Forum

Why does PayPal limit accounts?
 

I am very well aware of the specifics of how it happens, activities to avoid, etc. I just don't really see what is in it for them particularly. No other payment processor even comes close to this type of abuse.

Re: Why does PayPal limit accounts?
 

Because they can use your money without paying you interest?

Re: Why does PayPal limit accounts?
 

Security.........

Re: Why does PayPal limit accounts?
 

because they think the chances of you ripping them off is too high? They only get 4-5% of the transaction which obviously isn't all profit so if their think theres more than a couple of % chance of you running away with their money you're goneeeeeeeeee.
Other payment processors don't refund the money if the merchant runs off

Re: Why does PayPal limit accounts?
 

Mainly to prevent them loosing money through fraud.

There are hundreds of other reasons why though as well

Re: Why does PayPal limit accounts?
 

what are some of the other reasons?

Re: Why does PayPal limit accounts?
 

Conforming to the regulations of the country that PayPal account is registered to.

Re: Why does PayPal limit accounts?
 

Scammers force them to take preventive measures.

If you do not like their ways, do not sign up for them.


Other payment processors protect themselves as well.

paypal is more popular so more obvious.

:rip:

Re: Why does PayPal limit accounts?
 

You will learn of many reasons as you read more and more around the forums - best of luck :)

Re: Why does PayPal limit accounts?
 

As GB said scammers and foo foo sellers along with a lot of other fraudulent activities.

They're a business as well and will limit as and when they / the system see fit.

It will only get tougher as well

Re: Why does PayPal limit accounts?
 

If all of their reasons are so reasonable are so altruistic, why would a forum like this be so popular? It seems like they would be more transparent and willing to help honest sellers. But they aren't.

Re: Why does PayPal limit accounts?
 

They have so many genuine users. They really couldn't care more about the 0.1% of users who have 'suspicious activity'.

They do often allow appeals, unless its not worthwhile wasting the time and effort to appeal, as the activities were clearly against their TOS.

Bear in mind, their a financial institution, and when they let things slide, they are held responsible. They could then face charges for not doing something about it.

Hope that helps :)

Re: Why does PayPal limit accounts?
 

Well, let me tell you what happened to me. I have stealth accounts now that are all going good. However, when I first signed up for ebay and paypal several years ago, I listed 5 items on the first day that I opened my seller account. I don't remember exactly what they were anymore, but I think they were mainly household and kitchen items. I think I did list one software item.

The next morning, I found out both ebay and paypal accounts had been suspended / limited. The email said that my "business model" was not compatible with their service. I called to ask what had happened, and not only would they not explain why they said I could never use the service again likely.

But why is this necessary for them to do? Why would you give someone permission to do something (i.e. sell and receive payments for selling) and ban then for the very thing that you gave them permission to do?

Re: Why does PayPal limit accounts?
 

There you go, your answer to why you got suspended.

eBay also could face charges for not doing its part. Its unfortunate they choose to just boot sellers off rather than work together.

Re: Why does PayPal limit accounts?
 

Well, I do know that now. But if ebay or paypal doesn't want you to list software items as a new seller, why not just say it? If they don't want you to list multiple items the first day, why not just state that? It seems like they ban accounts for their own persona amusement.

Re: Why does PayPal limit accounts?
 

Because they are a huge criminal organization that is able to stay under radar, that's why.

They can steal your money, and you can do nothing against them.

Re: Why does PayPal limit accounts?
 

How is Paypal stealing your money?

Re: Why does PayPal limit accounts?
 

Security......

Re: Why does PayPal limit accounts?
 

They also need to protect the brand name... Look at sites like ioffer or Dhgate... What do you think when I mention those sites?

They don't want that reputation either....