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Paypal money received Cap Limit

by mun
8 replies
I was just wondering, paypal places a cap on the amount of money the account can receive, after a certain amont we are required to prove the means by which we are making the money. I had to do it for the company i work for.

Should I start making money on the Internet for myself, would it be necessary for me to be established as a business I.E get a VAT number and open up a business account with paypal as well as my local bank?

It's been bugging me for a while so I thought someone here may have some knowledge in this field.

Thanks in advance.
#cap #limit #money #paypal #received
  • Profile picture of the author BIG Mike
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    • Profile picture of the author AndrewCavanagh
      I'm in Australia so the details may be different but in my conversations with Paypal employees the thing they were most interested in was that I had verified my physical address (if you haven't done it the paypal verification process is fairly simple although it may take a week or two to complete.)

      I haven't made a million dollars in sales in a month though so I'm not sure what happens when you get to that level.

      I do know it's wise to contact paypal in advance before a product launch so they know to expect an unusual volume of sales on launch day.

      Kindest regards,
      Andrew Cavanagh
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    • Profile picture of the author mun
      I see, i'll have to find out how to officially be recognised as a 1 man business lol. Although I may some issues coming up with figures like annual profit etc. etc. etc. I suppose i'll figure that out as I go along.
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      • Profile picture of the author Bev Clement
        Being in Britain, PayPal follows European law for our accounts.

        Once you have earned £4,000 they will expect you to verify. You might be asked to upgrade to a business account, but normally a Premier will do.

        If you are a sole trader, you don't have to register with VAT until your sales hit the level for registration, so you would say you are a sole trader, the name of your company is your own name.

        Legally as a sole trader in the UK you don't need to have a seperate bank account, you do have to register for tax purposes, but if your income is low you will show your accounts on your tax return.

        Paypal will ask for certain documents, like a drivers licence or passport to verify who you are, it has to be a photo licence, your bank statement and another invoice for your utility bills. I sent them 2 different bank statements and that worked.

        The limitation is lifted normally immediately but can take 24 - 48 hours.

        HTH

        Bev
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        • Profile picture of the author cypherslock
          Once you've got a business (premiere) account the limit for a one off payment is $10,000 but there is no limit to how much you can get paid.
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          • Profile picture of the author Bev Clement
            Yes there is a limit of £4,000 in the UK because of European Law. The OP is in the UK so European law will affect them
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            • Profile picture of the author Richard Tunnah
              On my main business paypal account I just called paypal up and asked to speak to a supervisor and checked I'd done everything they wanted. In my experience it's a good idea to call them that way you can double check any issues that may arise and also let them know what you are doing so hopefully they know you're a legitimate business owner.



              Rich
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            • Profile picture of the author Simon_Sezs
              Hi mun,

              Big Mike is right. It is really as easy as verifying who you are. I had paypal limit my account a while back when I had a $10,000 influx. All I had to do was a phone verification from the home phone of the address I listed (cell phones don't work).
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              • Profile picture of the author KarlWarren
                There are two issues here...

                1) Vat registration - probably not necessary, until you reach the statutory minimum.

                2) PayPal cap - due to EU money laundering regulations, PayPal are required by law to ask for certain information once you reach a certain value of transactions. They're just covering their backs because if they are seen to be aiding a money launderer, they could be fined, staff members imprisoned etc. It's worth looking up Money Laundering Regulations if you get the chance - a real eye opener.
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