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Why Paypal Limits Accounts And How To Prevent This



Why Paypal Limits Accounts And How To Prevent This

Why Paypal Limits Accounts And How To Prevent This

PayPal is the biggest online payment system, with over 300 million users worldwide. With the largest amount of acceptance on marketplaces and eCommerce sites, It’s the most popular payment option as well. Sending and receiving payment across countries with different currencies has a big advantage with PayPal. However, when PayPal puts a limitation on your sending and receiving money, it can be frustrating.

Well, it’s no brainer that as a giant payment gateway, people use PayPal for making fraud and cheating. So, PayPal puts the limitations and restrictions for a good reason, your security. You must know how to avoid a limitation on your account and how to lift it up after getting limited. Stick to the article if you don’t want a limited PayPal account and to know how you can lift your limitations as well.

Why PayPal puts limitations on account

Getting your PayPal account restricted can be a big frustrating experience unless you know what actions to avoid. Here are the reasons that may trigger a restriction on your PayPal account and put a limitation:

Unauthorized log in

If PayPal understands that an unauthorized person or bot has logged into your PayPal account, you’ll get a limited account. When PayPal cannot recognize a new log in that it’s you, that’s when the limitations get a trigger. It helps you to stay secure if your account gets compromised to a hacker or other unauthorized person.

Report from the card issuer

If you have a card linked to your account, and the card issuer reports a stolen, your account gets limited. When you report your credit or debit card issuer company that you’ve lost your card, they will report it to PayPal. It also can happen if you report your card issuer that someone unauthorized has his hands on the cards. PayPal puts this limitation to ensure the utmost safety of your money in the account.

Illegal transaction

If you use your account for buying or selling banned and illegal items, PayPal will limit your account. All the items that violate federal law, such as drugs, guns, and other banned products will trigger the limitation. Furthermore, you may have to face the federal law for the transactions afterward.

Unauthorized fundraise

Using your PayPal account for raising funds is an easier option than other processes. But, if PayPal doesn’t recognize the charity raise, they will put a limitation on your account. You have to have compliance from the regulatory commission to raise your fund. If it’s a donation that you’re collecting, it has to be with the proper documents under a non-profit organization.

Too many chargebacks

If you’re a seller and you get too many chargebacks and claims from your buyers, PayPal may put a limitation on your account. In this case, PayPal puts the limitations to review your account to see if everything is in order. The limitation stays until the review process is lifted from your account.

How to avoid PayPal account limitations

Avoiding PayPal account limitations requires you to use it in the most legit way possible. Here are some tips you can follow to stay out of a limited PayPal account:

Avoid false information

When you’re signing up for a PayPal account, avoid providing wrong or false information in the first place. Especially, if you provide the same information on a limited account previously, PayPal may consider it a fraud. Don’t provide the same info as your friends or family who already has a limited account with the same info.

Link a credit or debit card

After opening a PayPal account, make sure you’ve linked your PayPal account with a credit or debit card. If you don’t find it safe to link your bank account with the PayPal account, you can skip linking the bank. Make sure the information on the card and your PayPal account are the same; it will ensure your identity.

Avoid disputes and chargebacks

Rapid chargebacks from your buyers can trigger a limitation on your account most of the time. So, you have to avoid getting too many chargebacks and disputes. It will ensure you’re running your PayPal account safe and out of limitations that PayPal puts while reviewing.

Don’t transfer immediately

When you receive a fund from others on your PayPal account, beware of withdrawing it immediately after getting it. Wait for a while before sending the fund to your bank account, or PayPal may find it suspicious to put your account in limitation. The same applies to send the money to another PayPal account as well.

Avoid frequent information changes and IP address

If you change your PayPal account information frequently, PayPal may mark it as a suspicious action. Don’t change your information frequently, especially the essential ones, such as Bank accounts or card information. Frequent changes in IP address also triggers limitations on PayPal accounts as PayPal thinks it’s an information fraud. If you’re traveling abroad, open a travel profile, set up trusted devices, provide the information to stay on the safer side.

How to lift the limitation

If you get an account limitation, PayPal will ask you for additional information over email to submit within three business days. PayPal may ask you to provide all the information about the transactions and invoices to prove that you’re not wrong. For example, If it’s for the fundraising limitation, you will have to provide legitimate information about the organization. You can then upload all the credentials of your non-profit organization and the papers from the regulatory authority.

Bottom line

When PayPal puts a limitation on the transfer and withdrawal on your account, you cannot do certain actions on your account. Everything gets restricted, from moving the money anywhere, sending, receiving, spending on shopping, and so on. PayPal does this because they have suspected a suspicious action on your account.

In a nutshell, if you want to avoid a limited PayPal account, avoid suspicious behavior. Follow the rules and guidelines PayPal puts on the terms of usage before you sign up. Especially, make sure your IP address doesn’t fluctuate while operating your PayPal account. PayPal doesn’t recognize your movement in that case; it’s a major thing people don’t pay attention to.


Praneet is the CEO and Editor of the website He is a blogger and have varoius blog on various topic and he is from India who loves to read and write about Technology, Gadgets and Gaming. If you share the similar interests then you can follow him on Facebook | Google+ | Twitter

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