Have you had PayPal funds frozen?

What measures are you taking to prepare and be secure if that happens? I hate PP but it's sort of a necessary evil since so many people/companies use it including here on the WF...

You're kidding, right? Where on earth are you getting these stats from?!

I would bet everything I have that the number is WELL below 5%.

As with anything in life, the only people you ever hear from are the ones having problems. You don't see the thousands and thousands of other Internet Marketers who have never had an issue with Paypal starting threads about how great Paypal is because no one does that.

If you really think the number is up around 50% then you are wayyyyy off... which is actually a good thing to be wrong about.

You might think you see a couple of threads in the Warrior Forum every week from people who have had their account limited. But compare that to the thousands and thousands of other Warrior Forum members who use Paypal and never have a problem. The proportion of problems is absolutely tiny. It's just because they are publicized that you think there are so many of them.

I'm not really sure what this thread is set out to achieve? Does knowing how many people have had problems stop me or anyone else from having problems in the future? It would probably be more worthwhile asking those who have had issues how they resolved them.

The subject line of this thread is also a LOT more appealing to someone who has had problems with their Paypal account so they are going to be the majority of people who open this thread -- thus the numbers you get will be way off reality, as they appear to be already.

What are the reasons why PP freezes someone's account?

Why is that strange? It's your money. So what if you are withdrawing it every day? That's what I don't like about them. They automatically think you are into shady behavior if you do certtain things when they are actually innocent.

I've also read several Paypal guides that state you should never leave more than $500 in there unless you are prepared to lose it at any time. I usually siphon off every day and have been doing so for almost 5 years without incident. So I doubt that frequent withdrawals are really a trigger.

They are more concerned with frequent, larger size deposits.

I didn't know that they could go into your bank account. That's scary.

The fix there is to open a bank account just to link to Paypal and keep like only $100 in it at all times. This way if they decide siphon off your income you only lose $100.

Best fix yet: Dump them before they dump you...

Why is it strange that you take your own money out as often as you get paid? I'm sure it does raise red flags, but I do it because I've also had my PP account hacked into by a 16 year old kid from Australia and had hell getting it back to normalcy. Ever since then, I make sure I transfer most of it. That's just me because I feel better about it, and I haven't PP tripping with me about...?

Therein lies the problem with this kind of poll. While I have had Paypal troubles myself (which I was fortunately able to deal with), and would love to know the numbers behinds the scenes when it comes to account flagging/limitation, I just don't think we can get an accurate picture of things this way, sadly.

That is incorrect. Having funds FROZEN only happens to .5% of all paypal accounts. If your funds are FROZEN they can hold it up to 6 months and it is usually the risk department that decides that they don't want to do business with you because you either have a high refund ratio, chargebacks, or don't acknowledge disputes.

There are many differences between a frozen account, basic limitations and the 18 day limitation.

Also, 1shoppingcart is garbage and one of the biggest rip offs in the industry. You guys always trash paypal, but you know that they have the lowest percentage of account freezes in the industry?

For example... if you do around $1,000-$2,000/mo for 6 months and then you all of a sudden start doing $7,000 a month, that is enough for a brief limitation. It isn't an account freeze just a limitation and you will need to send in your ID.

It also happens when you have a high refund rate and if there is a high ratio of disputes per transactions.

Yeah, right on. The exact number is between .5-1%. There are so many users on paypal, and it is usually only the internet marketing crowd and various ecommerce platforms that ever experience a problem with paypal.

No, they LOVE marketers. They HATE chargebacks, refunds, disputes that go unattended. If you have a product and you sell 20 copies and 15 are refunds, you have a problem. It flags their system.

There is a big difference between a frozen account and brief limitations. Good call though, definitely don't build your business around paypal alone. It is always good to have a back up in processing payments.

I think they might have more strict triggers for those outside the USA. Big launches definitely can get your account limited. I don't think your account was frozen, if it were you wouldn't have experienced it the second time, they would have just closed your account after 180 days.

If you sign up for a business account and the average amount you say you will process is 2k/mo and then you end up doing 8k one month, its suspicious and they flag you and you're limited for up to a 18 days and need to send in your ID, or invoices to the client, or proof work has been started.

Not really. Paypal is far less than any other online processor. Paypal has the most users but the lowest % of account freezes.

My good friend Eduard Stinga is correct. The hair trigger on account seizures is PayPal must guarantee refunds.

VISA and MasterCard rules require this, but not how PayPal runs their business.

The internet is full of complaints with PayPal. Two top-tier affiliates on this forum had over $20,000 each frozen. Even though there were never any previous problems, complaints, or refund requests, it took two months to get one of the accounts back.

Even Sheriff Richard Mac had $46,000 frozen. Another offline business had $30,000 seized for over six months. Another guy I know had $1,600 frozen even though the buyer verified there was no problem with the furniture he bought through a Craigslist ad. It goes on. I've helped a few fellow warriors fix this before.

Yes, there are plenty of people online who have no problems. There are some very reputable warriors who are advising you how to maintain good relations with PayPal. You do have to manage your relationship.

PayPal promotes it's Buyer Guarantee for online security. But they build their reputation and their business on your back. That's the weak link for you. The primary problem is because of a flaw in their business model. It's not their problem, but it's yours.

They "keep" your money for you and you have to have permission to get it.

Your money belongs in your bank, not theirs. This protects them, not you. According to their terms of service, they can freeze your account and hold your money for up to half a year.

The key is never bank your business on PayPal. At least have a back-up plan. Get online and start looking for a reputable bankcard account that is underwritten upfront especially for your business model. Don't wait to find out until it's too late they don't like you or what you do.

PayPal is not a bank and does not have to abide by federal banking laws that give you normal rights to access your money.

I've been in the financial sector since 1988 and been watching this crap on the forum for too long.

I have reputable banks lined up with ecommerce accounts to fix this for anyone who wants to fund directly to their own local bank account. Plus you can cut 20% to 50% off PayPal or 2CO fees.

They only freeze it if you do not follow their rules regarding certain things like large influx of money is one. You need to inform them of such things its logical.