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What are Account Limitations?
Account limitations prevent you from completing certain actions with your account, such as withdrawing, sending, or receiving money. These limitations are implemented when we see unusual or suspicious activity to help protect both PayPal buyers and sellers. Limitations also help us collect information necessary for keeping your account open, and they help ensure our customers are protected.

 

Let’s take a closer look at limitations by exploring what might prompt them and how they could affect you.

What might cause a limitation?
There are a number of reasons why your account could be limited. For instance, if we suspect someone could be using your account without your knowledge, we’ll limit it for your protection and look into the detected fraudulent activity. We’ll also limit your account if your debit or credit card issuer alerts us that someone has used your card without your permission. Similarly, if your bank lets us know that there have been unauthorized transfers between your PayPal account and your bank account, your PayPal account will be limited.

In other cases, your account could be limited in order to comply with regulatory requirements. For example, requesting certain products, like a debit card, can trigger federal and state laws, and we may limit your account while we work together to satisfy those requirements. Likewise, if you’re not in compliance with our Acceptable Use Policy, you’ll find that your account has been limited. Selling banned items such as prescription drugs or guns is an example of a violation of the Acceptable Use Policy.

Another reason why your account could be limited is seller performance indicating your account is high risk. For example, receiving an elevated number of claims and chargebacks from your buyers is an indication of poor seller performance. If you start selling an entirely new type of product, such as a higher-cost item like jewelry, or if your typical sales volume increases rapidly, your account may be limited while we do a review.

How does the limitation impact your account?
If your account is limited, you’ll most likely be unable to send or withdraw money, and you might find that you can’t accept payments or add money to the account. In some cases, you might get a warning via email or on the account overview page before a limitation goes into effect. If you log in to PayPal and address this warning when prompted, you may be able to prevent the limitation.

What to do if your account is limited
To lift a limitation, you usually need to provide information to PayPal. We’ll email you and ask you to go to the Resolution Center to learn exactly why your account has been limited. Take a look at the details about the limitation and provide any requested information quickly. PayPal will review the information and will usually respond within 24 to 72 hours. If we request more information, continue to respond promptly to speed up the resolution process. Some limitations can even be lifted without a review. For instance, you may simply need to change your security questions and password. 

Why did PayPal ask me for this information to remove my limitation?

For more information about limitations in general, read our article on preventing and resolving limitations.

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This article is one of many resources PayPal provides to help businesses of all sizes. Content and opinions expressed in this article do not necessarily represent the standpoint of PayPal.