3 Main Causes of PayPal Account Limitation

Most of the internet marketers and freelancers use PayPal account to send and receive money worldwide. However, a PayPal account may get limited due to a number of reasons. It can happen to anyone and thus if you want to remain on the safer side, you need to be aware about the common reasons behind the PayPal account limitations. This post is all about the common mistakes by freelancers and bloggers and that can get their PayPal account limited.  It also covers the steps that one needs to take in order to get the matter resolved so as to use the account properly.

Causes of PayPal Account Limitation

Here are some of the common reasons that can get your PayPal account limited:

1)   If you have a personal account and the number or value of transactions increase suddenly, it can raise alarms for the PayPal employees. There is no exact value or threshold but on an average anything over $500 or so can cause a limitation. You should always remember that a personal account is not for making business transactions. It should be used simply for buying items online or sending gifts to friends and family. However, some users try to use the personal PayPal account for business purposes in order to save transaction fees. Sooner or later such accounts do get limited and thus it is better to upgrade to a business account if the value of transactions has increased in the PayPal account.

2)   Another reason that can cause an account to get limited is when a number of buyers put charge backs against you. In this case, it gives an indication to PayPal that you are using the account for fraud activities and thus your account might get limited. You will be asked to explain the reasons behind the charge backs on phone or by mail in order to get your account reinstated.

3)   Finally, another reason that can cause a PayPal account to get limited is mismatching of the information provided during registration with those on the documents.

How to resolve PayPal Account Limitation

In case your account gets permanently blocked, it is not possible to get it back by any method. However, you can resolve a limited account by taking appropriate steps. For instance, if your account has got limited due to sudden increase in the number or value of transactions, you need to contact the customer support by phone. Explain the situation to them and give the consent to upgrade to a business account. This is generally sufficient to get the limitation removed but if the customer support asks for any other information, provide him the relevant details. In case, the account has got limited due to mismatching of information, you should provide more documents as per the request of PayPal customer support. Some people try to handle this situation by sending fake or doctored documents but it can further worsen the situation.

This post is written by

This is guest post by Krishna who blogs at Blogging Fundas about SEO and blog monetization.


  1. Ben Stuart says:

    Thanks, interesting article, ad interesting tips. Thing is, PayPal just shouldn’t be withholding people access to their money, completely wrong of them.

  2. Vandhana Karthick says:

    Nice post is it possible to restore the limited account before 1year?

    • PankajGupta says:

      You can try if you have the login details with you. You just need to submit few documents to get verified or you can contact paypal directly to resolve this issue.

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