Our Business PayPal account was permanently limited about seven months ago. We received email “If you have money in your PayPal balance, we’ll hold the money for up to 180 days. After that period, we’ll email you with information on how to access your funds.”
No email was sent to us after 180 days so I logged in to the account and found out that the balance is $0, and that there was a transfer of our remaining balance to PayPal roughly 150 days after my account was closed. It was just weird as there has been no communication whatsoever.
After being an hour or so on hold, I finally talked to a PayPal rep who told me that PayPal can apply a fee to any limited account up to $2,500 if they chose to. In our case, since our remaining balance was exactly $1,000, they took it all. He advised me to email <removed> which I did, not surprisingly no response from them.
We had absolutely no charge backs before or after the account was closed. My issue is not that they closed the account but that they took the $1,000 and not even bothered telling us anything. BTW – no warning at all before they closed the account and no explanation either. In the interest of full transparency, I think I know why they decided to close it – we sold some dietary supplements and that is apparently forbidden.
Does this happen often or is this an outlier? I assume there is no recourse, is there?
Thanks.
