Got this from PMT forum:
After reading over some threads, it’s amazing the things people mention regarding paypal limitations. I use paypal on a daily basis, and have done for years – but I still hate it as a company. Unfortunately paypal has brainwashed so many people into making it seem like the ultimate payment method, it’s so widely accepted. But, looks like it’s monopolised the online payment world, so we need to get used to it.
Anyway, here are the main reasons why people get their accounts limited:
1. New accounts – All new accounts will be closely monitored, as paypal has no idea of who you really are, how reliable you are, and whether or not you are about to commit the largest fraudulent transaction in the past 20 years. If you’ve got a new account, I can’t stress enough how important it is to try and let the account mature for a little. I’ve found 30 days is always good, similar to the maturity time for eBay accounts.
2. Non verified accounts – This is a biggie. If your paypal account is not verified, please don’t think it WON’T get limited. Because it will. Any old sod could sign up for a paypal account without verifying it, so it’s the easiest money laundering trick in town. Verifying your account shows paypal you are who you are, you own the bank account and credit card, and you live in the location you specify. Those who claim they cannot verify their paypal accounts are obviously doing something dodgey. Your best bet is to verify your paypal account as soon as you open it. I find the 30 day maturity period should be after the account has been verified.
3. Physical sign up location – Always sign up for a paypal account in the country it’s registered to. For example, if your paypal address is a UK one, don’t try and sign up in the US. This will give an immediate red flag to paypal, as the two locations are immediately contradicting eachother.
4. Using a proxy - This is another big no-no. It ties in with the physical sign up location. Not only does it show you’re in a different location to where you say you are, but paypal CAN SEE it’s a proxy you are behind. After all, someone trying to hide their real IP address will immediately raise suspicion. So avoid using a proxy at all costs.
5. Free email addresses – Not a big factor, but always something to try and avoid if possible. The idea that anyone can sign up for a free email address (hotmail, gmail, yahoo, hushmail, etc) gives one of anonaminity. If you can use your ISP email, then use it. Again it helps to show paypal you live in a fixed address with an internet connection of your own.
6. Withdrawal amounts – Probably the main reason most accounts will get limited. The amount you withdraw is very important. Think, someone signs up a new account, and withdraws £1,500 in the first week. A little dodgey, don’t you think? It seems that regardless of the amount, paypal often limit on the first transaction. But for your first withdrawal, I would suggest not withdrawing more than £50. Give it a week or so, withdraw another £50, and then slowly creep up the amount by £20 or so. Likewise, don’t go from withdrawing £50, to then withdrawing £600. This again will raise a flag, and is likely to get your account limited.
Can often be a good idea to WAIT to withdraw your funds. Don’t scab them as soon as you’ve received them. Leave them in your paypal account for 2 weeks or so. This way it allows time for possible complaints to come in (which they probably won’t), allows time for any potential packages to be delivered, and makes it seem like you aren’t extremely urgent for your money. After this period is up, go for the withdrawal.
7. Linked details – Be aware – eBay and Paypal WORK TOGETHER. Any banned details (address, phone number, email address, bank details, credit card) on either ebay or paypal will always be banned. Try to use them again, and you will get a limitation. This also applies for IP addresses. Be sure you are not accessing your paypal account from an IP address linked to a suspended ebay or paypal account. If you’ve been previously suspended by paypal, don’t even bother trying to sign up again. You will have to get a friend or family to sign up for you instead.
8. Constantly changing details – Changing your details is offering your account for a rescreening. If you change your bank details, address, or credit card details constantly, this will ertainly arouse suspicion. Your account will then get limited so you can re-verify these details. The odd change won’t harm, but be sure not to go overboard.
9. Complaints – Any complaint is not good news. If you have any outstanding complaints on your account, be sure to resolve them within due course. If you have several outstanding complaints, and you try to make a withdrawal – it’s likely you will get a limitation. For all paypal know, you could need to refund £400 worth of payments, and you try to withdraw, and bugger off with the funds. It’s not going to happen. Clearly not getting any complaints in the first place will be the easiest thing, but if you do, resolve them as quickly as possible.
Well, these are the main reasons why your account will get limited. Try and follow these guidelines, and it will certain decrease the chances of your funds being frozen. But, please let me say the following things:
The only way to unlimit your account is to provide paypal with the documents they ask for. Don’t beat around the bush or make excuses.
Don’t have receipts or invoices as a proof of purchase for your item? Don’t worry. Take a photo of your outstanding stock, and they can verify this stage with such photos.
Well, that’s about it. Thought I’d share this as so many people were coming out with odd things about why their account was limited. And one more thing. I’ve learnt this stuff from PAST EXPERIENCE, hence the reason I know it’s all valid information. Ignore it if you wish, I’m just offering a helping hand.
Personally, based on some personal and other friend’s collective experiences, these are some more tips:
10. Do not send/withdraw EXACT AMOUNT of what you have just received IMMEDIATELY.
11. Do not leave your PayPal with ZERO BALANCE always.
12. Always be specific. Write in the “SUBJECT” line the purpose of sending the funds.
13. Never “test send” with PayPal funds. If there’s a surefire way of getting your PayPal account get limited, then this is it! DO NOT ATTEMPT to send anything like 1 usd to someone and ask him to send it back to you at once.
14. Refrain from accepting funds from UNVERIFIED PAYPAL accounts. 7 out of 10 times, the funds will be questioned and put on hold by PayPal. This is in relation to Tip#2 – Non verified accounts, and this indeed is a biggie!
But, don’t worry, usually, when your account is put on “limit” status, PayPal will usually ask for verification again, and in less than 24hours, your account shall be restored. UNLESS, if you have received fraudulent funds.