Paypal has restricted my account Help!

dinasour230

Hi guys,

So, I am looking for some advice, if any one out there has some good advice it would be greatly appreciated.

Paypal has restricted my account, they want me to send them a copy of my ID, bank statement, supplier list and my social security number!! The only explanation I got was that I recently changed my merchandise and they needed all this information to unfreeze my account.

Has anyone else experienced this before any advice would be greatly appreciated.

irene_salehoo

Hi dinasaur 230,

My advice at the moment is to try keep yourself safe from possible Paypal fraud/scam.

Paypal has enumerated some tips to protect ourselves from scams, and I copy paste:

"Emails from PayPal will always address you by your first and last name or the business name associated with your PayPal account. A PayPal scam email may include the salutation "Dear PayPal User" or "Dear PayPal Member"

If we require information from you, we will notify you in an email and request that you enter the information only after you have safely and securely logged in to your PayPal account.

Often, PayPal scams will request details such as your full name, account password, credit card number, bank account, PIN number, Social Security Number, or mother's maiden name."

Hopefully this is not the case at your end (but since you mentioned they are asking for your Social Security Number and ID, hey that's your identity!), SO better be sure right now. If this is not a scam, then I'll try to look around for you to see how to deal with a Paypal restriction. Do let us know.

P.S. To log in safely to the Paypal website, open a new web browser (e.g., Internet Explorer or Netscape) and type in the following: Link hidden: Login to view

Here's the link to 'How can I protect myself from Paypal Fraud' -

Link hidden: Login to view

Kind regards,

fudjj

Yes, sound advice from Irene, That has all the hallmarks of a scam from what you have written. Simple to find out, just log into your account as Irene has indicated you do, and you will be able to see what's going on.

Never take anything for granted received via email, no matter who it is from.

If it does turn out to be legit, then all I can say is WOW, they are really turning up the security.

richelle_salehoo1

I agree totally! My account has not been frozen since I opened it but it was recently hacked... So scams are definitely out there :(

Better yet, call PayPal to ask them why the money has been frozen. You can contact PayPal at 1-888-221-1161.

In case your PayPal account has been officially put on hold by PayPal themselves, you might find this thread helpful:

Link hidden: Login to view

Keep us posted, all the best!

P.S. A profile pic would be a nice addition to your profile :)

dinasour230

It is true!! I called them and all they said was I had either suspicious activity or I had recently changed the merchandise I was selling.

I logged on to my account and they are asking for a copy of my photo I.D, bank account statement, proof of residence, invoice account, supplier contact and my social security number!! All of it together !! Dude I do not give out my social security number to just any person who asks for it!!!

I cant print out any shipping labels for the items that I have sold, I cannot transfer money and I can't close the account!

I have 100% positive feedback, I don't have any complains form my customers, I am just at an AHHHH!!! point.

fudjj

Wow, you must have moved into a product range that they have a heavy focus on at the moment, because that is extreme in anyone's language. How old is your PayPal account?

That has to be playing a factor here, because I've never heard of anything as stiff as this. It almost seems to be a combination of a product line they are sus about, and a newish account that has caused some serious red flags to fly up.

I wouldn't give up, now you have the lines of communication open, try negotiating with what they require. You may well be able to get to a point where they don't ask for your SSN.

irene_salehoo

Hi dinasaur 230,

Yes that's kinda stiff. Do you have any specific idea what for? I am suspecting it has something to do with the product you have sold, because they asked for supplier info and mentioned that it has something to do with the merchandise. Hmm, designer brands?

As fudjj mentioned, make the most of the communication lines you have initiated. Keep us updated.

Thanks!

dinasour230

I have been a member since 2007 about 2 years. I have been selling on ebay for about the same time. I am not selling designer brands. I have never experienced anything like this.

My concern is safety, is it same for me to turn in all this info to them, who guarantees my protection? Paypal, huh what a joke? That is what I told the customer service rep when I spoke to them, who guarantees that my social #, or any of my personnal info, will not be used inappropriately.

dinasour230

Just found out, I cannot receive any payments from my customers. What!! I am done!!

fudjj

No, they will be holding all your payments until you satisfy them of your authenticity for sure.

2 years, I can't believe that they have dropped such a big hammer on you mate, what new product have you moved into?

planes

I would try to bargain with them and offer only the requests you feel comfortable giving them.

I would avoid if possible, the social security number but give them everything else. On your bank account, I would block everything but your identity and items they want to see. If they just want to see a copy of your bank account, block out all transactions and the total you have in your account and the full account number. Only leave the last four digits.

If you are certain you will not give them your SSN, make sure they agree to not request it. That way you wont give them a bunch of personal info only to find they still want the SSN.

If you are doing great on eBay and really want to keep going, you may have to comply.

They may get jerky on you and decide to not do business with you anymore and say they will hold you funds for 180 days. If the funds are substantial, you could consider taking them to small claims. This is worse case scenario stuff and shouldn't happen.

If this is real important to you, be friendly with them and even try to build up a re pore with the CS rep. Explain you are looking forward to continued business on eBay etc. etc... .

planes

Just a little more on this. You may have been flagged because the IP# you are using was used by a scammer or you signed in from a public access point

or your address was used by a scammer etc... .

Or you live in a an area with a much higher percentage of problems based on the population.

If you live in Fargo and they have had 75 fraudulent cases in the past 6 months, they will be keen on looking for bad apples from this part of the country.

dinasour230

So, it is official, i was shut down. I gave them all the info except for my social security number, wich I told paypal i would not give up. They still shut me down!! You would think that if there was an issue with what i am selling it would be ebay who would shut me down, not paypal.

All they said in the e-mail that was sent to me was "suspicious activity". They asked for invoice purchases of items that I had selling at the time wich I supplied to them and I still got shut down.

I have around $500 dollars in the account, it is not much, but it was money I was counting on. Oh and it will be held for 180 days, of which I will probably have to fight and fight and complain just to get it back.

Does anyone know of an alternative to paypal? I am not trying to rip anyone off man I just trying to make some extra money, to pay my bills, and eat!! I am looking into propay and paymate as options, but it seems that ebay only wants paypal!

planes

If you are totally legit, I would take them to small claims court. Add up all your costs and then pad the number by 2x. Let the judge decide if punitive is allowed.

If and when Paypal contacts you and says their agreement allows for arbitration, tell them you want to let a judge determine that. If and when they immediately refund your monies tell them you want the court fees as well.(This is up to you, you may just want to get out of it with little hassle.)

If they resist tell them you are still taking them to court for those fees, especially if your state lets the winner recoup court fees.

There is a law which I don't remember which protects people from rules given by a powerful entitiy. What that means is if an entity makes rules which a person has no choice but to except then a judge can rule in favor of that person, This is why arbitration is many times disregarded by judges regarding Paypal.

Go to places like rip-off report and the like and printout similar complaints for part of your case. If the judge is not well versed in Paypal this will help him get the picture. Printout like 50 similar reports to add to your case.

My state allows for treble damages in cases of fraud or bad behavior, even if the amount is over the state allowed limit for small claims.

I would insist that Paypal immediately within 48 hours return my funds if they tell you they will give you your money back after filing the case. Don't let them drag you on for weeks.

If you not completely legit, just wait the 180 days.

I am not a lawyer. This is my advice from my personal readings.

dinasour230

Thanks for all the advice guys. Especially you Planes, as usual your advice is beyond my 2 years of selling online.

I am very legit and I will follow your advice. How do I start the process? I have never filed a small claims. Any advice on how to start?

I did go to rip-off and found a handful of people who had the same experience.

Am I doomed on ebay now? Is there an alternative to Paypal? I did see some posts on a merchant account, but have no idea how to start.

Thanks for all the advice and help.

dinasour230

Just one more thing since this I have shut down my ebay items, since I have no way of payment. I have lost a couple of sales as well. I have one person waiting on a $200 dollar item, which I e-mailed her about my situation. Once I explain what is going on with paypal, they assume that I am trying to scam them, which I am not.

planes

Just one more thing since this I have shut down my ebay items, since I have no way of payment. I have lost a couple of sales as well. I have one person waiting on a $200 dollar item, which I e-mailed her about my situation. Once I explain what is going on with paypal, they assume that I am trying to scam them, which I am not.

If you have received money from this person and it has been received into your personal checking account, then you should definitely ship the item. If it is held in Paypal's account and you can not access it, then do not ship the item.

If it were me, I would probably contact an attorney to see if one wanted to take the case on. If not then go to small claims and sue for the max your state allows. Paypal is really being a jerk on this one. File the rest under punitive damages.

You go to your local courthouse. The one that services your town. It may not be in your town but an adjoining one. GO to their small claims division

and simply ask to start a case and for a small fee you can file that day or take the paperwork home with you and think it through and return the next day.

Just remember, the item you did not send will be deducted from the case by the judge most likely. So if you ship this item now it won't be deucted in the future.

fudjj

You can request that PayPal initiate a reversal on any transactions where monies have been received into you PayPal account for items that you haven't yet sent.

Even though they have suspended your account, they can still process reversals, and given that there has been such a huge red flag raised on this one, I would think that they would in fact see your reversal request as a good sign.

The spin odd issue here is of course your eBay account itself. You need to be protecting that as much as possible, and having a line of customers banging you on feedback can place you in eBay's sites in regards to seller performance.

If we are talking about a US account, then there are other payment options available to you, however offering PayPal in association with those other options is required, unless they have relaxed that policy of late, but I'm not aware that they have.

Most important thing now, you need to keep the lines of communication open. Don't just consider this a closed case at this point, keep showing them that you are looking for ways to work through this in a positive way.

The moment you get their backs up, then there is no chance at all. Keep talking, be nice (as much as that may erk you at the moment) and keep chipping away. I personally think that the quickest way out of this for you is to request reversals, show them you have nothing but good intentions towards your customers.

planes

Fudjj makes some excellent points. I recant in that you should try a little more to show good faith to Paypal and if you haven't shipped the product yet, it is a good idea to refund the money. That way there will be less held by Paypal and you will still have the product. And it shows your honesty in a potential small claims case.

History does show that Paypal is not prone to reverse this decision but if you are willing to offer your SSN, you may try to mediate their decision with that option.

If you do not get anywhere with further communication to Paypal it is likely your eBay account will be doomed as they share information religiously and well, are basically the same company.

It is at this point, I would take to the other options mentioned.

alanwakelintrading

Since the 3 June, my Paypal is limited because they want invoices, email addresses, telephone numbers and proof that the supplier has sufficient inventory and so on for suppliers who I bought items from on Ebay, now, I read somewhere that Paypal and EBay are partners, do they not know, I cannot get the email addresses, the telephone numbers and so on, the invoice shows the member Id and that is all, I cannot call them, I am in South Africa, costs too much money, contact them through Email and get the same reply, until I supply the info, they will not open it, do I close my business?

I am South African, I cannot open some of the Credit card facilities, I do not have an American bank account, I hate the power Paypal have but, what do I do?

SaleHoo Directory

SaleHoo Dropship

SaleHoo Educate

SaleHoo Market Insights NEW