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Thread: PayPal Limiting - What are the chances?

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    Kovich's Avatar
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    PayPal Limiting - What are the chances?

    My PayPal is a Premier Verified account.

    I have confirmed my e-mail address, telephone, address - have attached credit/debit cards and connected it to my bank account. I even was issued a PayPal Debit Card a while back. I've had the account for quite a while now. I've taken every verification step possible.

    However, let's say one day I receive a large deposit into my account. I don't really know what PayPal considers to be large, so let's say over $1000 in one single transaction. What would the chances be of them limiting my account in a situation like that? (Assuming the deposit also comes from another verified, legitimate account and not some suspicious unverified brand new paypal account.)

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    Charles's Avatar
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    My PayPal account was limited for "filing" purposes a year or two ago. It was a very silly procedure. I had to fax a letterhead, a copy of my passport, birth certificate, latest 3 bank account statements, a detailed explanation of the last 10 payments that were sent/received, a detailed explanation of the last 5 withdrawals that I had made and make $42 worth of overseas phone calls speaking to people of different nationalities who really couldn't care less what I had to say, let alone understand me. This all over a period of 3 weeks, with the inability of being able to send/withdraw money from my account. Stressful times.

    To answer your question... PayPal could limit your account at anytime, with no justification whatsoever. I'd recommend connecting your PayPal account to a debit/credit card or bank account, and storing very little money in the account.

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    Kovich (5 January, 2010)

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    Quote Originally Posted by Charles View Post
    My PayPal account was limited for "filing" purposes a year or two ago. It was a very silly procedure. I had to fax a letterhead, a copy of my passport, birth certificate, latest 3 bank account statements, a detailed explanation of the last 10 payments that were sent/received, a detailed explanation of the last 5 withdrawals that I had made and make $42 worth of overseas phone calls speaking to people of different nationalities who really couldn't care less what I had to say, let alone understand me. This all over a period of 3 weeks, with the inability of being able to send/withdraw money from my account. Stressful times.

    To answer your question... PayPal could limit your account at anytime, with no justification whatsoever. I'd recommend connecting your PayPal account to a debit/credit card or bank account, and storing very little money in the account.
    Thank you for the very detailed response, Charles.

    It's unfortunate that PayPal limits accounts so carelessly - I know many people who do nothing but legitimate business and have suffered account limitations for no apparent reason! I'm always very paranoid when working with an organization that has such an authority to just prevent you from having access to your money at any time - so I always keep very little money in my PayPal account, often zero dollars! I trust it being in my bank account more. =]

    My concern is a random limitation after receiving a large sum of cash, rather than just losing a standard amount found in my balance. But, I suppose, as you said, there is no real way to prevent them other than just trying to do the best you can.

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    Quote Originally Posted by Kovich View Post
    Thank you for the very detailed response, Charles.

    It's unfortunate that PayPal limits accounts so carelessly - I know many people who do nothing but legitimate business and have suffered account limitations for no apparent reason! I'm always very paranoid when working with an organization that has such an authority to just prevent you from having access to your money at any time - so I always keep very little money in my PayPal account, often zero dollars! I trust it being in my bank account more. =]

    My concern is a random limitation after receiving a large sum of cash, rather than just losing a standard amount found in my balance. But, I suppose, as you said, there is no real way to prevent them other than just trying to do the best you can.
    If you do happen to get your account limited, and you are operating legitimately, you will get your money back. You'll just have to follow some funny procedure for a bit.

    I'm pretty sure limitations are created manually. This should allow you time enough to withdraw cash from your account, if you do happen to receive a large sum of money and start worrying.

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    Kovich (5 January, 2010)

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    Quote Originally Posted by Charles View Post
    If you do happen to get your account limited, and you are operating legitimately, you will get your money back. You'll just have to follow some funny procedure for a bit.

    I'm pretty sure limitations are created manually. This should allow you time enough to withdraw cash from your account, if you do happen to receive a large sum of money and start worrying.
    Let's say that you send me a large amount - and I click to send that to my bank account - will they stop the process if they decide they want to limit my account, or will the transfer be carried out regardless?

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    Quote Originally Posted by Kovich View Post
    Let's say that you send me a large amount - and I click to send that to my bank account - will they stop the process if they decide they want to limit my account, or will the transfer be carried out regardless?
    If they were to limit your account, the transfer would be carried out regardless. However, they can still put a hold on the transfer (whether they've chosen to limit your account or not, but they have to have reason to do so - and, in theory, that reason could not be that your PayPal account has been limited, as your transfer would have been initiated before they chose to do so).

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    I've been sent over $4k to my PayPal and it wasn't limited. I've had a few dollars sent to my PayPal and it was limited. I don't think the amount of a payment is that much related to getting your account limited.

    Having said that I tend not to keep large amounts in my PayPal - just in case.
    Programmer, web developer and entrepreneur.

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    Kovich (5 January, 2010)

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    Make sure the ones who send you the money have verified Paypal accounts as well. And make sure you have your own contact information correctly in place. Including your phone number. According to your first post, you shouldn't have problem with this part. Just remember to update your contact info if needed.

    And definately don't use Paypal to store your money.

    I have used unverified Paypal, and received money with it. And even got few chargebacks. Still Paypal didn't limit my account.

    It seems to me that Paypal account limitations are pretty random.

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    so far i haven't experience the sanctions of paypal. however i don't store money there as i've read lots of thread about paypal limitation so if possible get rid of it. and make sure that the information you did wrote in your account is valid as they don't say thier reasons.

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    sadly you never know the first time my paypal got limited was over a 20 bucks transition lol

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