Most Common Reasons Why PayPal Limits Accounts

If a PayPal account becomes limited, it becomes impossible for you to receive or transfer money to others.

This normally happens if a fraudulent activity is detected in your account. According to PayPal’s defense, limitations are placed on accounts for the good of both the buyers and sellers. If a thorough follow up is not done promptly, PayPal can take up to a maximum of 180 days to fix your account or suspend it forever.

Let’s dive into the reasons that may prompt PayPal to limit an account:

Reasons for account limitation

• Suspicious login- when PayPal detects that another person may have logged into your account without your consent, they will limit it for your own protection.

• Credit or debit card issuer alert- if your card provider reports usage of the card by someone else other than you, they will limit your account

• Unauthorized transfers- if your bank report’s unauthorized money transfer between your bank and PayPal account, they will be forced to limit it.

---

---

• Unacceptable use of policy- PayPal has policies that must be adhered to by all its customers. Violating these can result in your account being limited. Some of the violations that could prompt them to limit your account include selling of drugs, payments to pornographic sites, gun selling, etc.

• An abnormal influx of money after registration- if an account receives a large amount of money right after its verification, it may be limited.

• A low credit score-if your credit score is low or any part of your history raises questions; PayPal may consider you as a high-risk client and will surely limit your account.

• If your account isn’t up to date and not yet fully verified, they can limit it.

• A website whose content is of a questionable nature can get its account limited.

• Also, if an individual or a business entity files a complaint to PayPal about your business, your account will get limited.

Once your account gets limited, you won’t get a chance to accept any incoming payments, make transfers or withdrawals. For many individuals, this can be very frustrating and may put your business or plans to a grinding stop. However, there are some guidelines that you can follow to avoid your account being limited. Some of them are outlined below.

– Make sure the details on your PayPal account match your credit card details. Your business name should also be listed as part of your PayPal details.

– Prior to receiving or sending huge payments, it is better you contact PayPal and let them know about it.

– Your bank account and credit card should both be linked to PayPal

– Use trackable techniques of shipping especially for physical goods. It helps in times of disputes.

– Contact PayPal often to know if there are any limitations to the amount of money you can receive. Mostly, limits are placed based on our previous histories/ credit history.

– Use the same phone number and address that were used to open your bank account

What to do when your account gets limited

If your account didn’t register a serious activity, it will not be reviewed but you will be required to change your password and security questions.

For complex issues, you might be needed to provide further information requested via the PayPal’s resolution center. They normally take about 24-72 hours to get back to you. If you provide them the needed information promptly, your account will be up and running in no time.

Resources:

http://www.bbc.com/news/technology-33009774

http://www.nytimes.com/2016/01/30/sports/draftkings-fanduel-vantiv-daily-fantasy.html