There are many payment apps and websites that you can use. You might know about Chime, Zell, and others. However, one of the first of these platforms is PayPal, and it is the one that many individuals trust over all others.
You can both send money via PayPal and accept it from friends and family members. You might also send a business contact an invoice via the platform if you have done a professional service for them. However, if you notice your PayPal account frozen seemingly out of nowhere, you are probably going to be frustrated if not downright angry about that.
Why does PayPal freeze accounts, and what can you do about it? Let us talk about the issue in depth right now.
Why Does PayPal Freeze Your Account?
There is no single reason why PayPal might freeze an account. However, if you notice that the platform has taken this action, it’s probably because of one of the following.
It might be that the platform believes that there is something suspicious going on with the account. For instance, very large transactions going through might lead to a temporary hold. The platform might also put a hold on an account if there are unusual logins happening.
What Other Reasons Might Be Behind It?
You might also get your PayPal account frozen if you violated the PayPal terms of service, either on purpose or by accident. The account might be frozen if the platform can’t verify your identity or they don’t have a certain piece of information that the admin team deems to be important.
You might also see an account frozen because of a risk management issue. Maybe there are a lot of chargebacks or disputes associated with that account. Even if you didn’t technically do anything improper, that’s the kind of thing that might get a hold placed on the account until PayPal can investigate and clear you of any wrongdoing.
What Can You Do to Prevent It?
As for what you can do to prevent PayPal placing a hold on your account, first, you can make sure you have provided all the documentation they asked for. You can also avoid having too many disputes or chargebacks connected to the account.
You can stay away from huge payment amounts that are going in or out. Interactions for hundreds of dollars are probably fine, but if the platform sees six-digit transactions happening every day, the admins might think you’re engaged in money laundering or something similar.
In general, PayPal is a very reasonable platform backed by individuals who know about online transactions and what they should look like. The company has been in existence for a long time, and they know how people and companies should conduct themselves via the internet.
If you are unlucky enough to have an account frozen, you can usually find a way to get back in the platform’s good graces. Just contact customer service and discuss whatever issue or behavior has come to their attention.