Imagine you are on a trip to a foreign country, and you have no money on you but the PayPal account to run with. If you find a limitation on your PayPal account, you won’t be able to Transfer or Withdraw, and that can be a frustrating experience.
Most of the online businesses use PayPal as their transaction partner; getting a limitation could become a huge loss for sure. There are a lot of reasons why you may find yourself with an account limitation on PayPal. Knowing them and acting accordingly will keep you safe from getting the account limitations.
I will get you through the reasons for getting an account limitation on PayPal and let you know how you can lift the limitation.
What is PayPal Account Limitation?
To put it in simple words, PayPal account limitation is a temporary activity restriction that PayPal puts on your account. PayPal will put an account limitation if it finds out any kind of suspicious activity or if you violate any rule.
When PayPal puts Transfer or withdrawal limitation on your account, most essential functionalities are limited for you. PayPal doesn’t allow a limited account to send, spend, receive, or withdraw the money in the account. However, you can lift the limitations on your PayPal account once you can prove your innocence to PayPal.
A limitation on your PayPal account may look like victimization, but it’s how PayPal keeps its users safe and sound with their money.
PayPal account verification and transfer limitation
If your account is unverified, your withdrawal limitation is $500 per month. Once you get verified, the limitation will differ from country to country anywhere from $10,000 to $60,000 in a single transaction. There will be no limitation in the total amount for a verified account. You can verify your account in two ways, by linking your bank account to your PayPal account or connecting and linking a debit or credit card number.
Also, you will have to provide your shipping address, billing address, along with the card expiration date. You can also provide card security code and verify the security code PayPal will provide you in a description of a transaction and your social security number.
When you get a Limitation on your PayPal account?
Paypal keeps an eye on each of the accounts they have in their database. Whenever they notice some unusual activities on any account, PayPal will take a security caution to protect your account from potential fraud. Here are the reasons why you will get a PayPal account limitation:
- If you make a transaction that doesn’t follow PayPal’s Use Policy, such as buying or selling any banned items like guns or drugs.
- If you are running a merchant and get too many claims or chargebacks from your buyers, in this case, PayPal will review your account and put your account in limitation until the review process is over.
- If you make transactions requiring regulatory commission compliance and don’t provide the required papers to make the transactions, such as, if you run a non-profit organization, you must submit the proper paperwork to the PayPal authority before collecting funds using the account. If PayPal detects such activities, it will put a limitation on your account and lift it once the claims are sorted.
- If you lose your credit or debit card, complain to your card provider, and the provider notifies PayPal about the incident, PayPal will put a limitation on your account. The same thing happens if an unauthorized user uses your card, and your card provider notifies that to PayPal.
- If you don’t verify your PayPal account and keep using it for a long time, PayPal will put a limitation on your account to prevent any fraud from your end.
- When PayPal understands that someone has logged in your account without authorization from you. Any kind of suspicious login will trigger an account limitation to your PayPal account.
- If you log in to your PayPal account from too many IPs or devices, PayPal may put a limitation on your account. This also could happen if you travel to another country without notifying PayPal that you are traveling.
How do you know if you have a limitation on your account?
If PayPal puts a limitation on your account, PayPal will notify you about the case over email or using the PayPal’s account overview page. Either way, prior notification will ask you to take quick action, or your account will put to a limitation.
If you end up getting an account limitation anyway, PayPal will notify you about that and ask you to provide the necessary documents. The notification will provide you some requirements to fulfill if you want to lift the limitation.
PayPal will ask for papers or documents depending on the reason for the limitation, such as:
- Your shipping address and all the documents that identify you as a legal person to have the account.
- All the documents of recent transactions, including the receipts and payment proofs.
- Invoices from the suppliers you paid with PayPal account.
- Shipment and tracking information, including the transaction proofs from your buyer.
- Legal papers of your non-profit organization from the Regulatory Commission.
How can you lift the Account Limitation?
To remove the limitations off your PayPal account, you will have to provide all the information and the documents PayPal asks you for. PayPal will take time to verify the provided documents and make sure your account is safe to lift off the limitations.
PayPal will get back to you within three business days and may ask for more documents or additional information. If all of your papers are up to date and you are clean, it will not take long to remove the limitations from your account.
PayPal puts account limitations to prevent any fraud or scam and keep its users safe. If you have got a limitation, it’s for your or PayPal’s greater good. Be patient and wait until the limitations are lifted.
You can review the account limitation status from the resolution center from your account. You can contact PayPal on their customer service anytime for any information on your account limitation.