Paypal has nowadays gone very strict in preventing frauds along with implementing anti-money laundering policies and can any time scrutinize and verify your account. They can limit your account anytime or may permanently lock your account and can decide not to do business with you anymore. Imagine the PP nightmare if your account is LIMITED! It might take weeks to restore your account or they may permanently lock your account.
Avoiding Limitation & Safety Tips
What NOT to do?
* Do not open multiple paypal accounts. You are allowed to have 1 personal AND 1 business OR 1 premier account.
* Dont buy/accept payments related to gambling/casinos or other activities/serviices considered high risk by paypal. Read their terms here .
* Avoid sending money or accept payments to people from countries which are considered high risk (like nigeria, african countries).
* Dont login to your PP while you travel to other countries. Before you do that call them and inform them that you are travelling.
* If you are sending/receiving money above $500 use bank transfer rather than using PP payment. If you are in europe use IBAN payments or moneybookers. No matter what always bank transfers are the safest, even if it costs more.
* If you are sending more than $1000 to somebody using PP, phone PP and inform them before you initiate the transaction. Also, make sure you have enough proof to show incase you get dispute or chargeback later.
* Dont give a chargeback with your credit card connected to your PP account. This will hurt your reputation with PP. Instead file a dispute by logging in to your PP account.
* Make sure you dont receive credit card chargebacks or frequent disputes from your buyers. What it indirectly means is your business is not reputable one and PP may decide to close your account.
* Dont conduct large no of transactions or send large sums of money in a single day or same week. This will raise suspicions as PP will think that someone has illegally logged in your account and misuing and diverting the funds.
* DONT set your PP account with weak password. Set your password atleast 10 chars involving numbers and special chars. Weaker passwords will be compromised by hackers.
* Dont allow your PP account to go into negative balance. To be on the safer side always keep $100 to $200 in your account incase you get any dispute or chargebacks.
* Dont signup the credit card which PP has already in file. PP does not allow to signup same card number more than once.
* If you are in trouble always call them by phone and explain the situation and tell them the truth.
* Dont frequently transfer money between PP accounts on your name. This can be exchanging funds between personal and (business or premier one)
* If your account is permanently locked then you have to patiently wait for 180 days to receive your money and after that your account will be closed. In some cases on extreme fraud you funds may be held by PP and may not be returned.
* If you conduct very large number of transactions (excess of $5k monthly), it would be a good idea to upgrade your account to a business one or apply for separate merchant account to be on the safer side. As otherwise your business will be at risk.
More important tips can be found here
Dont trust any email sent to your inbox. NEVER NEVER! CLICK URL LINKS IN THE EMAIL EVEN IF THE EMAIL SENT FROM PP IS GENUINE. THE SENT EMAIL MAY BE PHISHING EMAIL. You will compromise your account to phishers. Instead open your browser, type WWW.PAYPAL.COM and then securely enter your login details.
What You Should Always Have
Paypal might any time ask you to verify your account and may ask you to send the identification documents by fax even if you are verified member. To be on the safer side, you have to always keep the following documents ready at any cost.
1. Passport copy / Govt ID (Primary Identification)
2. Drivers License (Secondary Identification)
3. Bank Statement
4. Utility Bill (Rental bill on telephone or gas or water)
5. Recent Credit Card Statement (for CC you signed up with PP).
Incase of any dispute or chargeback…
1. Any proof of documents which you shipped (in case you sell physical items)
2. Any Proof of Agreements/Contracts (which is entered between buyer and seller).
Remember! You can’t live without paypal. Your PP account is most important for your business and it is so necessary even if means more than your bank account. So be careful and act wisely with your PP account.
I suffered with PP previously and had nightmares. It really hurts! So i felt that i could sit and post these tips which i believe will be most helpful when you have a situation with PP.
- Credit card expiring with Paypal?
- Indian paypal users are forced to autowithdraw daily!
- Too many paypal chargebacks may hurt your business!
- Paypal withdrawals to indian banks still pending status?
- Paypal NOW allows Direct Withdrawal to Indian Banks
- Paypal asking for PAN card from Indians?
- New Paypal rules effective from March 2011 hits Indians hard!
- India Travel – Tips for using Credit Cards in India for Foreigners
- Importing Paypal Transaction History for TAX Purposes
- Paypal withdrawal to Indian banks delayed in Feb 2010!!!!