Ever wonder why a limitation occurs? Ever wonder what the causes could be rather than a vague reason from PayPal?
Here is the truth, moment you sign up for PayPal, you agree to their terms and services and are at their mercy.
Do they have any right to tell you why they limited your account? Nope.
Do they have any right to reinstate you? Not a chance.
Can they deny you another PayPal account? That is debatable.
If you have ever been limited, but racking your brain on why they did this…well, you would be at it for a very long time.
No one knows why PayPal limits you or why they chose this or that account. Why they request documents, why they won’t let you send money, why you can’t sign up for an account, etc.
But based on other evidence, the below maybe some good reasons on why PayPal can limit your account.
Do they sound reasonable? Not really, bit insane? Possibly. That is up to you to decide and for PayPal to never tell you.
- You received too much money into your account (this can be any amount that is not in proportion to what you normally received during the average history of your account).
- You transferred too much money out of your account ($2,000 US is the rumored amount that triggers the fraud system).
- You called customer service at PayPal and made somebody angry (there are documented cases of irate customers calling PayPal only to find out their accounts were limited moments after the phone call was made).
- PayPal has reason to believe you have more than the allowed two PayPal accounts (One Personal Account/One Premier Account).
- Somebody filed a complaint with PayPal about you (a buyer or a seller or an interested third party).
- You filed a complaint against somebody (a buyer or a seller).
- You initiated a chargeback with your credit card company.
- You initiated a chageback with your credit card company before you filed a claim through PayPal’s Buyer or Seller Protection Program.
- PayPal thinks you are trying to avoid paying PayPal fees by charging excessive shipping & handling charges for your sales.
- PayPal thinks you are using your PayPal account to speculate in the currency market.
- PayPal doesn’t agree with some content on your website (example: a man who ran a well known blog had his PayPal account limited because his website contained a link to the Pearl terrorist killing. He accepted PayPal donations on his website for his news blog).
- PayPal believes you are in violation of its User Agreement.
- PayPal believes you are in violation of its Acceptable Use Policy (example: PayPal believes you used your account to purchase a dirty book or dirty magazine).
- PayPal believes you are in violation of their User Agreement.
- You used your PayPal Debit Card to purchase material that PayPal finds objectionable (even if it’s legal in the real world).
- You charged too much money on your PayPal Debit Card.
- You went on vacation and used your debit card in another state or another country.
- You used your PayPal debit card to make an online transaction that was not through PayPal (or a telephone order).
- You refunded a buyer through your PayPal account — but did not use the proper refund methods.
- You lost a dispute claim.
- You are late Paying your eBay fees — or you owe eBay money.
- You received a negative feedback comment on your eBay account.
- You chose to use your PayPal account without verifying it.
- PayPal believes that your account information is not up-to-date — even if they have no grounds to actually believe it.
- PayPal tried to contact you over the phone and you did not answer.
- You were the victim of fraud (example: you clicked on a link in an email that you thought was from PayPal but it was really a phishing website).
- You reported to PayPal an unauthorized purchase made on your PayPal account or your credit card.
- You moved into a house or new apartment that was occupied by somebody with a limited PayPal account.
- You logged into your PayPal account from a location that was not your usual log in location (example: friend’s house or place of employment).
- PayPal has linked your account with another person who has a limited account and/or outstanding issues to resolve with PayPal.
- PayPal froze your account because they linked you as being “associated” with a family member of yours that has an outstanding PayPal problem to deal with.
- After conducting a credit check on you, your credit score was too high, too low or you had too many open lines of credit or debt.
- A third party contacts PayPal saying — without evidence — that you are engaging in fraudulent activity.
- PayPal suspects you are engaging in fraudulent activity.
- PayPal believes that your business practices are risky and pose a potential harm to yourself, to PayPal and to other PayPal members.
- The phone number you registered with PayPal happens to be the same phone number of somebody who has/had PayPal problems.
- You new ISP number was associated with somebody who has/had PayPal problems.
- You conducted a transaction with an individual who has PayPal problems (such as a buyer or a seller). PayPal will “link” you with that person.
- You sold something and the buyer was a con artist or scammer. You get “linked” to that person.
- You violated PayPal’s user agreement by posting anti-PayPal writings or thoughts in a public place (example: internet)
- Your name, your address, your phone number, or your ISP is SIMILIAR to a person who has/had PayPal problems.
- You were associated with a person who has a frozen PayPal account.
- You refused PayPal’s request for very private information about yourself.
- PayPal requested information from you which you supplied — but you did not supply it fast enough.
- You logged into your PayPal account from a public internet cafe.
- You sold an item on eBay that is popular for scammers to sell (high priced items or popular items like Rolex watches, Play Stations, Computers, etc.)
- You sold a Play Station 3 on eBay.
- You sold an online e-book to a buyer who later filed a complaint against you — PayPal asked you for a tracking number and you could not provide it.
- You went to PayPal’s website and logged in using a proxy service or other anonymizing software that you use to protect yourself on the internet.
- While registering, you typed your name wrong into your personal profile (example: Smith, John when it should be John Smith)
- You bought or sold something that was on PayPal’s Restricted Items List (academic software, concert tickets, OEM software, surveillance equipment or adult material, etc.)
- You sent money to a country that is on PayPal’s unauthorized list.
- You received money from a country that is on PayPal’s unauthorized list.
- The bank account you verified with PayPal was a new account.
- You have a high credit card balance that triggered PayPal’s fraud detection system — a high card balance means a higher risk that you will engage in fraud.
- PayPal conducted a third party investigation of you. Based on those findings, they limited your account (you have been sued, arrested, charged with a crime, have too many debts etc.).
- PayPal tried to withdraw money from your bank account or credit card and was declined.
- You PayPal account shares similar details with an account that has already been frozen.
- You PayPal account is in the negative.
- Your PayPal account might become in the negative.
- A chargeback was filed against you.
- You attempted to modify or change your personal details but were not able to.
- You removed your bank account or credit card information from your PayPal account.
- PayPal believes you are not who you say you are.
- You withdrew or transferred $2,500 or more from your PayPal account within 24 hours or over a weekend.
- You did something strange (example: transferred money to a roommate with a PayPal account or a family member).
- Your overall withdrawal and deposit activity is “suspicious.”
- Your name on your social security number does not match EXACTLY what is on your PayPal account (example: Social Security Card/Number is Robert Smith but your PayPal account name is Bob Smith).
- The name on your bank account or credit card does not MATCH exactly with the name on your PayPal account (example: William Smith vs. Will Smith or Bob Smith).
- There are an additional 100 plus fraud ques unknown to the general public that will trigger an unpleasant experience with PayPal.
As frustrating as PayPal is and with their new system interface in place, there is no telling what can go wrong. Here is another error that many users seem to get. We don’t like, you don’t like it. no one likes it.
Let’s just get it out in the open on what you can do.
If you use Paypal, you’ve probably encountered this frustrating error before. I’m going to give you some solutions that will help you resolve this little issue as I have dealt with it many times.
Paypal won’t let you send a certain amount to someone else despite the fact that you have enough money to cover the payment and any taxes/fees. This error occurs on both verified and unverified Paypal accounts…
I’m still not entirely sure what causes this pesky error. Some say it’s a common side effect of using prepaid cards, others say it’s due to too much action with your Paypal (moving money/chargebacks). Regardless, these solutions should help you resolve it.
One of the causes claimed by PayPal is if a US resident is sending a large sum to someone who is from the UK, US>UK & UK>US transactions are monitored by PayPal constantly.
- If you have the option, send from a mobile application. This works for me 100% of the time. If not, then read on.
- Clear your history/cache + Delete cookies then close your browser.
- Send in smaller amounts [if necessary].
- If you have ANY cards on your account, remove them and then add them back. Try to send again.
- Get the person your sending funds to, to send you an invoice.
- try sending with a different web browser (Ex: If you’re using Google Chrome, Use Firefox)
- If worst comes to worst, call them and provide them with identification
- Wait 2 days because it’s possible they could be running a fraud check on your account.
If all else fails, leave the account alone for more than 2 days; otherwise, any other activity being done could just prompt an automatic limitation.
How to use PayPal without getting limited
If you want to learn how to prevent getting suspended on PayPal, you’re going to have first to understand a little bit about how it works.
First off, PayPal limits account with suspicious or “high-risk” activity to prevent losses.
The way it does this is by robots that are trained to identify specific behavior – specific triggers cause them to freeze up accounts.
Now, here’s the thing – they use robots to monitor your accounts.
Since there are millions of PayPal accounts and thousands of transactions happening at every second, it is very unrealistic for them to have a big room of people monitoring every little activity.
So these are mostly what happens in a nutshell when a limitation occurs.
The suspicious activity was done –> Robot picks up on the suspicious activity and triggers limitation –> PayPal asks for additional information –> PayPal human employee reviews information to reinstate your account or permanently limit it.
But here’s the right thing about robots – they’re very predictable. If you can learn what triggers limitations, you can avoid them like landmines.
So without further delay, let’s start learning some of the types of behaviors that cause limitations.
Site Owners: Before you attach a new stealth PayPal to your website, READ THIS FIRST.
If you’ve had a PayPal attached to your website before, and it gets limited, PayPal then blacklists your domain name from ever using PayPal again. So if you try to attach a new stealth account directly to your site, you’ll get banned still. Luckily, there is a solution.
Solution: If you use a third-party checkout tool that uses PayPal you’ll be able to accept PayPal without fear of being limited. Another thing that you can use is to host the checkout on a different domain name so that the PayPal doesn’t see it. I?ve seen some people manually invoice their customers using PayPal too.
0. Always know your stealth basics
Learn how to access stealth accounts without getting limited. That means no proxies, no IP’s that change every 2 seconds (so no TOR or HMA).
Step 1 – Know your basics!
Here are some of the most common mistakes committed:
a. Use proxies, HMA, TOR, or any of those “IP hiding software.” eBay and PayPal have blacklisted these IPs’. If you use them, you will get banned, simple as that.
b. Not changing your user account between different PayPal or eBay accounts.
The exception is if you use a VPS (remote computer) as the files are separated automatically then.
a. Change your IP legitimately through your cable or DSL company. Or even more comfortable, just buy a Windows-based VPS with an IP in the same country as your PayPal or eBay.
b. Go to your control panel, create a separate user for your new PayPal or eBay account. Use your PayPal and eBay exclusively just on that user account. Even easier, just buy a Windows-based VPS with an IP in the same country as your PayPal or eBay.
1. Moving money too fast
Cause: One of the most common ways to get an account suspended is by moving money too fast. Let me give you an example.
Let’s just say that you received $200 right. Then 5 minutes later you try sending that $50 to someone else or try to buy something with it. Boom, your account gets limited.
In PayPal’s eyes, the reason why they limited you is that when you move money too fast, it looks suspicious, so they limit your account and stop you dead in the tracks.
So it applies to:
Receive money –> send money
Receive money –> withdraw money
Solution: When you receive money in your PayPal account, let it sit in there for 2-3 days before you try spending it, withdrawing it, or doing anything with your money.
2. Taking in too much money
Cause: The second most common way to get an account suspended is by taking in too much money at one time. Look at it from PayPal’s stand-point.
If a guy that doesn’t have an established history of receiving large amounts of money suddenly starts getting hundreds of dollars at one time, it looks kinda suspicious.
Don’t be the guy that receives too much money at one time, or you’ll get PayPal limiting you and asking you for personal details.
Solution: So how much money is too much? On a newer account, start off by taking payments less than or around $100 and don’t let the total balance on the account get above $500.
If the money gets near $500, wait a couple of days and withdraw it or send it to another account.
Of course, when your stealth account gets older, you can start getting more substantial amounts of money, but if you want to be safe, that’s the general guideline you should follow.
Now if you need to receive more money than that, just use multiple stealth accounts to break the payments up.
Another potential outcome, if you take in money too fast, is that they will ask you for social security information to make sure you’re properly taxed.
Now PayPal quotes that this number is something like 200 transactions of $20,000 a year, whichever comes first. However, if you come right out of the gate taking in a lot of money, they’ll ask you for social security much sooner.
Best way to combat this is just to receive money through different accounts, so the funds are more dispersed.
3. Spending/Withdrawing Exact Amounts of Money/Not leaving any money left in PayPal
Cause: Let’s just say that you have $600 in your PayPal balance. If you try to go ahead and withdraw $600, you’ll get limited.
Always try to leave some money in PayPal, at least 10% (don’t make it exact).
When you withdraw all your balance, it makes PayPal think that you’re robbing the bank and skipping town. That means it’s suspicious, so don’t do this.
Solution: Always try to leave some money in PayPal (at least 10%). So for example, if you’re withdrawing $600, leave like 60-70 dollars in there, don’t withdraw everything. You’d be surprised how many people get limited by this sort of problem.
4. Error: When you try to send money and get this message: “Add funds to your PayPal before sending money” when you do have money in the available balance
Cause: When you try to move money too fast on a relatively new PayPal account. PayPal has this filter that prevents you from sending out money.
If you have a relatively new account and get this message, your account is under a soft review. However, don’t freak out, because chances are, if you don’t do anything else that’s suspicious during this time, they’ll usually release the balance in a couple of days.
Solution: When you get this message, don’t try to send money out over and over again. Just leave the balance for a week and come back to try to send it again. It could last up to 21 days, so try again here and there. Most of the time, it’s resolved after a couple of days.
5. Ask for “identity verification” through a phone call.
If this happens, just press cancel, and they will let you confirm other information, specifically your full bank account numbers. After you enter this, your account will go back to regular status.
If you want to have your SELLING LIMIT increased, you may do two of these things:
- Call eBay after 30 days and asked them to increase your selling limits AND YOUR Selling Value as well. If you only ask for one of those, for example, you just ask them to increase your listing limits and NOT your selling value, it’ll only
complicate things for you. You should ask to have BOTH of them increased (The listing limits as well as your selling value). Not just one of them.
- It’s best if you have sold items and to have MAXED OUT your listing BEFORE you ask for an increase from an eBay rep. This increases your chances of them increasing your limitations.
Of course, there are other variables to this, like Negative Feedbacks amongst others that can determine your chances of being granted an increase in your limitations.
Also, there may be times when you may receive a message like the one below. Here below are the questions that you may receive from an eBay rep. Your answers will vary on what you sell and based on your own business. You can add your answers below the questions to have them ready when you call in.
1. What Type of Items do you want to sell on eBay (Be specific with Brands and what the items are)?
Your Answer should Be:
2. Where do you get the products that you plan to sell (Be specific with the name of your distributors and suppliers)?
Your answer should be:
3. How many items do you wish to sell on the site?
Your answer should be:
4. What is the average price for the items that you’re selling?
Your answer should be:
5. Are the items new or used?
Your answer should be:
6. Do you have any other eBay account for selling and buying?
If YES, your answer should be:
If NO, your answer should be:
And below are additional questions:
If you are a registered business, please fill out these other questions:
1. What is the name of your business?
Your answer should be:
2. Do you have a website or Brick and Mortar store? Or both? If you have a Website, please provide the website URL
Your answer to this should be:
3. Please Provide your Tax ID
Your answer to this IF you don’t have a Tax ID should be:
You can get a Tax ID by following this guide: https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-Do-You-Get-a-Business-Tax-ID-Number-/INF14837.html
For foreign users, follow this procedure: http://smallbusiness.chron.com/obtain-tax-id-number-foreign-entity-58171.html
Recently, many sellers even buyers have wondered if eBay could be rivaled in terms of popularity.
There is always a possibility to which Amazon comes to mind.
With the increasing fees, strict policies & no remorse for the sellers, many have turned to some viable eBay alternatives.
They may not be a good replacement for eBay all together, but there are many good platforms that can sure offer some benefits.
Here are the top 5 eBay alternatives
It should come as no surprise that the biggest if not the toughest rival towards becoming a better alternative would be Amazon.
Amazon got its roots with selling books then later on expanded into being a powerhouse for all sorts of products.
For sellers, it can help with sales as Amazon is seen as a trusted vendor for quality items and support.
This is also evident on how much Amazon pressures sellers into providing top notch quality and support.
One small mix-up can have a damaging effect on the seller.
The best part about selling on Amazon is for the fact of getting the double the amount of money you would otherwise get from eBay.
Ioffer is a different eBay alternative in terms of its pricing & transaction structure. The reason stems from a negotiation standpoint.
Sellers & buyers are able to negotiate a deal back & forth until they come to an agreement.
This site you can typically sell items that eBay would otherwise deemed high risk or against their policy, but lately, they have cleaned up their act a lot and removed those type of items from their site.
Is it a good alternative? Not so much, but some could find it useful for moving inventory.
This by far is the most popular classified site and is far different in terms of selling and buying compared to eBay.
For one, there is no safety net even if you decide to meet in person.
Buying online through here would be very risky.
For selling, that is a different story.
It is a good place for traffic, but for gathering good targeted traffic and sustained sales, it’s pretty average.
The only issue with selling through here is being limited demographically.
This company mainly deals with hardware, software and other computer related items. They eventually started to expand their pallet & began going into different categories.
They do offer a platform to sell on, but traffic may not be as good nor targeted if you deal in anything other than electronics.
This eBay alternative is for those who like to craft things by hand. They deal in art, clothing, jewelry, food, bath & beauty and anything else related to homemade.
For those that are into crafting and such, this eBay alternative would serve you well.
It has been a popular platform among crafters to which many have made a pretty penny from.
Sellers are at the mercy of buyers and stringent policies of eBay & PayPal.
Often, there are times in which you can never please the customer no matter what you try to do.
You can lay the red carpet down, but there is always some bad eggs out there who will take advantage of PayPal’s system.
In eBay & PayPal’s world, they could care less; well, most of the time at least.
If you Google many of the eBay buyer scams, you will see the abuse of the system.
Worst of all, eBay & PayPal allow it.
Take for example the eBay buyer protection program or the guarantee policy.
“Get the item you ordered or your money back!”
We see where eBay wants to make it safe and play like Amazon, but they are going after it the wrong way.
The program has some vulnerabilities to it:
- Buyers can make claims, keep the item and get their money back.
- Make false claims, misrepresent information, send you back bricks or anything of that nature instead of the original item.
- Buyer has the upper hand where they can literally just get their money back with little effort.
Although with eBay being the largest auction site on the net, many sellers are fleeing to other sites.
Much of the discussions & countless threads all have a speculation that many sellers are fed up and closing out their stores.
We don’t blame them either!
It is like walking with 4 tons of bricks on your back.
Eventually, something has got to give.
The only remedy to fighting these fraudulent disputes is to document everything, ship with signature confirmation and provide as much evidence as humanly possible.
If that doesn’t work, calling eBay or PayPal up and explaining your side of the story should do it.
As long as eBay has their guarantee policy in place, buyers will continue to exploit it.
See an example case here: https://www.theguardian.com/money/2016/apr/25/ebay-seller-beware-buyer-guarantee-exploited-scammers