2023 Shopify Merchant Top practices to avoid PayPal account suspension
The PayPal red flags to be observed and to take immediate actions to avoid being screwed up and account suspension, account limitation, and account closure
The priority of online business owners is to improve their store performance and sales growth and one factor that can boost your store performance is having a range of payment gateways that always takes the lead, no matter what type of niche you're in and what type of audience you're targeting, and we all know Paypal has achieved great popularity among merchants and even ordinary individuals.
The majority of Paypal users experience the pain points and the stringency of using PayPal services which is why we have gathered a list of practices that would save your PayPal account from being suspended. The red flags to be observed and take immediate action to avoid being screwed up.
In this article, we will examine all of the reasons why your PayPal account may be suspended and we will also walk you through the necessary actions to avoid having your account suspended by PayPal. Also, we will learn what to do if your PayPal account has already been suspended.
Seeing this PayPal notice in your inbox is a hassle and of course, mind-boggling as you have thought you are not violating any of PayPal terms. Aside from wondering about the causes of this notice, this is something you should be careful of as well; it might be obvious scammers or fraudsters attempting to obtain your personal information and deplete your PayPal account better hand to protect yourself from possible scammers and fraudster, make a habit of examining the sender's email address if you receive such emails. If something appears suspicious DO NOT click any link, you may verify it to a Paypal expert to confirm the said email.
Furthermore, Here’s the highlight of why PayPal suspends your account.
- Engaged in suspicious activities. Paypal may evaluate your account and may conclude that you are involved in any unlawful Transactions or may take part in any prohibited activities or under their list of PayPal activities requiring approval. Paypal upholds its right to operate its services at a high-security level and these are some activities that you need to avoid that will surely suspend your Paypal account. Kindly check the Paypal terms of agreement for the complete list of restricted activities:
- Unusual transaction patterns such as a sudden increase in remittances or a Spike in sales volume may be associated with any doubtful payment undertakings. PayPal will suspend or terminate your account if they notice this particular transaction of your account. Make sure you have corresponding documents and information to support your PayPal transaction to avoid serious problems. PayPal will require mandatory documents to support the payment transaction flow.
How to lift your account suspension? Throw them with proper documentation;
2.1 Provide Supplier’s invoice with contact information, this helps them confirm that the items you are selling are in stock
2.2 Provide Payment Information - Paypal is a customer-centric and always
makes sure the validity of the items being purchased
2.3 Proof of Shipment - This gives a clear view of your online business.
Transparency toward buyer and letting the buyer know when to expect
2.4 Provide documents to prove your business legitimacy and compliance
with PayPal regulations
- Provide a Bank statement that shows your address.
- Proof of Personal Identification
- Proof of Business, such as Permits and other required paperwork, demonstrating that your company is legitimate and valid.
- Another red flag that merchants should seriously take note of is the high rate of chargeback or dispute claims. PayPal Protection Mechanism stipulates protecting both parties (Buyers - Seller relationship) from any dissatisfaction or disagreement between them. This is very common why PayPal holds funds to ensure that resolution will be served for any issues that may arise.
Here’s the following dispute that a buyer can claim to the seller. You may also review the PayPal Buyer Protection for your reference.
- The inconsistency of details or accounts is not fully verified. All payment services protect their users and confirm that they abide by its requirements and are bound with the highest security, so make sure the authentication process has fully complied to avoid any fraudulent undertakings:
According to the PayPal business resource center “ 2018, small businesses in the U.S. reported losing an average of $28,313.33 to online fraud.1 And the Federal Trade Commission reported that from 2017 to 2018, credit card fraud increased by 24% and online shopping and payment account fraud increased by 18%.” That being said, the majority of growing businesses are mainly targeted for fraud.
How to address them in the simplest way:
- Proper monitoring of your payment transactions; the movement of your payment cash flow. We encourage users to be policy conscious of your payment gateway providers to avoid financial risk exposures, account suspension, or worst account closures.
- Provide mandatory required documents (proof of business and proof of identity)- Maintain correct authentication process.
- Consistency of updating tracking information to guard all your transactions and easy order verification in case of disputes.
Identifying the reasons why PayPal holds, suspends, or limits your account is essential knowledge that merchants and individual PayPal users must learn. Being mindful of its terms would save you from headaches and armed everyone with a secured and safe automated payment transaction that leads to improved business cash flow.
It is also good to point out how to technically resolve and recover your suspended PayPal Account.
- Access your PayPal Business account by simply Logging in
- To understand why PayPal suspends your account, go to the Resolution Center.
- Provide requirements requested by PayPal to lift the account suspension.
Ideally, following the User Agreement creates a positive relationship with PayPal which can aid you to avoid having your PayPal account suspended. The smart way of protecting your account from being screwed up is by using an automated solution like our app. Paltrack supports Shopify Merchants, owning their time and ensuring that their PayPal account is in a good standing record and able to meet all requirements.
Paltrack is a fully automated real-time solution that lets Shopify merchants keep track of their PayPal accounts. This has been trusted by thousands of Shopify users which allows them to avoid the anxiety of having their PayPal account getting shut down or suspended. It is a solution developed to sync fulfilled orders tracking information between your Shopify store and your PayPal account on autopilot.
Paltrack also added its newest and advanced version to help merchants to manage their stores efficiently.
- Auto Routing - Update your Carrier name to one officially supported by Paypal for the Faster release of Paypal Payment!
- Email Reports - View your Paltrack dashboard directly to your Inbox. Set your email notification the way you see fit; monthly, weekly, or daily email updates, creating a more PayPal order tracking personalized experience while ensuring the accuracy of Paltrack’s performance.
- Shopify Order Notes All PayPal tracking numbers submitted to PayPal are automatically reflected in Shopify order notes. Paltrack gives you quicker access to tracking Information!
We always make sure that our users stay ahead of the competition and allow them to operate their stores confidently and securely.
Get the app directly at Shopify App Store. Click Paltrack
We all know that the flexibility of payment options fuels customer satisfaction and is essential in boosting your online sales. To fully enjoy the features of your payment provider you must be mindful of the factors that might interfere with its security. Reviewing your Paypal policy would help you easily grasp and be able to adhere to its guidelines in using their services. We also emphasize the value of using an automated app by consistently submitting tracking information to PayPal that supports store ROI and PayPal Seller Protection.
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How Paltrack Helps you avoid PayPal Disputes and account suspensions