So Your PayPal Account Has Been Limited | What Do You Do Now?
Okay, so your PayPal account has been limited.
What exactly does that mean for you? Why did it happen in the first place? And what can you do to fix it? Is there even any point in fixing it? Or should you start looking for an alternative now that doesn’t involve the risk of constantly frozen accounts?
These questions, and more, will be answered by yours truly in the article below so that you know exactly what to do when your account has been limited by PayPal:
My PayPal Account Has Been Limited! | What Does It Mean?
Trust me, you’re not alone here.
PayPal enforced account limits can happen to just about anyone — it doesn’t matter how ‘clean’ your transactions are or how ‘trustworthy’ of a person you are.
Once PayPal’s algorithms catch anything they deem even slightly suspicious in your account activity history, you’re at the risk of being unable to perform certain actions (like withdrawing, sending, or receiving money).
This, as you’ve probably come to experience, can be a humongous pain. Especially for small-business owners that depend on their ability to continue processing payments received, paying vendors for services rendered, or accessing their funds for business growth.
Why Did PayPal Limit My Account?
Unfortunately, there are a lot of different reasons why PayPal may have limited your account. There is always a reason though — which you can find out yourself.
More likely than not, you may have found out that your PayPal has been limited through an email (be careful about that, by the way! There are phishing scams involving these kinds of emails). The place to confirm where and what the issue is on your PayPal account though.
All you have to do is log in, as per usual and visit PayPal’s Resolution Center, where you can see the details for why your account has been limited. According to PayPal’s own article on the subject, the reasons for account limitations are as follows:
- Unauthorized Account Usage: When PayPal believes that your account may have been used without your knowledge or consent. In this case, PayPal usually cuts off your spending abilities to protect you from fraudulent charges.
- Violation of Regulatory Requirements: PayPal has regulatory requirements that can result in account limitation or suspension when violated. For example, selling restricted items, like guns or prescription drugs, will result in your account being limited.
- Unusual Transactions: PayPal watches your transactions carefully and any sudden changes to their volume (how much you are processing) or their price (increased prices or introduction of high-ticket items into your catalog) can result in a temporary account limitation until the transaction(s) has been reviewed.
- Unusually High Number of Buyer Claims or Chargebacks: This account limitation reasoning is particularly troublesome for businesses that are considered high-risk, as PayPal has a tendency of placing limits on accounts whenever its algorithm sees an increased number of buyer claims or chargebacks.
What to Do After PayPal Limits My Account?
The ‘fix’ here depends entirely on which of the reasons listed above have caused your account limitation. You can find out both through PayPal’s Resolution Center, where PayPal details not only the reasoning for the limitation but what they need from you in order to resolve it.
PayPal usually requests the following to resolve account limitations:
- Invoices from suppliers
- Information on transactions
- Proof of shipment (i.e., tracking information and buyers’ information)
- Proof address
- Proof of identity
The quicker that you are able to get back to them with their requested information, the faster that your account will be put into proper order.
PayPal states that the average processing time (after you send in the information) is three days. Although they may request for further information, in some cases. So, you can expect an average of 3-5 days in waiting time.
The Bottom Line: PayPal Alternative? Yes or No?
To finish us off, let’s answer the big question. Should you actually be looking for a PayPal alternative now? Well, I certainly hope so.
“Anyone can process payments for you. All they need is the right technology to do it! BUT, if you want someone that will work with you when things go off the rails. Who can be your partner in all this? Better look elsewhere!”
If you want to know more about why considering a PayPal alternative like Platinum Payment Systems is necessary in avoiding the absolute horror of being stalled dead in your tracks read Jed Morley’s article on Merchant Accounts to get some more insider information.