PayPal account limited! Should I just kiss it goodbye??

by 41 replies
74
I've recently had my account limited and was just wondering
if anyone has any advice on how to get back in good standing
with them?

It's kind of a shock after being with them for years that they can just
shut you down and keep your money for 6 months...

Any help would be appreciated
#main internet marketing discussion forum #account #goodbye #kiss #limited #paypal
  • Banned
    Have they notified you of a reason as to exactly why your account is back on a restricted limit. This is occasionally done due to suspicious activity or a sudden upsurge in usage and transactions, but either way you are entitled to an explanation at the very least.
    • [1] reply
    • Check well your account sections for more info.
      Then when you find why, do a web search how to make the best solution to the problem.Be carefull and search only actual for today answers.
      Be prepared,not impulsive, cause they can be quite tricky.
      Count to 25 before take an action.
      I know from experience.
  • It depends on what they think you have done and what you have actually done.

    Contact them and talk to them - it's a painful process speaking to Paypal but you may find that you can resolve it with them, depending on what they think the problem is. People do get their accounts back - it might be they just want more identity proof or something.

    Cheers

    Jason
    • [ 1 ] Thanks
    • [1] reply
    • I agree with Jason, You should contact them, a friend of mine faced the same problem and got it resolved after providing the identity proof.
      • [1] reply
  • Yeah this is annoying, despite putting millions of dollars (literally) thru my Paypal account they still froze me a few years back. It's only after sending them:

    - A business plan (yes, seriously!)
    - My birth cert
    - My driving licence
    - Practically even a DNA sample!

    That they finally re-instated my account. Also - do what you can to get a dedicated Account Manager if you can, they can help smooth these things out for you.

    Good luck.
  • paypal needs to be federally backed or FDIC insured. they limit accts without warning and go about their practices in illegal ways at times.
  • I've learned over the years that the best way to deal with paypal - is the same way they deal with you. They really don't care about conducting a fair business when they deal with you. So whenever they do limit an account of mine (and if you do enough business it will eventually happen) - I just open another. And I never keep much in the account - nor do I link it to a bank account that has money in it.

    And then in the mean time you can continue to badger them about opening your other account. I've also found that their own rules are not widely known among their own workers. Keep badgering them, and eventually you'll come across someone that will re-open your account.

    Paypal is like the Mother-in-Law - You can't really kill her... but you don't have to like her either. You do however have to put up with her if you want to stay w/ the pretty lady.
    • [ 1 ] Thanks
  • No idea why? REALLY? So strange isn't it?
    • [1] reply
    • Were you using a personal account? That would do it. Is the information you provided when you opened the account accurate?

      Some of the reps are very helpful - but you have to approach them in a positive way and be very polite with your questions.

      I'd try again by calling again - but don't make demands or argue...try to find out what the problem (your account, the product, a buyer) is and how or if you can fix it.

      Did you provide correct info when you got the account? Did you upgrade from a personal account before taking business payments? Know where the weak spots might be before you call.
  • Paypal is doing it for tax purposes. They state that 200 transaction plus $20,000 in revenue must be followed up by legal identity docs.
  • I don't understand why paypal can't just let users verify their account from the beginning so that later on there will be no problems. Is this their way of making money? When they hold your funds for 6 months I am assuming they get some interest on it.
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    • Because that would cost PP tens of millions of dollars. They have no idea if you're going to be running any money through your account.

      It's strictly a business decision to save money.
      • [1] reply
  • if your paypal accont backed up by credit card, otherwise it will be hard pressed to his back and you have to say goodbye. because now paypal is extremely tight.
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    • No, not really. They have the right to close your account and they are not required to tell you anything more than that. Sure, it would be nice if they did but they don't have to.

      I wouldn't recommend this. Giving them attitude is never going to get your account reopened. I have had nothing but nice and fair dealings with Paypal in the past. Losing your cool with anyone in business is never going to get you a great outcome.

      Paypal specifically state that if an account is limited or frozen you are not to go and open a new one. If you are opening multiple accounts in a way that you shouldn't be then you should expect to have issues with them.

      Also, contrary to your belief, Paypal can overdraw your bank account if you owe them money -- even if the account is zero, so don't think that will stop anything. If you owe then money they will get it.
      • [1] reply
  • I have also called paypal and got nothing but the most polite responses in return.

    They lifted limits on my first call, and no I wasn't transfering billions like some other people who need to remind us everyday how rich they are. As I'm sure thats how rich people really act. =/

    -Red
  • but how do you get passed the limits they impose on new accounts?

  • must send a copy of ID, invoice of gas or phone or copy from bank account to unlimited!
  • Have you withdrawn any large sums of money in one go? I've been lead to believe that paypal hates this. You need to leave money in there as a float. Good Luck
    • [1] reply
    • It's not as black and white as this.

      I constantly see people saying you should never take large sums out, or you should never use Paypal for a product launch, and so on.

      They are NOT blanket rules.

      What DOES matter is how this activity compares to your usual (average) activity. So someone who is doing $50,000 per month and withdraws a sum of $2,000 is not likely to raise any suspicions. But if your account is only doing about $2,000 a month and you then withdraw that same amount, then that kind of activity will likely attract a closer look of your account.

      Both people are withdrawing the exact same amount of money but they are two very different circumstances and will result in two very different outcomes.
      • [1] reply
  • Do you guys think moneybookers is the way to go? should we stop using paypal and head over to moneybookers.
  • As you can see by the popularity of this post, it's not uncommon. When I've had issues in the past, I too have called them, but rarely got anywhere.

    I do everything above the board, follow their policies, etc... But sometimes you just can't win.

    Twice I've had a hold placed on my account with no idea why, and no reasons given after a phone call. But, waiting it out has worked for me in the past. Usually within a month or two it is removed and things normalize.

    I never keep any money in my Paypal account, for that reason.
  • @WiLLR...so then why do they dip into your bank account when you have a reversal? They are protected because they can take the funds from the CC or Bank account you have attached to your account. Furthermore, if they are indirectly saying that they withhold funds to cover any potential losses they should clearly make it policy by implementing it on their site just like credit card processors do it.
    • [1] reply
    • I'm not here to debate this with you. You are welcome to do whatever you like with your account. I'm just going off of what Paypal have told me in the past and what many others have also found to be something Paypal do not like.

      This thread was about a Paypal account being limited. I am telling you why removing all or most of your funds is going to make you a higher risk to Paypal and thus increase the chances of having your account limited or frozen.

      Yes, they have the ability to go and get money back but they would rather not have to do that if they don't need to. A normal business does not make $2,000 worth of sales and yank it out of their account a week later. It's just not how a normal business operates so when Paypal sees activity like that they are likely to act on it. Remember, Paypal are not like the law. With Paypal you are guilty until proven innocent. If you want to risk things then go ahead and keep doing it.

      On a sidenote, do you know one of the very first things Paypal will impose on people who they deem to have a very high risk business model? A rolling reserve. Yes, that's right, they will force some accounts to always hold a minimum balance in case of refunds or chargebacks. If that is not enough proof for you right there then I don't know what else to tell you.
      • [ 1 ] Thanks
  • @WiLLR...ok end of debate Was just trying to prove a point actually, which is....it doesn't matter what you do. At some point they are going to upset your business and once you are prepared for it you can go ahead. I would personally love to see them verify accounts from day one!
  • just had a one month ordeal with PayPal.Limited my account saying that I violated their policies.

    Called and emailed did not have much effect till I visited their office. Then, finally someone from Shanghai called to explain and claim that I am not allowed to have a landing page linking to a OTO using PayPal as a payment merchant.. saying it is risky..

    I was shocked... then had to explained that the OTO does not belong to me and so on and so forth. demanded me to remove the PayPal from the TY page (i dun own the page! they just dun get it huh?Just affiliate link)

    Eventually I changed the OTO and they uplifted the limitations. Was quite a horrible experiences

    Haiz..
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  • Nothing to say other than I hope a better and generally accepted form of payment comes up real soon.
  • For B2B merchant, PayPal is a disaster
    • [1] reply
    • No they aren't. Maybe they were for you but it's not the case with most.

      Someone who's family member goes on a plane flight and crashes into the side of the mountain is going to tell others that they should never fly on planes... yet thousands of people use planes every day of the week and have absolutely no problem. In fact it's a very very small percentage of people who are ever going to have an issue with planes... the same goes with Paypal.

      Your judgement is tainted by personal experience.
  • Firstly, and this is probably the most important advice I could ever give you, ALWAYS have a back up in place.

    I've been with PP for years and have had my account in review after taking in a larger batch of orders. They limited my account and reopened it 2 days later after calling them and explaining the nature of those sales.

    But, like I was saying, you MUST have an alternative way of taking in orders at any given time. There are a few options out there which are extremely reliable (and yes, I'm using them so I speak from experience) and most importantly, they accept PayPal as a way for your clients to pay you.

    One of these solutions is 2checkout.

    The other important advice is this: NEVER be anything else but polite when you talk to them on the phone. Yelling at them or repeating on a loop that you've done nothing wrong will not resolve your issue.

    I'm dealing with tens of clients on a monthly basis and sometime their accounts get limited (mainly for receiving large amounts of money). This is what they're doing and it works: call them, tell them you've already spoken with an agent and that you'd like to get transferred to the review department.

    If you do a Google search you'll find plenty of site posting the phone numbers of the review department (I'm talking about the US phone numbers).

    If the first agent doesn't want to transfer you, then thank him and call again. Another agent will answer and you'll have to repeat the process until you get trough to a supervisor. They hold the real power.

    Try to be as polite/professional as possible, offer as many details as possible. If you don't have a large number of refunds/complaints/chargebacks and if you OFFER them a solution to your specific case, then they might agree to reinstate you.

    Again, you have to sound and act like a real business man/women: present your case and ALSO offer a solution. You might go as far as telling them that you will accept having a reserve on your account if they agree to reinstate you.

    Hope this helps.
    Mike
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