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Paypal and eBay will punish you when you do good.

I had 100% Ebay feedback with absolutely no claims, had both my ebay and paypal account for about 6 months then started using them after about 3 months. completed about 50 sales then i listed a new top selling item which was an iphone item for the new iphone, i was the cheapest seller so managed to sell around 200 in 3 days, i think this is the reason my account got flagged although i could be wrong but i dont see any other reason. upon submitting invoices, proof of postage, utility bill, proof of ID, proof of bank account, proof of business and proof of address they then told me my account was permanently limited and sent the email show at the bottom. They dont tell you exact reasons but I had no claims and 100% feedback plus I provided everything they asked for, what else could I possibly do. They clearly jus blocked me from selling for the sake of it. My business is in online sales, now cant sell on Ebay which doesnt put me out of business but now means I cannot operte as a company as I canno make enough money from other selling platforms. I had agreed a contract with a full time employee and also a lease on a premises which hadnt been filled for the last year. Now for absolutely no reason, they have put that employee out of a job, they have stopped the landlord of the premises making money and they have prevented me from expanding into a larger business with absolutel no reason. They use the excuse that it is in the terms they can cancel your account at anytime without reason, I realize that but why on earth would you do such a thing, is it just to prove they have the power. Lets face it, they are too big and no one is ever going to be able to do anything about it, I see comments about suing them but it would have to be a company like Apple who were big enough to have n affect. Paypal is stamping on the little guy for no reason at all, im disgusted with them but I need them to operate Ebay so how do you win?

We regret to inform you that we’re initiating the closure of your PayPal
account because of certain activity that took place relating to your
account. This measure is necessary to protect us from potential financial

In addition, your related eBay account will remain closed due to this
current PayPal action.

Your right to appeal:

We always perform a thorough investigation before deciding to initiate the
closure of an account. However, we appreciate that from time to time
misunderstandings can happen. If you wish, you can appeal our decision.
Just get in touch with us and let us know. You can do so by logging in to
your PayPal account at and clicking ‘Contact Us’ at the
bottom of any PayPal page.

This measure is necessary to protect against the risk of bad customer
experiences and financial losses, in view of certain activity related to
your account that we have reason to believe has taken place.

Your account balance during the account closure period:

This decision means we must oversee the appropriate movement of any money
currently in your account. A gradual approach to account closure allows us
to part ways, while considering any liabilities that may arise. Our aim is
to review any valid buyer claims lodged against you. We must allow enough
time for claims to be filed as these can take several months to be reported
and resolved.

How will the process work?

We’ll hold any money currently in your account in accordance with section 2
below. We do this because it provides sufficient time for most claims, such
as chargebacks, to be filed by other parties. These claims can result in
financial loss. If your account balance is below zero, you’ll have to
settle the amount owing on your account to avoid further action.

Our first review at 30 days after you received your last payment will
calculate our exposure and we’ll release any excess money to you at that
time for withdrawal. We’ll communicate this to you at the time. This review
can result in 3 different outcomes as detailed in sub-sections 2(1)-(3)
below. We’ll always communicate the outcome of our reviews to you.

1. We’ll release your entire remaining balance to you for withdrawal.
Please note that if you choose not to withdraw the money at that point we
reserve the right to re-coup any money at the next review; or

2. We’ll release a part of your remaining balance to you. If this is the
case we’ll inform you about how much money can be withdrawn. We’ll then
conduct another review 30 days later that will repeat the process detailed
under section 2; or
3. We won’t release any money to you if we deem our exposure to be greater
than or equal to your available balance.

Your account may be reviewed up to 5 times; at 30 day intervals until day
180 from the date of the last payment received. If any money remains in
your account at day 180 it will be made available for withdrawal at that

Accounts with a balance owing to PayPal:

If your account shows an amount owing to us, you must add money to ensure
that the balance returns to zero. Please note that we reserve the right to
recover the amount by legal means.

A copy of our User Agreement can be found by clicking ‘Legal Agreements’ at
the bottom of any PayPal page. Our right to close your PayPal account, and
the retention of money, are covered in our User Agreement under sections
10.2 and 10.3.

PayPal Account Review

Posted: October 1, 2012 at 4:05 pm

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2 thoughts on “Paypal and eBay will punish you when you do good.
  1. Giovanni on

    I got all my funds put on hold by paypal because I had suspicious activity on my account they said. All I had was an increase in sales and they took this success of mine and made in to theirs by holding my money for 180 days. So for 6 months they were earning interest in my $52.000. Meanwhile I almost lost my home and business.

  2. Charles Dana Campi on

    I have been an ebayer for 10 yrs now. I maintain a 100% rating by “taking care” of my sellers. I pay my seller immediately upon the purchase of an item, never had any issues with buyer protection on my account and have just been a great player. The problem is, is that i am not “big time” seller, so now i have been chastised in pay pal’s eyes as a risk? Go figure. So they have a 21 day policy now to keep my money?
    I just feel violated for working so hard for them in maintaining a good repertoire with all my buyers and sellers. PayPal truly likes to browbeat and punish you for using there services.