13 Reasons Why Your Paypal Account Is Locked & How To Fix It

If you’re running a dropshipping business, selling software, or handling international transactions, discovering a locked PayPal account can be a nightmare. But what causes PayPal to lock your account? How can you tell if your PayPal account is limited? In this article, we’ll break down the reasons behind a locked PayPal account and what you can do to resolve it. Let’s dive in!

What Is A Locked PayPal Account?

A locked PayPal account means you’re temporarily blocked from using it—you can’t send or receive money, withdraw funds, or make purchases. PayPal does this to protect your account from fraud or security threats or to make sure everything follows their rules. It’s usually a precaution, but it can be frustrating if you need access right away.

13 Reasons Why Your PayPal Account Is Locked

Before trying to find a way to restore your PayPal account to normal, you should also take a look at the causes of the PayPal account Limit status. The account limit will have many reasons and PayPal they will also have different limit forms.

Normally, the system will apply an automatic account limit when it detects “strange actions”, but if there is a dispute or fraud problem reported by a 3rd party, they will apply a limit account form. manual account. The following 10 reasons may be the cause of the PayPal account being limited:

1. Violation of PayPal’s terms and policies.
2. Suspected account theft (abnormal login).
3. Sign in to your account on multiple devices with different IP addresses.
4. Log in to multiple accounts on 1 device at the same time.
5. Changing the account’s personal information too many times.
6. Traded too many times in a short period of time.
7. Receiving or withdrawing unusually large amounts.
8. Receiving funds from prohibited activities updated in PayPal’s Acceptable Use Policy or from offending accounts.
9. Transfer money to an illegal or blacklisted account.
10. Detect trading accounts, buy and sell banned goods such as depraved cultural products, drugs, etc.
11. Account is complained about or reported to PayPal, leading to manual review and restriction.
12. Certain business categories, such as selling digital goods, financial services, or high-risk industries.
13. Too many chargebacks, disputes, or refund requests from customers.

There are many other reasons. To avoid account restrictions, the best way is to comply with the policy, use a PayPal account (terms they offer as soon as you sign up for PayPal) for transparent transactions, and protect your PayPal account more securely. It’s rare that your PayPal account is limited.

How to know your PayPal account is limited?

During your use, if you find that your PayPal account is locked, you need to log in to your PayPal Business account and go to the Resolution Center. Here, if you are the account owner, you can see the details of why your account is limited, thereby finding out the information requests from PayPal to solve the problem.

In case the email you received has a message that your account is restricted and you have not received any information from the Resolution Center, you should not be too worried because the email you received may be a scam. At this point, you will need to do the following:

• Let PayPal re-investigate your email. When you send an email to PayPal, delete it immediately from your mailbox to prevent viruses from entering your computer system.
• For extra security, run an antivirus check and change your password and security question again.

How To Unlock A Limited Or Locked PayPal Account?

If your PayPal account is locked, don’t panic. Follow these steps carefully to regain access as quickly as possible.

Step 1: Go to the PayPal website and log in.

1. If you cannot log in, reset your password using the “Having trouble logging in?” option.
2. Once logged in, navigate to the Resolution Center.
3. Look for notifications about the limitation and review the details of the restriction.

Step 2: Find out why your account is locked.

Before you can fix the issue, you need to understand why PayPal restricted your account. Log into your Resolution Center or check your email for details. Common reasons include:

• Unusual account activity, like large or unexpected transactions.
• Unverified identity, if PayPal needs more documents to confirm who you are.
• Security concerns, such as multiple failed login attempts from different locations.
• Ongoing disputes, like chargebacks or complaints from buyers.

Knowing why your account is locked will help you take the right action.

Step 3: Fix the issue through the Resolution Center.

PayPal may allow you to resolve the problem directly through the Resolution Center. If that’s the case, follow their instructions carefully. You may need to:

• Confirm your identity by submitting a passport, driver’s license, or other government-issued ID.
• Provide proof of address, like a recent utility bill or bank statement.
• Verify flagged transactions if PayPal suspects fraud or policy violations.

Submit any requested documents as soon as possible to speed up the review process.

Step 4: Contact PayPal if you need extra support.

If you can’t fix the issue through the Resolution Center, you’ll need to speak to PayPal’s customer service. Here are 2 ways:

• Find the right contact information

• Open your web browser and search “PayPal account locked” to find the official support page.
• Scroll down to “Contact Us” and select “Call Us” to get their customer service number.

• Call PayPal customer support

• Dial the support number and follow the automated prompts.
• When connected, explain your issue clearly:
  • Let them know your account is locked.
  • Mention that you have not violated PayPal’s policies.
  • Request assistance in unlocking your account.

Be ready to verify your identity using details like your linked phone number, email, or recent transactions.

If calling isn’t an option, you can request help online:

1. Go to PayPal’s Contact Page.
2. Click “No” on the suggested help articles.
3. Select “Other” and type your issue in the provided box.
4. Write a polite message explaining your situation:
   “My account has been temporarily locked. I have not violated any PayPal policies. Please help me restore access as soon as possible.”
5. Include your email, phone number, and any other relevant details for verification.
6. Click Submit and wait for PayPal’s response.

Step 5: Wait for PayPal to review your case.

After submitting your request or speaking with a representative, PayPal will review your case. This can take anywhere from a few hours to a few days, depending on the complexity of the issue. Remember, check your email regularly for updates, and respond promptly if PayPal requests additional information.

Furthermore,  you can watch the tutorials:

How to Avoid PayPal Account Limitations

Keeping your PayPal account running smoothly isn’t just about making transactions—it’s about playing by the rules, keeping things secure, and staying ahead of potential red flags. If you want to avoid restrictions and unexpected freezes, here’s what you need to do.

Follow PayPal’s Rules

PayPal doesn’t take policy violations lightly. Selling prohibited items like counterfeit goods, firearms, or restricted digital products could quickly land your account in trouble. Stay informed about their Acceptable Use Policy and make sure your business follows the rules. The fewer red flags you raise, the better.

Keep Your Account Info Updated, But Don’t Overdo It

A verified PayPal account is more trusted and less likely to get flagged. Make sure your bank account, email, and business details are correct and up to date. But be careful—changing details too often can make PayPal suspicious. If you need to update something, do it sparingly and correctly to avoid unnecessary security reviews.

Manage Transactions Smoothly

If your account usually handles small payments, suddenly receiving a large sum might look suspicious. PayPal keeps an eye on transaction patterns, and anything out of the ordinary could trigger a security check. PayPal watches transactions closely, especially large ones. Here’s what you need to know:

• Big transactions over $10,000 usually get manually reviewed
• Unverified accounts can only send up to $4,000 per transaction
• Verified accounts can send up to $60,000 in one payment
• Sudden changes in your selling patterns might trigger holds

To avoid this, minimize potential issues:​

• Build up gradually instead of jumping to big amounts
• Let PayPal know beforehand when you expect big payments

Remember that these limits can vary based on your account status and transaction type. When in doubt, check directly with PayPal support.

Be Transparent with Customers

Honesty goes a long way. Clearly describe your products or services to prevent disputes and chargebacks. If customers feel misled, they’ll file complaints—and too many complaints could make PayPal limit your account. Respond to inquiries quickly, keep your buyers informed, and set clear refund policies to avoid unnecessary disputes.

Handle Disputes Before They Become a Problem

Chargebacks and disputes can be a nightmare if you let them pile up. PayPal expects quick responses, so if an issue comes up, resolve it as soon as possible in the Resolution Center. The faster you handle disputes, the better your account’s standing will be.

Use PayPal’s Security Features

Fraud is real, and PayPal gives you tools to keep your account safe. Turn on two-factor authentication, use Seller Protection, and take advantage of fraud detection tools. These extra steps protect you from chargebacks and unauthorized transactions, keeping your account secure.

Maintain Consistent Account Activity

PayPal looks for patterns. If your account is inactive for months and then suddenly starts making frequent transactions, it might raise a red flag. Try to keep a steady flow of transactions so your account stays in good standing.

Keep an Eye on Unauthorized Access

Hackers and fraudsters are always looking for ways to break in. Check your account regularly for any suspicious activity, and if something looks off, report it to PayPal immediately. Adding extra security layers like two-factor authentication makes it harder for scammers to get in.

Always Keep Enough Funds in Your Account

Running low on funds can cause big problems, especially if you need to issue refunds or deal with chargebacks. If PayPal sees negative balances or failed payments, they might freeze your account until it’s settled. Keeping a healthy balance ensures smooth transactions.

Protect Your PayPal Transactions on Shopify

A locked PayPal account often results from high-risk transactions, chargebacks, or unverified shipping details. Synctrack PayPal Tracking Sync directly addresses these issues by automating tracking information updates to PayPal, ensuring transparency and reducing risks that trigger account limitations. With Synctrack PayPal, you can:

✔ Keeps PayPal updated with real-time shipping details, proving that orders are shipped and reducing “Item Not Received” disputes.
✔ PayPal releases funds faster when tracking is provided, preventing cash flow issues.
✔ Reduces customer disputes by giving them direct access to shipping progress, decreasing risk factors that lead to account restrictions.
✔ Avoids account limitations by aligning transactions with PayPal’s security measures.

If you rely on PayPal for Shopify transactions, Synctrack is an essential tool to keep your account running smoothly. Try it now to protect your business!

Locked PayPay Account FAQs

How do I unlock my locked PayPal account?

To unlock your PayPal account, visit the Resolution Center to check for any issues that need resolving. If required, submit identity verification documents or additional information. If you cannot regain access, contact PayPal Customer Support directly via their Contact Us page. Be prepared to provide your registered phone number, linked bank or credit card details, and your account email.

Why did PayPal lock my account?

PayPal may lock your account due to suspicious activity (e.g., unusual logins or transactions), violations of their Acceptable Use Policy, or incomplete account verification. To check the reason, review your PayPal notifications or contact customer support.

How long is a PayPal account locked?

The duration varies based on the issue. Temporary locks may last 24-48 hours until verification is complete, while serious violations can lead to a permanent restriction. If funds are held, PayPal may keep them for up to 180 days before release.

What happens when your PayPal account is blocked?

A blocked PayPal account may restrict your ability to send, receive, or withdraw funds. In some cases, PayPal may hold your balance for up to 180 days. If permanently limited, your account will be closed, and you may not be able to open a new one.

Final Words

Nobody wants to deal with a locked PayPal account, but it happens. The best way to avoid it is to use your account wisely—keep your info accurate, follow the rules, and watch out for anything that might trigger security concerns. If you do get locked out, don’t stress. Just follow the steps to verify your identity, contact support if needed, and you’ll be back in business. At the end of the day, your PayPal account is an important tool—treat it right, and it’ll work smoothly for you!