Why did PayPal freeze your account?
Paypal Frozen Account? PayPal is the most popular company that allows anyone to send and receive money online. He usually has no problem making his users happy, finding a way out of any situation for them. Most customers simply use PayPal as their bank account or credit card; they shop and pay bills without ever worrying about the security of their account.
However, there is always an exception to every rule, which usually means trouble for those involved. There are hundreds if not thousands of people whose accounts have been blocked or frozen for many different reasons – some valid, some less so. An account can be frozen for something as simple as sending too many personal payments or using a secondary email address. In some cases, even withdrawing funds from your own account is prohibited.
When can PayPal freeze my account?
Basically, PayPal freezes accounts when there is a suspected fraudulent activity that has been detected. The best way to resolve the issue is to speak to customer service and explain that you did not intend to break any rules or laws. In most cases, this works for both parties involved, however, it’s a different story if PayPal’s legal department gets involved.
Some of the reasons money gets held up in your PayPal account
- Increased volume of transactions;
- Increase in the amount of the single transaction;
- Increased customer disputes;
- Increased refunds to your customers, whether there was a problem (with or without complaints).
- If an unusual percentage of your transactions is disputed over time.
- If fraud is detected against your account;
- If you log in constantly from different IPS;
- Verification purposes: some users start using their PayPal account in a way that looks suspiciously like an attempt to trick people or violate PayPal rules, so PayPal will freeze the account to investigate further into the case;
- The user has not used his account for at least 3 months: if he has not used his PayPal account for more than 3 months, PayPal may decide that it is inactive and freeze it.
In my experience, the most common reason for a freeze is when a company processes many more transactions or when they execute considerably larger transactions than before. It’s also common for a company to see an increase in disputes or refunds as a sign that something is wrong.
Being completely transparent about what happened helps to immensely speed up the process because PayPal wants to keep the (customer) party happy; otherwise, no one else will use your services.
What will happen if PayPal freezes your account?
If your account gets frozen, you’ll see an email from PayPal explaining what happened.
You can see the status of your account in the resolution center. You’ll also be able to quickly see what you can and cannot do with an account in restricted status. This condition varies depending on why your account was put on hold, as well as how long it has been on hold. You will probably need to fax the documents, and there may be extra steps involved with PayPal. Typical internal actions will include confirming a bank account or credit card.
Documents usually requested
- You will have to provide proof of the existence of your company (permanent certificate).
- Proofs of Delivery (Tracking Numbers).
- Proof of identity (driving license, social security card, passport, etc.).
- Proof of goods (usually the name and phone number of your suppliers)
Once you have faxed the data to Paypal, you will have to wait for a reply. The next day they will usually send you an email informing you that they have received your information. A few days later, you will receive another email informing you of the results. The email will inform you that your account limit has been removed or not.
If your account is still frozen, they will either demand more information or inform you that it will take 180 days for you to get your money back. In either case, you can contact PayPal directly and speak to a customer service representative.
Note that there is no way to ‘appeal’ against freezing your account; if they find enough evidence that you were trying to do something illegal with your account, then they will keep it frozen forever!
What can I do to prevent my account from being frozen?
The aim is to keep a consistent course. You can be taking home a million dollars a month as long as your business is consistent. When adjustments are made, especially large ones, warning signs go up everywhere. It is also more likely that new accounts will be frozen, as most frauds occur within a few days of opening the account.
If you spend $50 each time you buy with your credit card, your credit card account could be frozen. The same is true for volume. If you earn $1000-$2000 a month and then start spending $5000, your account will likely be frozen as well.
My advice is to start with a higher sales volume each month. This may not always be possible for you. But try to do this early so you don’t run out of money later. Take smaller lifts, and try not to do big lifts in one day.
Also, don’t offer products that are illegal for sale and don’t try to sell them in a way that PayPal doesn’t like (for example, ‘long term loans’, or anything else they think is too much like the game).
Remember that prevention is better than cure; there are many alternative payment methods out there, so if your account gets frozen then consider choosing one of them!
How long can PayPal keep your account frozen?
PayPal may take 180 days to review your account. That’s a long time, but it’s what they can do. You agreed to this when you signed up for PayPal.
You can move forward with this experience and also learn from it so that it never happens again in the future.
How to receive frozen funds?
Legally there is no way to do this other than the methods – somewhat time-consuming – outlined above. There are some services that indicate that they can recover the money frozen in your account, charging a commission, but not all are trustworthy and simply try to steal your personal data.
Your best bet in these situations is to enlist the help of someone who has tried something similar, read through online forums, or contact lawyers who specialize in this area of law.
Conclusion on PayPal Withheld Money…
PayPal may freeze your account and make it difficult to use. But it has other good qualities. The good thing is that you can create your PayPal account in a few minutes and give it to someone who is old or young and they can do that too.
Many sellers use PayPal. PayPal has bad things that are hard to understand. People don’t care about bad things because they want it to be easy. But at the same time, you don’t need to limit yourself.