Contact paypal..

      When I was making a good bit of money they put a block on my account until I sent in my drivers liesense, passport and a bank statement.

      You don't wamt to have to do this so make it very clear to them that you will be making money and you will give them anything they need before the launch so that your account does not get blocked.

      Fergal
    • Profile picture of the author Deji
      Originally Posted by FirstSocialApps View Post

      I have used Paypal for around 6 years now and have transferred well over $200,000 through it. One thing to be sure of is that your phone number and other contact info is correct. Paypal will call you before taking any action on your account.
      Thanks for your responses guys. Never heard of Paypal calling you before taking an action on your account. However, all my contact info with them is correct.

      @ MyNiches and bsbear: I have a business account with them already.
      @ WillR: I am an Ebay seller so I do receive money into my paypal account from time to time with a 100% positive feedback and no chargebacks. All refunds were initiated by me and not the customer and it is a very low rate.
      @Vadimarket I never withdraw all the funds in my paypal account. There is always a good amount of money in there. May be one of the reasons why none of my 2 paypal accounts has ever been frozen
  • Profile picture of the author MyNiches
    Consider setting up a business/merchant account rather than a personal account. It's a lot less flag-raising, in my opinion at least (Which doesn't matter, of course, since it's PayPal's opinion that matters here.. but just sayin! ) to see an influx of cash into a business account than into a personal account.
  • Profile picture of the author bsbear
    Just upgrade to premier/business account. I'm guessing 99% of people banned were using personal accounts against their TOS.
    • Profile picture of the author John Atkins
      Originally Posted by bsbear View Post

      Just upgrade to premier/business account. I'm guessing 99% of people banned were using personal accounts against their TOS.
      That's what I was going to say. I really don't see why paypal would
      freeze a business account because of profits. The more money you
      make the better. They charge fees after all...
  • Profile picture of the author WillR
    Contrary to what anyone else tells you, there is not much you can do to stop your Paypal account from being limited or frozen. If your account has suspicious activity then they will take action on that regardless of whether you have called them beforehand or not. Warning them beforehand will stop nothing because even someone who WAS going to run a scam through Paypal could call and warn them just as easily... so it means nothing to them.

    Step back and take a look at things from their point of view. If your account has had very little money go through it and all of a sudden one day it starts taking a whole heap of payments, that is abnormal activity and it will likely raise the alarm at Paypal. When that happens they are going to do a manual review of your account and it is at this time that they will decide whether or not your product adheres to their terms of use and/or whether they feel it is a risk to their platform.

    At this point they are quite likely to call you and want to ask you a bunch of questions. Others have said if you miss this call it's all over. That is also false because I missed two of their calls and eventually they got hold of me and we talked for a while and everything was fine.

    Don't listen to half the crap you hear about Paypal on this forum. Just understand they are a real business just like you and they will do everything they can to protect their network from scammers. If your business activity shares similar patterns to those of scammers (such as a large influx of funds in a short period of time) it's only logical they are going to review that and take a closer look at things. So long as you are adhering to their terms of service and your product is not full of false promises and hype, you should be ok.
    • Profile picture of the author Bruce NewMedia
      Originally Posted by WillR View Post

      Contrary to what anyone else tells you, there is not much you can do to stop your Paypal account from being limited or frozen. If your account has suspicious activity then they will take action on that regardless of whether you have called them beforehand or not. Warning them beforehand will stop nothing because even someone who WAS going to run a scam through Paypal could call and warn them just as easily... so it means nothing to them.
      This is the most accurate advice I've read on this thread. Most of the information about PP is too contradictory or unproven to be useful. Not comforting to read, I know.
      _____
      Bruce
  • Profile picture of the author Baadier Sydow
    Agreeing with Will. Just adding that setting your account to a business account will help too.
  • Profile picture of the author Vadimarket
    Whenever you get funds coming ti your PP account, try to transfer it to your bank account ASAP. Not sure, if that's gonna prevent your account from freezing or a limit, but that will decrease the amount they'll hold in case something like that will happen to you. I'd say, keep around 200-300$ in your PP, the rest just transfer.
    • Profile picture of the author marcuslim
      Originally Posted by Vadimarket View Post

      Whenever you get funds coming ti your PP account, try to transfer it to your bank account ASAP. Not sure, if that's gonna prevent your account from freezing or a limit, but that will decrease the amount they'll hold in case something like that will happen to you. I'd say, keep around 200-300$ in your PP, the rest just transfer.
      This may not be the wisest thing to do. Think about it. What looks more like a risk in Paypal's eyes? Someone pulling out money as fast as it come in, or someone who keeps 80% of their balance in their Paypal account at all times?
    • Profile picture of the author darkblue
      Originally Posted by Vadimarket View Post

      Whenever you get funds coming ti your PP account, try to transfer it to your bank account ASAP. Not sure, if that's gonna prevent your account from freezing or a limit, but that will decrease the amount they'll hold in case something like that will happen to you. I'd say, keep around 200-300$ in your PP, the rest just transfer.
      That might not be the best advice on this thread

      Starting to withdraw your money right after they reached your account raises a flag in Paypal's eyes.

      This has been one of the reasons Paypal froze accounts. if you withdraw most of the money, and then you start getting refund requests, you won;t be able to address those requests. And Paypal would have to pay for those refunds in your place. And I am sure they don't like that, as neither would you.
  • Profile picture of the author Vadimarket
    marcuslim

    Well, they can't ban/froze/limit your account just because you keep transferring your money to your bank account. I keep doing that on a regular basis, and I'm still alive. Who knows what the circumstances might be for you tot do that, besides, you still keep some cash within your PP account, so it's not completely empty.

    My point is that 95% of PayPal users get screwed at some point or another, especially the ones that deal with eBay. And there are tons of rants about people's accounts being frozen with over 20k there. So that's just to avoid that.

    Like many people, my PP was limited too for over 6 months, but luckily, since i was transferring money on a weekly basis, I only had 60$ frozen.
  • Profile picture of the author rinzo
    Paypal is not 100% safe place to safe our money. I think it's time for us to use better alternative to paypal and start to get used to it..
  • Profile picture of the author goldclubmember
    What are the reasons why PayPal will limit an account?

    1 – There are large amounts of cash coming in and out on a new account. PayPal does not like new accounts that suddenly have a flurry of interest. No one knows the actual amount that PayPal has set to limit an account but some accounts have been limited for just a couple of hundred dollars.

    2 – The account has been linked to another account that has been flagged for suspicious activity. This could be something simple as the same IP address or the same email address was used. If you have also been flagged on E-bay for suspicious activity, then PayPal will get notification straight away as E-bay and PayPal are the same company.

    3 – If you are an American citizen and fail to provide your SS number. PayPal has new regulations and rules to abide by and this includes passing on all details of people with SS numbers. If your PayPal account is registered in the US or you log on using a United States IP address, then you will definitely have to provide your SS number if you do not want limitations placed on your account.

    4 – You have violated the terms of use such as selling porn or taking payments for gambling. Scamming people, selling porn or dealing with gambling sites is a big no in the eyes of PayPal and if you insist on completing these activities then you will definitely have to use elsewhere as the limitation will never be lifted.

    5 – There is a sudden change in activity. Imagine you have started selling a new product and the cash is rolling in. Previously however that account was dormant for many months. Maybe you have also moved country in that time and forgot to update your account or notify PayPal. You would be amazed at the amount of criteria that PayPal uses to try and prevent fraud or theft.

    So with all the above rules, you could quite easily assume that PayPal is turning into Big Brother and all internet marketers should ditch them and take their services elsewhere. However PayPal happens to be the best at what they do.Customers also love to use PayPal as they do not have to provide their credit card details which can put a lot of people off when it comes to internet shopping

    Your PayPal Account Now Has Limitations – What Should You Do?

    The easiest way to get limitations lifted is by giving PayPal what they want. Sometimes this is something simple as providing your SS number or linking a credit or debit card up to the account.

    Most people panic though and immediately look for the new account registration. This is the worst thing you can do as PayPal is tracking your IP address, and will limit any account that share the same name, email address or cookies.

    Ideally you want to give PayPal every opportunity not to limit your account and the following are ways to do this.

    The Limitation Prevention plan

    1: Before you launch a product, place a telephone call to PayPal and ask them to make a note on your account file that there will be unusual activity.

    2: Before you launch your product, make sure that you have read the Acceptable Use Policy provided by PayPal and that you adhere to it. If you are in any doubt, send an email to PayPal asking for clarification.

    3: Never use your PayPal account on a public computer. If PayPal has previously linked that IP address to an online scammer then your account will be linked with them.

    4: If you are traveling, do not access your PayPal account from another country. If there is the need to do this, then use https://secure.logmein.com/ which gives you protected remote access.

    5: Do not open a brand new account and then start transferring thousands of dollars. This is the quickest way to get red flagged by PayPal. As a personal rule, if I have a new PayPal account, I never withdraw more than 300 dollars within the period of a month. I will also make sure that any money coming into the account is not greater than 500 dollars.
  • Profile picture of the author Deji
    @bsbear I have both a Premier and a Business account
    @ Tim Gray I don't use a Personal account or even have one
    @ goldclubmember Thanks for the information
    @ John Broberg Why was it frozen and what did you do to get it unfrozen? What strategy do you have in place should your account be frozen next time? Thanks
    @ andy Bishop That's a really good way to get your account frozen to the power infinity
  • Profile picture of the author celente
    paypal are not dumb, just have to work with them. I had a big launch back a while ago, and rang them to tell them.... that is what they like too. I have had funds frozen before, but make sure you dont ring up and get angry, stomp on ground and swear at them. Just work with them, and be curtious and it will go along way and get account unlocked quicker!. That worked for me, and they are open and very helpful in my experience.
  • Profile picture of the author contentwriting360
    I know many have said this already but I just want to add this up still as a proof that you're in good hands if you have a business-verified PayPal account. We've been operating since 2005 and we've never gotten our account limited.
  • Profile picture of the author Robert Brauer
    Here's the 2 things you need to do (I've processed a good deal of money with Paypal, and haven't had a problem yet...knock on wood!)

    • Profile picture of the author marco005
      Hi,

      I read many things on paypal and ebay with paypal, but I be confused and need tips and advice from you warriors.

      On ebay sellers, paypal freeze the money for 7/21 days you must send the shipping tracking number,than paypal makes payout to you bank account-so dropship busines ist not work with thison ebay, you need capital tio buy items on stock.


      But what is with the Internet Marketers who offers online services like webdesin, copywritng and so on.... does here paypal freeze the money for 21 days too?
      Online services not have a shipping tracking number - what happened there?

      Or should I better use scrill (moneybookers) as a better alternative to paypal?

      Please need tips and advice-thanks to you warriors!


      best wishes
      marco005
  • Profile picture of the author Backlinko
    I hope your WSO sells well enough where this is an issue.

    But seriously, what Robert said is right. Being a legit business with a verified account definitely helps.
  • Profile picture of the author ronrule
    Preemptive action never hurts. Your account won't be limited for "making money" - it will be limited for complaints, chargebacks, and disputes.

    When I released my first WSO a couple of "affiliates" signed up and referred a few accounts and I ended up getting 3 chargebacks on the same day. PayPal hadn't taken any action (it's a business account that I've had since at least 2003, maybe earlier I can't remember) - but just to be safe, I went ahead and contacted PayPal and explained that my control over what affiliates did was limited and asked if there was anything we could work together on to identify and prevent. I gave them the IP addresses and all info I had on the affiliates (all were from China). They were helpful and told me about a feature to block payments from specific countries.

    Also, check out this thread - you can block receiving payments by country.
    http://www.warriorforum.com/main-int...es-paypal.html
  • Profile picture of the author George Wright
    I have a somewhat related tip.

    When they limit your account and ask for copies of your ID, SS # and whatever, instead of mailing or faxing them, use your phone or other digital camera to take pictures of everything and load the pictures onto your pc. After that sign into PayPal go to the resolve panel and upload the docks. Then call PayPal and tell the Rep you uploaded the requested items. In my experience the Rep will take a few minutes to review your docs and unlimit your account while you are still on the phone.

    I've walked several people through this process with desired results in every case.

    George Wright
  • Profile picture of the author kary yucef
    give them your real informations, and if you have a problem after just call them
  • Profile picture of the author stefanvanray
    Hey Deji,
    I will tell you that while suspicious activity can place temporary holds on any account, Paypal, bank accounts, etc., there are steps you can take to make things easier. I'm not sure if you've already done so, but you can go under the account settings of your Paypal and go into the area that says view limits and you can see if you've verified your account. You want to apply for a premier account, and a Paypal Mastercard debit card, you will also want to link your Paypal to your primary checking account. If you do these things, go through the verification process, they will ask you to verify all your info--including your photo ID. Once you've gone through the verification process you will receive your Paypal Mastercard debit card in the mail within 7 business days, and this will allow you to transfer your funds directly from your Paypal to your bank account without having to wait the usually 3-4 days. That and the debit card is accepted anywhere they accept Mastercard and any ATM. In other words, its an epic win. I have never had a problem with Paypal holding any of my money, but I have had friends that have had that problem. Communication is everything, usually if they temporarily place a hold on any funds for reasons of verification, you just call or go online and walkthrough the steps to verify and they will lift the hold within 24 hours. However, I would highly recommend going through the verification process ahead of time, linking your Paypal to your bank account, applying for the premier account, and Mastercard debit card. It will save you a lot of time and irritation.
    Best of luck my friend,
    -Stefan
  • Profile picture of the author Master Dayton
    I would agree with what George Wright said a little bit further up: the first time I had an account freeze it was a disaster that took nearly two months to sort out and I had to threaten to go to the FTC before it was unlocked (this was back in early 2007 - when you really couldn't 'just call them up'). The second time around (2012) I took the steps he explains, and found the same thing. It was back working in less than 24 hours.

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