Paypal has long been a preferred choice for online payment, providing clients with safe and secure methods of completing transactions. With over 200 million users, it’s only logical for Paypal to have certain restrictions to protect the community.
The frustration of having your account limited is unmatched, whether you’re running a business, shopping online or in person, or earning free money on Paypal.
Do you know what’s even more infuriating? Not knowing why it happened or how to lift this limitation.
If this is you, you’ve come to the right place. Here is everything you need to know about account limitations, including why they occur and what you can do to restore them.
What Does It Mean If My Paypal Account Is Permanently Limited?
If your PayPal account is permanently limited, it simply means you won’t be able to conduct business using Paypal. The result? Sending and receiving money would be impossible with your account, and any leftover funds in your limited account will be held for 180 days.
Why Is My Paypal Account Permanently Limited?
Once you learn your account has been limited, the first question that comes to mind is, “Why?” Checking your email is a good place to start because emails generally include a justification for the restriction.
In rare cases that the email does not, these are possible reasons why your account might be limited. Let’s dive into some of the most prominent ones.
You Violated the Acceptable Use Policy
This policy describes various unacceptable Paypal transactions, including specific activities that require pre-approval to receive funds.
Failure to follow the terms outlined in the Acceptable Use Policy may result in damages, including a limitation, on your page.
Some of these prohibited activities include breaking any law, statute, ordinance, or regulation, offering products and services identified as potentially fraudulent by government agencies, and transactions involving products that threaten consumer safety.
If you are unsure whether a transaction may violate the Acceptable Use Policy, you should contact Paypal to be on the safer side.
Your Account Has Been Flagged As High-Risk
Examples of high-risk activities that may result in your Paypal account being limited include:
- Receiving a high chargeback percentage relative to your overall transaction count.
- A rapid increase in your typical sales volume.
- Selling a completely new or expensive product type.
If Paypal flags your account as high risk, it simply means it perceives a risk of your account harming its customers’ view of the Paypal brand, typically brought on by customer complaints.
Unauthorized activity can take the form of money being sent from your Paypal account that you did not authorize. It can also take the form of extracting information, such as asking you to give away your SSN on Paypal,
Once your debit or credit card issuer lets Paypal know that your card has been used without your knowledge or permission, a limitation will be placed on your Paypal account for protection. Thus, allowing you to look further into the fraudulent activity.
How Do I Restore My Permanently Limited Paypal Account?
Once you realize your account has been limited, quickly log in to your Paypal account and visit the resolution center. There, you’ll find details of why your account has been limited and, if necessary, be asked to provide additional information.
As tempting as it might be, phoning or messaging PayPal’s customer service will not lift the restriction on your account. A more effective way to go about it is to follow and complete the steps in your Resolution Center carefully.
Once all the steps are completed, and your account remains limited after five business days, it could imply one of two things. Either your account has been reviewed, and an email requesting further information has been sent, or your provided information is still under review.
However, the only way to lift a permanent limitation is if the limitation was regarded as a mistake with no rule that the account should be limited. If there’s evidence that the limitation was a mistake and not the result of a violation of any Paypal agreement, there’s a high chance of getting back your account. If proven otherwise, the limitation will remain in place.
In any case, keep an eye on your email and resolution center for your Paypal account status.
How Long Will It Take to Lift The Limitation on My Paypal Account?
The earlier you respond to the account limitation notification, the more likely you are to keep the recovery process moving. However, the complexity of your specific case plays a large role in determining how long it will take to lift the limitation on your account.
While some restrictions are restored within 2-5 days, others may take longer and require additional information, depending on your issue. Constantly review your account status in the resolution center to be notified of any changes.
Can I Withdraw Money From A Permanently Limited Paypal Account?
During the period your account is on limitation, any remaining cash in your Paypal account will be frozen. To protect itself against risk, PayPal typically withholds funds in a limited account for up to 180 days which is about six months.
Consequently, if the platform seeks disputes, refunds, or claims against the account, those funds will likely be utilized to cover those payments. After 180 days, PayPal will notify you that your funds are ready for use.
When you consider the frustration and time it takes to restore a limitation on your account, you’ll realize how important it is to understand Paypal’s policies before proceeding with any transaction.
But if your account gets limited anyway, you can refer back to our easy-to-digest guide for tips on recovering it.