Why is my PayPal account limited?
PayPal has a set limitation and if your account is limited, it means that you won’t be able to do certain things with your PayPal account. For example, you might not be able to send or withdraw money.
Here are the reasons why your account may be limited. Your account could be limited in order to comply with regulatory requirements. For example, requesting certain products, like a debit card, can trigger federal and state laws, and we may limit your account while we work together to satisfy those requirements.
Also, if you’re not in compliance with the Acceptable Use Policy, you’ll find that your account has been limited. Selling banned items such as prescription drugs or guns is an example of a violation of the Acceptable Use Policy.
PayPal may limit your PayPal account to protect you from potential losses and review any fraudulent activity if:
- They believe someone accessed your PayPal account without your authorization
- Your bank informs them that there have been unauthorized transfers between your PayPal account and your bank account
- Your debit or credit card issuer alerts them that someone may have used your card without your permission
Another reason why your account could be limited is seller performance indicating your account is high risk. Suppose you received an unusually high number of claims and chargebacks from your buyers, which is an indication of poor seller performance. Or you started selling an entirely new type of product, such as a higher-cost item like jewellery or your typical sales volume increased rapidly, which is out of nature with your usual sales patterns. In these cases, your account may be limited.
Also PayPal may limit your PayPal account if you haven’t used it much since you signed up. To restore full access to your account, log in and provide a Proof of Identity (such as Driver’s license Copy, State ID copy etc.). All you need is to go to your Notifications center to upload documents.
How to remove the limitation?
Usually, Paypal ask you to complete one or more tasks to
remove your account limitation. For your convenience, PayPal will always list
the steps to remove the limitation in the Resolution
Center under Steps to Remove Limitation.
If you are a charity or nonprofit, go to the Resolution Center and provide the following information:
- List of your products and services.
- Detailed explanation of your business model.
- List of the URLs or websites where you receive payments.
- Description of how you intend to use PayPal including the payment methods (donations, membership fees, etc.) you will be accepting.
After PayPal receive your information they will review
it and email you in 3-5 business days with an update on your account.
If you received an email stating that your account is limited, but don’t see any steps in the Resolution Center, you may have received a fake email. Forward it to firstname.lastname@example.org and they’ll investigate it for you. After you send the email, delete it from your inbox. If you clicked on any links or downloaded any attachments within the suspicious email or website, log in to your account and view your transactions. It’s also a good idea to change your password.
If all the steps are completed and your account remains limited, it means one of 2 things:
PayPal has sent you an email asking for more information, or
PayPal is reviewing your case, and they’ll email you with their decision.
Also note that for most limitations their customer service specialists can’t remove your limitation over the phone. If Paypal have asked you to upload additional information, you can upload documents in the Resolution Center.
- Go to “More” and select Resolution Center.
- Click Go to Account Limitations.
- Click Resolve beside each step.
If you complete the required steps and Paypal will ask you for more information by email, please respond as soon as possible so that it can resolve your case. If they’ve asked for additional proof of your identity you review the kinds of documentation PayPal accept. Note that the time it takes to resolve an account limitation depends on the complexity of a specific case.