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  1. #1
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    Anyone Experienced Paypal Account Being Frozen?

    Hi,

    I've been hearing a lot of those paypal stories about the account being frozen if they noticed a suspicious activity or high-risk? I'm really worried right now, my account is still active, but I might experience that as well in the near future.

    Why?

    Right now, if I can show you, the activity in my account is normal. Everyday the amount of money coming in are $7, $10, $12, sometimes only $4, that's the everyday activity and that's normal. However, I'm about to launch my next product which sells for $47 and there's also a back-end product which sells for $97. I currently have several JV partners with over thousands of subscribers on their list ready to launch an email once the product is live.

    My worry is, if the sales start to come in and they noticed that all of a sudden I have huge amount of money coming in to my Paypal account, they might freeze my account as well. I've been hearing stories that the money will just be frozen and can't be withdrawn for several days, weeks, or even months, I'm not sure. Of course, I don't want that to happen because this would be my first major product launch, and I want to feel the money, feel how really is earning big money online.

    On a daily basis, I'm averaging around $7-$10 coming in to my Paypal right now, but once the product launch came, I'm expecting thousands of dollars to my account all of a sudden because of my JV partners with huge subscribers base as well.

    I'm afraid that it might happen to me also, and of course I don't want that. Any advice here? What should i do if ever that happens? I've also heard from others who experienced this horrible Paypal story, that they were really had a hard time on this, some of them were not able to get their money once it's being frozen.

  2. #2
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    Is your account business or personal? I have a business account and have never experienced any of the problems you've described (let alone heard about them).

    I can see, however, that if it was a personal account you may be more likely to have Paypal freeze your account. If the transactions are legitimate and not being contested, i can't see their being a problem.

    Why not contact Paypal directly to enquire about the issue? I'm sure they'd provide a more in-depth response than anyone here.

  3. #3
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    Quote Originally Posted by OliverG View Post
    Is your account business or personal? I have a business account and have never experienced any of the problems you've described (let alone heard about them).

    I can see, however, that if it was a personal account you may be more likely to have Paypal freeze your account. If the transactions are legitimate and not being contested, i can't see their being a problem.

    Why not contact Paypal directly to enquire about the issue? I'm sure they'd provide a more in-depth response than anyone here.
    Thanks for the suggestion. I have a premier account and it was verified. That's also the suggestions that I'm getting from other forums as well.

    Thanks

  4. #4
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    When i received a payment that was over $1000 before, i had to do something, didn't take long, was just to do with the money laundering prevention things that they have in place.

  5. #5
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    As starbar said, maybe they'll ask you some extra-details; some months ago same thing happened to me, was verified and so on but they required some extra bills, some papers from the bank and so on.
    But good luck with your product, you seem quite positive about its success rate.

  6. #6
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    Get yourself a business account and you won't have problems with huge transactions on Paypal.

  7. #7
    SitePoint Zealot Tiger_Tom's Avatar
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    http://www.paypalsucks.com/ Dunno how current its info is. Just don't leave a lot of money on deposit with PayPal or in any account attached to it.

  8. #8
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    As a precautionary measure, it's always better to transfer the amount once you have reached a threshold point rather than keep it in Paypal. Though I haven't faced any problem on Paypal yet but as Tiger_Tom said - ..."Just don't leave a lot of money on deposit with PayPal or in any account attached to it" coz if something goes wrong, you will be in soup.

  9. #9
    Love *********'s Forum ep2012's Avatar
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    I was going to show you that site too, but Tiger Tom beat me to it

    Pay Pal freezes accounts for whatever reason they want, they also side with one party over another in a dispute for no logical reason at all.

    I don't trust them & never will.

    I now use Alert Pay - http://www.alertpay.com/?1654 & so far so good. They don't even allow chargebacks, but you should read their TOC b/c there are times when they will.

    I've been supporting them since I joined them about 3 years ago I think it's been now.

    All the best with your new product


    Michelle

  10. #10
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    Thanks for all your suggestions. Maybe it's good not to keep a lot of funds in my Paypal account once the sales start coming in.

  11. #11
    Follow: @AlexDawsonUK silver trophybronze trophy AlexDawson's Avatar
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    regska, I don't know how helpful this is to you but I'll go ahead: I own a PayPal Payments Standard business account that's verified and even I've had an issue in the past where I had to go to the resolution center to get my account back to normal (it was to-do with where I got a payment from). Unfortunately because sites like PayPal, Amazon Flexible Payments and Google Checkout are not regulated and their terms and conditions allow them to-do whatever they want, you can't really deem them as trustworthy beyond doing their job (as an intermediary body). My advice is to keep payments in the account for a period of 30 days (if you're selling goods) and post that period for refunds, transfer the amount to your bank account - or if you're getting paid on a per project basis (for large sums of money) transfer the money out at the end of the month. The key to using PayPal is minimizing the risks, PayPal are a fantastic service and do the job (IMO) better than anyone else, their API is easy to use, their rates for taking money is pretty competitive and their well trusted by the average consumer. Their main problem is in the instability of not being regulated and having the right to stop all activities related to an account without notice - therefore, I recommend using the account as a "storage" container for your money as it comes in, and shifting the money out within a reasonable period to a safer location where account freezes won't hold your own money from you.

  12. #12
    SitePoint Member PoweredBynFusion's Avatar
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    I have an online store with a paypal merchant account, started from day 1 collecting large amounts 3-7k per day in sales. It took paypal no more than 3 weeks for a paypal account manager to contact me personally about the volume of $. He told me that they were worried about charge backs even though i never had 1 and setup a sort of saving account within paypal for 2.5% of the daily sales total, which was held in the account for 90 days and then released. Better than freezing it that's for sure.

  13. #13
    Makin' It Happen bgray's Avatar
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    This has happened to me twice after sending and receiving large payments. It is super annoying to get frozen and have to jump through their hoops. I understand they are just trying to avoid a big loss the process could be a lot more refined. They make me feel like a criminal and I've been with them for 11 years with hundreds of transactions.
    I run an insurance company directory at InsuranceCompanies.net

  14. #14
    SitePoint Member PoweredBynFusion's Avatar
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    Quote Originally Posted by bgray View Post
    This has happened to me twice after sending and receiving large payments. It is super annoying to get frozen and have to jump through their hoops. I understand they are just trying to avoid a big loss the process could be a lot more refined. They make me feel like a criminal and I've been with them for 11 years with hundreds of transactions.
    They're a normal run of the mill national bank, it doesn't matter that you've been with them for 11 years, to the person looking at your account, you're just 1 of some 211,000,000 members they advertise they have now. If your account looks like it could at all be a risk, expect them to intervene

  15. #15
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    Quote Originally Posted by AlexDawson View Post
    regska, I don't know how helpful this is to you but I'll go ahead: I own a PayPal Payments Standard business account that's verified and even I've had an issue in the past where I had to go to the resolution center to get my account back to normal (it was to-do with where I got a payment from). Unfortunately because sites like PayPal, Amazon Flexible Payments and Google Checkout are not regulated and their terms and conditions allow them to-do whatever they want, you can't really deem them as trustworthy beyond doing their job (as an intermediary body). My advice is to keep payments in the account for a period of 30 days (if you're selling goods) and post that period for refunds, transfer the amount to your bank account - or if you're getting paid on a per project basis (for large sums of money) transfer the money out at the end of the month. The key to using PayPal is minimizing the risks, PayPal are a fantastic service and do the job (IMO) better than anyone else, their API is easy to use, their rates for taking money is pretty competitive and their well trusted by the average consumer. Their main problem is in the instability of not being regulated and having the right to stop all activities related to an account without notice - therefore, I recommend using the account as a "storage" container for your money as it comes in, and shifting the money out within a reasonable period to a safer location where account freezes won't hold your own money from you.
    I really appreciate your response and for sharing your experience about Paypal.

  16. #16
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    Quote Originally Posted by PoweredBynFusion View Post
    I have an online store with a paypal merchant account, started from day 1 collecting large amounts 3-7k per day in sales. It took paypal no more than 3 weeks for a paypal account manager to contact me personally about the volume of $. He told me that they were worried about charge backs even though i never had 1 and setup a sort of saving account within paypal for 2.5% of the daily sales total, which was held in the account for 90 days and then released. Better than freezing it that's for sure.
    That is some awesome amount of daily income! If I was also earning that kind of amount on a daily basis it would be ok for me if they want to hold it, as long as I'm sure that my money is safe and they are just doing it for security. What really sucks is if you don't get your money, and the freezing of your funds is permanent.

  17. #17
    SitePoint Guru SSJ's Avatar
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    I'll prefer to use Business account if you are going to make bigger transactions...

  18. #18
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    Not me, but if you are going to have more transactions and bigger transfers of money, switch to a business account, and that will solve the issue.

  19. #19
    Love *********'s Forum ep2012's Avatar
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    No it won't, unless things have changed, I had a verified account (which is the same as a biz acct. if I'm not mistaken) & they still froze my money.


    Michelle

  20. #20
    SitePoint Zealot metho's Avatar
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    "Pay Pal freezes accounts for whatever reason they want, they also side with one party over another in a dispute for no logical reason at all."

    That's a little over the top! A verified personal account is not the same as a premier or business account. PayPal's product disclosure statement clearly says that if a personal account appears to be conducting business transactions, it will be frozen and the account holder forced to upgrade to a premier or business account.

    This is perfectly justified in my opinion. People who use PayPal to dodge income tax deserve a lot worse than a frozen account.

  21. #21
    Love *********'s Forum ep2012's Avatar
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    ? Who said I was using a personal account & who said I was dodging income tax?


    Michelle

  22. #22
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    Thanks for your helpful replies guys! I will let Paypal know that I'm going to have a product launch soon and expect to have an influx of funds in my Paypal account, and hopefully they won't freeze my account if I inform them in advance.

    I can definitely fix that issue in case I encounter that, but I'm trying my best to just avoid all the hassles when they freeze my account.


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