PayPal can impose a temporary restriction to a specific account. This restriction is known as an account limitation.
These restrictions may inhibit withdrawal, receiving, or send money. Account limitations should not be a cause of panic. It is not an indication of fraud but a measure to protect the buyer and the seller.
Most common reasons why PayPal is limiting so many accounts
1. Access to or use of the account by unauthorized persons, if PayPal has reason to believe that an account is being used by unauthorized persons, a limitation is imposed to protect the account from fraudulent transactions. The limitation is valid during an investigation by PayPal.
2. If the account is not compliant with regulatory requirements, this limitation is placed on accounts that operate above the service package that they applied for. For example, if an account belongs to a non-profit organization, it is not allowed to receive donation without providing necessary documentation.
3. A high number of chargebacks and claims, chargebacks and claims could warrant a review from PayPal if the chargeback occurs in high numbers. During the period of the review the account, a limitation is imposed.
4. A rapid influx of funds, when an account that normally operates within a certain level of funds starts to show a sudden spike in incoming funds, then PayPal places a hold on the account while it reviews the account.
Lifting of limitation
Each case is unique and the period prescribed depends on the case at hand. To hasten the review process, it is recommended that the account holder provides the required information and documentation as fast as possible. The limitation is lifted usually within three business days after completion of the verification process.
Other major disadvantages of PayPal are Verification problems, this is common for new users and is annoyingly time-consuming Transfer duration. In the case of withdrawals, the process is not immediate it takes up to seven working days. Transfer fees, should one choose to transfer funds to the bank, there is a $05 transfer fee.
Temporary payment holds it has been a common occurrence for PayPal to freeze accounts or temporarily hold payments up to 180 days.
PayPal is an online payment service provided by PayPal holdings. The history of PayPal dates back to December 1998, the company was established under the name Confinity. Back then, Confinity was a company that specialized in security for handheld devices. The years have seen PayPal grow into what it has become today, from an eBay subsidiary to arguably the biggest online payment platform in the world; with over 237 million active users. PayPal enables its users to send, receive and hold money throughout over twenty-five countries worldwide. To register to use the PayPal survive all one needs is a functional e-mail address. An account holder is able to send money and receive money to anyone with an email address, but one has to be signed up to the service to be able to handle the money.
The advantages that the PayPal service offers include,
Credit card security, once an account holder has linked his/her credit card, all transactions involved are SOCUM.
Flexibility and convenience of a mobile application, mobile apps are available on both the Android and Apple platforms. The application is secure and allows account holders to make payments on the go.
Cost, PayPal is a free service. No monthly subscriptions and no PayPal to PayPal transaction fee.