Latest Announcemnent
New thread

Paypal Permanently Limited Account for no reason

Status
Not open for further replies.
F

FShoppe

Active Member
252
2011
6
0
Hello all,

How many people here have had their Paypal accounts limited, seemingly for no reason.

I recently had my Paypal account limited, supposedly for violating the AUP but I fail to see how. The business of which that Paypal account is setup for has been running for almost 10 years and is not in any way involved with illegal, or even questionable activity. (No it is not related to file hosting).

The E-Mail received simply said the account was permanently limited and did not say which term/policy was violated. Further more, the two 'related' transactions appear to be okay without so much as a charge back/dispute raised.

Given it is Sunday and out of office hours, I have not been able to contact them yet, but what can be done in such a situation? This happen to anyone else? Does anyone else really HATE paypal?
 
35 comments
We all hate PayPal at times, it's just that they're a monopoly we're mostly forced to use them.

There is ways around it though, using 3rd party systems with PayPal integrated for example, also payouts can be handled by 3rd parties too.

Of course there is extra fees' associated with those options, but sometimes it's worth it for less hassles.
 
So let's get to the real facts:

Was the account used to pay your Affiliates or were you paid advertising revenue for your file hosting site using this account?

Was your domain name for your file hosting site ever used in any line on a payment incoming or outgoing?

If you answered yes to either question there is the reason.

When will you hosts learn you have people registering accounts and using your service just to get your payment processor info to shut your accounts down and cash starve you and your affiliates.
 
@WDF, have your heard if paypal can arrest the money, even after the period of limitation (180 days) ends, both for an owner of a filehosting, as well, for the uploaders? In their mail they maybe say that you can withdraw your money after limitation ends, but who knows, can do whatever they want?!
 
Was the account used to pay your Affiliates or were you paid advertising revenue for your file hosting site using this account?
Click to expand...

FileShoppe does not opperate an affiliate payout system. FileShoppe uses CarrotPay's split payment system to ensure they get their share at time of sale so we never keep funds due to affiliates. So the answer is no.

Was your domain name for your file hosting site ever used in any line on a payment incoming or outgoing?
Click to expand...

There is no association with our file hosting service and this paypal account. The paypal account is used for a single business with regards to recieving funds, and occasionally used for personal online purchases, which is not involved with any sort of file host or other remotely questionable activity.

If you answered yes to either question there is the reason.
Click to expand...

So I still have no reason :)

When will you hosts learn you have people registering accounts and using your service just to get your payment processor info to shut your accounts down and cash starve you and your affiliates.
Click to expand...

This comment must be aimed at others since it certainly doesn't apply to me. FileShoppe does not make any 'payout' EVER. The Paypal account is used for a completely legit and fully compliant online service that is not even questionable in nature. It is also a well established, verified paypal account that has existed for close to a decade.

@WDF, have your heard if paypal can arrest the money, even after the period of limitation (180 days) ends, both for an owner of a filehosting, as well, for the uploaders? In their mail they maybe say that you can withdraw your money after limitation ends, but who knows, can do whatever they want?!
Click to expand...

I also do not trust Paypal to return my money. I have instead decided to refund as many customers as possible. Paypal do not allow you to withdraw or send funds when your account is limited, but they do allow you to refund. I have chosen to do this. Every last penny!

In addition to being locked away for 6 months (180 days), Paypal sent in the E-Mail to me:

In addition, you will be liable to PayPal for the amount of PayPal's damages for each violation of the Acceptable Use Policy.
Click to expand...

This is quite scary actually. Although I have refund as many clients as possible to get the balance to $0, I now worry they will help themselves to my bank account as they see fit.

My hope is this is some great big misunderstanding and the limitation was a mistake. I can honestly say I have no clue why on earth the account was suspended.
 
Do you have multiple PayPal accounts accessed from the same PC or IP?

You can have 2 if 1 is a business account and the other is not beyond that they get a little touchy about their ToS and AUP.
 
"In addition, you will be liable to PayPal for the amount of PayPal's damages for each violation of the Acceptable Use Policy."

this means that you have to refund the money to your customers or can take your money for every rule infriged?
 
Do you have multiple PayPal accounts accessed from the same PC or IP?

You can have 2 if 1 is a business account and the other is not beyond that they get a little touchy about their ToS and AUP.
Click to expand...

I have access to 4 separate paypal accounts (3 in my name), but all are business accounts. I see no way of getting around multiple Paypal accounts for business use since you cannot use a single paypal account for multiple businesses due to the IPN responding only to 1 address and the name remains static.

The other accounts appear to be fine, though I have decided to withdraw all the money from them just in case.

All accounts are used for 100% legit, unquestionable services and are in no way related to file hosting what so ever.

this means that you have to refund the money to your customers or can take your money for every rule infriged
Click to expand...

From what I understand, if Paypal suffer any damages, they will take it out of your account balance. Since they can manufacture whatever reasons they see fit, I don't wish to take any chances. Refunds to my customers is far better than Paypal scooping up 'charges' and making a profit from the misfortunes of those smaller than themselves.
 
I would be very cautious with the other accounts until you talk with them. I would recommend a telephone call and be tight lipped about the additional account until you get a specific reason for the issues with the limited account.
 
I would be very cautious with the other accounts until you talk with them. I would recommend a telephone call and be tight lipped about the additional account until you get a specific reason for the issues with the limited account.
Click to expand...

Agreed. In fact I have disabled direct Paypal payments on 1 site and instead directing them to use CarrotPay (since they have Paypal pass through) instead.

I must say, I have always ALWAYS disliked paypal. Wish I could live a Paypal free life!
 
I have been a PP user for a long time and was temp limited once because they picked up on an address change I failed to report.

The excuse was they wanted to be certain there was no fraud or ID theft.

I could not live without them because 1 of my legit online businesses relies heavily on them for payment processing. It is just to easy to loose a large segment of your sales/purchases without it.

They are not a bank and have much different rules then many financial institutions. They protect themselves before all others and co operate with LEOs.
 
I have been a PP user for a long time and was temp limited once because they picked up on an address change I failed to report.

The excuse was they wanted to be certain there was no fraud or ID theft.
Click to expand...

Sadly not the case for me. The limit is 'permanent' and non disputable. They have not asked for any information. Just a straight limit.


I could not live without them because 1 of my legit online businesses relies heavily on them for payment processing. It is just to easy to loose a large segment of your sales/purchases without it.
Click to expand...

That suggests you do illegit stuff too ;). All of the work I am involved in is legit, including FileShoppe (it's not a normal file host. Its a platform to sell digital goods/files). 90% of my customers pay via Paypal, so it is is a big problem for me.

They are not a bank and have much different rules then many financial institutions. They protect themselves before all others and co operate with LEOs.
Click to expand...

But in this case I have no idea what they are protecting themselves against.
 
They put a strange reason for me too when they did the limitation, it said that I'm involved with a hosting site, that now not even exist (is gone for more than 2 months)

My paypal appeal got denied, I will not gave up, just sending them messages over and over till they give a real reason for the limitation.

Badly that we don't have here any person from paypal supporter like payza has

Just hoping they give my money back, I'm sure my customers will not open a dispute against me, I'm taking down all paypal buttons from my site, I'm a verified, have accurate informations, just don't see why they will not give my money back (is kinda a big sum).

Anyway, I'm working harder than before, to recover all my damages.
 
I dunno, I have a lot of payments of 7 dollars and 5 of 50, do they percep any fees for refunding?
it is stated clear on my email from them that:

"Per the User Agreement, when PayPal permanently limits an account due to an
Acceptable Use Policy violation, we may hold your funds up to 180 days. We
will review your account at 30 days from the date of the limitation of your
account, we will calculate our exposure and will release any excess funds
to you for withdrawal. If there are any funds remaining in your account at
this time, we will review your account every 30 days until either all your
funds have been made available to you for withdrawal, or a period of 180
days from the date your account was limited is reached. Please log in to
your PayPal account and verify that your account information is accurate,
as PayPal cannot be held responsible for incorrect information provided by
the account holder."
 
Was lurking but I felt the need to chime in on this thread as I'm pretty sure I know what's going on.

When you say Paypal are a bunch of idiots, you're not wrong. Paypal, is basically playing to the strings of one guy; stopfilelockers.com

You lot probably don't follow him/his progress, but I do; out of interest, mostly. He tweeted only hours (or a day, tops) ago that he was going to get Paypal terminated for Fileshoppe and Carrot. Is it a mere co-incidence that Carrot's paypal was terminated the same time as FileShoppe? Clearly not. But that's not my point, as is obvious.

My point is very simple - you/the site were reported to Paypal by the guy behind SFL (Copy Control Pty Ltd is what they're operating out of now). Given his history, and probably the fact that he's got hold of someone at Paypal who has enough control, Paypal now dance to his whims, for the most part. They're quite anxious to cut down every business that is even remotely connected to filehosts/file hosting/content lockers, etc. And until someone actually starts pushing Paypal about what they're doing is wrong, there's not much hope.

To add to that, they're terminating mere resellers. It's so obvious, it's not even funny. A reseller is not a file host, but is being terminated because they're an 'accessory' which is completely wrong and unfair. But since when has Paypal been fair? A reseller does not offer any upload services, any download services, no user management, no links. Nothing. Yet it gets terminated citing AUP violations that contain NOTHING with regards to account reselling. By that definition, the next ones to go should be web hosts. Hostgator and the likes. Hostgator gives you an account where you can upload files, download them, share them with the world. They even have an affiliate system that encourages you to promote them and get other people to join (and potentially uploaded pirated content). Every web hosting company fits the definition of a content locker, quite literally. But only the content lockers and resellers (who don't even fall into the file hosting category) are being terminated.

Is Paypal really that stupid? Clearly not. So why then? The answer is so damn obvious.

Woopsie.. edit/add:

https://twitter.com/StopFileLockers/status/242170304040947713
https://twitter.com/StopFileLockers/status/242173731747807232

Fileshoppe owner's 'unrelated' account gets terminated only hours after these two status updates. Co-incidentally, Carrot is terminated at the same time.
 
Last edited:
You serious?That guy closed more than 200 paypal account in mere week.How is that possible when paypal (i believe) has to check each account for what its used for?Or they just with a click they close accounts?
 
Hello LifeTalk,

I really do not think it is related. FileShoppe is not in any way related to the limited paypal account. There is virtually no connection, particularly with regards to payment. Even if Paypal were informed by this lunatic of FileShoppe's existence, I fail to see how they would connect the two together.

FileShoppe does not really fall into the category of a file locker. If it does, so does every other web host, and on-line service provide that offers any kind of online storage. When did CarrotPay's paypal get suspended?

This is absurd. FileShoppe is a system designed to let people sell their files online. Copyright material is clearly against our TOS/AUP and we have a very simple DMCA policy. Report, and we remove. SIMPLE! And we offer no incentive to 'share' files since we do not offer PPD or PPS programs.
 
I would guess the stopfilelockers guy has found or uploaded a xxx file to your site & reported it to paypal.

That breaks Paypal's AUP & if they ignore the complaint they know the guy will report it to Mastercard etc and post a load of cr%p on his site about it.
 
EL-Warez said:
You serious?That guy closed more than 200 paypal account in mere week.How is that possible when paypal (i believe) has to check each account for what its used for?Or they just with a click they close accounts?
Click to expand...

It literally takes the click of a button. I've talked to Paypal enough number of times on the phone over these last few years to know that. And I've spoken to them about this issue a fair few times now. They've given me a lot of bullshit which I know is not true. They've told me multiple times that every case is dealt with individually and that they are thorough in their investigations and what not.

However, even Paypal cannot complete an investigation only hours after a case is reported to them.. on a weekend! They're getting tired of all this, as is obvious. They want it to end because they won't risk their reputation getting tarnished. Now it's just a point and click. How else do you think the SFL guy 'just gets a whim' about who has been terminated and who has not? There's constant communication. OBVIOUSLY!

FShoppe said:
Hello LifeTalk,

I really do not think it is related. FileShoppe is not in any way related to the limited paypal account. There is virtually no connection, particularly with regards to payment. Even if Paypal were informed by this lunatic of FileShoppe's existence, I fail to see how they would connect the two together.

FileShoppe does not really fall into the category of a file locker. If it does, so does every other web host, and on-line service provide that offers any kind of online storage. When did CarrotPay's paypal get suspended?

This is absurd. FileShoppe is a system designed to let people sell their files online. Copyright material is clearly against our TOS/AUP and we have a very simple DMCA policy. Report, and we remove. SIMPLE! And we offer no incentive to 'share' files since we do not offer PPD or PPS programs.
Click to expand...

Try explaining that to this guy who's got a child's vendetta against the industry he blames to have caused him his declining revenues. He's got it all wrong, but he's too stubborn to admit or understand.

Here's the connection, indirect if not direct:

FileShoppe was investigated by this guy. Like I've already told you above, his mind is like a machine. He sees the site, and if it even remotely resembles a filehost, a remote accessory to a filehost, or anything that has 'file' and 'uploading' in the same phrase, he investigates the payment methods.

He then reports those payment methods to Paypal/Payza/Moneybookers, assuming it's one of the 3. Or 2CO, etc. Basically, anyone who'll bend over to his demands on mere threats of 'reputation risk'. They terminate said merchant/filehost.

Fileshoppe accepts payments via Carrot. Who... wait for it... depend exclusively on Paypal. Paypal terminates Carrot. Paypal terminates your account assuming you're Carrot. If you're not carrot, then your account has been terminated for being connected to FShoppe in some way or another. Ask them for a reason. Send an email to their AUP department. Nothing else is going to work. A call might; depends on who you get connected to.

Carrot was terminated right away, instead of being asked to stop processing for FShoppe. Now that doesn't happen, usually. It hasn't happened with Paymentwall, 2CO, etc. Why do you think? They've got history/reputation. Carrot, on the other hand, clearly/obviously doesn't. Well not exactly history; more like tons of business. I suspect Carrot barely does a few thousands a month with Paypal. The others, on the other hand, do a lot LOT more. Sure Paypal wants to rid itself of the 'risk' (which is basically a bunch of lies fed to them and their untrained monkeys incapable of rendering logical decisions) but it won't do so on the expense of losing a lot of business.
 
Status
Not open for further replies.
Back
Top