User has his PayPal account with $26K in it frozen apparently based on a recent change to his credit score? why would they even be constantly looking at that anyhow?
Don’t leave large amounts of money in a Pay Pal account. As soon as payment is received, pull the money out and put it into a proper bank account
PayPal account with 26k frozen – my honest experience.
I have had my account with PayPal for 2.5 years. My account, with 26k inside, was randomly limited last week. This was my experience getting it resolved.
Seven days ago I was sent an email from PayPal informing me my account was being reviewed and currently limited. The only limitation was that I could not close my account. The email stated the limitation was due to recent changes in my account and my credit score. I am 20 and I don’t have much credit history yet. The recent changes? We had more disputes than usual last month due to some delays, but they were all resolved. We have also seen an increase in sales the past month.
I was given a few tasks by PayPal to remove the limit on my account. I needed to upload product invoices (where we buy the products we sell). Supplier contact numbers. Close all open disputes in the account. Lastly I needed to provide tracking numbers for the 5 most recent transactions.
Within two days I had done all they asked me to do. Except I can’t close the disputes as I already had entered tracking numbers (all of which were delivered) I was just waiting for PayPal to review these and close the disputes.
This morning I received an email that my account had been further limited. Now I couldn’t withdraw money from my account, send money, and my Debit card had been deactivated. With 26k in the account this was a bit concerning so I went on to check what else they wanted. The only new thing they asked for was my business license. I uploaded it and then I called them.
After spending 15 minutes on hold I was forwarded to the actual person who put the limit on my account in the first place. He was very pleasant and quick to talk to. He said it looked like they had everything they needed to close the limitation and he would work on it in the next 20 minutes. Either the limitation would be removed or he would call me back and let me know what else he needed.
It was removed but now we have an 11% reserve on our account. 11% of funds are held for 180 days and then released. Which sucks, but I was told we can get the reserve reduced or removed in a few months if we have no more disputes. Beside all my funds are available to me right now. I can close my account and find a different processor if I want to. This reserve will only be on orders placed after today. Now it’s my choice to continue with PayPal and put up with the reserve.
It was an inconvenience to go through this review process, but it was quickly navigated. I was able to continue accepting payments during the limitation which is all I really care about. I have heard a ton of horror stories on PayPal. At the same time, I have had a few really good experienced with them, where Seller Protection saved me hundreds of dollars. I still haven’t had my own horror story.
I feel like most people who uses their account legitimately (has their social security on file, doesn’t scam customers / have too many problems, pays their taxes) can navigate any issues that occur with PayPal. That is just my thought since I have never had a major problem with them. Until I personally have a problem, I will continue to recommend other businesses to use PayPal as a payment processor. When I started out I was scared to use PayPal and obsessively withdrew money.
After years of no issues, I stopped finding that necessary. I hope that PayPal never proves me wrong!
I am not saying that good business have never had a problem on PayPal do not get their accounts frozen. I am just saying that I am one of those good business that got their account frozen, and it was easy for me to navigate. That is my experience. I do not claim others have or have not experienced differently from PayPal. This is just my experience and still positive recommendation for PayPal.