It’s the worst news! You log on to your PayPal account and, right there, right under Notifications, is a notice telling you that “You can’t use PayPal anymore!”
A PayPal Account that has been permanently limited is a banned account.
A PayPal user with a permanently limited account will no longer have access to PayPal services. On top of this, their bank account and credit card details cannot be removed to be used to create another PayPal account. The remaining PayPal funds in the account will also be held and kept unavailable to the PayPal user for 180 days.
It’s a horrible situation to be in. That’s for sure! And it can happen to anyone — even those who haven’t done (and have no reason to do) anything wrong!
Unfortunately, however, if you’re in this situation, what’s done is done. The only thing you can do now is to calm down and figure out what to do next:
PayPal Permanently Limited Accounts | OVERVIEW
Today, our main topic is ‘PayPal Permanently Limited Accounts’. However, there are actually many ways that PayPal may choose to limit your access to their services:
Why is your PayPal account limited?
If you’ve already run into some of the user testimonies online about account limitation cases from PayPal, then you’re probably aware of this: but it can happen to anyone and at any time.
Regular PayPal users are not exempt from this, and neither are business accounts.
To help you figure out why PayPal permanently limited your account, here are some examples:
Reasons for PayPal Account Limitations!
- Suspected unauthorized transactions
- Sudden and suspicious increase in transactions
- Abnormal or suspected fraudulent activity
- Selling goods or services against PayPal’s regulations (i.e., drugs, stimulants, etc.)
- Exchanging funds with a PayPal user flagged as suspicious
- Higher volume of chargebacks or complaints filed
Most of these usually only call for the regular, temporary limitation. Not the permanent ban that we discussed in the beginning, but it’s a starting point as to what you should expect!
What actually happens when PayPal permanently limits your account?
It usually starts with a PayPal email, which will inform you of the permanent ban.
At that point, your account will have already been closed and you will be unable to withdraw money, send money, or receive money. The remaining funds will also be held for 180 days.
How to Fix PayPal Account Limitation?
This is a pretty tricky topic, as it will be different for everyone — as it depends on the reason as to why PayPal permanently limited your account. But don’t give up hope yet! Because…
Is it possible to fix an account that PayPal permanently limited?
Yes! Although it may seem like hope is lost, there is usually some way to fix things.
The first thing to do is to contact customer service or get in touch with the PayPal community. They will be able to help you figure out why your account was limited — which is the first and biggest step in actually getting it back into working order.
How to remove PayPal account limitations?
Unfortunately, the steps to removing permanent account limitations are not so easy to discuss. Usually, the advice would be to just do whatever PayPal has instructed you to do (instructions are usually left for temporarily limited accounts, after all).
However, with permanent bans, the assumption is that PayPal no longer wants to do business with you in any capacity (hence why your bank account is kept under record — preventing you from making a new account unless it is with another bank account).
Still, if you know what caused your permanent ban and you have a way of proving that you were in the right with things, then there is nothing stopping you from trying!
Steps to fixing PayPal account limitations!
The steps to fixing your case will be different based on where you live, but just as an example. Here is what one PayPal user from the UK did to fix their account limitation:
- They first filed a complaint with UK’s Financial Ombudsman Service, who told them to write a formal complaint letter to forward to PayPal
- They wrote the requested formal complaint letter and gave an account overview that speaks of the activity that they believed was raised as suspicious and why they were in the right.
- The user then waited for PayPal’s response letter. In their case, it took only two hours for their account to be opened again!
PayPal Account Still Permanently Limited! | Now What?
Now, to address the more professional side of things…
If you’re a business owner that uses PayPal as your sole payment processor, and now you find yourself at a loss for what to do, it’s time to consider alternatives!
Why doesn’t PayPal tell you why your account is limited?
The truth of the matter is, PayPal is usually not very open about why they permanently limit accounts. Any number of PayPal accounts can be limited for practically any reason. That’s their business model. And it all has to do with how they handle risks.
As per their User Agreement, they’re very strict about what they do and do not allow their services to be used for. In that way, if you go beyond what is allowed, they are within their rights to cut you off. And, in some cases, no amount of calling PayPal for help will fix things.
They are what the payment processing industry deems as a ‘faceless organization.’ They have millions of PayPal users to deal with and are unable to singularly focus on anyone. Therefore, most merchants turn to other alternatives, like Platinum Payment Systems (more on this below!)
Can you create a new PayPal account with your old bank account?
As mentioned above, the fact that PayPal usually forbids the removal of your bank account and credit or debit card information from your banned account makes it impossible to create a new account that’s actually usable.
Instead, it might be time to consider an alternative!
PayPal Alternatives! | Process Payments with Platinum Payment Systems (PlatPay)
Merchant processors like Platinum Payment Systems are particularly well-known for their relationships with their clients.
According to Platinum Payment Systems’ CEO, Jed Morley, they study each merchant account holder under their company closely as individuals — taking advantage of the traditionally lengthy underwriting process to familiarize themselves with their business (from front to back).
Customer testimonials from PlatPay clients also go on to show the close relationship between them and Platinum Payment Systems’ customer service, who are always there to lend help with their decades’ worth of experience in the industry.
By signing up to process your payments with a trustworthy merchant processor like PlatPay, you can be freer with how you grow your business and worry less about account limits that only serve to hinder or erase any progress you’ve made thus far.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No California Times journalist was involved in the writing and production of this article.