Worst case scenario with locked PayPal funds

[bcarneal]

What's the worst case scenario with PayPal? They find a ⊗⊗⊗⊗ name, address, you don't answer their request for docs, they find out you've had 50 limited accounts, etc.

Assuming no disputes/chargebacks against your balance, are you definitely getting all of your frozen money after a 180 day hold? Or, are their situations where you lose a lot of money, or all of it? I see so many people saying they lost everything, but it looks like to me after the 180 days, you can withdraw to the bank account that was on file, add a new bank account to withdraw to, have them send you a check, or send to another PayPal account. I guess if you were using a ⊗⊗⊗⊗ name and your bank account was closed, a check might not be very useful... But you could always get a DBA to open a bank account in that name, no?

Their terms, Sec 10.3(8), allows a $2,500 fine per violation of their Acceptable Use Policy. Is this something you guys see happen, or something basically unheard of, and reserved for extreme cases like illegal drug sales?

[slokor]

The worst case scenario is they limit account then after 180 they freeze the funds until you pass their verification process.
When you signed up with you pretty much agreed to give up all your rights and if it comes to this extreme situation they know the only option you have to get your funds is the legal option. They also know that if you cannot prove that you are who you say you are they have no reason to be concerned about that option.
But this is an extreme situation for them which I have rarely seen them exercise.

[bcarneal]

Originally Posted by slokor

The worst case scenario is they limit account then after 180 they freeze the funds until you pass their verification process. . .

If you can't pass their verification process, are the funds gone?

[GreenBean]

If an account holder can not meet the requirements of paypal ID steps, funds are retained.

[ppthump]

so... if you use a stealth account you cant pass the ID check. Basically you mean that, even with a legit bank account and mailing address, if you used a stealth name and or last 4 of your LLC's EIN as contact ssn last 4 you can never recover money from the account once its limited?

[GreenBean]

Originally Posted by ppthump

so... if you use a stealth account you cant pass the ID check. Basically you mean that, even with a legit bank account and mailing address, if you used a stealth name and or last 4 of your LLC's EIN as contact ssn last 4 you can never recover money from the account once its limited?

It means that paypal can, paypal does, choose to not release funds if paypal decides the user does not meet theor standards.

I am aware of sellers whose funds were never released despite efforts to gain them.

The words are might never recover or may never recover.

[rsot]

Originally Posted by ppthump

so... if you use a stealth account you cant pass the ID check. Basically you mean that, even with a legit bank account and mailing address, if you used a stealth name and or last 4 of your LLC's EIN as contact ssn last 4 you can never recover money from the account once its limited?

You just partially answered your question right there - the goal is to operate on a level where you DON'T get asked for ID....this is possible.

A good way is to rotate with multiple accounts...

[bcarneal]

If you own John Doe LLC, and register with eBay/PayPal as John Doe LLC, real name John Doe, the LLC EIN, the last 4 of the LLC EIN as SSN, your REAL date of birth, and an address you do receive mail at... Are you going to be able to pass their ID check? If you were to send in your LLC papers, paperwork showing you owned the LLC, and your actual driver's license, would you get the money back? (Granted, now they'd have your name and address, so you'd have to burn the account, just wondering if you'd get the money.)

[bcarneal]

Originally Posted by rsot

You just partially answered your question right there - the goal is to operate on a level where you DON'T get asked for ID....this is possible.

A good way is to rotate with multiple accounts...

What triggers the ID check? (What should be avoided?) Does the 10/20k annual revenue threshold trigger it?

Are the people on eBay drop shipping Amazon prime with 100,000+ feedback able to avoid ID check, or is that inevitable? (Assuming they aren't using 5,000 PayPal accounts.)

[dealagreeproceed]

gosh some people make things so difficult.

[ppthump]

Possible loop hole: at least under california law, you dont need to file a DBA to operate under a business name containing your actual last name. And you can get an EIN for that. For instance, if you are John Smith, you could operate under "Bob Smith Plumbing" if you wanted to, have an EIN for that, and on your stealth LLC account list "Bob Smith" along with the last 4 of THAT ein for the contact. Then, if you needed to, you could present that to get locked funds released. Keep in mind, while it may be legal, were really talking about Paypal's discretion, so who knows.

[rsot]

Originally Posted by bcarneal

What triggers the ID check? (What should be avoided?) Does the 10/20k annual revenue threshold trigger it?

Are the people on eBay drop shipping Amazon prime with 100,000+ feedback able to avoid ID check, or is that inevitable? (Assuming they aren't using 5,000 PayPal accounts.)

A huge trigger to the ID check is your SALES RATE ....you can limited well before the 10/20k limit - if you can aim, to rotate weekly...or more frequently in fact.

[MM78]

Originally Posted by bcarneal

If you own John Doe LLC, and register with eBay/PayPal as John Doe LLC, real name John Doe, the LLC EIN, the last 4 of the LLC EIN as SSN, your REAL date of birth, and an address you do receive mail at... Are you going to be able to pass their ID check? If you were to send in your LLC papers, paperwork showing you owned the LLC, and your actual driver's license, would you get the money back? (Granted, now they'd have your name and address, so you'd have to burn the account, just wondering if you'd get the money.)

Look, we don't really have time to run through every scenario you come up with.......The worst case scenario rarely happens. If your this freaked out, best to work a 9-5 job and be safe.

[yankee]

Nearly all people in the USA get funds after 180 days.

Everything else is being paranoid. If you can not handle the less than 1% that never receive funds then don't use paypal..

[yankee]

This question is just like asking your doctor what the worst case scenario is for anything. The worst case is always death but almost nothing kills us. I remember getting my wisdom teeth removed and had to read and sign over and over that I understood death may occur for example.

[NewYork]

I know how many thousands of $$$ of MINE they have never released. I really wonder what the total funds they've "retained" over the years is...

[vogeltron]

Originally Posted by ppthump

Possible loop hole: at least under california law, you dont need to file a DBA to operate under a business name containing your actual last name. And you can get an EIN for that. For instance, if you are John Smith, you could operate under "Bob Smith Plumbing" if you wanted to, have an EIN for that, and on your stealth LLC account list "Bob Smith" along with the last 4 of THAT ein for the contact. Then, if you needed to, you could present that to get locked funds released. Keep in mind, while it may be legal, were really talking about Paypal's discretion, so who knows.

So thankful for the CA Law about last name in the business. Some much less hassle when I set up my EIN and got my sellers permit for the sales tax.

[oompaloompa]

never heard of any fines given out to our forumers for policy violation...

no experience of this, but on UK section I think the advice is just to wait and not submit ID, as you will get the withdrawal at 180 anyway? correct me if I am wrong....

also correction OP first post, you cannot send to another paypal at 180.

[muzzie]

If you don't have good docs - don't send them. As if they will detect that your are trying to give them cake docs - they will not release money even after 180 days. So basically if you've ran into a document request which you can't pass, just abandon the acc and you will be able to get funds back after 180 days.

[GreenBean]

Originally Posted by oompaloompa

never heard of any fines given out to our forumers for policy violation...

no experience of this, but on UK section I think the advice is just to wait and not submit ID, as you will get the withdrawal at 180 anyway? correct me if I am wrong....

also correction OP first post, you cannot send to another paypal at 180.

Inaccurate.

Purge of 2014 saw UK holders have funds kept.

[oompaloompa]

Originally Posted by GreenBean

Inaccurate.

Purge of 2014 saw UK holders have funds kept.

thanks, I was wondering this in case it happened to me to some point...

so the advice is to submit then - on balance?

I withdraw regularly, the most they would ever get off any of my accs would be a 200 if they were lucky....