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Will Paypal Freeze My Money?

by Nathan Kruz
23 replies
I have been selling online and I just got an order of $20k. I have heard that Paypal will freeze your account if you receive a large amount of money all at once. Is this true?
If so, what do I need to do in order to prevent this?
#freeze #money #online #paypal
  • Profile picture of the author seekdefo
    If they freeze your account contact them via phone and tell them the reasons for the big amount received. Yes, I have heard stories of PayPal freezing accounts when you get lot of money at once or many big amounts.
    In most cases a phone call will sort everything out.
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  • Profile picture of the author AffordableMarketingLists
    I'll ditto what seekdefo said. I had been with paypal for years and had a steady volume, but then in one week did what I normally did in a month so they put a hold on it and asked for some extra paperwork. It only lasted about a day, then it was business as usual.

    Also, congrats!
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  • Profile picture of the author NK
    What you can and should do is, get on the phone with paypal BEFORE the money comes in. Let them know you're expecting a large sum transaction coming in, then ask if there's anything you have to do to prevent any issues with them.

    I've read stories where peoples account gets frozen for weeks and months. Better be safe then sorry!
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    • Profile picture of the author seekdefo
      Originally Posted by NK View Post

      What you can and should do is, get on the phone with paypal BEFORE the money comes in. Let them know you're expecting a large sum transaction coming in, then ask if there's anything you have to do to prevent any issues with them.

      I've read stories where peoples account gets frozen for weeks and months. Better be safe then sorry!
      Well that's a great idea indeed, never thought of that.
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  • Profile picture of the author cyberzolo
    Probably they will verify your identity then once you provide the info they want, it is back to business.
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  • Profile picture of the author WillR
    It depends on what the normal activity is for your account. If you are only processing a few hundred dollars most weeks then all of a sudden you get $20,000, their systems will notice that irregular activity and most likely flag it for manual followup. When this happens they may place a temporary freeze on your account. This is a good thing because if it were someone running a scam then they put the brakes on it before it gets out of hand. This is just a business trying to protect itself and it's members.

    Just have all the documentation ready so if it does happen you can provide them with all the information they need to put themselves at ease.

    Too much money is a good problem to have.
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  • Profile picture of the author iresh
    If its an old paypal account, you need not to worry. They can hold for a day or two, and then review it and release it. You can avoid it, by asking your client to pay in two shots of $10k each.
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  • Profile picture of the author Samuel Adams
    It's better to let them know what's going on so you keep Paypal in the loop about your dealings before any problem arises. And, if they are over cautious by putting a hold on these funds temporarily, then it could work in your favor as they would also delay any large charge backs that a big paying customer might be thinking of doing. So this works out for you too.
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    • Profile picture of the author WilliamVillagran
      Just call them before you get your 20k and let them know when it's going to happen and you should be ok
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  • Profile picture of the author Shane Hale
    I am running into this. But Paypal doesn't support Intangible goods or services as buyer or seller protection. People like to use this when buy from you as a way to steal from you! As for freezing money you need to tell them that. They should not freeze money if no charge back . Use Intangible goods or services. But if you have this arranged get them to send as gift if they can. Paypal can't freeze a gift.

    As for selling digital product, usually the tie goes to the buyer and thieves will get paid. It sucks..
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  • Profile picture of the author waterotter
    I agree with others who have suggested calling ahead of time and explaining the details.

    Good luck!
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  • Profile picture of the author RickyDee
    They limited my account for having too much money going in there and all you have to do is give then a bit more information about your business etc, From what I gathered it is due to then having to follow certain tax laws etc.
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  • Profile picture of the author HelpingYouBeAnExpert
    They freeze, then ask questions later, ti's the paypal way, get use to it!
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  • Profile picture of the author ListMarketingGenius
    Yeah, I head that the freeze your account if you make too much money at one time. I really hate that about paypal. Hopefully they let you access your funds freely without a hassle.
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  • Profile picture of the author talfighel
    I would get on the phone with PayPal right away. That way, they know that this will happen.
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    • Profile picture of the author WillR
      Originally Posted by talfighel View Post

      I would get on the phone with PayPal right away. That way, they know that this will happen.
      Warning them will do nothing. The reason being that a scammer could ring them up and warn them just as easily as you can... and they know that. So it means nothing to them. Plenty of people have done the warning phone call but their accounts still get frozen when the money comes in.

      As mentioned above, just be ready for if your account does get frozen and have all the information you need on hand.

      That's the best you can do.
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      • Profile picture of the author NK
        Originally Posted by WillR View Post

        Warning them will do nothing. The reason being that a scammer could ring them up and warn them just as easily as you can... and they know that. So it means nothing to them. Plenty of people have done the warning phone call but their accounts still get frozen when the money comes in.

        As mentioned above, just be ready for if your account does get frozen and have all the information you need on hand.

        That's the best you can do.
        Still doesn't hurt to call them up, let them know, and ask questions to prepare the documents you need. I don't have any experience with this so I wouldn't really know, but they just might have you submit the necessary docs to prevent the freeze in the first place, or at least make it easier for you to handle it afterwards.

        With such a huge transaction coming in I would definitely like to be well prepared and do what I can to make sure I get the money in the end!
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  • Profile picture of the author ColT83
    Call them before the money is frozen.

    I had a few hundred gong through my account until I started a mobile ad network and suddenly over 30K was running through the account in as little as 40 days. The account was frozen pending a further review. Once I called them and filled in my business details with them, as at that point I was not a limited company and simply a sole trader however it was all sorted within a few days.

    If its legit business and its what they deem a safe business model then you will most likely be welcomed with open arms as my account now has its own dedicated Paypal rep who I can call regarding disputes and chargebacks.

    So if its legit my advice is to call them.
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  • Profile picture of the author Dann Vicker
    Best would be to avoid using paypal for this transaction. Ask for escrow or wire.
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  • Profile picture of the author osamaye360
    Contact Paypal by calling them on the phone. Tell them about the order and ask them what you should do to prevent account freezing. Am sure they will kind enough to explain things to you.

    Alternatively, receive your payment through another medium like wire transfer. Its safer i think.


    Cheers
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  • Profile picture of the author Shubh Ashish
    I would suggest you to first call Paypal and inform them that you are going to receive this much money and then the transaction will move smooth.
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  • Profile picture of the author Sojourn
    I'm with the call them group.

    I always call PayPal in advance if I'm going to do something different than I've done before.

    The last time I called them (June) their customer service rep showed me how to reduce fees on my account, suggested a way I could do what I was trying to set up using a different tool that helped my end customer and spent time showing me how to use a new tool that would benefit my business. He was amazing.

    Might they freeze it anyway? Maybe, I don't know. What I do know is that one phone call saved me money and gave me some new ideas. It was well worth my time.
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  • Profile picture of the author No BS
    Like mentioned above many times, contact paypal beforehand to let them know, and they will note your account. It will probably help speed the process for unusual activity to resolved.


    Also, I would be weary of what service you provide and them having the buyers advantage paypal usually gives on disagreements.
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