PayPal Limitation

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Feb 12, 2020
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I have been a member in good standing with E-Bay and PayPal for over 30 years combined. Over 200 perfect transactions, not one problem until my last purchase. I bought a watch online and used PayPal. The watch was a fake. I immediately called PayPal for advice on how to rectify the problem. The PP rep was great telling me not to panic as she could open a claim immediately to get my money back. I had never filed a claim and the rep made it easy. After a month or so I received confirmation from PP that my claim was successful and my money was returned. Not long after that I received an e-mail from PP that my account was, what they call, "limited". I called PP and was informed that my PP account was limited for LIFE. Yes one claim, limited forever. I have never been late with a payment in my whole 61 years on this planet, I have paid my house off and have the highest credit rating my bank manger has ever seen. For those of you who use PP and have never had a problem let me explain further what this limitation does to your life. PP does not cancel your account, they keep it active but unusable so your credit card cannot be used with any online purchases that deal with PP. Also, they prompt you online to provide information to resolve your "limitation" but never tell you the reason for your "limitation" so you have no idea what to provide. During the many conversations I have had with PP staff I have learned that they have linked me to another account. I surmise that it is my son who shares my address even though he attends university in another city. My son has had hundreds of transactions through PP and he does purchases with many third world countries. So he has had quite a few claims, all legitimate. So he also was "limited" for life. I always thought PP would limit those who rip people off online and reward those like my son who help identify fraudsters. Nope. I hope someone can offer guidance on this issue as it is driving me loopy. As I stated, I have lived my life honorably serving as President of our local Chamber of Commerce, 10 years as Mayor of my community, Board member of our local Hospital and Police Services Board. These big companies are pushing us to online purchasing yet treating us like crap with no means to resolve issues. I have become a percentage person. You may be next.
 
Sep 19, 2015
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PayPal likely lost money on the transaction. They may find it financially unrewarding to keep people as customers who purchase from dubious sellers. PayPal may not be able to claw back the money from the seller?

May I ask why you and your son are buying items that have a high degree of being fakes from unknown sellers or so called “third world” sellers? And then be shocked when sold a fake Rolex or Apple Watch or whatever. Was the price too good to be true or the thought that one was getting a “deal”? Why not buy local or from a trusted seller — especially as a former President of a Chamber of Commerce?

You can write to the PayPal contacts.
 
Feb 12, 2020
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PayPal likely lost money on the transaction. They may find it financially unrewarding to keep people as customers who purchase from dubious sellers. PayPal may not be able to claw back the money from the seller?

May I ask why you and your son are buying items that have a high degree of being fakes from unknown sellers or so called “third world” sellers? And then be shocked when sold a fake Rolex or Apple Watch or whatever. Was the price too good to be true or the thought that one was getting a “deal”? Why not buy local or from a trusted seller — especially as a former President of a Chamber of Commerce?

You can write to the PayPal contacts.
Hi Christina. Thank you for your comment. First as I stated I have had one claim with over 200 transactions.........I did not know of my sons claims as he lives in a different city while he is in school.I can not comment for my son. Having read other streams it seems quite common to get ripped off from some of the same countries. I have purchased expensive items in the past with no problem. Your comments Kind of make it sound like I did something wrong. I ask you to phone into any PayPal phone number and listen to there sales pitch. They push their purchase protection as the primary reason to use them. Now when a seller lists an item at a low low price you would think they would catch that before a purchaser gets ripped off. The item I purchased was not ridiculously low. Do you not really feel that I deserve a lifetime ban ?, and please do not mix my son's account with mine. Thanks again....
 
Feb 12, 2020
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Have you considered that it was your son's activity that triggered the limits on your Paypal account, since his was linked to yours, and that the timing of your previously filed claim was a coincidence?
Hi Ras. I don't even know why I was limited, PP won't clearly identify the issue. When you say linked accounts let me be clear. I have nothing to do with my son's account and he has nothing to do with mine. He has lived in another city for the past few years attending university. I should not have mentioned my son and his account as I don't even know if that is the issue. I am guessing. The one thing I can assure you is that I have had one sour deal in 30 years (combined, E-Bay and PP) and over 200 perfect transactions, I have a 100% feedback rating with E-Bay.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
22,908
22,856
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www.promalvacations.com
This might help:


Your claim at your home address might have them correlating your account with your son's - if he has a lot of claims - and they may not want to do business with you due to too many claims. Even if they aren't all yours.

There are instructions in that on how to appeal.
 
Feb 12, 2020
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This might help:


Your claim at your home address might have them correlating your account with your son's - if he has a lot of claims - and they may not want to do business with you due to too many claims. Even if they aren't all yours.

There are instructions in that on how to appeal.
Hey Neil. You have identified my problem exactly. If you had a child who committed a crime should you receive the same sentence they do because they live at your residence. As for using PPs limitation appeals process it is useless. First off they will not tell you why you have been limited, so how or what are you appealing. In my case when I try and access the page all I get is a large symbol with a write up telling me I can never use PP again. I don't even know for sure if my son is the reason for my limitation. I want you to fully understand that the limitation will affect me for the rest of my life as PayPal does not close your account. So your credit card is unusable for sites like E-Bay and others. I used E-Bay for years without PP with no problems. PP came along promising buyer protection so I joined, now they control my credit card for life. Is that right ? In a world moving to online shopping and PP being the dominate source of payment I am in trouble for ever because of one claim. This from a company who's entire sales pitch is we protect you from fraud......The part that really bothers me is that PPs rep told me to file the claim !!!!!
 
Feb 12, 2020
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Have you considered that it was your son's activity that triggered the limits on your Paypal account, since his was linked to yours, and that the timing of your previously filed claim was a coincidence?
This might help:


Your claim at your home address might have them correlating your account with your son's - if he has a lot of claims - and they may not want to do business with you due to too many claims. Even if they aren't all yours.

There are instructions in that on how to appeal.
None are mine but one..........PayPal's entire pitch is BUYER PROTECTION..........I'll say it again I had one claim.......Should that be a LIFETIME BAN..?
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
22,908
22,856
113
New York
www.promalvacations.com
We have company contacts for PayPal. I think you should give them a try.


Here is how to create a paper trail by writing.

 
May 30, 2019
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Do you not really feel that I deserve a lifetime ban ?, and please do not mix my son's account with mine.
This forum is about supporting self-advocacy, not judging.

This is difficult to write as I don't know you and I don't know your family relationships. Noting that ...
It may behoove you to have a careful, thorough conversation with your son regarding PP use as well as other purchase activity on the card before pressing further. Make sure you have all the facts before you challenge.

It would also behoove you to stick to facts relevant to the business relationship with PP. You might be venting in this forum by sharing your political & professional history, but that has minimal relevance to PP's fraud/security department.

And there are alternatives to PP for purchases, even with eBay. (Also, if you were referring to having been an eBay seller when mentioning your eBay rating, keep in mind that there could be something in your selling transactions that have sparked their interest.)

As you move up the chain per @Neil Maley, I hope this frank feedback helps.
 
Sep 19, 2015
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Hi Justice League sorry if I sounded harsh, but it is frustrating to see how many people are taken in by Nigerian princes, the pay your tax bill by gift card scam or too good to be true web offerings.

PayPal may be acting like some insurance companies do — deciding claims were too high in one region (ie your address) and pulling out of or limiting that market.

I have bought on eBay— but no high value items (jewelry, electronics, watches etc). It is too easy for scam sellers to appear and disappear and take the money.

If PayPal is left covering the loss and it is significant the X amount of years of getting a modest transaction fee may not cover the loss and PayPal may not want to keep paying out over people being gullible— and that is a business decision— if a customer is a money losing proposition that customer may be fired— even if the seller is ultimately at fault PayPal does not want to keep paying for customer’s lack of due diligence.
 
Dec 19, 2014
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110% agree with Skippy.

This forum is about self advocacy. We tolerate a certain amount of venting, because we understand the frustration. You seem to be rationalizing that your Paypal account was limited because of a single transaction. Often, there is more to the story. I can assure you that many customers have filed a successful claim (or multiple successful claims) WITHOUT having their accounts limited. So, there is more to the story. Some of the advocates have offered possible explanations, and Neil has offered the solution.

Paypal has their algorithms to determine who they want to do business with. For whatever reason, they have deemed you to be a high risk customer. This is common in all aspects of business. Auto insurance companies can drop you. Home owners insurance can drop you. Retail companies may refuse to accept returns (see The Retail Equation). Paypal is not the only game in town. I have never used Paypal (don't even have an account) and have made hundreds of internet transactions.

One final thought. Paypal may not be using your address per se, but could be associating your account with an IS address and other household activity may play a role in your "punishment."

good luck
 

mmb

Verified Member
Jan 20, 2015
1,267
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NAPLES FL or Denver CO
Sounds to me like the issue is that your son uses your address but lives in another city.
Is there a reason for that ? Why doesn’t he state his address and have it verified.
If he uses your address on his account, but then has items shipped to another address (is that other address verified) and/or has several claims against Sellers, for which PP then has to pay, then they are most certainly going to look at you as part of this scheme.
There are good reasons for linking accounts, but it doesn’t sound like your accounts are linked. You both just have the same address. If he is having his purchases sent to your address, then that again puts you in the middle of his messes.
I can assure you that your one Claim did not result in your sanctions.
The problem lies elsewhere.
 
Feb 12, 2020
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Sounds to me like the issue is that your son uses your address but lives in another city.
Is there a reason for that ? Why doesn’t he state his address and have it verified.
If he uses your address on his account, but then has items shipped to another address (is that other address verified) and/or has several claims against Sellers, for which PP then has to pay, then they are most certainly going to look at you as part of this scheme.
There are good reasons for linking accounts, but it doesn’t sound like your accounts are linked. You both just have the same address. If he is having his purchases sent to your address, then that again puts you in the middle of his messes.
I can assure you that your one Claim did not result in your sanctions.
The problem lies elsewhere.
Thank you for your post. My son attends University in another city and has an apt there for the past 4 years. He does however get his purchases sent to our home address, this is his home unless he finds employment elsewhere after he graduates.
PayPal take a fee from every purchase or sale you conduct through various sites. For that fee they offer buyer protection and a convenient way to pay. That is why I chose to do business with them. Having a 30 year combined relationship with PP and E-bay and over 200 flawless transactions (zero claims) I had no experience going through a claim process. When my purchase arrived it did not take long to see it was a fake item. I immediately called PayPal to see what my options where. I got a very nice lady who reassured me not to worry and told me she would open a claim while we spoke. The claim was filed and I received notice a few weeks later that it was successful and the funds where returned to my account. A few weeks after that I received an e-mail from PP informing me that my account had a limitation placed on it, no explanation. After a couple of calls to PP I learned the limitation was for life. Since then I have spent countless hours on the phone with different PP reps trying to get answers regarding the how and why of my limitation. Twice I had reps tell me the limitation would be lifted, never happened. So I kept calling trying to get a smidge of information each time as they will not tell you much. So they directed me to send a letter to a PP California US office explaining my situation. I did that and did not even receive an acknowledgement that they received it. I was also to to read the PP user agreement and I did. The agreement states if you have multiple claims your account may be limited, I had one. I also learned that if your claim is over $3,800 your account may be limited. My claim was under $3,800. In my original post others have commented that I may be venting a bit to much, all I can say is that if you spent as much time as I have on this matter with no success you may vent a bit to. The process is terrible.
So everyone fully understands the position a PP limitation has on your future online life.......PayPal will place a limitation on you for life and will not CLOSE your account. So your credit card is flagged for life, PP still sends me e-mail's regularly requesting me to update my information and credit cards. If PP chooses to limit me for life so be it, but please close my account so I can use my credit card for e-bay and other sites. I hope this explains a little better than my original post.
 
Feb 12, 2020
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110% agree with Skippy.

This forum is about self advocacy. We tolerate a certain amount of venting, because we understand the frustration. You seem to be rationalizing that your Paypal account was limited because of a single transaction. Often, there is more to the story. I can assure you that many customers have filed a successful claim (or multiple successful claims) WITHOUT having their accounts limited. So, there is more to the story. Some of the advocates have offered possible explanations, and Neil has offered the solution.

Paypal has their algorithms to determine who they want to do business with. For whatever reason, they have deemed you to be a high risk customer. This is common in all aspects of business. Auto insurance companies can drop you. Home owners insurance can drop you. Retail companies may refuse to accept returns (see The Retail Equation). Paypal is not the only game in town. I have never used Paypal (don't even have an account) and have made hundreds of internet transactions.

One final thought. Paypal may not be using your address per se, but could be associating your account with an IS address and other household activity may play a role in your "punishment."

good luck
Hi Chris. Thank you for your post.
110% agree with Skippy.

This forum is about self advocacy. We tolerate a certain amount of venting, because we understand the frustration. You seem to be rationalizing that your Paypal account was limited because of a single transaction. Often, there is more to the story. I can assure you that many customers have filed a successful claim (or multiple successful claims) WITHOUT having their accounts limited. So, there is more to the story. Some of the advocates have offered possible explanations, and Neil has offered the solution.

Paypal has their algorithms to determine who they want to do business with. For whatever reason, they have deemed you to be a high risk customer. This is common in all aspects of business. Auto insurance companies can drop you. Home owners insurance can drop you. Retail companies may refuse to accept returns (see The Retail Equation). Paypal is not the only game in town. I have never used Paypal (don't even have an account) and have made hundreds of internet transactions.

One final thought. Paypal may not be using your address per se, but could be associating your account with an IS address and other household activity may play a role in your "punishment."

good luck
110% agree with Skippy.

This forum is about self advocacy. We tolerate a certain amount of venting, because we understand the frustration. You seem to be rationalizing that your Paypal account was limited because of a single transaction. Often, there is more to the story. I can assure you that many customers have filed a successful claim (or multiple successful claims) WITHOUT having their accounts limited. So, there is more to the story. Some of the advocates have offered possible explanations, and Neil has offered the solution.

Paypal has their algorithms to determine who they want to do business with. For whatever reason, they have deemed you to be a high risk customer. This is common in all aspects of business. Auto insurance companies can drop you. Home owners insurance can drop you. Retail companies may refuse to accept returns (see The Retail Equation). Paypal is not the only game in town. I have never used Paypal (don't even have an account) and have made hundreds of internet transactions.

One final thought. Paypal may not be using your address per se, but could be associating your account with an IS address and other household activity may play a role in your "punishment."

good luck
Hi Chris. Thank you for your response. I agree with your post. 2 points I would like to make. First is PayPal does not disclose why they limit an account. So without disclosure it is difficult to present a case to defend yourself. Secondly when your account is limited by PP it is not closed. This creates a problem when trying to purchase from E-Bay. Amazon works fine but E-Bay does not. Having spoken with E-Bay I understand they are going to launch their own payment platform in the next year or two. I used E-Bay quite a bit with 200 flawless transactions and a 100% rating. I agree that Insurance company's and others can cancel anyone at anytime, but they do not keep your account open. Keeping your account open may stop one from seeking other sources to purchase products or even affect ones credit rating.
Sorry Chris I am not real tech savvy, what is an IS address? Once again thank you for your help.
 

justlisa

Feb 12, 2019
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If all you've done is call and send something through the mail, you still have the option to follow the Elliott way and go through their email contacts. It may be fruitful or it may not.

Since both you and your son ship to the same address I still think there might be something in PayPal's algorithms that look not just at account but also address. Especially since his was limited too.

I'm still totally confused on your complaints regarding your credit card is flagged for life and cannot be used. While I have a PayPal account I've only used it for transferring money between family/friends so I never tied a credit card to my account, so I can't say I have experience in it. Could you not just ask the issuing bank of your credit card to give you a new account number and then as long as you don't update it in your PayPal account the new number wouldn't be associated with your PayPal account.
 
Feb 12, 2020
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If all you've done is call and send something through the mail, you still have the option to follow the Elliott way and go through their email contacts. It may be fruitful or it may not.

Since both you and your son ship to the same address I still think there might be something in PayPal's algorithms that look not just at account but also address. Especially since his was limited too.

I'm still totally confused on your complaints regarding your credit card is flagged for life and cannot be used. While I have a PayPal account I've only used it for transferring money between family/friends so I never tied a credit card to my account, so I can't say I have experience in it. Could you not just ask the issuing bank of your credit card to give you a new account number and then as long as you don't update it in your PayPal account the new number wouldn't be associated with your PayPal account.
Hi Nancy. Thank you for your response. I agree that my next step will be to use the Elliot e-mail contacts. Once again thank you for that. The credit card thing in my case relates to E-bay. I have tried to make purchases from E-Bay since my limitation was imposed with no luck . So if you are selling an item and I want to buy it my options are PayPal and Credit Card. Because my card is registered with PP it automatically declines my card. I am terrified to use another card as PP may somehow limit that card. I don't want to paint myself into a corner. As for getting a new card number please consider it would still be in my name with my address. Since I am not 100% sure why I was limited it makes sense that it probably has something to do with PPs software. My thought is that if I use another card the PP Algorithm will attach it's self to that card making things even tougher for me. The point being that even though PP limits one for life they keep your account open even if you ask them to close it. I still get all the e-mails and updates from PP like nothing ever happened.
 

mmb

Verified Member
Jan 20, 2015
1,267
1,434
113
NAPLES FL or Denver CO
Hi Nancy. Thank you for your response. I agree that my next step will be to use the Elliot e-mail contacts. Once again thank you for that. The credit card thing in my case relates to E-bay. I have tried to make purchases from E-Bay since my limitation was imposed with no luck . So if you are selling an item and I want to buy it my options are PayPal and Credit Card. Because my card is registered with PP it automatically declines my card. I am terrified to use another card as PP may somehow limit that card. I don't want to paint myself into a corner. As for getting a new card number please consider it would still be in my name with my address. Since I am not 100% sure why I was limited it makes sense that it probably has something to do with PPs software. My thought is that if I use another card the PP Algorithm will attach it's self to that card making things even tougher for me. The point being that even though PP limits one for life they keep your account open even if you ask them to close it. I still get all the e-mails and updates from PP like nothing ever happened.
@Justice League -
I’m really inotsure of your belief that PP has impacted your credit card in any way besides not allowing you to make an eBay purchase and then pay with the card.
what they have advised you is thst
your account is limited and so I would surmise that means you simply cannot use your account at all right now.
It is hard to understand why they don’t just close your account and so I’m wondering if maybe you don’t have a firm grip on what this limited account means.
Did they explain the ‘limitation’ to you ? Does it expire at some time in the future ?
Perhaps you could copy the PP correspondence here on the Forum so we can try to understand what is going on.
I had a very similar experience in that I bought two items from one seller on Etsy and shortly after the purchase I was unable to contact that seller through Etsy.
the whole listing had just disappeared although the purchases were still on my account and I had paid for them with Paypal
Etsy was unable or unwilling to help me and so I went directly to PayPal and filed the claim. one item had cost $250 and the other item had cost $300. PP helped me file the claim over the phone just like you and I also won that claim and my CC debits were then credited to my account.
For me - end of story.
From all other research I have done it seems that the limitation is temporary and you should be able to go the the PP OR eBay resolution center and follow the directions to clear your account.
the other possibility is that the email you received was phishing and you may have given the sender access to your account if you used a link in the email to sign into your account.
have you checked your eBay account to see that all is in order there ?
 
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Feb 11, 2020
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@Justice League
I am familiar with eBay and PayPal limitations. Since you and your son use the same ship to address, they make the leap to assume your and your son‘s accounts are more than causally linked. It happens to people who use a restricted person’s internet connection to log onto their account. With your background, I’m sure you know how IP addresses work and how easy they are to trace.

Your credit card should not be affected in the least. If you really are concerned about it all you,have to do is go into your account settings and delete that credit card from your account.
 
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