When you have a good friend, you can rely on, and he leaves you – it’s a heartbreak. When you have a partner you trust and feel let down by – it’s a disappointment. But when you have a PayPal account for running your business, and it gets suspended – it’s a nightmare.
Such a nightmarish situation might happen when you least expect it. So, just read and be prepared. We have the solution!
In the field of payment processing, PayPal is a monopolist that stood the test of time. With its 20+ years of payment history and 400+ million active users, PayPal is an inevitable choice regarding payment methods. More than 1.6 million websites use PayPal and it is a preferred method to pay and be paid with. Unfortunately, there are many types of problems you can face with PayPal. The web is flooded with individual stories and cries for help. Here are just a few of the typical problems we hear from our clients:
PayPal will suspend your account if it's not fully verified. Linking your bank account or debit card to PayPal should be enough to verify your account. However, the information necessary to verify your account may vary by user, region, and individual factors of your company.
Be careful not to log into your PayPal account from an unusual location. While the term is quite broad and can be interpreted in various ways, PayPal might treat you logging in from a new PC, town or even country as unusual activity non-compliant with PayPal terms or a security threat. In such a case, PayPal believes someone might be accessing your account without your knowledge. So, the company may limit your account to protect you from fraud. Given that, you might not be able to send or withdraw money, for example. Usually, PayPal would ask you to complete some steps to remove your account limitation.
Certain items you are selling might be deemed higher-risk items and might need to be pre-approved by PayPal. Don’t be surprised if your best intentions to collect donations as a charity or non-profit organization are put under scrutiny. Another rule: the more expensive items you sell, the higher the risk to be red-flagged by PayPal. And quite expected, marketplaces too require pre-approval before they start to sell through PayPal. So, be sure to check PayPal’s Acceptable Use Policy to avoid false expectations.
PayPal may place a hold or restrict your account activity if your selling pattern appears unusual or changed. It might be a sudden spike in sales or a considerable change in your average selling price, business platform or type of items being sold.
Beware if your account has a significant number of chargebacks or disputes or if you have been flagged by multiple customers for various issues. PayPal might consider you a high-risk merchant and suspend your account.
All these are standard points on PayPal’s checklist to keep their platform safe for everyone – buyers and sellers. The PayPal User Agreement states that any violations of the Agreement may result in account closure, suspension, or limits of up to 180 days. These are just temporary restrictions placed on a specific account that prevent withdrawing, sending, or receiving money. Having limitations on an account doesn’t necessarily mean that you’ve done anything wrong. It’s just that you can’t use your money until PayPal makes sure your activity is up to their standards. But beyond that, it will also mean a sudden drop in sales for the merchant. This keeps people in limbo and unfortunately diminishes the good reputation PayPal has as a global online payments system that is a ‘must-have’ for online shops due to its simplicity for consumers and businesses alike.
Still, there are many cases when PayPal suspended merchant’s accounts for reasons that are not that obvious due to communication gaps. But we are here to help you clear out the misunderstandings
In our experience, we have come across businesses with hundreds of thousands of Euros blocked in a PayPal constant fund reserve. And sleeping money depreciates over time nowadays more than ever. In other cases we solved, the suspended amount was crucial for the survival of the business venture itself.
You do not have to wait for your money to be released, as there is a solution. Let VR Team find out the reason and support you to unfreeze your funds and turn them back into working capital. We are the team who can help you solve your problem. We are the PayPal experts.
With 15+ years of payment management experience and more than several millions of Euro released funds, we know how to do it. VR Team collaborates with one of the top fintech consulting groups in Europe and has access to high-level expertise, but still benefits from the flexibility of a separate task force.
Reach out to us because there is help!