Avoiding Paypal freeze?

by Aurora9 15 replies
Hi,

I've read a few horror stories about how paypal freezes your account if you have money coming in all of a sudden.

I just wanted to ask how that gets triggered in the first place? Does it depend on how new your paypal account is or is it about the amounts that get deposited?

How do you avoid it?

I imagine that if you start selling any product and it sells well--you are going to suddenly have a lot of money pouring in. Don't know much about this whole thing other than the concept so would be really grateful for some clarity on it all.

Thank you!
Lakshmi
#main internet marketing discussion forum #avoiding #freeze #paypal
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  • Profile picture of the author Amino Zawawi
    I've had money coming in (around $2500) suddenly when I cashed in my first freelancing project, didn't come across such a phenomenon though. I found this humorous forum post on why paypal could possibly freeze your account:

    What causes PayPal to freeze an acount? Here's the list. - PayPalSucks.ORG Forums
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  • Profile picture of the author SpicyRobby
    Originally Posted by Aurora9 View Post

    Hi,

    I've read a few horror stories about how paypal freezes your account if you have money coming in all of a sudden.

    I just wanted to ask how that gets triggered in the first place? Does it depend on how new your paypal account is or is it about the amounts that get deposited?

    How do you avoid it?

    I imagine that if you start selling any product and it sells well--you are going to suddenly have a lot of money pouring in. Don't know much about this whole thing other than the concept so would be really grateful for some clarity on it all.

    Thank you!
    Lakshmi

    Hi Lakshmi,

    When I launched my product this year February, I had a sudden surge in sales numbers. But PayPal didn't freeze the account - I just had to confirm my identity by sending a utility bill to them and everything got resolved. I guess it happened when the money coming in reached some 1000 euro or something like that.

    Rgds,

    Robert
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    • Profile picture of the author Imran Naseem
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      • Profile picture of the author Shannon Tani
        I've heard that you should call to give them a warning, but when I did that, the lady I spoke to sounded like she thought I was crazy. She had no idea why I would call her or why Paypal would freeze someone's account simply for having a lot of money.

        Love,
        Shannon
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      • Profile picture of the author JasonParker
        Originally Posted by Imran Naseem View Post

        Paypal has improved its customer service and they sometimes freeze your account if they feel something is "fishy" - if you are going to launch a product use Clickbanks merchant tool.
        I've found they've dramatically improved their customer service within the last 3 years.

        In 2005 I had a big problem with my account and couldn't even get a hold of a rep. That's how bad it was.
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    • Profile picture of the author Suthan M
      Paypal freeze your account if they think your account has "fishy transactions" going on.

      This can be anything, so just be ready for the freeze when it happens.

      Particularly, i have been on the receiving end of this freeze quite a numerous amount of time, until i becomes unfazed of it happening.

      I wrote a Paypal Freeze Case Study long time ago about my Double Trouble Limitation that happen in a manner of one Week, and i have it for free read at my blog here. Took me a long time to find the link as it has been some time since i release it, but i bet it will be of help for many people who needs to know to workaround their limitation.
      Solve Paypal Limited Access | Suthan M

      Hope it helps
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  • Profile picture of the author AverageGuy
    contact paypal (phone or email) before you will travel or get more $ coming in, tell them not freeze the account during the period of time. it will be fine.

    I was travelling around the world in the passing month, never had problem with paypal. but, I had to call citibank to authorize some transactions for its credit card.


    david
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    • Profile picture of the author Amino Zawawi
      Originally Posted by AverageGuy View Post

      contact paypal (phone or email) before you will travel or get more $ coming in, tell them not freeze the account during the period of time. it will be fine.

      I was travelling around the world in the passing month, never had problem with paypal. but, I had to call citibank to authorize some transactions for its credit card.


      david
      David's right, that should keep you on the safe side. Don't be afraid to express your concerns to the rep, it's your right as a customer.
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  • Profile picture of the author Robert Plank
    Originally Posted by Aurora9 View Post

    I've read a few horror stories about how paypal freezes your account if you have money coming in all of a sudden.
    They will freeze your account if you have big money, like $50K in a week coming in, or if you withdraw $10K at a time.

    If you're about to launch a WSO that will only make you 200 bucks, don't worry about it.
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    • Profile picture of the author Suthan M
      Originally Posted by Robert Plank View Post

      They will freeze your account if you have big money, like $50K in a week coming in, or if you withdraw $10K at a time.

      If you're about to launch a WSO that will only make you 200 bucks, don't worry about it.
      Robert, thats not exactly true. I once had my account limited when 300 sales come in from a particular low price WSO that made me around 300 or so.

      Its the quantity of payments that comes from different users,and not the amount that matters.
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      • Profile picture of the author Aurora9
        Hi,

        I just wanted to thank everyone who responded--Thanks a lot!

        So I should just write to them beforehand and let them know right?

        Will get in touch with them and post the results here.

        Thanks again!
        Lakshmi
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      • Profile picture of the author Simon_Sezs
        Originally Posted by asianlunatic View Post

        Robert, thats not exactly true. I once had my account limited when 300 sales come in from a particular low price WSO that made me around 300 or so.

        Its the quantity of payments that comes from different users,and not the amount that matters.
        It actually also really depends on where you live. If you live outside the US or live in a country that has a high incidence of fraud, you can expect Paypal to take a closer look at it.

        As for Paypal freezing US accounts, it is unlikely that they will freeze for anything below 10k. Once the 10k mark is reached, it becomes more of an issue.

        You can actually contact the customer support and let them know what is going on. Have it documented so you can have a point of reference for them to see.
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