PayPal regulations that Sellers frequently violate and how to avoid limitations
“You can no longer use PayPal”
This email is a nightmare comes true if you run a dropshipping firm, sell software, or conduct business with overseas clients, partners, etc. who use PayPal frequently. Your account has been received a limitation! Again! Forever!
PayPal helps a lot of sellers receive large volume of payments from customers. However, merchants who have used PayPal for a long time and with a large monthly volumefor sure have run into issues such as money being locked up in account reserves, numerous account verification requests, transaction verification requests, or a 180-day restriction, an so on.
So, why does your PayPal account receive limitations?
How can you get your account back and running?
1. Reasons why a PayPal account is limited
Your PayPal account may be temporarily limited for the following reasons, in addition to being temporarily locked because of an ongoing PayPal account verification request or PayPal account underwriting:
How can you get your PayPal account back?
Furthermore, merchants might become victims of internet fraud. Refunds, chargebacks, and disputes can all increase as a result of fraud. The following are some examples of common deceptions:
2. Steps to take when PayPal account is limited
If a Merchant receives a notification that their account has received a limitation, either through email or other forms of communication from PayPal, they should log in to his or her PayPal business account and go to Resolution Center. Account holders can find out more about the limitation on this page, and they can also provide the needed information to resolve the issue.
Note: If a merchant receives an announcement saying that their account has been restricted but finds nothing in the Resolution Center, it is possible that the email is a fake or a phishing attempt. What you should do now is:
- Forward this email to firstname.lastname@example.org for PayPal to investigate it.
- After forwarding the email to PayPal, delete it from your inbox.
- Immediately close any links or delete any files downloaded from any suspicious email/website, run an anti-virus test, then change the password and security question.
3. The impacts of PayPal account limitation
In most situations, the restricted PayPal account will be unable to send or receive funds to its bank account. Before the limitation takes effect, PayPal will usually send an email to the account holder or display a notice on the account.
The fact that PayPal accounts regularly receive limitations do not appear to have a significant negative impact on PayPal users. From the first quarter of 2010 to the second quarter of 2020, PayPal’s total active user accounts climbed from 84.3 million to 346 million (quadruple). PayPal is still one of the most preferred payment gateways for many merchants who do international transactions.
4. Solutions to keep PayPal account from being limited
4.1 Limitation while waiting for verification
PayPal will ask the account holder for credentials and supporting documents, usually:
- Invoice from supplier
- Information about various payments
- Proof of shipment, order tracking information, buyer Information
- Proof of address
- Proof of identity
Important: The merchant must keep improving their operations (faster shipment time, better customer services, and so on), and keep a record of all transactions.
When providing documents to PayPal to resolve a dispute, a very typical issue is that the Merchant may provide incorrect info or the documents do not fit PayPal’s standards. This lengthens the verification or dispute process. It may also result in Merchant losing a dispute lawsuit. PayPal may also impose a 180-day restriction on the account in specific situations.
Based on our expertise in managing numerous cases, Global Link Asia Consulting can advise firms on the best strategy to deal with these issues. Global Link Asia Consulting, on the other hand, does not guarantee assistance for individual PayPal accounts or limits due to policy breaches or poor store performance. For additional information, please contact Global Link Asia Consulting.
4.2 For suspicions of online fraud
- Pay attention to red flags like urgent delivery demands, taking partial payments, or accepting split payments across numerous PayPal accounts. All of these are indications of fraudulent activity.
- Double-check the shipping and billing addresses to make sure they match before shipping high-value items.
- Ask for verification of the receiver’s signature when shipping high-value items, as customers with valid credentials can also commit “friendly fraud” due to lack of knowledge or patience.
- Sign up for PayPal Buyer’s Protection, and PayPal will track transactions to detect any symptoms of fraud as soon as possible.
- Block customers with a history of disputes or complaints of fraud. Fraudsters will typically maintain a target in the long term if no action is taken against them.
Every time the PayPal account is limited, the store operation can be significantly affected or even stopped altogether, taking up the owner’s time, effort, and money. The above problems can be resolved completely if the Merchant can promptly discover them and is supported by a highly specialized consulting
Global Link Incorporation – your trusted one-stop business service provider
Global Link Incorporation is here to help you bring your business to the next level. We aim to be your trusted long-term business partner. Our team of professionals offers the following services:
- Set up companies in various countries around the world: we leverage our rich experience to help you choose the best location for your business needs and budget.
- Open bank accounts: we work directly with world-class banks to help you select the best banking option and increase your chance of successfully opening a bank account.
- Optimize payment solutions: we work directly with multiple international payment solution partners to help you integrate various payment solutions, get better transaction fees, and optimize your business’ international cash flow.
- Handle tax and accounting: we help you keep accounting records in accordance with international standards. We make complying with international regulations neat and seamless.
- Handle miscellaneous administrative tasks: from building websites to registering trademarks or phone numbers in multiple countries, we can help you handle them all so that you can focus on your core business.
Why wait? Contact us now!
- Whatsapp/ Telegram: (+84) 0938 531 588
- Email: Info@globallinkincorporation.com