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  1. #1
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    PayPal Permanent Account Limitation (3 Years With PayPal)

    After doing business with PayPal for over 3 years without any problems, today out of nowhere PayPal decided to permanently limit our account due to:

    May 24, 2011: Our system detected that multiple PayPal accounts contain registration information similar to yours. Our User Agreement allows PayPal users to have one Personal account and one Premier or Business account. To return your account to regular standing, we will need to confirm some of the information on your account.
    We have spent hours with PayPal on the phone explaining that we only have 1 account, but they are telling us that there is an account with similar information, and to prevent fraud they have permanently locked the account.

    It looks like someone has opened an account with our business information and now PayPal claims the account belongs to us.

    Any idea or recommendations that you guys may have to have this resolved?
    Last edited by Snoork Hosting; 05-24-2011 at 10:40 PM.
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  2. #2
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    Update - 10:50 PM
    Spoke with PayPal again to have this resolved and they said that as of May 24th they are discontinuing working with our business due to their system detecting multiple accounts with almost identical account information as ours, and to protect their users they decided to permanently lock the account.

    One of the representatives from PayPal said this is not generally out fault that the account has been limited, but someone has opened an account with almost identical information and since this is a virtual service, they cannot longer offer services for our business and decided to permanently lock the account.
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  3. #3
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    I'm tired of Paypal... they don't give a sh*t for the ones who make them earn money at the end of the month (or should i say, transaction?).
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  4. #4
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    Did they tell you the email addy of the other account?

  5. #5
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    Try getting your matter to PayPal's executive escalations department.

  6. #6
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    They will not release any information when I asked about the account they say uses very close information to our account.

    PayPal Response: For security and privacy purposes we will not be able to release that information.
    Looks like PayPal will be the end for us, since they keep saying the same thing over and over again, and not working on resolution. They have also locked all the funds in the account for 180 days.

    Hopefully working with other providers such as Authorize.net, Google Checkout, and 2CheckOut will be more pleasant than working PayPal.
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  7. #7
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    So if you submit all the papers that prove that your account details are correct and this is your address, etc., they will still not remove the limit from your account? Strange... the most obvious and logical thing for them to do would be to request documents from both account holders and see which one is the true and which one is not.

  8. #8
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    There is no fault from your side, if there is an account with similar information then they must verify your account by asking some more proofs.

    I think now you should work with other providers.

  9. #9
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    The thing is they do not ask for any documents or proofs. I asked them that I can provide necessary documents to verify the account, but they said they do not need any documents since final decision has already been made.

    Yes, we are working with order payment processors right now
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  10. #10
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    Mine was terminated a few weeks ago for an unclear reason. See:
    http://www.webhostingtalk.com/showpo...4&postcount=55

  11. #11
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    Snork, are you located within the USA or somewhere else?
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  12. #12
    There's something wrong with that. Makes you wonder why other people wouldn't go and open PayPal accounts in their competitor's names.

  13. #13
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    So the lesson here is that if you want to disable the PayPal account of a competitor all you need to do is make a new PayPal account with information that is similar to theirs.

    Seriously though, I love hearing stories like this because it makes people open up their eyes to what a fraudulent scam of a company PayPal is.

  14. #14
    Simple you work with other service provider such as alertpay e.t.c.

  15. #15
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    Seriously though, I love hearing stories like this because it makes people open up their eyes to what a fraudulent scam of a company PayPal is.
    I wouldn't say that Paypal is a fraudulent scam company, but it seems that the bigger they become, the more they treat their customers, us, people, just like numbers.

    I presume this due to the fact that every time I tried to resolve the problem via e-mail or submission form, I got responses from different PayPal personnel (or maybe same person using multiple names, who knows), and they kept repeating the same answers on and on quoting their policy.

    I suspect that PayPal hire low pay low grade third party or contract based personnels that are only get paid based on the lowest response time, resolution time and number of issues "resolved". These kinds of personnels tends to work as fast as they could (not caring whether they really resolve the problem) and furthermore, they don't have any sense of belonging or even care about the reputation risk that PayPal may have to bear for their quality of work.

    From a buyer's point of view, it is better to expose one's credit card information to a single payment proxy and be able to purchase from various sellers without having to expose one's credit card information every time.

    From a seller's point of view it is easier if they could have all the payments received in a same pool, as it is easier to track and control.

    Imagine what would happen if as a seller, you just got paid by your customers and your payment gateway limited your account and have to wait for say 6 months until you receive your payment, and no matter how hard you try to resolve the problem this payment gateway decline your appeal.

    I think smaller companies with limited resources will not be able to deliver any goods or service to their paying customers, not to mention customer complaint when they don't get what they have paid.

    Now imagine when you are a buyer or a subscriber and your service provider or seller only have one method of payment that is now off limit. You might have to stop your subscription or you might loose a good deal.

    So, it is sucks for both sides, sellers might loose customers, and buyers might loose a bargain.

    And who keeps the money?

  16. #16
    do you get your fund back or is it taken by paypal?
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  17. #17
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    << Non-English content removed >>

    I don't know, I have to wait for 180 days until PayPal inform me how to withdraw the money.

    Even in Jules Verne's time it only takes 80 days to travel around the world
    Last edited by writespeak; 05-30-2011 at 01:17 PM.

  18. #18
    180 days is scandalous! I was not aware of them behaving like this but then searching around there seems to be a decade of this kind of stuff... i.e. paypalwarning.com

    I actually rely on them a lot (and recommend them) - need to rethink.

  19. #19
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    I don't think that 180 days is scandalous. As to be fair, in terms of 'whistles and bells' PayPal is the best.

    However, when it comes to resolving problem, they only care about their own interest, without considering that they might fall into false accusation and loose good customers who actually bring them the profit.

    I think, the only fear that PayPal refuse to reveal information when resolving problem when they alleged a certain established party of involvement in fraud transaction or act of breach on PayPal's policy, is that when the opposing party could prove that the allegation is false, then the information might backfire when the opposing party use the very same information to sue PayPal.

    So it is normal when PayPal try to protect their interest by implementing a strict policy (that they update from time to time) with a policy that release or at least limited customers from some of their rights.

    In plain English, when you ask them "Please, tell me what I have to do to resolve the problem"

    They have all the rights to answer "We have all the rights to terminate our service to you" or "The decision is final, sorry for the inconvenience".

    If I can use PayPal I would, but I won't beg to be able to use their service, as when I am using their service I also release some of my rights.

    An appeal to fellow service provider readers, it is also good to provide other method of payments to prospective buyers.

  20. #20
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    Quote Originally Posted by Orien View Post
    Try getting your matter to PayPal's executive escalations department.
    You might have better luck calling them and asking to speak to a senior or manager. Let us know how you go.


  21. #21
    I agree. PayPal is a sham of a company. Just like E-bay. (Yes I know its the same owner)

    I wish someone would finally open a class action and force them to be bound by banking laws, because they are not, which is why they can close any account they want, and keep your money.
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  22. #22
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    Quote Originally Posted by gordonrp View Post
    Snork, are you located within the USA or somewhere else?
    Charlotte, NC (US)

    Quote Originally Posted by jonhylever View Post
    Simple you work with other service provider such as alertpay e.t.c.
    Yes, we selected 2CheckOut and I have to say they are much better than PayPal. 2CheckOut is little pricey, but they are definitely worth it. Customer service is very friendly and helped us with all the questions.

    Quote Originally Posted by markhard View Post
    do you get your fund back or is it taken by paypal?
    Well, right now PayPal is holding the funds for 180 days.

    Money in your PayPal account will be held for 180 days. After 180 days, we'll email you information on how to receive your funds.

    Quote Originally Posted by ggstorms View Post
    So the lesson here is that if you want to disable the PayPal account of a competitor all you need to do is make a new PayPal account with information that is similar to theirs.

    Seriously though, I love hearing stories like this because it makes people open up their eyes to what a fraudulent scam of a company PayPal is.
    That is exactly what they done to us. Someone seemed to open an account with information relevant to our company, and PayPal permanently limited the account for security and fraud purposes.

    Yes, it seems like if someone opens a PayPal account with information relevant to your company, PayPal will permanently block your account.

    Quote Originally Posted by CH-Shaun View Post
    You might have better luck calling them and asking to speak to a senior or manager. Let us know how you go.
    Yes, we have spoke with them multiple times and we are being told the same thing over and over again. Its like a non-human talking to you.

    But we made the best decision and switched to 2CheckOut and Google Checkout. We can now accept payments via PayPal through 2CheckOut
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  23. #23
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    @SnoorkAdvertiser - a good lesson for me. Until the last minute I thought I was the one who messed up with PayPal.

    It is clear now that PayPal don't even listen to a well established company like yours

  24. #24
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    Quote Originally Posted by SnoorkAdvertiser View Post
    They have also locked all the funds in the account for 180 days.
    This is standard for all companies like this closing out business with individuals.

    Quote Originally Posted by grow View Post
    180 days is scandalous!
    Hardly. Credit card providers allow chargebacks UP TO 180 days. Paypal has to protect themselves and their customers, which you are no longer one of.
    Quote Originally Posted by grow View Post
    I was not aware of them behaving like this \
    Then I guess you don't bother reading the TERMS you agree to, do you?
    Quote Originally Posted by grow View Post
    but then searching around there seems to be a decade of this kind of stuff... i.e. paypalwarning.com
    Those sites are setup by people with vendettas against paypal, because their account was suspended due to their own ignorance of paypal's rules and regulations (which are common sense).

    Do accounts get suspended? Unfortunately, yes. However, this is a natural part of doing business. Is this paypal's fault? Usually, not so much, but their 'automated' systems do screw up (they'll admit it). All you have to do is call them and they'll straighten it out.

    I've been with Paypal since '99 (3 accounts, one which I closed when I started LTN as it was a personal account), have had zero permanent limitations, though I have had limitations which were quickly resolved by doing what I just suggested. CALL THEM. Forget email, forget everything electronically. Pick up the phone and call them. Your issue will be resolved within 1/2 hour!
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  25. #25
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    Quote Originally Posted by SnoorkAdvertiser View Post
    They will not release any information when I asked about the account they say uses very close information to our account.



    Looks like PayPal will be the end for us, since they keep saying the same thing over and over again, and not working on resolution. They have also locked all the funds in the account for 180 days.

    Hopefully working with other providers such as Authorize.net, Google Checkout, and 2CheckOut will be more pleasant than working PayPal.
    I think in your case they done error, as they should verified the paper work for both accounts, not just suspend your business account.
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  26. #26
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    Quote Originally Posted by alex-developer View Post
    I think in your case they done error, as they should verified the paper work for both accounts, not just suspend your business account.
    Yes, they have done an error and now they do not want to take a blame for it, so they just permanently limited the account. They didn't even asked for any papers to verify the account. Also one employee from PayPal said the exact word:

    Its not necessarily your fault that your account has been permanently limited, but this is a virtual service and we have no way to verify that. That being said, final decision has been made and your account has been permanently limited.
    I have to say that we're done with PayPal. We get a MUCH better service from 2CheckOut
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