Why is my PayPal account Placed on limited status?

Using PayPal as online payment system has been very valuable for academic freelance writers. Their platform has been essential in helping transact with people from different countries. However, many users have attested the company’s ability to enforce restrictions and limitations to specific accounts as part of its security measures. To help you prevent the problem, here are some common reasons why PayPal can limit your account access.

Suspicious Activities

One of the primary causes that PayPal creates restrictions in your account is due to suspicious activities. Please note that the company is very strict when it comes to handling security. If it sees that you have engaged in suspicious transactions, including sending money and receiving money from suspicious countries, then your account can be limited. The company also temporarily suspends your sending and withdrawal privileges in situations when it feels that your account is compromised. This happens when there is a threat of hacking or accessing account from a different location.

Additional Information

Another reason for having a limited account in PayPal is due to checks made by the company to verify personal information. During this period, the company is updating its records to make sure that your account is active and continues to comply with its Terms and Conditions. If you encounter a problem that falls under this category, make sure to communicate with PayPal through its Resolution Center to have your account activated again. To fulfill this requirement, you will need to submit documents that would verify your identity.

Transactions and Reports

PayPal can also limit your account in situations wherein you received an amount more than $2,000 on a single day. It can involve any amount which you have received beyond your average transaction. For instance, you usually receive $40 each day then you receive an amount of $2,000 in a single transaction.  These transactions raise flags for Paypal and it may put your account on hold.  This is a routine check used by the company to prevent illegal activities from happening. To prevent this from happening, we suggest that you inform your buyer to send you the money in several tranches.

Similarly, you can also experience restrictions if you have received numerous chargeback requests from others. Chargebacks alert Paypal.  Such occurrence is also a violation of the Company’s Terms and Conditions and places the account on hold pending investigation and resolution.

Violation of Terms of Use

The last category corresponds to other violations that PayPal does not allow. For instance, if you are selling prescription drugs or guns, then the company will make your account restricted. To better understand the scope and parameters of these violations, it is important to examine the Company documentation and consult with their support representatives to know the extent that you can use your account.

Overall, having your PayPal account and ensuring that you are in regular status can be stressful and difficult. However, there are ways to resolve the problem. In my experience, I have also experienced restrictions in my PayPal account where I cannot send money or withdraw funds.  It happened, however, after receiving frequent emails from Paypal notifying me of an issue with the account.  Based on this experience, Paypal does not just unilaterally put an account on hold.  Initially, it sends emails to inform you of the potential company violation and the things that you need to do to address the issue.   After a series of stressful exchanges, I was able to sort the problem and the company gladly restored my account. It is my hope that the reasons mentioned above can help you become responsible in managing and using your account.