PayPal Account Limitations: What to do and how to remove them

May 06 2022 | PayPal Editorial Staff

Account limitations prevent certain actions on your PayPal business account. Keep reading to learn what PayPal account limitations are, why they are placed on your account, and how to remove them.

As a business owner, it’s crucial to have constant access to your existing funds for all your business needs. It’s also important to understand what account limitations are, why they may be placed on your business account, and what they mean for you. Understanding these limitations and how to address them could help eliminate potential headaches down the road.

What is an account limitation?
If your business account has been limited, PayPal may temporarily restrict you from withdrawing, sending, or receiving payments. Limitations don’t necessarily indicate you have done anything wrong. Rather, they work as a layer of protection for both buyers and sellers.

Why is my business account limited?
Here are some possible reasons why:

  • Your account may be in use by an unauthorised person
  • If PayPal believes someone is using your account without your knowledge, the account could be limited while PayPal investigates the suspicious activity. Similar steps may be taken if your debit or credit card issuer or bank notifies PayPal that someone has used your card or bank account without permission.

  • Your account is not compliant with PayPal’s policies or external regulatory requirements
  • PayPal may limit your account while you gather necessary documents as proof of your compliance with our Acceptable Use Policy, external regulatory requirements or any applicable law.

    Tip: Make sure that your use of your PayPal Business Account is in line with PayPal’s Acceptable Use Policy.

  • Your account has a high number of claims and chargebacks
  • When there are a high number of buyer claims and chargebacks, PayPal may review your account. During that period, you may experience an account limitation.

  • Your account experienced sudden, rapid changes in selling activity
  • If you start selling an entirely new type of product, specifically higher-end items, or if there’s a rapid increase in sales volume, your account may be limited while PayPal reviews the activity.

  • Your account requires additional documentation
  • For certain business accounts, some financial documents may be required before account processing can be completed. In some cases, a limitation allows PayPal to get the account user’s attention to facilitate the sharing of necessary documentation.

How do I remove the limitations?
Log in to your PayPal business account and visit the Resolution Centre to review details of why your account has been limited. This is where you’ll find the specific requested information from PayPal. Here are just some possible requests depending on the issue:

  • Invoices from your suppliers
  • Information about payments
  • Proof of shipment, tracking information, and buyers’ information
  • Proof of address
  • Proof of identity

Once you have submitted the requested information, PayPal will commence the review process.

When will the limitations be lifted?
Usually, we will get back to you with next steps or request for additional information in three business days or fewer. The time it takes to lift an account limitation varies depending on the issue. You can visit the Resolution Centre to check your account status. If for any reason you can’t complete the necessary steps to lift the limitations, contact Customer Service directly for help.

Key takeaway
Understanding how PayPal account limitations work can help you address them effectively. They exist as a layer of protection for your business and your customers, not as a potential hindrance for your business growth. If you’ve been notified that your business account may be limited, you can check your account status in the Resolution Centre.

For additional information, view the User Agreement to learn more.

The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.

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