by PayPal needs no introduction. It is used by millions of people and businesses to send and receive funds the world over. If you shop online or work online, you might be already using PayPal. PayPal is the safest and the most secure payment gateway. However, this is not always true. Sometimes your personal or business account could be frozen, limited, or even banned.
Recently, I read in this forum that a user was banned for receiving payment from an autosurf site (if you want to know what autosurf site is check this post viewtopic.php?f=67&t=24123). I checked online to see whether your account can be banned just for receiving payment from a certain site or a company. Looks like this can happen. I discovered a post on Medium where the writer stated that his account was frozen for receiving payment from this client. The writer has backed his statements with screenshots. You can check the article here https://medium.com/@puntofisso/paypal-c ... pen-to-you
While doing some research on the reasons why PayPal bans your account, I came across news related to the ban on PayPal account of Hacker News, a cybersecurity magazine. The news quoted Hacker News saying “PayPal banned our account without any explanation.” You can read the full statement here https://twitter.com/TheHackersNews/stat ... 1995860992
A couple of months ago, I started using Adhitz ad network for my blog. I read a post on Adhtiz blog that said PayPal has banned their account, therefore, they are unable to use PayPal as a payment option for the advertisers and publishers.
If you check the issue of PayPal ban on the internet, you will come across numerous horror stories. Some of the people claim that their account is lost forever and some people say that they were able to use the account after 180 days.
Generally speaking, PayPal can limit or freeze your account if it detects suspicious activities. The suspicious activities include but not limited to sending and receiving funds from businesses and individuals that are engaged with fraudulent business, using fake identities, involved with scams, there is unauthorized access in your account, there are many claims and chargebacks on your account, too many transactions in a short time, transactions involving a lot of money, your account is not up to date, fraudulent activity is detected in the account etc.
Sometimes your account is frozen for 45 days or even 180 days and the limitation will be lifted. Sometimes you are given a chance to resolve the issue, however, sometimes there is a permanent ban and your funds will be ceased. This is similar to the bank closing your account if you are involved with suspicious activities. In most cases, PayPal will never give you specific reasons for ban or account limitation.
Normally, PayPal does not do business with the companies/websites/merchants that are involved with a business model that is not trust worthy, High Yield Investment Programs or Paid To Click websites for instance. However, PayPal can also restrict account without any valid reasons.
PayPal is not a bank, it is described as “Deposit Broker.” A deposit broker is a company that collects money from the users and invests the money in liquid investments. PayPal makes money out of these investments.
