8 Ways To Avoid PayPal Limitations

avoid paypal limitations
How to avoid PayPal limitations has been a significant rallying point of discussion among users of the e-payment system. PayPal is highly relevant in online businesses, suitable for freelancers, solopreneurs, and small businesses or companies. Some clients might want to pay you via it. Although there are countries where PayPal is not yet supported, people alternatively open another country’s PayPal—preferably, the United States.

PayPal might lose the status of the “King of Payment System” in due time to different fintechs springing up and killing it in the money services world (Stripe, TransferWise and co.). But before we get into an argument of whether they will lose the crown or not, let’s take a quick view on how to avoid PayPal limitations.

I remember discussing with my fellow freelancers and business owners regarding how to avoid PayPal limitations. It looks like there is no way to avoid getting limited while having a PayPal account—one way or another, it will happen. Before you jump into signing up for PayPal’s services—either the Personal or Business account, consider the following not-written rules on why you might attract a limitation:

  • Someone filed a complaint or dispute against your account— Either someone sent you a payment, or you used your account for business transactions, this is one of the easiest ways to have your account limited or frozen in no time. Some clients can be fraudulent by disputing a transaction, even after receiving the package or services. Too many disputes on your account can lead to a permanent ban, rather than a limitation.

  • Receiving abnormally big money in a single transaction— If you receive a high amount of funds in your PayPal account that is above average, then you are ON for limitation. PayPal has a money laundering detection system in place, and you can be flagged. You will have to provide proof of source/evidence.

So, if you are expecting a large amount of money, you either do one of these things: You split it up or call PayPal ahead of time—perhaps you want to launch a large product that can bring in heavy $ rain. At your first registration, PayPal will ask some questions regarding your expected revenue.

Always remember to choose the topmost revenue inflow option. This survey is one of the things PayPal bot uses to determine if you’re eligible for a limitation or not. If you put your annual or monthly revenue at $100,000, and you get past that into $500,000, rest assured, you’re inviting trouble. This is why I advise people to choose the top revenue inflow. In addition, do not transfer your funds immediately you received it. Wait for, at least, 24 hours before initiating a transfer process.

  • Chargebacks, Chargebacks, and Chargebacks— Oh boy, you are on the red. You can lose your account completely. I mentioned this above in the first point, on ways to avoid chargebacks. You might want to make it glaring in your TOS of a no refund policy, a 50% refund policy, or a full refund. Ensure you deliver valuable and excellent services to avoid this. PayPal often sides customers against sellers—a known fact.

  • Violation of PayPal’s policy: Well, this needs no explanation, but for the case of those who click on ‘I agree’ without reading through the terms and conditions, please do before crying foul. For instance, if you are using PayPal for prohibited items, you will be banned or limited. So, check with them to know the list.

  • Account accessed from a strange location: If you open a PayPal account different from your residing country because it isn’t supported in yours, then do yourself a favor and use a static VPN that carries the country’s PayPal flag! Failure to access your PayPal account with a matching IP address can lead to a limitation over time. PayPal’s bot will flag that account, and you will be asked to prove your identity.

Also, to protect you from hackers or fraud, they will freeze your account.

  • Fraudulent activities have been detected on your account— Supposing what you want to pay for surpasses the amount left on your card or in a bank account; you will definitely be flagged for a fraudulent activity being detected on your account. You will be asked to provide a credit card or bank statement. To avoid such stress, ensure the amount left on your card or in a bank account is enough to pay for your transactions before proceeding.

  • Your account is not fully verified— If your account is not fully verified or up-to-date, then you are not far from the limitation’s camp. Although, either 40%, 60% or 100% verification, you will still have to verify or re-verify one way or the other if you flout one of those rules above. So, ensure your bank’s name or card’s name matches the one on your PayPal, including address. Also, attach and verify your phone number, debit/credit card, bank account, and email address.

  • Exchange of Roles­—Another one is what I call the exchange of roles. It means using a Business account like a Personal account. You are not meant to receive money meant for business services as Friends & Family. It shows you are trying to cheat PayPal of its commission, and they won’t like it.

The same thing applies to a Personal account—having many business transactions on it (instead, go for a Business account). Also, sending more of your business earnings to a Personal PayPal account can attract a limitation.

A word of Advice: While appealing your limitation, calm down, and be nice to customer support. They are humans with feelings, not robots. Mind your language, be cool, and state your case smartly. If you keep these rules to the letter, you won’t have much problem with them.

I have heard that a personal account not fully verified can receive up to $500 before limitation kicks in, and a business account can receive up to $1000/$1500. Either way, you can find alternative ways to accept payments online other than PayPal.

You can leave your comments if you’ve had problems with PayPal in the past and how you solved it.

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