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A limited PayPal account is one of the most common problems for online merchants using this payment gateway due to unintentionally violating PayPal's policies. When a PayPal account is limited or funds are held, the store's business might be frozen because it is difficult to receive profit and use the funds for capital turnover.

In this article, we will give you some suggestions on how to set up your PayPal account to avoid this unfortunate problem.

In this article

A. Verify PayPal account thoroughly, use legit information of account holder, do not buy and use other people's personal information
B. Verify PayPal thoroughly before enabling payment rotation, and use it carefully to avoid additional signs of fraud
C. Enable PayPal order tracking synchronization
D. Send sufficient and clear order information (name, product type) to PayPal for product review
E. Submit necessary evidences for dispute to PayPal in a timely manner
F. Do not sell products that violate PayPal's policies
G. Use IP address of proxy and virtual private servers to access account may cause signs of fraud
H. Pro-actively deal with issues of current account instead of creating multiple accounts as a backup plan


A. Verify PayPal account thoroughly, use legit information of account holder, do not buy and use other people's personal information

PayPal has a very strict fraud and risk management system, therefore, if you intentionally use other people's personal information to create PayPal accounts in bulk, there is a high chance that PayPal will find out and block all of them. However, even if your information has been verified, PayPal may still have a double-check and limit your account in case they have detected a sign of fraud.

Verifying your PayPal account means that you have provided additional information about yourself and your business to help confirm the identity of the person/business using the account with PayPal, thereby increasing the trust of the account. After verifying your account, PayPal will also increase the withdrawn amount so that account holder can request payout more.

To get your PayPal account verified, please add and confirm your bank account/debit card/credit card as instructed in the photos below.

Click the cogwheel icon on the upper right corner and click "Account Settings"
Click "Money, banks and cards"
Click "Link a new bank"  to add a bank account and "Link a new card" to add a debit or credit card

In addition, if the revenue of a PayPal account increases rapidly in a short period of time, it is likely that PayPal will consider this as a sign of fraud and require stricter account review. Therefore, the PayPal account holder must control and adjust the cash flow to the account in a reasonable and consistent manner.

B. Verify PayPal thoroughly before enabling payment rotation, and use it carefully to avoid additional signs of fraud

Payment rotation is useful when you have multiple payment gateways, such as PayPal, Stripe, Checkout.com, etc., or even when you have a single payment gateway with multiple receiving accounts. When it is enabled, ShopBase will help distribute payments from customers to different accounts.

However, if this feature is enabled for new, unverified PayPal accounts, it is likely that PayPal will mark your account as having unusual activities or sign of fraud, which can limit your account or even put your payments on hold. Therefore, PayPal account holders must research how to use this feature responsibly and with a fully verified PayPal account.

Please refer to this article on how to enable payment rotation.

C. Enable PayPal order tracking synchronization

This will help minimize the chance of customers file "Item Not Received" disputes on PayPal. When you send order tracking to PayPal, both PayPal and customers will be notified that the order are being delivered to the customers (not the order has been paid but not sent to the customers).

Please refer to this article on how to send order tracking and information to PayPal automatically.

D. Send sufficient and clear order information (name, product type) to PayPal for product review

Synchronize product information and order information from ShopBase to PayPal by following our instructions. This will help increase reliability of your store to PayPal. Because in the review process, if product's names, types, and order information are not clear, it is likely that PayPal will require another review of your account.

E. Submit necessary evidences for dispute to PayPal in a timely manner

Customers can file a dispute on payment gateway for any reasons. If you do not resolve disputes in time, PayPal may lock the account to require you to have these issues resolved for the customers. Therefore, you should regularly monitor your orders and quickly contact customers to resolve disputes. In addition, you need to improve service quality to avoid disputes on PayPal.

Please refer to this article on how to resolve dispute timely or follow some instructions from PayPal here.

F. Do not sell products that violate PayPal's policies

Do not sell products that infringe copyright or trademark because this violates PayPal's policy that prohibits the sale of unlicensed third-party branded products.

G. Use IP address of proxy and virtual private servers to access account may cause signs of fraud

It is very common to access payment gateway accounts using VPS purchased from cloud server services such as Digital Ocean, Amazon, and others. Payment gateways, such as PayPal, have a very thorough security check that can easily detect that the device from which you access PayPal is a personal computer via local area network or via virtual machine and server providers.

PayPal may use this IP address to determine the risk of fraud in your account. To avoid this issue, we recommend that you use IP addresses from local network providers rather than VPS and proxy from virtual machine and server providers.

H. Pro-actively deal with issues of current account instead of creating multiple accounts as a backup plan

When deciding to suspend or limit an account, not only have PayPal thoroughly analyzed each transaction, information, but also referred to a large database for fraud detection and risk prevention. Therefore, when you create multiple accounts as a backup plan, PayPal will most likely still analyze, detect and prevent risk of accounts with signs of violation.

Therefore, you need to pro-actively deal with issues of your current account such as verifying your account with PayPal for long-term usage, or contact PayPal's customer support team for assistance, instead of creating multiple accounts as a backup plan.

Note: When you receive an email notifying that your account is limited but this information cannot be found on Resolution center, it could be a phishing email. In this case, please do not click on any link in the email, forward the email to spoof@paypal.com so that PayPal and investigate and handle the issue. Then, delete the email you receive to keep your device safe.
In case your accounts need to be reviewed due to account limitations or held funds, please contact PayPal's Account Manager/PayPal Customer Success Manager for further assistance.

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Connect PayPal to your store
Rotate your payment methods
Send order tracking and information to PayPal automatically
Explain Chargeback responses
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