Ask and we shall answer!FAQ: Frequently Asked Questions

This section is here to give you answers on some of the most common PayPal related problems. It's easy to use: just look through the table of contents and find a topic that most matches your specific problem.

Then click on that topic and you will be taken to an explanation/answer to that particular problem. If your problem is not listed here, there are a few things that you can do. First, you can CONTACT US with your problem. We will reply to your problem personally and we will add your topic to this FAQ so that others might find the answer they need faster.


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Second, you can post your problem in our forums. The Admin of this site will answer your question there, or another user of this site will post an answer or reply to your problem.

Third, you can go to our LIVE CHAT area and login. There may be somebody on the chat who can help you. Don't forget that every Saturday night (8:00 PM EST) Admin is in the chat. That is a perfect opportunity to log into Screw-PayPal.com's chat and ask Admin your question!

Screw-PayPal.com's FAQ is a section that will never be finished. We will keep adding topics as new problems arise and are brought to our attention. You can help yourself, others and this website by letting Admin know about a topic that you would like to have added here. We are more than happy to entertain your suggestions and reply to your questions.


Table of Contents / Quick Link Guide


Are There Any PayPal Alternatives?

Yes, there are many PayPal Alternatives out there today that are safe and effective to use. Screw-PayPal.com has used and reviewed most of them. Go to the ALTERNATIVES portion of this website for complete details.

There is life after PayPal!


What is PayPal's Contact Information?

Screw-PayPal.com has accumulated and posted PayPal's contact information. You can find all the details by clicking HERE.


How to I file a Complaint Against PayPal?

This is another topic that is covered extensively on this website. First, check out this site's RESOURCES section for complete details on how to file complaints against PayPal.

The information that we provide to you is customized as to where you live! If you live in Massachusetts or the U.K., we have the information for you. If you are considering filing a small claims case against PayPal, we got you covered as well. Click HERE for more details.


Am I Really Protected by PayPal's Protection Policy?

In a word, NO. If you want to get all the details as to why "No" is the answer to your question, visit our PayPal Buyer/Seller Protection Policy Exposed section. You can click HERE to get to it!


I Want to Sue PayPal in Court. How Do I Do It?

Visit this site's new section titled "Sue PayPal in Small Claims Court...AND WIN." You can get to it by clicking HERE.


Are There Any Major Lawsuits Against PayPal?

At this time, there are no major lawsuits pending against PayPal at this time. However, there is a major anti-trust / class action lawsuit against eBay, the parent company of PayPal.

The lawsuit claims eBay unfairly limits competition on its website to protect PayPal. The suit seeks to force PayPal to allow more payment options on its site. For more information on this case, click HERE.


PayPal Froze/Limited My Account. What Do I Do Now?

This is no easy answer for a complicated problem. However, what you decide to do now depends on if you want to continue to use PayPal or not.

If you say "yes," that you want to try to keep your PayPal account then the answer is simple. You should have received an email from PayPal saying that your account has been "limited." If you have not received this email, then log into your PayPal account (Be sure to log in ONLY through WWW.PayPal.com). Once logged in you will either see a screen showing you that your account is limited and a link to click to find out why, or you will be taken to the main page of your account (Account Overview). Once there, look above where your balance is and you will see "Resolution Center: Your account is limited. Click to Resolve or Check Status."

Once you have clicked through to the page, PayPal will have a reason (though perhaps not to specific) as to why your account has been limited. Below that will be a list of actions that must be complete BEFORE PayPal will review your account and decide whether to keep your account limited or return your account to its previous status. An example of this might be "Verify your Social Security Number" and "Fax a copy of photo ID."

WARNING: Read in between the lines of what PayPal is saying! PayPal is telling you that you must complete the steps BEFORE PAYPAL WILL REVIEW YOUR ACCOUNT to decide on your account's status. That means even if you complete all of their steps, IT IS NO GUARANTEE THAT YOUR ACCOUNT WILL BE RETURNED TO NORMAL.

Complete the steps as quickly as possible. If you are required to fax items in, make sure you fax them at least THREE TIMES in one day. Fax them the same information again the next day ONCE. That way, when you contact PayPal, you will know if they are playing games with you or not (PayPal often claims to "have not received your documentation."). If you fax it at least three times in one day (at different times) and once the following day, you can at least assure yourself that it MUST HAVE BEEN RECEIVED. If, after all of this, PayPal still claims to have not gotten your items, you can assume that they are playing games with you and have no intention of releasing your account.

If you say "no," you do not want to use PayPal anymore then the answer is also simple. First, you DO NOT want to attempt to complete the steps that PayPal requires. First, you are sending sensitive personal information over unencrypted public phone lines via fax. Any semi-intelligent hacker can easily intercept your information. Second, you do not want to give PayPal copies of your photo ID, utility bills, business contacts, social security card copy, credit card statements, etc. Why? Often PayPal uses that information against you. An example of this is using your information (that you gave them) to collect a debt from you later (collection agency). Another example is if you decide to try to open up another PayPal account. PayPal will match up the information you have given them with any information that you use to try to open up another account. A last example is using your personal information to link your account with that of family members, friends and associates. If you account is limited, and PayPal links your account to that of a family member, your family member will also have his or her PayPal account limited as well!

Since you account has been limited, you will now have to wait 180 days in order to get whatever money is in your PayPal account. After 180 days, you can withdraw your funds (though your account will remain limited). Withdraw ALL OF YOUR MONEY except for $1.00. (why this is important is coming up)

Since your account is limited, you will NOT be able to close your account. Therefore, once you are able to withdraw your funds, go back into your PayPal account and attempt to remove your credit card and bank account information. Even if you are successful in doing this, PayPal will still have a record of this information -- however, by you removing it, you are taking away permission from PayPal to access these accounts. If PayPal should access your bank account or credit card in the future, you will be on sound legal ground.

Last, since you are not able to close your account (because it is limited), there is a trick you can do to get it closed. Normally, after 6 months, people withdraw all of their money from their PayPal account. This is a mistake. By taking out all of your assets, you give up certain legal rights. PayPal can keep your account open forever. That means your personal and financial information is just sitting there. However, you can use the law to force an account closure.

How? You must log out of your PayPal account. Remember, you have $1.00 still sitting in your account -- that counts as an "asset." The next step is TO NEVER LOGIN TO YOUR PAYPAL ACCOUNT FOR THE NEXT TWO YEARS.

If you have funds in your PayPal account (in our example you have $1), and you do not login for a period of two years, your account is considered "abandoned property." PayPal must attempt to contact you one last time to return your assets to you. Of course you will not reply.

At this point PayPal must close your account and give the money in your account to your state's unclaimed property division (always run by your state treasurer). You can then visit your state's treasurer website and type in your name and city to see what is owed to you!


PayPal Will Not Answer My Emails

Most likely, PayPal is answering your emails -- they are just not writing you back with information that has anything to do with what you have written!

If you send PayPal an email through their website, it automatically goes to a customer service center in New Delhi, India. These people just answer emails. They have NO AUTHORITY to actually help you or do anything for you.

These people cut and paste pre-written email replies all day and all night long. If you want to contact PayPal and attempt to get an answer from a U.S. based PayPal office, go to this site's PAYPAL CONTACT INFORMATION section.


PayPal Customer Service Was No Help

When you dial PayPal's 888 number you reach customer service. The persons you are speaking with are the lowest level customer service representatives. They don't have the authority to even get you a cup of coffee.

Normally, these people have between no experience to almost a year experience with PayPal. They are there to talk to you and that's it. They can help give you information -- but as far as performing ACTIONS, they cannot help you. They will tell you "no," but then no offer you information as to whom you must speak with to solve your problem.

Why? PayPal Customer Service is instructed to not volunteer such information. You must ask.

If you have a basic account question or are looking for information, you can get something out of them. However, if you are having a serious PayPal problem (frozen account, chargeback, frozen funds, etc.) you must call PayPal and ask for a manager right up front.

You need somebody with decision making authority. Let the customer service representative know that your time is valuable and you cannot waste it with someone who has no authority to help you. If you ask, they must get you to a manager.

TIP: Record your PayPal phone call!


Can I Close My PayPal Account?

If your PayPal account is NOT limited or restricted in any way, yes. Click on the "Close Account" link and follow the instructions.

If your PayPal account IS limited or restricted in any way, no. According to PayPal's user agreement, limited accounts CANNOT BE CLOSED.


How Can I Prevent My PayPal Account From Being Limited?

You CANNOT do anything to prevent your PayPal account from one day being limited. PayPal's system is both arbitrary and unpredictable. Some people have used PayPal for years with no problems only to find their accounts limited later.

There are things you can do to REDUCE your changes. First, look at some of the known reasons as to why PayPal limits accounts. Click HERE.

Second, know that according to PayPal's User Agreement, they can limit your account "for any reason." That is a very, very, very broad term. You cannot plan against that.


How Many PayPal Accounts Am I Allowed to Have?

According to PayPal's User Agreement, a person may hold TWO PayPal accounts. ONE Personal account and ONE Business or Premier Account.

Attempting to sign up for more accounts will lead to certain account limitations on all of your accounts.


Will PayPal Give Me My Money Back After 180 Days?

Yes, but not automatically. PayPal limits your account and holds your money for 180 days. PayPal claims this is to protect them from any future chargebacks or customer complaints against you.

The 180 days usually begins the day your account became limited (you can note the date on the email that you received informing you that your account has been limited). After the 180 days is up, PayPal will send you an email saying your funds are now released and you can withdraw them. The email will contain instructions on what you need to do to withdraw your money.

If you have not gotten this PayPal email after 180 days, you just need to send PayPal an email through their website demanding that they release your funds. You will receive a cut-and-paste email telling you that your funds have been held for 180 days and are now available for release.

WARNING: Keep in mind that while your funds are locked up with PayPal, anything can happen. You can receive chargebacks and customer complaints that might case PayPal to withdraw funds from your PayPal account. Therefore the balance that you had before your account was limited, and the balance that you have after the 6 months is over could be very different.


Can PayPal Take My Money And Not Give It Back?

Yes, PayPal can take your money and not give it back. However, PayPal cannot say, "We are taking your money and not giving it back." They give other seemingly legitimate reasons.

PayPal can make you pay for chargebacks that you are not responsible for, PayPal can take your funds to satisfy customer complaints, PayPal can charge you with violating one of their agreements and take $500 out of your PayPal account FOR EACH ACCUSATION OF "VIOLATION" made against you.

Usually, there is no appeal when such actions happen. You will not win with PayPal unless you decide to take legal action. However PayPal is careful on who they target: they will make sure they victimize somebody who is not likely to take them to court (i.e., the amount of money taken from you is less than what it would cost you to take them to court).

In effect, PayPal can make up any excuse that they want and force you to pay. They have complete control over your PayPal account. If they want to debit your account, they can.


Are PayPal's Terms of Service Illegal?

Technically, NO. PayPal's User Agreement is legal and enforceable -- unless challenged in court and declared void.

It is true that in 2003 a California judge struck down and declared portions of PayPal's User Agreement as unenforceable. However, PayPal quickly rewrote the User Agreement and made it "legal" again. Second, the 2003 decision ONLY APPLIED TO CALIFORNIA (it was a California state District Court that made the decision).

PayPal's current User Agreement is "legal" and can be used against you. The current User Agreement is what PayPal uses to justify any actions that they take against you. When you clicked "I Agree" to sign up for a PayPal account, you in effect allowed yourself to become subject to PayPal's User Agreement.

This website is not arguing that what is in the User Agreement is fair, right or moral -- this website is stating a fact. The fact is, PayPal's User Agreement is currently legal.


Can I Fix My PayPal Problem By Filing Complaints?

Yes -- but it is NOT 100% guaranteed. Filing complaints against PayPal can be highly effective and greatly increases the chances that PayPal will solve your problem. You must know only complaint to the right places, but your complaint must be strong, articulate and compelling.

A person who does not file a complaint against PayPal has a ZERO percent chance of getting his or her problem solved. A person who files complaints against PayPal has a better than 50% chance of getting a positive resolution from PayPal.

This website is full of information on how and where you can make complaints against PayPal. If you are lazy you will get exactly what you worked for. If you work a little and stand toe-to-toe with PayPal, you will be rewarded!


PayPal Limited My Account Because They Linked It With Another Account. Can They Do That?

Yes. PayPal does this for many reasons. First, according to PayPal, it is to prevent and combat fraud. Second, PayPal does this to force you to make the other guy take care of his PayPal problems so you can get your account back online with PayPal (PayPal figures since they cannot get money out of your roommate or mother or father, they can limit your account and force you to act as their agent. PayPal will tell you that the other person's PayPal debt or problem must be paid before they will review your situation further). Third, PayPal's User Agreement says they can limit your account "for any reason."

That last reason alone is enough for PayPal to do it. Is it legal or even moral? We all know the answer to that. However a court will have to one day decide.

For now, if you get caught up in this situation, you are finished with Paypal. First, even if the account you got linked to fixes whatever problem it has, IT IS NO GUARANTEE PAYPAL WILL UNLIMIT THAT ACCOUNT OR YOURS. If you try to open a new PayPal account, PayPal will link your new account to your old account (and the linked account from your old account and so on) and your new account will be frozen as well.


My PayPal Account Is In The Negative. What Can I Do?

To approach this problem you have to decide if you want to try to keep your PayPal account and continue using PayPal.

If you say "yes," you must give PayPal money to bring your account balance to zero. However, your account would not stay negative for long. PayPal has the authority to take money out of your bank account or credit card to pay for your negative balance.

If you still want to do business with PayPal, but you feel the reason as to WHY you have the negative balance is unfair or not your fault, you have a bigger problem. You have to prove to PayPal that you should not have to pay the money. However be warned: If your argument in any way includes PayPal taking a loss or picking up the tab, you have already lost. The money will have to come from you. Even if you pay your negative balance, this DOES NOT GUARANTEE THAT YOUR ACCOUNT WILL NOT BE LIMITED.

If you say "no," the answer is easy: Don't pay it (especially if you feel that the reason as to why your account is in the negative was not your fault, the result of fraud or was unfair for some other reason).

Your account will be put on limited status. PayPal will try to collect the money from your bank account or from your credit card. If PayPal tries to take it from your credit card, simply call your credit card company and a file an unauthorized charge/use claim or file for a chargeback. You will get your money back that way should PayPal charge your credit card. The bank account situation is a little more complex. The sure way to be certain that PayPal cannot take money out of your account is to close that account and open a new one with your bank. This can be a hassle -- it can create a lot of work for you to change direct deposits that you might receive and bills that are automatically paid from your bank account. However it is the only way to guarantee PayPal cannot take your money (deleting your bank account information from your PayPal account WILL NOT WORK. Even if you delete it, PayPal still has your information. Plus PayPal can argue that you only deleted your bank information to avoid paying a debt). If you do not want to close your bank account then PayPal WILL HAVE ACCESS TO IT. PayPal will take your money. If you want to keep your account open, you will have to instruct your bank to place a "Stop Order" on any PayPal withdrawals -- many banks charge up to $30 PER DAY for that service (so it is not at all cost effective).

PayPal will try to collect the debt from you for another six months. If they are not successful, they will either write the debt off as a business loss, or, if the amount is large enough, will sell your debt to a collection agency (NCO Collections of IC Systems).


PayPal Reported Me To A Collection Agency. What Now?

In this situation, PayPal is claiming that you own them money -- for whatever reason. PayPal tried to collect the money from you and was not successful.

PayPal then sold your debt to a collection agency (the collection agency pays PayPal a little bit of money to buy your full debt; for example if you owe PayPal $1,000, the collection agency will buy your debt from PayPal for $500 hoping it can then turn around and collect the full $1,000 plus fees.

At this point, you do not owe PayPal any money and therefore cannot negotiate with PayPal. You now owe money to the collection agency.

However, depending on why you owe PayPal the money (most likely you were the victim of an unfair chargeback, was not covered under PayPal's Buyer and Seller Protection Policy, or PayPal did something that was not your fault to cause your account to become negative), you probably don't even owe the money in the first place -- legally.

Remember, the collection business revolves around fear, threats and ignorance of the law. Collection agencies try to scare you, threaten you and take advantage of your lack of knowledge concerning your legal rights.

You can side step collection agencies very easily and make them stop contacting you.

Once they contact you in writing, send them the following letter (with your details filled in):

Today's Date


Your Name
Your Address
Collector's Name
Collector's Address


Dear {insert name of collector or company},


I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.


This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.


I respectfully request that you provide me with the following information:
* (1) the amount of the debt;
* (2) the name of the creditor to whom the debt is owed;
* (3) Provide a verification or copy of any judgment (if applicable);
* (4) Proof that you are licensed to collect debts in (insert name of your state)


Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:


* because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;
* you cannot add interest or fees except those allowed by the original contract or state law.
* you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;
Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.


I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.
Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.


Signature here


Your Printed Name

Tip: Be sure to send your letter REGISTERED MAIL WITH RETURN RECEIPT!

Collection agencies are looking for the "easy buck." If require them to provide such information (as are your rights under the Fairness in Credit Reporting Act), they will stop. Why? Because they do not have that information and in fact they have not even purchased a real debt.

A collection agency cannot report your "debt" to the credit bureaus until they provide you with this information -- and even if they do report you to the credit bureaus, it is extremely easy to get that negative mark removed from your credit report.


PayPal Took Money Out Of My Bank Account. Can They Do That?

Yes. According to the PayPal User Agreements, you are liable for any charges that result in you owing PayPal money. You have given Paypal permission to access your bank account to pay such debts.


PayPal Charged My Credit Card Without My Permission. Can They Do That?

Yes. According to the PayPal User Agreements, you are liable for any charges that result in you owing PayPal money. You have given Paypal permission to charge your credit card to pay such debts.

However, should this occur and you do not think it was fair, you can contact your credit card company and report an unauthorized use/charge made on your credit card. Or you can initiate a chargeback. You will get your money returned to you in this situation.


PayPal Froze My Account. Will I Get My Money Back?

Yes. If you do not receive any customer chargebacks or customer complaints which might result in Paypal taking money out of your PayPal account, all of your money will be there after 180 days.

After 180 days you will be able to withdraw your funds to your bank account or via check. Your account, however, will remain in limited status.


PayPal Froze/Limited My Account. What Do I Do To Get It Unlimited/Unfrozen?

The first course of action is to do exactly what PayPal requests of you to do. In your PayPal account you must go to "Resolution Center: Limited Account Status" and check the list that PayPal has given you.

You must complete the actions outlined in your limited status page. Remember, completing the steps PayPal has given you ONLY BRINGS THE PROMISE THAT PAYPAL WILL REVEIW YOUR ACCOUNT. That does not mean they will unlimit you account. Read their words exactly -- they are very careful to not make any promises.

After you complete these steps, somebody at PayPal Account Reviews will take a look at your account and the information that you submitted. Based on that, they will unlimit your account or keep your account limited and your funds frozen for 180 days.

It is debatable as to whether or not doing any of these steps matters. There is plenty of evidence to suggest that PayPal not only DOES NOT REVEIW these accounts, but intent to keep the accounts limited from the very start. In other words, there is nothing that you can do to change PayPal's mind.

Under the PayPal system, if the decision is to keep your account limited, you are allowed to appeal the decision to another department. The email contacting you about your account status will give you instructions on how to appeal the decision.

Keep in mind that PAYPAL WILL NOT GIVE YOU ANY REASONS AS TO WHY THEY MADE THE DECISION THEY DID. Therefore, when you appeal, you will have nothing to go on in terms of combating why your account is remaining on limited status.

All appeals made to PayPal on limitation status are FINAL. If you loose there (which seems to be the case in the majority of situations), your PayPal account will remain on limited status forever.

You will, however, be able to withdraw your funds after 180 days.


PayPal Asked Me To Fax Them Information. Should I Do It?

If PayPal is asking you to fax them information, it is probably because your account was placed on limited status and they are requesting more information from you.

The decision to fax them this information is entirely up to you. However, you should keep in mind the following when making your decision:

(1) You are sending very private personal and financial information over an unsecured phone line (via fax). You date transmission is wide open to hackers and ID thieves.

(2) Sending PayPal the information that they are requesting is often more trouble than it is worth. By faxing them the information, PayPal is NOT GUARANTEEING to unlimit your account should they receive the information, they are only saying they will "review your account."

(3) The majority of persons who fax PayPal information remain with limited PayPal accounts to this day. Faxing or not faxing the information seems to make no difference.

(4) You are giving PayPal very sensitive personal and financial information that can be used against you later -- for example given to a collections agency, stored to prevent you or your family from opening future PayPal accounts, or hacked out of their system by computer hackers and ID thieves.

In the end, you have to decide for yourself if you want to play PayPal's "Fax Game."


I Do Not Have The Information PayPal Wants From Me. What Do I Do Now?

For various reasons, PayPal will ask your to send proof that you own an item that you sold (they want a receipt), send proof of sufficient inventory, send proof of who your suppliers are, etc. However, you may not have that information.

Example: You are selling your own items that you no longer have the receipts for. Since you are selling your own items you do not have "proof" of sufficient inventory and so on.

So what do you do? There is nothing you can do. Part of PayPal's game is to require you to provide information that it knows you cannot provide -- all in an effort to keep your money. In other words, PayPal is stacking the deck against you.

eBay and PayPal know that many people are selling old items that they own or are buying stuff from flea markets and have no such receipts and proof of sufficient inventory. However, they require you to provide this information in an effort to maximize the amount of days that they can control your money.

Since you cannot provide this proof, you will loose any customer complaint that you are in, your account will remain limited, and you might not be allowed to sell more items on eBay until you are able to provide this proof.

Some persons might be thinking, "Why don't you just use PhotoShop or something and create the documents?" This website cannot condone or suggest falsifying documents.

Additionally, even if someone were to supply such information -- real or made up-- PayPal has a substantial track record of ignoring evidence and keeping accounts limited or rewarding fraudulent buyers and sellers.


I Used PayPal To Buy Something But Never Got My Merchandise. What now?

In this case, open up a claim with PayPal under the Buyer Protection Policy (if you even qualify). You will have to follow PayPal's procedures to attempt to get your money back. Even if you are protected under the policy, it is NO guarantee you will get your money back. PayPal makes it very clear that their entire Buyer Protection Policy is based on one thing: their ability to take the money out of the seller's account. If they cannot take the money out -- or if the seller does not have any money left in his or her account -- you will get nothing.

Even if you paid using your credit card, it is not advisable to initiate a chargeback right away. Why? While it is your legal right to do so, PayPal will limit your account saying you violated the User Agreement by initiating a chargeback first and not going through PayPal's dispute resolution first as you are under contract to do.

If you do not care about what PayPal does do your account, you can file a chargeback with your credit card company right away and get your money back from the fraudulent seller.


A Buyer Filed A Chargeback Against Me -- What Will PayPal Do?

If a buyer filed a credit card chargeback against you, the only thing that you can do is supply PayPal with the information that they are asking of you.

This will include an online tracking number verifying that the item was delivered to the buyer's VERIFIED PAYPAL ADDRESS. If your tracking number checks out okay, you will automatically win the dispute. Why? Nobody actually reviews your case. By PayPal's own admission, PayPal's computers do the checking and issue the decision.

If you type in the wrong the tracking number or are off by one digit, you will loose the case automatically. The problem is PayPal is not a fair system and has no set predictable outcomes that you can match hypothetical actions and conclusions on and get the same results every time.

Therefore, while PayPal claims it will fight the chargeback, they often never do. In most cases the buyer will automatically win because PayPal cannot afford to have high chargeback statistics -- and PayPal will not cover the loss of the chargeback (you will). This is why so many persons criticize PayPal's supposed buyer and seller protection!

If you loose the chargeback, PayPal will debit your account for the amount. You will then have to rely on the honesty of the buyer to return your item -- as you might guess, this does not happen often.

You end up loosing your money and the item that you sold.


I Have Two PayPal Accounts And PayPal Wants Me To Verify My SSN -- But My SSN Doesn't Work With My Second Account

This is a glitch in PayPal's system or an intentional way to keep accounts on limited status.

If you try to verify your social security number on account #1 (for example), PayPal will mark your submission as SUBMITED/Action Complete. However, PayPal will not review account #1 until you have dealt with all of the issues with account #2.

So you go to account #2 and try to enter your social security number. PayPal's system will not accept it! You will get an error saying that you typed in the wrong number or that the social security number is associated with another account and to try again.

Until account #1 is reviewed, you cannot use your social security number for account #2. However, you cannot enter your social security number for account #2 until account #1 is reviewed! Account #1 will not be reviewed until you fix the issues associated with #2. Do you see the pattern here?

You will have to call PayPal's customer service number and ask to speak to a manager about this issue.


PayPal Double Charged My Credit Card. What Can I Do Now?

PayPal could have charged your credit card twice, or the company that you bought something from could have done it.

In order to avoid playing the game of detective, call your credit card company and get ONE of the charges cancelled -- your reason is that you card was charged twice for one transaction.

You will get your money credited back to your card.

However, some people report that their accounts get limited for doing this very thing. Yet calling PayPal to solve the problem often leads to even more problems as you are bounced from department to department.

You will have to decide what do do here. If you are concerned about the status of your PayPal account, it would then be advisable to contact PayPal first -- and as many times as it takes -- to get an answer on how to fix this problem.


PayPal Sent Me An Email Saying They Are Closing My Account. Can They Do That?

Yes, they can do that. According to the User Agreement that you agreed to, PayPal can limit or close accounts for "any reason."

You will get an email commonly called the "parting of ways" email. This email will tell you that Paypal suspects that you are engaging in some type of activity that puts PayPal, its customers, and yourself at risk. PayPal will advise you that they do not want to do business with you any longer.

This email will give you instructions as to how to withdraw any remaining funds in your PayPal account.


PayPal Accused Me Of Something I Did Not Do. What Do I Do Now?

If you would like to read a real case example of how this scenario plays out, CLICK HERE FOR A GREAT READ.

Under PayPal's system, once targeted, you are guilty until proven innocent. However, it is only the very rare case when PayPal will admit making a mistake and reverse a decision they have made (admitting to a mistake opens PayPal up to litigation in court for damages and penalties).

First, based on the information that PayPal gave you, you must focus on the reason PayPal has given you.

Examples of this are: you bought or sold something this is on PayPal's restricted list, you made an unauthorized transaction, you have content on your website that PayPal finds objectionable, or you violated the User Agreement or Privacy Policy.

The result of Paypal's accusation against you will result in your account being limited and possibly a $500 fine for each violation PayPal is accusing you of.

If you choose to fight PayPal, you will have to gather the evidence that you need to prove PayPal's accusations wrong. Then you must contact a manager at PayPal and plead your case.

Unfortunately, this often leads to failure. Contesting PayPal's accusations while PayPal is holding all of the cards takes away any advantage of truth that you might have.

Remember: they are looking for ways to keep your money. Once they have found something -- or made up something -- that they can put in writing, you are as good as done.

Unless you choose to pursue legal action or other complaints, you will have to wait 180 days to get your money back -- and your PayPal account will remain in limited status forever.


I Called PayPal Customer Service And They Did Not Help Me. Why?

When you dial PayPal's 888 number you reach customer service. The persons you are speaking with are the lowest level customer service representatives. They don't have the authority to even get you a cup of coffee.

Normally, these people have between no experience to almost a year experience with PayPal. They are there to talk to you and that's it. They can help give you information -- but as far as performing ACTIONS, they cannot help you. They will tell you "no," but then no offer you information as to whom you must speak with to solve your problem.

Why? PayPal Customer Service is instructed to not volunteer such information. You must ask.

If you have a basic account question or are looking for information, you can get something out of them. However, if you are having a serious PayPal problem (frozen account, chargeback, frozen funds, etc.) you must call PayPal and ask for a manager right up front.

You need somebody with decision making authority. Let the customer service representative know that your time is valuable and you cannot waste it with someone who has no authority to help you. If you ask, they must get you to a manager.

TIP: Record your PayPal phone call!


Is PayPal's Money Market Safe?

No, PayPal's Money Market is NOT safe. When you place your account balance into the Money Market, that money is not insured against losses.

PayPal invests your funds and makes the decision as to where the funds are invested. If the market swings in the wrong direction, you can sustain losses that can wipe out of your account balance.

The PayPal's Money Market does not guarantee that you will make money from it, and in fact warns you that you can loose money from it.

You can loose all of your money because of a bad investment decision made by PayPal or you can sustain massive losses based on PayPal's bad investment decisions (or unexpected swings in the market).

For those with limited accounts, having your money in the Money Market is especially dangerous. A lot can happen during the 6 months that your funds are frozen and controlled 100% by Paypal. You cannot withdraw your money or opt out of the Money Market.

On the positive side, PayPal's money market pays an impressive 5.04%. If you have $30,000 locked up with PayPal in one account, you are taking in about $150 in interest every month. That can add up very fast -- it can also disappear very fast as well!


Will PayPal Catch Me If I Try To Open A New PayPal Account After My Old Account Was Limited?

Yes. In most cases PayPal will be able to quickly link your new information to your old account(s).

This website will not give instructions on how to open PayPal accounts with false information. There are cases where many person opened up PayPal accounts -- and used them -- using different information (such as name variations, address variations, city variations, etc.). The theory is that as long as the information on your new account is different enough from the information in your old, limited account, you can get a fresh start.


My PayPal Account Was Frozen/Limited. What Does That Mean?

That means that PayPal has placed certain limitations and conditions on your PayPal account because PayPal suspects that you have done something that it doesn't approve of.

If you have a limited or frozen account, that means all the funds in your PayPal account are no longer accessible by you for a period of 180 days.

Additionally the following applies. With a limited PayPal account you CANNOT:

(1) Receive Payments

(2) Send or Request Money

(3) Add Funds to Your Account

(4) Close Your Account

(5) Withdraw Funds From Your Account (after 180 days you can, however the first four items listed will remain in effect).

With a limited PayPal account you CAN:

(1) Withdraw funds (AFTER 180 days)

(2) Add Funds By An Electronic Funds Transfer

(3) Place Logos Into Your Auction Listings Or On Your Website

(4) Update Your Account Information


I Reported An Unauthorized Charge To PayPal. How Long Will It Take To Get My Money Back?

According to PayPal's User Agreement, PayPal can take up to 108 days to return any unauthorized funds taken from your account (without interest).


What Are Some Of The Reasons As To Why PayPal Limits Accounts?

Go to Screw-PayPal.com's section: SECRET REASONS AS TO WHY PAYPAL LIMITS ACCOUNTS.

Also read this website's DID YOU KNOW section and TOS EXPOSED section.


PayPal's Collection Agency Will Not Leave Me Alone. What Can I Do?

Send a copy of the following letter to the collection agency via REGISTERED MAIL:

Today's Date


Your Name
Your Address
Collector's Name
Collector's Address


Dear {insert name of collector or company},


I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.


This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.


I respectfully request that you provide me with the following information:
* (1) the amount of the debt;
* (2) the name of the creditor to whom the debt is owed;
* (3) Provide a verification or copy of any judgment (if applicable);
* (4) Proof that you are licensed to collect debts in (insert name of your state)


Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:


* because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;
* you cannot add interest or fees except those allowed by the original contract or state law.
* you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;
Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.


I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.
Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.


Signature here


Your Printed Name


I Did Everything PayPal Asked Me To Do. Nobody Has Reviewed My Account Yet. What's Wrong?

This is another game that PayPal likes to play. The first answer is that you have not done everything that PayPal asked you to do.

First, PayPal gives a check list to complete that is accessible in your PayPal account (Resolution Center: Limited Account Status). Even if you have completed all of those steps, there could be still more to do.

You have to back track and look for an email where PayPal told you that your account is limited. Often, there are additional items to complete in the email that are not listed in the online Resolution Center located in your PayPal account.

The most common examples of these things are: proof of sufficient inventory, a list of your suppliers, receipts for the items that you are selling, etc.

If you do not complete the additional items that PayPal ask you to do as listed in an email that they sent you, nobody at PayPal will review your account until that information is submitted.

If you are not sure that there are additional steps to complete, contact PayPal's customer service center. The normal customer service reps that answer the phone will be able to give you that information or be will be able to tell you that everything has been done. These people will be able to make a notation in the system to have your account reviewed by somebody.


Can I Earn Interest On My PayPal Money?

No. In the PayPal User Agreement that you agreed to, it states that you waive any right to receive interest on money that PayPal is holding for you. You agree that PayPal can pool your money along with other people's money into bank accounts held under PayPal's name -- PayPal will receive and keep interest and benefits earned from your money.

However, if you enroll in PayPal's Money Market, you will be able to receive interest on your PayPal balance.


Who Are IC Systems and NCO Collections?

IC Systems and NCO Collections are debt collection agencies. They buy debts from companies for a very low price hoping to be able to collect the full amount of the debt from you.

These two companies have contracts with PayPal to purchase debts from PayPal. These debts are supposedly from persons who owe PayPal money -- most often from persons with negative account balances.

If you owe PayPal money, PayPal will try to collect the money from you. If they cannot, and the amount you owe is large enough, PayPal will offer the debt to one of these very crooked companies who will then in turn harass you to the ends of the Earth to scare you into paying them money.


I Provided PayPal An Online Tracking Number To Prove I Sent A Buyer His Merchandise. PayPal Still Gave The Money Back To The Buyer. Why?

First, PayPal's system is not a fair system -- that is why websites like this exist today. If you provided a valid online tracking number and still lost, PayPal gave the buyer his or her money back to avoid the chargeback. Read this website's DID YOU KNOW? Section for more information on this topic.

PayPal's Buyer and Seller Protection policy is proven to be nothing but hype. You are not protected -- as a result you may have lost your money and the item that you sold! Read this website's PROTECTION POLICY EXPOSED section to find out what may have gone wrong in your case.


PayPal Said They Ordered A Credit Report On Me. Can They Do That?

Yes. PayPal clearly states in the User Agreement that you agreed to that PayPal has the right to request a credit report on you from any one or all of the three major U.S. credit bureaus (Experien, TransUnion, Equifax).

Based on your credit information -- nobody really knows what they look for as both persons with very good and bad credit have had accounts limited -- PayPal can close your account or limit your account.


Can PayPal Ruin My Credit Score?

No. PayPal does not report to credit reporting agencies. If you owe PayPal money for any reason (such as you have a negative balance), PayPal will attempt to collect the debt from you.

Depending on the amount that is owed, PayPal will do one of two things. First it will write the debt off as a business loss (PayPal does this for tax purposes). Or two, PayPal will sell your debt at a discount to a collection agency such as NCO Systems or IC Systems. Collection agencies have the ability -- but NOT ALWAYS THE RIGHT -- to insert negative information into your credit report that might make it more difficult for you to obtain credit and obtain favorable credit rates.


My PayPal Account Is Closed With A Negative Balance. What Do I Do?

If you, or PayPal, closed your account and you ended up with a negative balance (a chargeback was received or other account debit was initiated after the account was closed) you are not obligated to pay.

It is PayPal's responsibility to take losses for chargebacks (it says that in the User Agreement as well as PayPal's own investment prospectus and filings with the Securities and Exchange Commission). However, PayPal still comes after you to pay it so they can possibly avoid taking the loss.

Your account is closed and PayPal cannot legally access your bank account or credit card. PayPal may try to collect from you, but that does not mean you have to pay them.


My PayPal Account Has A Negative Balance. What Do I Do?

To approach this problem you have to decide if you want to try to keep your PayPal account and continue using PayPal.

If you say "yes," you must give PayPal money to bring your account balance to zero. However, your account would not stay negative for long. PayPal has the authority to take money out of your bank account or credit card to pay for your negative balance.

If you still want to do business with PayPal, but you feel the reason as to WHY you have the negative balance is unfair or not your fault, you have a bigger problem. You have to prove to PayPal that you should not have to pay the money. However be warned: If your argument in any way includes PayPal taking a loss or picking up the tab, you have already lost. The money will have to come from you. Even if you pay your negative balance, this DOES NOT GUARANTEE THAT YOUR ACCOUNT WILL NOT BE LIMITED.

If you say "no," the answer is easy: Don't pay it (especially if you feel that the reason as to why your account is in the negative was not your fault, the result of fraud or was unfair for some other reason).

Your account will be put on limited status. PayPal will try to collect the money from your bank account or from your credit card. If PayPal tries to take it from your credit card, simply call your credit card company and a file an unauthorized charge/use claim or file for a chargeback. You will get your money back that way should PayPal charge your credit card. The bank account situation is a little more complex. The sure way to be certain that PayPal cannot take money out of your account is to close that account and open a new one with your bank. This can be a hassle -- it can create a lot of work for you to change direct deposits that you might receive and bills that are automatically paid from your bank account. However it is the only way to guarantee PayPal cannot take your money (deleting your bank account information from your PayPal account WILL NOT WORK. Even if you delete it, PayPal still has your information. Plus PayPal can argue that you only deleted your bank information to avoid paying a debt). If you do not want to close your bank account then PayPal WILL HAVE ACCESS TO IT. PayPal will take your money. If you want to keep your account open, you will have to instruct your bank to place a "Stop Order" on any PayPal withdrawals -- many banks charge up to $30 PER DAY for that service (so it is not at all cost effective).

PayPal will try to collect the debt from you for another six months. If they are not successful, they will either write the debt off as a business loss, or, if the amount is large enough, will sell your debt to a collection agency (NCO Collections of IC Systems).


I Received Funds Into My PayPal Account. Is It Safe To Ship To The Buyer Now?

No. You should not ship any money to the buyer until your money is deposited into your bank account. That does not mean you ship when you initiate a transfer from PayPal to your bank account, that means when the money hits your bank account and is available for withdrawal.

If you ship while leaving the money in your PayPal account -- anything could happened to your funds. PayPal could limit your account for whatever reason and you have no access to your money. The buyer could be a fraud -- and will initiate a chargeback as soon as he or she receives the item.

You are NOT PAID until you have the money in your bank account. To help avoid fraud, you might want to inform all of your buyers that this is your policy.

Second, you can call PayPal and ask them to turn on the Auto Sweep feature. What is this? It is an account feature that must be activated by PayPal. You cannot do it from your PayPal account. At the end of each business day (Monday thru Friday), all funds received into your PayPal account are automatically deposited into your bank account. This feature also helps you increase the odds that your account will not be limited because of withdrawal activity -- the sweep feature is not part of PayPal's standard fraud que.


If I Use PayPal, What Is The Safest Way To Pay/Fund My Account?

The safest way to fund your PayPal account or make purchases using your PayPal account is via credit card. Why? You are 100% protected by your credit card company.

If something should go wrong later, you can initiate any number of complaints to your credit card company to get your money back. Getting your money back through PayPal is not guaranteed and is not always easy.


My PayPal Account Was Highjacked. What Do I Do Now?

You must contact PayPal immediately via phone. You must inform them of what happened as soon as you find out. They will require that you also send them a letter in writing.

Your account will go on limited status and any damages to your account will be investigated.

If you provide all the of the information that PayPal requires to establish that you are the true owner of the account, your account will be unlimited and full access restored. If you lost money because of this unauthorized access to your account, you will receive that money back after a period of time (normally about 108 days after PayPal begins its investigation).


I Lost My PayPal Password. What Will Happen Now?

To retrieve your password, you will have to click on the "forgot password" link and answer a series of security questions that you set up during the signup process.

If you try to log into your account too many times with a wrong password (because you thought you remembered and kept typing in passwords you thought were correct), PayPal will limit your account and you will have to prove to them that you are the rightful owner of the account.


My Account Was Limited. Is It Possible To Get It Unlimited?

Yes, it is possible to get it unlimited. However, the odds are against it. PayPal looks for every reason that it can find to limit accounts so that they can keep your money -- and make money off of your money -- for as long as possible.

In the event of a true spoof situation, phishing site, or other real unauthorized access situation, you have a good chance of getting your account back once the smoke clears.

In other situations -- where PayPal has limited your account because of your credit report, too many complaints, chargebacks, withdrawal or deposit activity, etc., your chances are no so good.

If you want to find out if your account can become unlimited, your only option is to complete whatever steps PayPal asks you to do in order to get your account reviewed by somebody. This account review will determine if your account remains limited or not.


PayPal Said They Must Conduct An Investigation. Do They Really Investigate?

The evidence accumulated over the years suggest that PayPal does not investigate anything when it says it does. Most investigations are conducted by a computer who then, based on a formula and programming, issues an automatic decision that no human ever reviews.

Second, PayPal has over 143 million accounts and 6,000 employees. Of the 6,000 employees perhaps only less than 3,000 actually do anything account related. PayPal does not have the manpower to conduct investigations to each and every complaint that it receives. It is a mathematical impossibility.

In order to get your case reviewed and decided upon, you will have to be very persistent with PayPal -- and polite. If you make them angry, you loose whatever it is you are looking for with the pushing of one keyboard button!

Complaints generated from outside of PayPal will also move PayPal to action. However, ironically, outside complaints do not necessarily motivate PayPal to investigate either -- somebody will just decide in your favor to make your complaint go away.


How Can I Do Business Without PayPal?

There are many viable alternatives to PayPal today. Visit this website's ALTERNATIVES section for a complete list and review of PayPal alternatives.


I Qualified For PayPal's Buyer/Seller Protection But Still Got Ripped Off. Why?

There are potentially a million reasons and factors. The bottom line is this: PayPal's Buyer and Seller Protection doesn't protect anybody -- it is designed to only protect PayPal.

If you don't believe it, read PayPal's BUYER AND SELLER POLICY EXPOSED.


PayPal Ruled Against Me In A Buyer/Seller Dispute. What Now?

Once PayPal has made its decision and close the claim, there is nothing that you can do. You can contact PayPal, however PayPal will inform you that the claim is closed and a decision has been made.

The only alternative is if you are the buyer and paid for an item using a credit card. At that point you can initiate a chargeback in order to get the money back from your credit card.

If you are a seller who has lost his or her money and item, the only course of action is to file complaints against PayPal in order to force PayPal to revisit the issue. If you have all the evidence to support your case, this will make your complaints stronger.

Last, you can take PayPal or the buyer to small claims court to collect your losses plus other damages back. This website has sections on how you can do both!


PayPal Closed My Account And Said There Are No Appeals. But Are There?

If you receive an email from PayPal informing you that -- for whatever reason -- they do not want to do business with you any longer, you are done.

PayPal will terminate your account and give you instructions as to how you can withdraw your PayPal account balance (if you have one).

There are no appeals to such a decision. While you might find it difficult to believe that PayPal has done what they have done, the PayPal User Agreement gives PayPal the express right to terminate user accounts "for any reason."


Is PayPal A Bank?

In the United States PayPal is NOT regulated as a bank. PayPal has not sought banking status in the United States. PayPal has resisted, dodged and fought against government efforts to have PayPal regulated as a bank in the United States.

Interestingly, PayPal sought, and received a banking license in the European Union. As of July 2, 2007 PayPal received a license to operate as a bank within the European Union member states (example: United Kingdom, France, Germany, Belgium, The Netherlands, etc.)


PayPal Took Money From My Account To Pay Ebay Fees. Can They Do That?

Yes, PayPal can take money out of your PayPal account to pay eBay fees and late eBay fees without your permission.

In the PayPal User Agreement, you give PayPal the right to debit your account without your permission to pay eBay fees and other eBay related debts.


Every Customer Service Representative I Talk To Tells Me Something Different. Why?

The first reason can be attributed to human nature: you are dealing with customer service representatives with low pay, little experience and high call volume. They want to get you off the phone. The red lights in the background signaling yet more phone calls to answer motivates them to blow you off. The customer service rep will tell you something or make a promise and then hang up. It is not imputed into PayPal's system so that when you can next, there will be a notation about what the call was about and what is supposed to be done about it. It boils down the left hand not knowing what the right hand is doing.

The second reason is you are speaking with people who are trained (though poorly) to give you information. They have no power or authority to actually help you.

To avoid this problem, you need to request a manager or somebody with the authority to make an on the spot decision and action to deal with your problem. Always request a manager when you speak with a regular customer service rep. They are obligated to honor your request.


I Keep Sending PayPal Emails But PayPal Never Gives Me A Straight Answer Back. Why?

The emails that you are sending PayPal are not being read by anybody who works for PayPal. Your emails are sent to New Delhi, India where they are answered by a for hire customer service company.

They have no authority to help you. The company is contracted and paid per response that they send out. Since they are not PayPal employees, they have zero incentive to do you right. Their job is to send out replies -- they are not monitored based on WHAT they send out.

Workers in PayPal's contracted answering service are measured by how many replies they can send out in a day. It is fast food customer service.

Avoid that problem by writing an email to PayPal directly or contacting them directly via telephone or letter. Use this website's PAYPAL CONTACT INFORMATION section to find the contact information that you need.


I Have A PayPal Problem. What's The Best Way To Solve It?

(1) Contact and negotiate with PayPal directly -- as long as it takes and as many times as it takes until you get a definite answer (they can help you or they cannot help you).

(2) File as many written complaints to as many people and agencies as possible to pressure PayPal into solving your problem.

(3) Take PayPal to small claims court if your case qualifies.

(4) Sue PayPal in a state court or a federal court.


PayPal Wants Me To Get A Police Report. What Should I Do And How Do I Do It?

If a transaction was facilitated through PayPal that has gone so wrong that a police report is needed, it is not your fault.

PayPal requesting a police report is the result of you loosing some money that PayPal will have to make up the loss for. It is a classic PayPal delaying tactic.

First, PayPal knows that most of the people who they order to get them a police report will not do it (example: studies have shown people are afraid of the police, don't have the time to go, or it is too much hassle). If you do not get the police report, PayPal tells you that you cannot recover the funds.

PayPal facilitated the transaction in question and they are responsible for investigating what happened within their system.

If you go through the trouble of getting a police report, you may as well file a lawsuit yourself against the person who you are making the complaint against!

Many people have reported that they send PayPal a police report and that still did not move PayPal to action. Why? It was a delaying tactic in the first place. PayPal does not want to compensate you for your loss.

Should PayPal request that you get a police report, that is a good indication that PayPal does not want to compensate you for their error that caused you to become the victim of online fraud.

Do not send PayPal a police report --based on whatever your problem is, there are other solutions to force PayPal's hand or seek compensation from another source.


Is It Easy To Open A New PayPal Account After PayPal Closed My Old One?

Yes, it is easy to open a new PayPal account after PayPal closes your old account. It is NOT EASY to keep your account working however.

PayPal has a very sophisticated fraud system which will eventually link your new account with your old account -- or the accounts of people with whom you are associated with.


What Can I Read To Really Understand How PayPal Works?

If you want a real education on how PayPal works, read PayPal's User Agreement. This website has a section called TOS EXPOSED. The entire user agreement is there along with commentary to guide you through.

PayPal's User Agreement is not just a boring legal document, it is a blue print for how PayPal works.

Second, read this site's DID YOU KNOW? section. The information there is raw and shocking.

As you navigate around this site, you will learn things about PayPal that you never knew before.


I Want To Resolve My Complaint With PayPal Using Binding Arbitration. Is That A Good Idea?

No, this is not a good idea. PayPal includes this option to resolve conflicts with them not because it is fair to you, but because the advantage stays with PayPal (and keeps you and PayPal out of a courtroom).

First, unless you live in San Jose, California, you will have to take the option of conducting the arbitration meeting over the phone. PayPal will be at the arbitration meeting in person with the person who is arbitrating the dispute between you and PayPal. PayPal already has an unfair advantage from the start. You are on the phone. How effective of a case can you make over the telephone? How can you present evidence, witnesses and other documents? Since you are on the phone you have no idea what is being said between PayPal and the arbitration person and what is being said between them after you get off the phone with them.

Second, you do not know who this arbitration firm is. You do not know what kind of relationship PayPal has with this firm. You do not know who the person is who is arbitrating the case -- for all you know, the person arbitrating could be a former PayPal attorney, employee, officer, or good friends with somebody at PayPal. PayPal, as a company, may have very good unofficial relations with the arbitration firm. Since whatever this person decides is final and not subject to appeal, is that a risk you can afford to take?

Third, you have to pay a share of the arbitration costs. Paypal uses the American Arbitration Association for this purpose. Perhaps it is only by coincidence, but the AAA is the most expensive arbitration service in the United States. You will pay a minimum of $150. That does not include other expenses along the way that you will have to share the costs for. When it is all said and done, it is possible to have to pay anywhere between $350 and $450 dollars.


PayPal Says I Cannot Sue Them. Is This True?

No, this is not true. The PayPal User Agreement says the following:

14.3 Arbitration. For any claim (excluding claims for injunctive or other equitable relief) where the total amount of the award sought is less than $10,000.00 USD, the party requesting relief may elect to resolve the dispute in a cost effective manner through binding non-appearance-based arbitration. If a party elects arbitration, that party will initiate such arbitration through an established alternative dispute resolution ("ADR") provider mutually agreed upon by the parties. The ADR provider and the parties must comply with the following rules: a) the arbitration shall be conducted by telephone, online and/or be solely based on written submissions, the specific manner shall be chosen by the party initiating the arbitration; b) the arbitration shall not involve any personal appearance by the parties or witnesses unless otherwise mutually agreed by the parties; and c) any judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction.

Next the User Agreement says:

14.4 Law and Forum for Disputes. Except as otherwise agreed by the parties or as described in section 14.3 above, you agree that any claim or dispute you may have against PayPal must be resolved by a court located in Santa Clara County, California. You agree to submit to the personal jurisdiction of the courts located within Santa Clara County, California for the purpose of litigating all such claims or disputes. This Agreement shall be governed in all respects by the laws of the State of California, without regard to conflict of law provisions.

That is what the user agreement says. However, you cannot waive your right to take PayPal to court.

This portion of the User Agreement is there to insulate and demoralize people into not taking legal action against PayPal.

You many sue PayPal in small claims court, state court (district court) or a federal court.


How Much Do I Have To Pay To Use Binding Arbitration?

Paypal uses the American Arbitration Association for this purpose. Perhaps it is only by coincidence, but the AAA is the most expensive arbitration service in the United States. You will pay a minimum of $150. That does not include other expenses along the way that you will have to share the costs for. When it is all said and done, it is possible to have to pay anywhere between $350 and $450 dollars.


PayPal Wants To Take Me To Court. What Now?

If PayPal wants to take you to court, that means you owe them a lot of money. That amount has to be $10,000 or more to compel PayPal to take that action.

If you are sued by PayPal, PayPal will sue you in accordance with the User Agreement. That means no matter where you live in the United States, PayPal will file a lawsuit against you in Santa Clara County, California.

You will need a lawyer to represent you and file the proper motions on your behalf such as seeking dismissal of the lawsuit on the grounds of improper jurisdiction. If you cannot afford a lawyer, you will have to learn how to write and file these motions.

If you do not, and choose to ignore the whole process, you will find that when the court date arrives, and you are not there, the judge will automatically rule in PayPal's favor. You will have a court judgment against you for $10,000 or more.

PayPal can then try to seize your assets, cash in your banks accounts or even garnish your wages.

If you are sued by PayPal, consult an attorney as soon as possible!


Can PayPal Make Me Pay For Chargebacks?

No, PayPal cannot make you pay for chargebacks. PayPal -- per their own User Agreement and SEC filings -- are, in the end, responsible for such losses.

However, if you wish to keep your PayPal account, PayPal will debit your account in the amount of the chargeback that PayPal has received. A routine day at the office for PayPal. Giving up your consumer rights is part of keeping a PayPal account.


Should I Pay The Negative Balance In My PayPal Account?

To approach this problem you have to decide if you want to try to keep your PayPal account and continue using PayPal.

If you say "yes," you must give PayPal money to bring your account balance to zero. However, your account would not stay negative for long. PayPal has the authority to take money out of your bank account or credit card to pay for your negative balance.

If you still want to do business with PayPal, but you feel the reason as to WHY you have the negative balance is unfair or not your fault, you have a bigger problem. You have to prove to PayPal that you should not have to pay the money. However be warned: If your argument in any way includes PayPal taking a loss or picking up the tab, you have already lost. The money will have to come from you. Even if you pay your negative balance, this DOES NOT GUARANTEE THAT YOUR ACCOUNT WILL NOT BE LIMITED.

If you say "no," the answer is easy: Don't pay it (especially if you feel that the reason as to why your account is in the negative was not your fault, the result of fraud or was unfair for some other reason).

Your account will be put on limited status. PayPal will try to collect the money from your bank account or from your credit card. If PayPal tries to take it from your credit card, simply call your credit card company and a file an unauthorized charge/use claim or file for a chargeback. You will get your money back that way should PayPal charge your credit card. The bank account situation is a little more complex. The sure way to be certain that PayPal cannot take money out of your account is to close that account and open a new one with your bank. This can be a hassle -- it can create a lot of work for you to change direct deposits that you might receive and bills that are automatically paid from your bank account. However it is the only way to guarantee PayPal cannot take your money (deleting your bank account information from your PayPal account WILL NOT WORK. Even if you delete it, PayPal still has your information. Plus PayPal can argue that you only deleted your bank information to avoid paying a debt). If you do not want to close your bank account then PayPal WILL HAVE ACCESS TO IT. PayPal will take your money. If you want to keep your account open, you will have to instruct your bank to place a "Stop Order" on any PayPal withdrawals -- many banks charge up to $30 PER DAY for that service (so it is not at all cost effective).

PayPal will try to collect the debt from you for another six months. If they are not successful, they will either write the debt off as a business loss, or, if the amount is large enough, will sell your debt to a collection agency (NCO Collections of IC Systems).


Can I Register An eBay Account Without PayPal?

Yes, you can open an eBay account without having a PayPal account. However, if you wish to become an eBay SELLER, you must offer PayPal as a payment option -- or you cannot sell on eBay. eBay updates its "Accepted Payments Policy" often. Be sure to check it first as the information provided here may have recently changed.


If I Use eBay Do I Have To Use PayPal?

eBay does not expressly communicate their desire that you MUST use PayPal when you use an eBay account.

eBay only says that you must have a "secure funding source" for accepting and receiving payments. PayPal, of course, is on that list. You can read more alternatives to PayPal in eBay's own "Accepted Payments Policy." Go HERE.

If fail to use a "secure funding source" that meets eBay's standards, eBay will delist your auctions and may suspend your eBay account. There have been reports of people getting their eBay accounts closed because they did not use PayPal.


PayPal Froze My Account And I Cannot Refund Buyers. What Can I Do?

Contrary to what most persons think, if your account is limited, you can still refund your buyers. If you are logged on to your main account overview page, you will see a very well hidden "refund" link under each transaction that you have listed (if it is a transaction where persons sent you money).

Why this feature is hidden and not in plain site is not known to me. However, it is there. You do not need to contact PayPal to facilitate refunds to your buyers should your account become limited.


I Have A Negative Balance In My PayPal Account. Will PayPal Send A Collection Agency After Me?

That depends on the amount involved. What actions PayPal will take for certain amounts are not known -- there may not even be a logical reason behind why PayPal does something or does not do something.

There are cases where people have a negative balance of around $80 and will find a collection agency coming after them. Other persons, who owe the same amount, don't get any communications from collection agencies.

There is one thing you can be sure of: if you owe PayPal money, PayPal will attempt to collect the amount from you. That includes contacting your directly for the amount or attempting to withdraw the money from your bank account without your permission.

The other option is PayPal will write off the debt as a business loss so they can write it off on their corporate taxes.

If PayPal does send a collection agency after you, it will be from either NCO Collections or IC Systems.


Can I Hide My IP Address From PayPal?

Yes. However if you do, PayPal will instantly limit your account. PayPal has a very sophisticated fraud detection system. Should you attempt to use any software, hardware, or online cloaking service to login to your account or long into a new account that you have made, PayPal's systems will detect it.

Unless you are hacker or a cracker who can write their own software and does not have to rely on anything that is commercially available, you can probably do it.


Is There Stuff I Cannot Buy Using PayPal?

Yes, there are certain items and services that you cannot pay for or sell using the PayPal service. This information is available via PayPal's "Acceptable Use Policy."

You can find a link to it HERE.


Can I Record My Telephone Conversations With PayPal?

Depending on where you live, yes. For more information on this topic, go to this site's RECORDED PHONE CALLS section.


PayPal Said I Cannot Pay With My Credit Card Or Receive Credit Card Payments. What's Going On?

For a reason that you will never find out, you somehow triggered PayPal's fraud and risk detection system. PayPal considers you high risk for whatever reason.

For that reason, PayPal will not allow you to accepted payments funded by credit card or even fund your own PayPal account using your credit card.

While you can phone customer service and speak to a manager, the odds of you fixing this problem are very, very slim.

You have triggered some kind of fraud que and nothing that you say to PayPal will change their mind -- unless you can prove they have the wrong individual. And that is impossible to do because they will not tell you the reason as to why you have been flagged. Therefore you have zero information to go off of in order to formulate some kind of defense.


PayPal Wants To Verify My Bank Account. How Does That Work?

If you added a savings or a checking account to your PayPal account, PayPal is asking that you verify the bank account. This is to help determine if you are the true owner of the account.

PayPal will make two small deposits (that you may keep forever) between 1 cent and 99 cents.

You then have to to report to PayPal a four digit number associated with each of those deposits. Your bank account will then become "verified." This process takes about a week to accomplish.


How Can I Stop PayPal From Taking Money Out Of My Bank Account Or Credit Card?

If you are concerned -- for whatever reason -- PayPal will attempt to take money from your credit card or bank account, there is little that you can do.

First, the only way to prevent PayPal from taking money out of your bank account is to place a stop order on any PayPal initiated withdrawals from your account. Most banks charge up to $30 per day for that service -- since you do not know when PayPal will attempt the withdrawal, this can be a very cost prohibitive option. The second thing you can do is to close your account and open up another one. It is a hassle, but it is the only way to be sure PayPal will not have access to your money. If you explain to your bank what you are doing and why, they will understand and help you through the process.

The credit card option is easy: If PayPal withdraws funds from your credit card without your knowledge or permission, contact your credit card company and report an unauthorized withdrawal or initiate a chargeback. You will get your money back. So, for this very reason, PayPal rarely uses this option to get money from you. PayPal avoids chargebacks like a vampire avoids sunlight.

You need to protect your bank account or open a new account after closing your PayPal linked account.


PayPal Limited My Account For Selling A Play Station. What's Going On?

Like an insurance company, PayPal keeps very detailed information and statistics on which items being sold are associated with the most risk and fraud. Popular items like the PS2 and PS3 were closely watched by PayPal.

Anybody who sold one got their account limited and had to go through a very difficult process of getting their accounts unlimited. Naturally, scammers took advantage of the situation by ordering PS3s from legitimate sellers and then reporting non delivery of the item to PayPal. PayPal gave the money back to the fraudulent buyers and the sellers were out a lot of money and product.

This situation was exacerbated by the fact that PayPal actually contacted buyers who purchased PS3s from sellers telling them that they were looking out for fraud and to please report if they got their PS3s. You know what happened then.

Therefore, if you are a seller -- or even a buyer -- and you want to sell high dollar items or hard to get items, beware. PayPal is tracking what you sell and may limit your account.


Can PayPal Keep My Money If I Violate The User Agreement?

Yes. If you violate their User Agreement or other policies, PayPal may fine you in the amount of $500 for each violation.

If you account is less than than, they have in effect taken all of your money.

Be sure to read ALL of PayPal's policies including the User Agreement, Accepted Use Policy and Privacy Policy. While this may not prevent you from PayPal accusing you of something that you may not have done, at the very least it will prevent you from KNOWINGLY violating any policy.

If PayPal accuses you of something they will not provide the evidence to you that they used to make the decision. Should such an even occur, and it costs you money, you must file complaints or take PayPal to small claims court. PayPal's only defense will be to actually produce the proof of your violation. Since is most cases PayPal is just looking to outright steal your money, they will not able able to provide such proof. The mere threat of a lawsuit or communication with a government agency that you complained might compel PayPal to return your money without any further actions from you.


I Have Been The Victim Of Too Many Chargebacks. Can I Opt Out Of Credit Card Funding?

No, according to the User Agreement you cannot opt out of credit card funding. This does not apply to personal accounts which are limited to only five credit card transactions per year.


PayPal Is Asking For "Proof of sufficient inventory." What Do I Do?

In this scenario, PayPal has limited your account and is now asking you to fax them documentation and provide other information, among which is "proof of sufficient inventory."

This is another PayPal trick designed to be very difficult for most persons to meet. If you cannot provide this information, you will not get your account reviewed. Your account will stay limited and your funds frozen for 180 days.

PayPal asks for this information even if you are not a business. If you have sold ANYTHING and received money for those items through the PayPal service, PayPal will ask you for this information. Casual sellers and steady sellers who just buy things here and there cannot comply. PayPal knows this.

PayPal does not even provide a standard as to what "proof of sufficient inventory" is. They do not advise of what kind of documentation is permissible or even allow you to offer evidence that you are not a business.

There are those who claim one should create the necessary documents -- however, again, PayPal gives no guidelines as to what documents are acceptable. Even if you can provide PayPal this information, they can evaluate what you have submitted and then request that you submit something else until they find something that you are not able to submit.

In this situation, you should contact PayPal and question them as to exactly what they want. Since this is a known PayPal trick, you might get the run-a-round. However, the only way to get around this issue is to contact PayPal often and be very persistent.

Usually, this requirement leads account holders with a limited account and their funds frozen for 180 days.


My PayPal Account Was "Linked" To Another PayPal Account. What Does That Mean?

This is another PayPal fraud prevention measure gone out of control. When PayPal has claimed to have "linked" your account to somebody else, that means PayPal has determined you are associated with somebody who has or is having PayPal problems.

If your wife or husband had or has a PayPal account this is limited (or they owe PayPal money), account details that you have in common have been discovered by PayPal and thus your account has been linked to the other account. Your account will then go on limited status. You account will stay limited until the account you have bee linked to is fixed.

That means your wife, your husband, your room mate -- or maybe even a total stranger (PayPal often links accounts that have no relation to one another and it is impossible to prove that to PayPal) must pay their PayPal debt or provide the information that PayPal was looking for in the first place.

PayPal claims this is to protect them and you from fraud. However, if you look close, this whole thing is really set up to keep your money. Your account and your money is held hostage by PayPal until the account you have been linked to is fixed. What happens when PayPal is asking for information that the linked account cannot provide (sales receipts, a copy of a lease even though you live with your parents, proof of inventory, etc)? Easy, your account -- and your money -- stays with PayPal.

Second, even if all the information and money owed is given to PayPal, PayPal only guarantees to REVIEW the account. PayPal can keep the linked account on limited status. If that happens, your account remains on limited status. Why? Because your account continues to be linked with a PayPal account that is is limited.

Third, PayPal is trying to enlist your unpaid help in collecting PayPal's debts. PayPal figures that if they can convince you that they will fix your account if the other account gets fixed, you will either pressure that other person to pay up or you will pay up to PayPal what the other person owes (if, for example, the other person has a limited PayPal account with a negative balance).

Remember, PayPal does not have to lift the limit! In the end, you do PayPal's work by getting them money and information and they keep YOUR money as a bonus as they decide they will not lift the limits on your account or the account that you have been linked to.


Does PayPal's Buyer/Seller Protection Policy Cover Intangible Goods (Like ebooks, services, online software, etc)?

No. According to PayPal's Buyer and Seller Protection Policy, any items defined as "intangible" items are not covered under any circumstances.

This is interesting because PayPal advertises heavily that PayPal is the perfect way to pay for services (an "intangible" item). It is also the perfect way for a service provider to get ripped off. A person requests that a service be done and pays through PayPal. The person offering the service provides the buyer with the service, then the buyer, after receiving the service, initiates a chargeback and gets the service for free.

Do not use PayPal to buy or sell any services. You have zero protection unless you are a buyer paying with a credit card.


What Department At PayPal Can Really Help Me?

First, that will depend on what your problem is. Second, the rule to remember is this: Regardless of what your problem is, be sure to contact somebody with authority to fix your problem.

You should only speak to managers, the account review department, a fraud agent or appeals.


Is PayPal A Member Of The Better Business Bureau?

Yes. PayPal is a dues paying member of the Silicon Valley Better Business Bureau located in California.

If you would like to file a complaint against PayPal with this BBB you can find a link to their website HERE.


PayPal Keeps Asking Me For More And More Information. What Do I Do?

If you have a PayPal account and you are going through the routine verification process, it is okay and normal to give PayPal the information that it is looking for.

However, if you account has been limited, you have to remember that your chances of PayPal unlimiting your account are slim -- even if you send them all of your private and financial information.

Based on your individual situation, if will be up to you to decide what you are willing to send to PayPal. In this situation it is best to trust your instinct. If something doesn't "feel right" or some information that PayPal is requesting feels too obtrusive, maybe you should not send it. In other words, if you get an information request from PayPal and your first thought is "That is none of your business PayPal," then maybe it really is none of their business. You have to question why they want the information in the first place and second you have to question how that information can be used against you in the future (collection agency or a court filing against you).


Is My Personal And Financial Information Safe With PayPal?

Based on all of the information that you are able to gather about PayPal, you have to decide if you are comfortable with PayPal having it.

Second, your information is no more at risk than it would be with your local bank, actual credit card company, or credit giver. All of these places -- including PayPal have both physical and procedural security about who has access to your personal and financial situation. PayPal's servers -- where your information is actually stored is well protected both physically and in a software sense.

However be warned that in PayPal's User Agreement they are not responsible or held liable for any information that is compromised.

Another factor you should consider is employee fraud coming from PayPal. There is a significant risk of employee fraud at PayPal. It has happened in the past and will continue to happen in the future. PayPal, often times, does not prosecute employees who who customer information to steal money or engage in fraudulent activities as the charges would be available to the public. That is publicity that PayPal cannot afford -- as such, PayPal keeps such incidents very quiet. In Security and Exchange Filings PayPal has made it very clear that employee fraud is a problem and does happen (see DID YOU KNOW? section for more information on this).


I Transferred Money Out Of PayPal Into My Bank Account. Then PayPal Reversed It. Can They Do That?

Yes. PayPal uses Wells Fargo Bank to process its ACH transfers. Even though you initiate a transaction and your transaction is pending, PayPal can reverse it anytime for any reason (as outlined in the PayPal User Agreement).

PayPal can also limit your account and then reverse any transaction that you have made BEFORE your account was even limited (retroactive punishment).

A rule of thumb with PayPal is always this: you are NOT PAID until your money has cleared your bank account.


My PayPal Account Is Limited But I Have To Ship Stuff Out To My Buyers. Do I Ship With A Limited Account?

If you received payments from buyers and then had your account limited before you shipped the items, that means you must decide whether or not to ship merchandise without having the ability to have access to your funds.

No. You should not ship out the items. You should login to your main PayPal overview screen (where your transactions are) and refund the buyers. Explain to your buyers what happened -- that PayPal has limited your account and you have no access to the funds that they sent. Second you inform them that shipping the item even though the money is in your PayPal account puts you at a great risk for fraud. Buyers can receive the items and then initiate a chargeback. Since you cannot withdraw the funds from your account, PayPal has total control over debiting your account. Apologize to your buyers and tell them to complain to PayPal and not to you.

Shipping your merchandise while your funds are frozen with PayPal puts you at a great risk of eventually loosing your money and your merchandise.

Yes, there is a risk that you will receive negative feedbacks from your buyers. However, if you explain and communicate what has happened to them, and keep a line of communication open to them (such as offering to refund their money through PayPal and they can pay you via check or money order for example), you can minimize the chances of that happening.


eBay Wants Me To Verify My PayPal Account Before I Can Sell More. What Should I Do?

If you are a legitimate seller, there should be no problems verifying your PayPal account.

During this process you must add a bank account and a credit card to your PayPal account. Once you do that, you will have to verify your bank account and verify your credit card as well as verify your home address.

That process is all automated and routine. Once you complete the process, you should be selling again on eBay in no time.

Remember: verifying your PayPal account does not guarantee that your PayPal account will not be limited sometime in the future!


My PayPal Account Is Closed. Can PayPal Still Take Money From Me?

Once you or PayPal closes your account, they legally cannot access your bank account or credit card for any reason.

The account closure signals the end of your relationship and your adherence to the User Agreement. The User Agreement is what gives PayPal the authority to access your bank account or credit card. Since you account is closed you no longer are bound by the User Agreement.


What Is The Best Way To Take Money Out Of My PayPal Account Everyday?

Call PayPal and tell them that you want the Auto Sweep feature activated on your account. This is a free service that must be activated by PayPal. You cannot do it from your online PayPal account.

At the end of each business day (Money thru Friday), any money that you have received into your PayPal account for that day will automatically be deposited into your bank account.

A bonus of this feature is that it reduces your chances of having your PayPal account limited because of suspicious withdrawal activity -- the auto sweep feature does not show up in PayPal's fraud seeking system.

You only have to worry about the other side of the coin: you can still have your account limited for suspicious deposit activity!


Does PayPal Use CHEXSYSTEMS?

That depends on what you mean by "use." Does PayPal REPORT to CHEXSYSTEMS? The answer is NO. They do not report to them. However, PayPal can access your bank account without you even knowing it. If PayPal attempts to debit your bank account numerous times and you start racking up NSF fees, this could be enough for your bank to close your account for "abuse." Your bank would then report YOU to CHEXSYSTEMS and you would have a very difficult time opening a new bank account of any kind.



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