PayPal is an Unsecure Option, Freezing all your Funds for Non Descript reasons anytime

Topic summary

Main issue: A long-time PayPal user reports sudden account freezing and fund seizure (~$6,700) after PayPal flagged sales references to vitamins (e.g., NAC and Aloe), despite compliance and removing related API/button links.

Key events: The user says customer service could not identify any specific policy violation and stated decisions were made in “Back Office” with no appeal path. PayPal allegedly indicated violations can be applied ex post facto, retroactive to account inception.

Context: The post references ongoing class action litigation (Evans v. PayPal Inc., case 5:22-CV-248, N.D. Cal.) alleging racketeering, conversion (civil wrongful taking), breach of contract, and unjust enrichment, with media reports claiming $325 million seized to date.

Evidence: Attached screenshots are central, showing a sequence of PayPal notices—initially “temporary,” followed by a more severe action “without cause,” per the user’s description.

Outcome/Status: No resolution reported; funds remain frozen, and the user cautions that while PayPal can be effective, current practices feel opaque and risky for merchants.

Summarized with AI on February 12. AI used: gpt-5.

I was a huge fan of Paypal from 2006 until the 29th of July when they demanded I remove certain vitamins such as NAC and Aloe in an ambiguous format from the PayPal button. I complied ( was actually not connected since I sold the business) and deleted any associated API for the Button, although the account in question has not been associated with the Website in question. They froze the account and seized all funds, regardless (approx $6700), for no apparent violation or at least none that customer service can find. They said this is all done in the Back Office, and there are zero routes to find out what the violation was. This, of course, happened while working with Paypal to address any concerns. They also stated it can be any violation of their policies expostfacto. going back to the very first day you opened the account, kind of chilling, is it not?

You may have noticed there are class action lawsuits now being lobbied against PayPal for Evans vs. PayPal Inc. , citation 5:22-CV-248, U.S. District Court Northern District of California for Racketeering and Committing Conversion, Breach of Contract, and Unjust Enrichment - For Restitution and Punitive Damages - Bloomberg U.S. Edition claims $325 million seized so far.

The Moral of the Story here, PayPal is a great Platform, but something has become seriously wrong.

Photo’s below are in sequence: I received the first one saying temporary, then the second one without cause, was brutal…