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PayPal makes online payment easy; there’s little doubt about that. But PayPal can also be the source of immense frustration if you receive a PayPal account limitation strike, courtesy of its strict anti-money laundering and sometimes less-than-transparent security measures.
While it’s easy to avoid these limitations by adhering to PayPal’s terms of use, some accounts get limited for unexpected reasons. So, what causes these limitations, and how do you avoid them?
What Causes PayPal Account Limitations?
PayPal account limitations can be triggered by factors that don’t necessarily go against PayPal’s terms and conditions but rather anything that creates suspicion, including:
If you use PayPal regularly for online transactions, the chances of encountering an account restriction are high due to all these factors. (Unfortunately, they are still higher for business accounts and those that make numerous transactions in general). However, there are several measures you may take to avoid a PayPal account limitation.
How to Avoid PayPal Account Limitations
For most people, avoiding PayPal account limitations is as easy as ensuring you’re not doing anything illegal. Most folks have used PayPal for years and never encountered an account limitation or evenother PayPal issues. However, cases of people adhering to all the PayPal terms of use and still encountering account limitations come up occasionally, so it’s wise to know how to avoid PayPal account restrictions.
1. Withdraw Funds Strategically
A good rule of thumb is to avoid holding a lot of money in your PayPal account. Whenever you receive payments, it’s safer to withdraw to avoid them from getting locked in case of an account limitation.
However, PayPal may also perceive the withdrawal of large sums as suspicious. Instead, consider a steady and consistent withdrawal pattern. That way, it doesn’t seem like there’s any mischief going on.
2. Avoid Making Unusual Transactions
PayPal monitors transactions and can automatically identify patterns that deviate from normal. Try to maintain a consistent transaction pattern to prevent your PayPal account from getting flagged.
Normal PayPal accounts can transact up to $4,000, while verified accounts can send up to $10,000 in a single transaction. you may break down payments into installments depending on your account transaction limit, while ensuring consistent amounts. Otherwise, you can usePayPal as an alternative Payoneerto process your payments.
3. Meet PayPal Seller Protection Terms
Seller protection terms protect you as a seller from certain unauthorized transactions and claims from people who might have malicious intentions after you’ve delivered them products or services. Unfortunately, customer malice is out of your control.
Your best protection is documenting everything during a transaction, from proof of postage, proof of delivery, services, travel tickets, dates of delivery, and recipient address. In case of a malicious dispute, claim, or chargeback, you’ll show proof and protect your account from limitations.
4. Ensure Your Buyers Are Satisfied
Keeping your customers happy is integral to maintaining a healthy PayPal account if you run an online business. You don’t want to deal with disputes from dissatisfied customers, and neither does PayPal.
Prioritize excellent services, address concerns quickly, and ensure clear communication with your customers or clients to reduce the chances of complaints. We know that’s easier said than done sometimes, and some folks will exploit PayPal to try to get something for free. But as most people use PayPal for its intended purpose, keeping your real customers sweet is a no-brainer.
Also, only deal with people you can trust to avoid losing money toPayPal scams.
5. Avoid Regularly Changing Your Account Information
PayPal is big on preventing illegal payments, and a major facilitator of these events is the ability for users to change their details at will. To counter this, PayPal limits how often you can change your account information and will flag your account if you do it regularly.
Whensigning up for a PayPal accountor verifying your identity, use correct and consistent details, so you never have to change them. If you have to change a few details later, only do it occasionally. This way, you’ll not fall under the radar of PayPal’s security.
What to Do if Your PayPal Account Is Limited
Despite doing everything per PayPal’s terms and conditions, there’s still a chance your account gets limited. If it happens, you must inquire about the limitations with a PayPal customer care agent.
PayPal account limitation issues often take some time to resolve, so be patient as they get onto it. For best practice, provide enough information to quicken the resolution process, especially when requested.
There’s no guarantee your PayPal account will face a limitation strike. So, besides ensuring your account activities are normal and consistent, consider creating accounts in alternative payment gateways such as Cash App, Payoneer, and Venmo. Doing so gives you a fallback plan to continue transacting online as PayPal fixes an account limitation.
