Why is my PayPal account restricted?

When cross-border e-commerce sellers use PayPal, they often encounter account restrictions and freezes. When an account is restricted, you may not be able to make payments, receive payments, or withdraw cash. The following is a brief introduction to the reasons and solutions for PayPal account restrictions.

What are the reasons that may lead to PayPal account being restricted?

1. Buyer

● The account is used by unauthorized persons

If PayPal suspects someone may have used your account without your knowledge, it will place restrictions on your account and investigate any fraudulent activity it detects.

● The card issuer notifies the card issuer of any unauthorized use

If PayPal receives notification from your credit card issuer that your credit card has been used without your permission, the platform will protect your account to prevent additional unauthorized fraudulent activity.

2. Seller

● The account is used by unauthorized persons

Someone could be using your business account without your knowledge.

● Increase in complaints

Poor product quality or service performance provided by sellers has led to an increase in buyer complaints, claims and payment reversals.

● Business violations

Business that violates PayPal's Acceptable Use Policy, such as selling counterfeit goods, prescription drugs, or firearms.

● Sudden change in business model

Any sales that are inconsistent with past sales or any sudden surge in sales are suspicious.

Conditions for removing account restrictions

To remove restrictions on your PayPal account, you may be asked to provide relevant documentation:

● Supplier invoice with contact information: This document helps determine the source of inventory and verify that the products you sell are in stock.

● Payment information: If you fail to provide a billing statement, PayPal will review the following information in your payment transaction:

- Goods or services sold

- Buyer's name and shipping address

- Proof of delivery to verify that the order has been delivered

● Shipping or tracking information: This information allows PayPal to confirm that the customer's order has been fulfilled

● Proof of address, such as a bank statement or utility bill: These documents may be needed to verify your identity when there is unusual activity in your account or to comply with regulatory requirements.

● Identification documents, such as a passport or driver's license: This information is needed to verify your identity when there is unusual activity on your account or to comply with relevant regulatory requirements

● Business Certificate: This document verifies the validity of the business registration and business ownership

Prepare the above materials and follow the steps below to apply to remove PayPal account restrictions:

1. PayPal will contact you via email, asking you to log in to the "Resolution Center" to understand the details of the problem and tell you how to quickly resolve the problem (usually by submitting relevant documents).

2. After receiving the required information from you, PayPal will review it and reply by email.

3. Once your account details have been successfully verified, the limit will be removed. Sometimes, you can remove the limit simply by changing your secret questions and password.

Source: PayPal