To protect its customers, PayPal sometimes bans or limits some of its user’s accounts based on the customer’s activity, and this includes business accounts.
So, if you have recently received a message similar to “You can no longer do business with PayPal”, you may wonder what it means and what you can do about it? I did some research, and this is what I found out!
What Does “You Can No Longer Do Business with PayPal” Mean In 2022?
“You can no longer do business with PayPal” means that PayPal is permanently limiting or banning your account as a seller in 2022. This is because PayPal has noticed fraudulent activity or believes you have violated its agreements. Therefore, you will not be able to open another account, and your remaining funds will be unavailable for 180 days.
If you’re interested in learning more about why PayPal bans accounts, if there are any solutions, and more, keep reading to the end!
Why Did PayPal Freeze My Business Account?
Unfortunately, if your PayPal Business Account is frozen, or banned, it’s because PayPal has detected some form of fraudulent activity on your account.
Therefore, you may be suspected of violating one of PayPal’s agreements.
PayPal may think you have done the following:
- Violated a law
- Sold counterfeit goods
- Provided false, inaccurate, or misleading information
- Took part in fraudulent activity (selling or receiving fraudulent goods or funds)
- Having multiple complaints or refund requests
- Having a negative balance
Additionally, there are many more actions that you can take to have a PayPal limit or permanently freeze your account, these are just a few of the major ones.
What Happens to the Money in My Account After It’s Frozen?
Unfortunately, if your account is frozen, PayPal will hold the remaining funds in your account for 180 days.
This is done to ensure that there are enough funds to solve any disputes, claims, etc. brought against your account.
Therefore, if a dispute or claim is brought against your account in this period, PayPal will look into these complaints before you can receive your money back.
Additionally, if PayPal decides a refund is due to the customer that made a complaint, then PayPal will use the remaining funds in your account to pay the fees.
Unfortunately, this is because if you violate any of PayPal’s agreements:
“You are responsible for all reversals, chargebacks, claims, fees, fines, penalties and other liability incurred by PayPal, any PayPal customer, or a third party”.
Once all disputes, claims, etc. have been taken care of, if there are any funds left over in your account, PayPal will contact you to move your funds to your bank account or card of choice.
However, if there were no claims, disputes, etc. brought against your account within 180 days, then PayPal will immediately send you information on how to move your remaining funds.
Can I Get a New PayPal Account After Being Banned?
Regrettably, you cannot get a new account after your previous PayPal account has been frozen.
PayPal can “Refuse to provide the PayPal services to you in the future”.
Therefore, if your account has been banned previously, then PayPal doesn’t have to let you create a new account, and will not.
How Do You Unfreeze a PayPal Account?
Unfortunately, if your account has been permanently frozen or banned, it cannot be unfrozen unless PayPal made an error.
Therefore, if you believe PayPal is incorrect about its decision to freeze your account, and you have not taken part in violating any of the PayPal agreements, you can contact PayPal directly.
If PayPal agrees with you, then your account will be unfrozen.
However, if you have violated any of PayPal’s agreements, and PayPal is correct in freezing your account, then it will be permanently frozen and PayPal will not lift the limits.
Unfortunately, if PayPal believes you have violated its agreements, the company has the right to limit or freeze your account.
Furthermore, if PayPal does freeze your business account, you will not be able to access any remaining money for 180 days, your account cannot be unfrozen, and you cannot create a new account in the future.