Paypal Permanently Limited Account for no reason

[FShoppe]

Hello all,

How many people here have had their Paypal accounts limited, seemingly for no reason.

I recently had my Paypal account limited, supposedly for violating the AUP but I fail to see how. The business of which that Paypal account is setup for has been running for almost 10 years and is not in any way involved with illegal, or even questionable activity. (No it is not related to file hosting).

The E-Mail received simply said the account was permanently limited and did not say which term/policy was violated. Further more, the two 'related' transactions appear to be okay without so much as a charge back/dispute raised.

Given it is Sunday and out of office hours, I have not been able to contact them yet, but what can be done in such a situation? This happen to anyone else? Does anyone else really HATE paypal?

FShoppe Reviewed by FShoppe on 2nd Sep 2012. Paypal Permanently Limited Account for no reason Hello all, How many people here have had their Paypal accounts limited, seemingly for no reason. I recently had my Paypal account limited, supposedly for violating the AUP but I fail to see how. The business of which that Paypal account is setup for has been running for almost 10 years and is not in any way involved with illegal, or even questionable activity. (No it is not related to file hosting). The E-Mail received simply said the account was permanently limited and did not say Rating: 5

[Long]

We all hate PayPal at times, it's just that they're a monopoly we're mostly forced to use them.

There is ways around it though, using 3rd party systems with PayPal integrated for example, also payouts can be handled by 3rd parties too.

Of course there is extra fees' associated with those options, but sometimes it's worth it for less hassles.

[WDF]

So let's get to the real facts:

Was the account used to pay your Affiliates or were you paid advertising revenue for your file hosting site using this account?

Was your domain name for your file hosting site ever used in any line on a payment incoming or outgoing?

If you answered yes to either question there is the reason.

When will you hosts learn you have people registering accounts and using your service just to get your payment processor info to shut your accounts down and cash starve you and your affiliates.

[Laz21]

@WDF, have your heard if paypal can arrest the money, even after the period of limitation (180 days) ends, both for an owner of a filehosting, as well, for the uploaders? In their mail they maybe say that you can withdraw your money after limitation ends, but who knows, can do whatever they want?!

[FShoppe]

Was the account used to pay your Affiliates or were you paid advertising revenue for your file hosting site using this account?

FileShoppe does not opperate an affiliate payout system. FileShoppe uses CarrotPay's split payment system to ensure they get their share at time of sale so we never keep funds due to affiliates. So the answer is no.

Was your domain name for your file hosting site ever used in any line on a payment incoming or outgoing?

There is no association with our file hosting service and this paypal account. The paypal account is used for a single business with regards to recieving funds, and occasionally used for personal online purchases, which is not involved with any sort of file host or other remotely questionable activity.

If you answered yes to either question there is the reason.

So I still have no reason

When will you hosts learn you have people registering accounts and using your service just to get your payment processor info to shut your accounts down and cash starve you and your affiliates.

This comment must be aimed at others since it certainly doesn't apply to me. FileShoppe does not make any 'payout' EVER. The Paypal account is used for a completely legit and fully compliant online service that is not even questionable in nature. It is also a well established, verified paypal account that has existed for close to a decade.

@WDF, have your heard if paypal can arrest the money, even after the period of limitation (180 days) ends, both for an owner of a filehosting, as well, for the uploaders? In their mail they maybe say that you can withdraw your money after limitation ends, but who knows, can do whatever they want?!

I also do not trust Paypal to return my money. I have instead decided to refund as many customers as possible. Paypal do not allow you to withdraw or send funds when your account is limited, but they do allow you to refund. I have chosen to do this. Every last penny!

In addition to being locked away for 6 months (180 days), Paypal sent in the E-Mail to me:

In addition, you will be liable to PayPal for the amount of PayPal's damages for each violation of the Acceptable Use Policy.

This is quite scary actually. Although I have refund as many clients as possible to get the balance to $0, I now worry they will help themselves to my bank account as they see fit.

My hope is this is some great big misunderstanding and the limitation was a mistake. I can honestly say I have no clue why on earth the account was suspended.

[WDF]

Do you have multiple PayPal accounts accessed from the same PC or IP?

You can have 2 if 1 is a business account and the other is not beyond that they get a little touchy about their ToS and AUP.

[Laz21]

"In addition, you will be liable to PayPal for the amount of PayPal's damages for each violation of the Acceptable Use Policy."

this means that you have to refund the money to your customers or can take your money for every rule infriged?

[FShoppe]

Do you have multiple PayPal accounts accessed from the same PC or IP?

You can have 2 if 1 is a business account and the other is not beyond that they get a little touchy about their ToS and AUP.

I have access to 4 separate paypal accounts (3 in my name), but all are business accounts. I see no way of getting around multiple Paypal accounts for business use since you cannot use a single paypal account for multiple businesses due to the IPN responding only to 1 address and the name remains static.

The other accounts appear to be fine, though I have decided to withdraw all the money from them just in case.

All accounts are used for 100% legit, unquestionable services and are in no way related to file hosting what so ever.

this means that you have to refund the money to your customers or can take your money for every rule infriged

From what I understand, if Paypal suffer any damages, they will take it out of your account balance. Since they can manufacture whatever reasons they see fit, I don't wish to take any chances. Refunds to my customers is far better than Paypal scooping up 'charges' and making a profit from the misfortunes of those smaller than themselves.

[WDF]

I would be very cautious with the other accounts until you talk with them. I would recommend a telephone call and be tight lipped about the additional account until you get a specific reason for the issues with the limited account.

[FShoppe]

I would be very cautious with the other accounts until you talk with them. I would recommend a telephone call and be tight lipped about the additional account until you get a specific reason for the issues with the limited account.

Agreed. In fact I have disabled direct Paypal payments on 1 site and instead directing them to use CarrotPay (since they have Paypal pass through) instead.

I must say, I have always ALWAYS disliked paypal. Wish I could live a Paypal free life!