I created a PayPal business profile and installed it on my site. Everything was normal. I even received a payment from a customer via PayPal, but the problems started when I wanted to link PayPal account with a bank account to receive the payment. My account got limited all of the sudden, and when I provided them with necessary documents to remove the limitations on my account it got suspended permanently. I reached out to their customer support and was told to wait a week until the file for appear. Unfortunately, after a whole week waiting for their response their informed me that the decision is final, and there is nothing they can do about it. When I asked them about the reason for this suspension, they told me that the cannot disclose it directly and only provided me with a link to their terms of use. Although their wasn’t any chargeback from the customer or any disputes, the account was suspended. After careful digging, I found out that dropshipping is considered one of the prohibited activities on PayPal. I was very lucky to have only received one payment. I don’t know what I would do if I had multiple payments. It is really terrifying to the say the least. Yes, the business is legitimate and working, but PayPal doesn’t accept such business. You can still use it for dropshipping, but the moment they find out it is a dropshipping business, they will suspended it permanently. And when it is suspended, you won’t be able to receive or transfer any amount for 120 days.
Topic summary
Main issue: A new PayPal business account used for dropshipping was limited and then permanently suspended after attempting to link a bank account. One customer payment had been received prior to the suspension.
Support and decision: PayPal support asked to wait a week, then stated the decision was final and could not disclose specific reasons. They only provided a link to their Terms of Use.
Poster’s findings: After researching, the poster believes PayPal treats dropshipping as a prohibited activity. Dropshipping = selling items you don’t stock, with suppliers shipping directly to customers.
Implications noted: Accounts may function initially, but if PayPal identifies dropshipping, the account can be permanently suspended. When suspended, you cannot receive or transfer funds for 120 days.
Additional context: There were no chargebacks or disputes on the account at the time of suspension. The business is described as legitimate by the poster, but they state PayPal does not accept such businesses.
Status: No resolution or reinstatement; reasons remain undisclosed. Open concern about what would happen if multiple payments had been held.
@hassanzy1996 you’re right about this and i cant guarantee that they will reinstate your account. depends on your address i’d suggest you used a third party payment or you use a shopify balance, this is perfect and you want have payment issues anymore
Well said, just save yourself the stress and make use of 3rd party payment app
Lesson learned the hard way. It could’ve been worse to be honest.