PayPal Limitation Pain
Just today, the limitations put on my two PayPal accounts were lifted. 
A PayPal limitation basically means that your account is locked to various degrees, and you have to show them evidence that you are the person behind the account. The amount of evidence depends on how limited you are. Everyone gets limited sooner or later, so it is advisable to learn as much about the process as possible.
The limitation is a security measure by PayPal to protect themselves from people using stolen / hacked credit cards that causes them to lose money. It is necessary, but also a very tedious process for their honest customers. For instance, many links inside their Resolution Center were broken and lead nowhere. Not only to protect themselves, the limitation is also a way for them to retain higher profitability, using the money of their customers to invest. I had almost $10k USD in my account which they locked for 2 weeks, which can get them around $25 USD in interest in a Swedish bank, much more if they invested more cleverly.
My personal account, which was limited once before got limited once again. This time, I had to show them bank and credit card statements together with proof of address.
My premier account, which had its limitation lifted the 25th January, was limited once again the 27th after I withdrew $1.500 USD. They wanted statements of 2 credit cards, photo ID and proof of address.
I’m not home, so I had to call home for my parents to help me gather the needed information. After many hours of frustration, a phone call to PayPal and much waiting, my accounts were finally restored today.
Lessons learned:
- Never keep money in your PayPal account waiting for the dollar to rise. There is no perfect moment, just withdraw and forget about it.
- Only add the credit cards and bank accounts that you currently use. Having more means you will have more to prove to them.
February 8th, 2008 at 11:56 am
It is good to hear that you solved this annoying issue out. I’m away from home too and my Paypal account is limited and I can’t remove the limitation unless I go back home and give them the papers.
I need to ask you something. Will they close the account If I don’t remove the limitation? I have 200 bucks deposited and is there a way to get the money without removing the limitation?
Thanks Carl
February 8th, 2008 at 12:24 pm
If you don’t solve the problem within a reasonable time they will hold your funds for 180 days and then send you a check for your money to the address stated in your PayPal account.
I suggest you take action (ie. call them).
February 8th, 2008 at 1:09 pm
What If I send them an e-mail explaining the problem and ask them to send me a check by mail? Would that work?
February 8th, 2008 at 7:53 pm
Unfortunately not, you either play by their rules or they get to keep your money for half a year.