A few months ago, I posted an article about Paypal Website Payments Pro Vs Authorize.Internet where I provided a detailed comparing of two different credit card processing solutions.

And almost immediately after posting it, I started receiving an abnormally large amount of email feedback from Paypal haters. In fact, I've never encountered such potent anti-feelings for any service earlier.

Having used both services in the past with no problems whatsoever, I was very surprised to hear the overwhelming negative feedback towards Paypal.

I will never utilize Paypal again. After being a loyal client for over iii years, one twenty-four hour period they decided to place a vi month concur on my money for no reason. I couldn't access over 20k in my account which I needed to pay my bills!

The above quote was just one of many emails I received in the past few months since my article went live. In the interest of full disclosure, I use Paypal Website Payments Pro to accept payments for my online store and I've never had any problems with them in four+ years.

But the fact that so many readers have such potent anti-Paypal sentiments made me a little paranoid about my concern. After all if you tin't procedure credit cards, you can't make any coin.

Paypal Horror Stories From People I Know

Most of the horror stories I've read nigh Paypal through surfing the web take to do with Paypal randomly limiting accounts or freezing funds.

Virtually of the complaints I've come beyond seem to indicate that Paypal volition rarely hold your funds for longer than 6 months, only 6 months tin can be a long time if y'all need access to your money.

And once they freeze your funds, it doesn't make sense to continue accepting coin through Paypal if you can't admission it. In other words, once your account is frozen, y'all are pretty much screwed.

All of the stories that I've read online are from people that I don't know personally or from people that I've never heard of earlier so I've been taking them with a grain salt.

However, I do accept a few fellow blogging friends that have had their accounts frozen for no reason then I asked them for their side of the story.

In both cases with my blogging buddies, they had their accounts frozen later a large product launch. For one of them, Paypal limited their business relationship by just assuasive them to process $x,000 per 24-hour interval.

The other blogger had over 40K in funds frozen for 180 days. Information technology seems as though Paypal doesn't like seeing huge spikes in coin being received into your account.

In the case of my online store, the revenue we receive is pretty steady and consistent from month to month but occasionally we get spikes of revenue when nosotros agree a sale.

So, I decided to call my dedicated account manager at Paypal to get the story straight and here's what I found out.

Editor'south Notation: Here are some Paypal alternatives in case you are fed up with Paypal.

Why Paypal May Limit Or Freeze Your Account

After talking to my Paypal rep for over xxx minutes, they reassured me that it's extremely rare that they ever identify holds on user accounts.

They likewise told me that at that place were no limits on my account whatsoever and that I could process as much money as I wanted to in whatsoever given mean solar day.

When I brought up the stories well-nigh my blogging friends and how they had their accounts frozen, the representative bodacious me that the reasons for limiting an business relationship vary greatly from user to user and largely depends on the state of affairs.

Nether the following circumstances, Paypal has certain triggers in place as a safeguard confronting fraud. Here are some reasons why some of these safeguards might be triggered

  • Yous've received an abnormally big corporeality of money in your account that is way above your average
  • Someone has filed a complaint to Paypal well-nigh your business organization
  • A serial of chargebacks have been placed confronting your account
  • Your website has questionable content
  • You lot are in violation of Paypal's use policy. For example if you sell drugs or anything illegal, yous may get banned
  • Your business relationship information is not up to engagement or your account is not fully verified
  • Someone has logged into your Paypal account from a foreign location.
  • Your credit score is depression or something with your background history makes yous a higher risk customer
  • They accept detected fraudulent activity on your business relationship.

Preventing Paypal From Ever Limiting Your Account

Towards the finish of my conversation with Paypal, they assured me 1 terminal time that only a very minor fraction of a percent of people go their accounts frozen and that accounts are rarely frozen for the total 180 days.

They also recommended the post-obit guidelines to greatly reduce the chances of this happening.

  • If y'all are expecting to receive a big sum of money, then you should call Paypal ahead of time so they expect to see the extra funds. In other words, if yous are planning a big product launch, brand sure you lot let them know alee of time
  • When y'all starting time signup for Paypal Website Payments Pro, there'southward a survey that y'all have to take. Brand sure that you cheque off higher numbers in terms of how much money you anticipate making every month
  • Contact Paypal to make sure that your business relationship is non limited in any way in terms of how much money you can accept per 24-hour interval. Sometimes limits are placed depending on various factors relating to your credit history or background checks
  • Make certain your name or the name of your business is on your Paypal account and that it exactly matches your banking concern account and credit cards.
  • Utilize the verbal aforementioned addresses and telephone numbers that lucifer your bank account and credit cards
  • E'er use trackable methods of aircraft if you ship concrete goods in example a dispute is filed against you
  • Make sure that your FEIN or social security number exactly matches the proper noun of your business on the account
  • Link both a credit card and a banking concern business relationship to Paypal

Does This Sound Like As well Much Problem?

Here'south the bottom line how I see information technology. If yous are in the business of selling informational or digital appurtenances and your revenues are extremely lumpy, and then I would go with a regular merchant account and gateway like eMerchant.

If yous have low credit scores or any history of fraud or criminal activity, and so get with a regular merchant account and gateway like eMerchant.

If you never want to bargain with the possibility of getting your account frozen or limited, so become with a regular merchant account and gateway.

The primary reason my married woman and I use Paypal is considering they offer an extremely convenient way to ship packages and accept Paypal payments with one easy to use interface. Paypal's fees are higher than a traditional merchant account but the perks are worth it for our store.

Merely if you exercise decide to get with Paypal, it'due south probably a good thought to give them a call to brand sure that there aren't whatever bogus limits on your business relationship.

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About Steve Chou

Steve Chou is a highly recognized influencer in the ecommerce space and has taught thousands of students how to effectively sell physical products online over atProfitableOnlineStore.com.

His blog, MyWifeQuitHerJob.com, has been featured in Forbes, Inc, The New York Times,  Entrepreneur and MSNBC.

He's also a contributing author for BigCommerce, Klaviyo, ManyChat, Printful, Privy, CXL, Ecommerce Fuel, GlockApps, Privy, Social Media Examiner, Web Designer Depot, Sumo and other leading business publications.

In addition, he runs a popular ecommerce podcast, My Wife Quit Her Job, which is a top 25 marketing show on all of Apple Podcasts.

To stay up to appointment with all of the latest ecommerce trends, Steve runs a 7 figure ecommerce store, BumblebeeLinens.com, with his wife and puts on an almanac ecommerce conference chosen The Sellers Superlative.

Steve carries both a bachelors and a masters caste in electric engineering fromStanford Academy. Despite majoring in electric engineering, he spent a good portion of his graduate education studying entrepreneurship and the mechanics of running modest businesses.