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Thread: Warning: PayPal can limit your account whenever they want

  1. #1
    Join Date
    Apr 2016

    Angry Warning: PayPal can limit your account whenever they want

    Pay Pal have limited my account with $19k in it.

    PayPal have been pursuing me for 2 years to start using their service after a horror story 5 years ago with my initial account being limited due to it being setup in a Unit Trust structure (but that's a whole other story).

    Eventually decided to onboard with PayPal - largely due to my customers requests to do so. I have a legitimate business account that is using PayPal on my website.

    At the end of last month I went to sweep my funds across to my bank account but PayPal had limited my account with $19,000 in it because they wanted some extra information. This is not anything a customer had requested (i.e. was not in relation to a customer not receiving or being happy with a product or disputing a shipment).

    PayPal requested the following;


    As part of PayPalís commitment to providing the best possible experience for buyers and sellers, we perform routine reviews of merchant accounts. In a review of your account, we noticed an increase in your payment volume.

    To give us time to work together on this, we've temporarily limited what you can do with your account until our review is completed. We want to work with you to get your account back to normal as quickly as possible. To complete our review and better understand your business, we need your assistance in collecting the following information:

    1) Provide an explanation of the recent increase in volume processed within your PayPal account.

    2) Provide the expected monthly volume that you intend to process using PayPal.

    3) Upload or fax your supplierís contact information.

    4) A written explanation describing your inventory storage method.

    5) Provide proof of delivery for the following transactions: (10 separately listed transactions all on the same day)


    I couldn't believe the things they are asking for above.

    Please be aware PayPal can limit access to all your funds because they want more information on your business. I am not prepared to give them this information as I run a private business, I do not disclose this information to anyone as it is proprietary to my business. They also were not able to guarantee that if I provided this information they would not want more information on my business at some other point in the future (when they would not give me access to my funds). I will now have to wait 180 days to get my funds released to my bank account.

    I have spoken to 4 different people in the organisation and none of them seem to care that I will take my annual sales volume of $250k to another provider.

    It's pretty appalling. I have turned off PayPal as a payment method on my site and just wanted to warn others that this could happen to you too.

  2. #2
    Join Date
    Jul 2016


    So what happened in this situation? Did you ever provide the info? Did they release anything ? I am wondering because I am in similar (not exact) situation.

    What did you tell them if you didn't provide info? Thanks

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