Why the heck does Paypal limit account??

[aking]

I can't seem to figure out why a company would limit accounts so easily when ebay sales is how they make money. They make profits off transactions completed on paypal so why the hell would you want to kill your own profits and limit everyones account? Then, once people close their bank accounts and paypal refunds the buyers for products, they never get their money and they're out of their own pockets??

Am i missing something here???

[SevnSins]

Not sure if this is the EXACT answer, but rather my opinion/assumption...

They don't care where the money comes from eBay, website, ect. And they aren't losing anything... As long as the money is in their possession, they are making interest on it from their bank.

[jesseinkaron]

The reason is ..

The only refund customers with the sellers money.
If the seller has no money in his/her account .. they just say sorry to the buyer.
Paypal and their buyer protection policy is a fraud !

[divine422]

Actually there are instances where Paypal takes the loss and a couple times when i got a chargeback from a buyer they sent me the following:

Dear ****,

As you know, we were recently notified that one of your buyers filed a
chargeback with their card issuer. One of the unique benefits of using
PayPal is that we help you fight unwarranted chargebacks and attempt to
recover your funds.

Usually the funds associated with a chargeback are temporarily held until
the card issuer makes its decision.

Because you followed the guidelines of the seller protection policy,
though, PayPal will cover the amount of the chargeback.

The buyer did get their money back from the credit card company (and the item i sold to them). O well, thats their Karma, but Paypal took the loss for the transaction.