Beware of PayPal Limiting Access To Your Account

50 replies
Hi Warriors,

I don't know if this has happened to any other members, but I received an email from PayPal a couple of days ago saying my account was limited due to government anti money laundering laws.

This meant I can't withdraw any money or connect anything like eBay to my account.

I went to the resolution center and had 3 things to fix.

1/. Questions about whether I hold a political office - WTF?
2/. Business information was required - clicked on the link and nothing happened - makes it hard to reply
3/. They want business registration documents which I have sent

Then rang them to complain about having this done to me with no notice and all I got was "that's PayPal's policy" - typical!

Does anyone know of any other payment processors as this little black duck is p*#@ed off and going elsewhere.

Also, a word of warning, don't set up a business account with PayPal as this seems to be the trigger for all of this happening.
#access #account #beware #limiting #paypal
  • Profile picture of the author bgmacaw
    Originally Posted by Steve Baker View Post

    my account was limited due to government anti money laundering laws
    And following the law is PayPal's problem how?
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  • Profile picture of the author Kieron
    You are correct and be very clear on this as your a slippery slope. Paypal has broke more companies than you could every imagine. They will restrict access as and where they like and it can take up to six months to get the issues resolved. Do not ever link your paypal account to your bank account, Do not every leave big money sitting on your paypal account, clear it as soon as it is clear. You really are putting your business however big or small in their hands. Kieron
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    • Profile picture of the author Dan C. Rinnert
      Originally Posted by Kieron View Post

      Do not every leave big money sitting on your paypal account, clear it as soon as it is clear.
      Yeah, I can't imagine that withdrawing large amounts of money from your account the moment it clears would raise any red flags... :rolleyes:
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  • Profile picture of the author Schoolboy
    Ive never heard of that happening with paypal before.
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    • Profile picture of the author David Jackson
      Originally Posted by Schoolboy View Post

      Ive never heard of that happening with paypal before.
      Then you've been living in a cave. PayPal is notorious for this type of practice. They have more pending lawsuits than you can count. Unfortunately, they've been doing this type of thing for years, and getting away with it for the most part. I'll never do business with them again.

      David Jackson
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    • Profile picture of the author Emailrevealer
      Originally Posted by Schoolboy View Post

      Ive never heard of that happening with paypal before.
      LOL Google paypal account limited.
      paypal is a joke. Get a real merchant payment system if you want to accept credit cards.
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  • Profile picture of the author MrSaws
    Originally Posted by Ken_Caudill View Post

    Are you sure you were at Paypal? There are a tone of phishing schemes out there.
    Can't agree more. Just make sure you are dealing with Paypal.
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  • Steve,

    Where in your account did you have to answer those questions?

    Did you have a sudden upturn in business activity on your account?

    Just very strange, I am sorry to hear this happening.

    Jack
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    • Profile picture of the author Steve Baker
      Originally Posted by Jack Blankenship,RN View Post

      Steve,

      Where in your account did you have to answer those questions?

      Did you have a sudden upturn in business activity on your account?

      Just very strange, I am sorry to hear this happening.

      Jack
      Thanks for your reply Jack,

      It was in the "resolution centre". No change in activity, apparently I was randomly selected to be checked.

      I have no problem providing the info, my beef with them is I had no warning they wanted this. They decided they wanted this info and limited my account instantly until I provided it and it was verified (3 - 5 days).

      All of this was confirmed by a PayPal supervisor that I rang.

      Steve
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  • Profile picture of the author MassiveMarketer
    Try calling paypal again and confirm the email you have received about the issue. Just verify with them first and let them know what activities you made on your account. If you find these suspicious and you think you didn't do anything to cause this email, better talk to customer support and sort things out.
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    • I looked in my PP and I can't seem to find where these questions would be asked.......

      Does anyone know where they would ask you about anything political?

      This is strange....
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    • Profile picture of the author Steve Baker
      I found this when I logged into PayPal, then found an email about it. Naturally if I got an email, I would be suspicious, but this is real.

      Even when I rang them and asked why they didn't give warning that they wanted info, they just apologised, but "you'll have to wait to clear your account"

      From what the supervisor told me, they do random checks on accounts and I was the "lucky one".

      And to add insult to injury, there is NOWHERE to put your info in until they decide to limit your account - great customer service.

      Bear in mind folks, I have a business account, so it may be only business accounts - I just don't know.

      Steve
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  • Profile picture of the author Kieron
    Originally Posted by Ken_Caudill View Post

    Are you sure you were at Paypal? There are a tone of phishing schemes out there.
    Hey Ken love the morons article on your site just what i needed this early in the morning before going bed...lol very funny article
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  • Profile picture of the author BobRenwick
    I get these emails all the time about Paypal limiting access to my account. I never click on the links in those emails because they are usually phishing schemes. As soon as you log in to your Paypal account through these links (you are not really at the Paypal site) they will gain access to whatever information you give them including your username and password. What you should do is login to your account from your browser, as usual, and confirm that the issues are real. Never ever try to connect from a link contained in an email.
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  • Profile picture of the author ChrisBa
    I am very curious on this as well? I didn't get anything on it
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  • Profile picture of the author tecHead
    In an effort to thwart phishing attempts via PayPal and eBay; gMail now authenticates eBay and PayPal eMails with an icon from their internal servers that can not be spoofed.

    PayPal wouldn't have any reason to ask you if you were involved in politics, or not.

    Also, they'd give you much more information IF they were actually enforcing your country's laws; esp. since they're an American based company and you're in Aussie.

    HTH
    PLP,
    tecHead
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    • Profile picture of the author seasoned
      Originally Posted by tecHead View Post

      In an effort to thwart phishing attempts via PayPal and eBay; gMail now authenticates eBay and PayPal eMails with an icon from their internal servers that can not be spoofed.

      PayPal wouldn't have any reason to ask you if you were involved in politics, or not.

      Also, they'd give you much more information IF they were actually enforcing your country's laws; esp. since they're an American based company and you're in Aussie.

      HTH
      PLP,
      tecHead
      WHAT difference does it make WHERE the customer is? Money laundering refers the cleaning the HISTORY of the money's transactions. One POPULAR way to do that is to send it to ANOTHER COUNTRY!

      Steve
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  • Profile picture of the author MervikHaums
    @tecHead, @Ken_Caudill - you are right guys.

    Make sure that you have your funds safe in your account.
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  • Profile picture of the author Orator
    I like to think of it as this. Paypal is a force of nature, and there are certain requirements to dealing with forces of nature.

    -Never get angry at them.
    -Accept the rules for them are more or less going to be a pain.
    -Plan Accordingly.

    Annoying as it is, paypal is a major source of potential revenue and shouldn't be cast away easily.
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  • Profile picture of the author Quentin
    Once again a person complaining about Paypal and no other response.

    Allways throws up warning signs about the person making the complaint.

    Anyway just go get a full blown merchant facility instead of using a third party one.

    Quentin
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  • Profile picture of the author nolimitman
    I also had problems with my account. They seemed to be insisting I link a bank account to the credit card which I did not want to do. At first it looked like it was a requirement of the merchant but somehow it cleared itself and a few days later it allowed me to make the same payment it previously disallowed, so it was not the merchant but Paypal which was weird because I still had $8800 available to spend at that time. I dont get it but I would also like to find an alternative. I think at some stage they are going to insist on the bank account link which I am not comfortable with. Thanks for letting me know that the business account is definitely not the route to go.
    Steve
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    • Profile picture of the author sylviad
      Originally Posted by stephensmith@monaco.mc View Post

      I also had problems with my account. They seemed to be insisting I link a bank account to the credit card which I did not want to do. At first it looked like it was a requirement of the merchant but somehow it cleared itself and a few days later it allowed me to make the same payment it previously disallowed, so it was not the merchant but Paypal which was weird because I still had $8800 available to spend at that time. I dont get it but I would also like to find an alternative. I think at some stage they are going to insist on the bank account link which I am not comfortable with. Thanks for letting me know that the business account is definitely not the route to go.
      Steve
      I don't think it's a "bank account" specifically that they want. It's a second form of payment - in case your CC doesn't work - or you don't have PP funds to cover. (I haven't looked so I could be wrong about this.)

      I would have added a 2nd CC to my PP account, but didn't have one, so I opened a separate bank account and put in $50. I use it strictly for PP. That way, I won't have to worry about unfair or unauthorized access of that bank account. All anyone can ever get is $50.

      I transfer my PP funds into that account, and then immediately move it from there into a separate bank account.

      As far as PayPal emails, I NEVER click links in PP emails, even when I'm pretty sure they are legit. If you run your mouse over the links in fake emails, you'll see a weird domain name that might or might not include the name paypal, but it's pretty obvious they are phishing links. I ALWAYS go straight to my browser and open PayPal from there, rather than clicking any links in emails.

      I recently received a phishing email supposedly from my bank. I came this close to clicking the link because I'd never received such an email from my Canadian bank before - although I have for Citibank - but I don't have an account at that bank, so it was obviously a scam. But they almost got me with my own bank. ( Not relevant to PayPal, I know. Just thought I'd throw that in. )

      Sylvia
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  • Profile picture of the author activetrader
    PayPal does their random checks all the time. Just be prepared for it because for a few days your account or funds from a specific transaction may be frozen. No big deal really. A lot of people panic but there isn't much to worry about. Keep two or three different accounts in case you need to set up a payment platform for a new product.
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  • Profile picture of the author abhayam
    It is better to withdraw funds from paypal as soon as they cross some predefined limits. It is also good idea to maintain more than one account in case one account gets blocked, another can take care of the business.

    Thanks for all the information provided by fellow WF members.
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  • Profile picture of the author Steve Baker
    Thanks for your input everyone.
    It's all sorted now, but I definitely will have more than 1 account from now on.

    Steve
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  • I had a MasterCard that was linked with my account and someone hacked MasterCard and kept withdrawing money from my account under the guise of a Middle-Eastern phone charge card company.

    I called PayPal and told the rep that I was not in the military (not for a long time) and do not speak Farsi, and do not live in the Middle East, so HOW could I be buying cards THERE and why would I do it?

    He was pleasant enough, but they would not block this company from making withdrawals until I had about 5 charges on the account. Now, bear in mind, this was not done as a direct PP charge, but rather done via the MasterCard.

    Anyway, at some point they FINALLY blocked this company from charging my account and I got rid of the MasterCard option(it was nice to have up to that point). NO problems since then. I DID get all of my money back, so I was happy about that.

    Sorry to hear about your problems with them, Steve. I just saw your post that everything is ok now. I am very happy that it has been resolved.

    Keeping fingers crossed


    Jack
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  • Profile picture of the author sousen
    Yes, it happend there are many reason Paypal limited account if you got atlest 8-10 payment within 24-48 hours they can limited yoru account if you are getting regular dispute open by yur buyer then you can also. If you access your account diferent country IP they can. Better you must read PP TOS Carefully to prevent it
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  • Profile picture of the author NewbiesDiary
    Originally Posted by Ken_Caudill View Post

    Are you sure you were at Paypal? There is a ton of phishing schemes out there.
    Most def was Paypal - I had the same thing happen to me. All you need to do is prove who you are and there's no problem.

    I had a business name registered, was able to prove that plus my address etc etc and I got my accounts back within a few hours.

    Really there's no problem
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  • Profile picture of the author Dalun
    One thing i really hate about paypal is that it has a monopoly on online payment system and processing. If things go bad with paypal, i wouldnt have many choices to choose from for an online payment processor. Most of my clients deal only through paypal.

    I also had my paypal limited for a day. I logged onto my account and was told that i couldnt process transactions, send or withdraw money. The problem was that paypal detected my account being accessed from a different place other than my home computer. What they were detecting was me accessing my paypal account on my droid phone using the offical paypal app.

    I was pissed off at the fact the my account was limited for accessing it from someplace other than my home computer and for using the offical paypal app to check my funds. kinda pointless to use a mobile phone app if your account gets restricted for using their app.
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    • Profile picture of the author Black Hat Cat
      Banned
      Originally Posted by Dalun View Post

      One thing i really hate about paypal is that it has a monopoly on online payment system and processing.
      On what planet?
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  • Profile picture of the author matty-81
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  • Profile picture of the author iamhelping
    Howdy Jerry Mullins here

    I just want to thank all of you all, for the knowledge i learned from the
    posts yal made about paypal.

    I've been using paypal for years and have never had a problem,and i felt
    it was okay to just leave monies lying around in my paypal account.

    But again thanks to you guys and gals i want do that any more.
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    • Profile picture of the author goodguy333
      Originally Posted by iamhelping View Post

      Howdy Jerry Mullins here

      I just want to thank all of you all, for the knowledge i learned from the
      posts yal made about paypal.

      I've been using paypal for years and have never had a problem,and i felt
      it was okay to just leave monies lying around in my paypal account.

      But again thanks to you guys and gals i want do that any more.
      On what planet?
      +1
      In fact competition has hotted up...lol!
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  • Profile picture of the author timpears
    PayPal can be a real pain in the ass when they want to. But if this is not a phishing attempt, I will eat my hat. If there was a link in the email, that is a dead give away.

    Go to your PayPal account and change your password immediately. Then CALL THEM on the phone. I don't know the number off hand, but it is on their web site. Confirm the information you got in the email. I will bet you it is a phony.

    Best wishes.
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    • Profile picture of the author Steve Baker
      Originally Posted by timpears View Post

      PayPal can be a real pain in the ass when they want to. But if this is not a phishing attempt, I will eat my hat. If there was a link in the email, that is a dead give away.

      Go to your PayPal account and change your password immediately. Then CALL THEM on the phone. I don't know the number off hand, but it is on their web site. Confirm the information you got in the email. I will bet you it is a phony.

      Best wishes.
      Thanks for your concern, but there was NO link in their email. I logged direct into my paypal account and found there I was limited which reflected what paypal said in the email.

      Steve
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      • Profile picture of the author oldschoolwarrior
        Ive had my paypal account limited several times as well, having to fax over documents and what not, its just a part of dealing with paypal, either accept it, or move on.

        The good part about a limited account is that you can still receive payments.

        A few people mentioned keeping backup accounts. I cannot recommend you do this as it is against paypal policy!

        The only way to get away with having multiple paypal accounts is if you have each paypal account setup to different EIN's on different entities. This would require registering several business's as at least an LLC or better.
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      • Profile picture of the author troy23
        I had this also.
        It's standard policy for them and nothing to worry about.
        If suddenly a lot of money is coming in and going out of your account then they just want to make sure everything is above board.
        Just state your business and how the transactions come about and you should be ok.
        All I did was direct them to my website so that they could see it was all legit.
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  • Profile picture of the author Davids22
    I have had a similar prob... Since i'm in thailand right now, I logged into paypal, bought something and got a notice...

    "Due to recent screenings we have noticed that there is something wrong with your account please go to the "so and so area" and answer the questions...."

    Since I couldn't call from a phone I called from skype (one of the options is either give some info I couldn't or call them).

    Anyways, I fixed it up in a matter of hours.... I TOLD THEM that I wan in thailand....

    Happened to me twice more after that....

    Now they stopped, but still it was annoying.... Can happen sometimes,

    Buy yeah, never keep to much cash in your paypal account (sitting there)

    Good luck

    David
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  • Profile picture of the author defaultuser
    I haven't had any of these issues. What is considered "big money?"
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    • Profile picture of the author Michele Miller
      What can happen if you link your bank account to Paypal, why is it suggested not to do that by many of you? What can Paypal do with
      your bank account?

      Thanks!
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  • Profile picture of the author ivanadee
    aagh..paypal..
    my solution : everytime you had money in paypal account, just transfer it to your bank account and just leave $10-20 remains in your paypal acc. It will make your life better.
    Anyway, FYI, I still use Paypal because it is well known by people but still, I always be careful
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  • Profile picture of the author bhopkins
    I feel for you. I've heard of this happening but luckily its never happened to me. You must have a business account if you are going to do business through paypal. If you sign up for website merchants pro you will have fewer issues.

    I also always give them a call if I'm doing some sort of promotion where I expect and increase in sales. Just makes sure you don't get flagged for suspicious activity
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  • Profile picture of the author fsweet
    Pay Pal has done it before and will continue; it usually resolves but you can be anxious for a few months
    Get a second account and/or get a second bank account so you can keep a small amount in the places with PayPal access.
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  • Profile picture of the author Hugh
    Ken says "Thanks. I have occasional moments of lucidity. "

    Not bad for a Chicago-type of guy!
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  • Profile picture of the author logesharun
    I logged direct into my paypal account and found there I was limited
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  • Profile picture of the author SVLABS
    I can also confirm that this is not a phising expedition. A close friend recently had his account temporarily restricted in what was touted to be a legal compliance issue as you correctly stated.

    After some investigation here are the facts. Yes PayPal is required to maintain certain standards to be in compliance with those laws, however there is no requirement to directly restrict an account unless under investigation.

    Upon querying PayPal operators about these facts, the story quickly turned to a policy (internal policing) system. The trigger on this account was regular payments (he sells sh** online) of greater than $2K (he sells big ticket consumer items) and had to prove that his earnings were legitimate (not a single charge back or refund has ever been made against the account). Some of the evidence required (customer declarations) were pretty outlandish.

    PayPal just wants to know more about you, and this is the perfect ruse to get you to come up with the goods. Good old social engineering at work my friends. But what you going to do, say no? Yeh, right.
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  • Profile picture of the author BlazingSwitch
    If you are using PP for business purposes, (i.e. online business) then you should go at least register a DBA, and be running it like a business.

    I believe, starting 2010, that they now have some new law or requirements in regards to electronic reporting in regards to taxes. So they will be sending you a 1099.
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