PayPal might limit your account and freeze your funds because:
- You received too much money into your account (this can be any amount that is not in proportion to what you normally received during the average history of your account).
- You transferred too much money out of your account ($2,000 US is the rumored amount that triggers the fraud system).
- You called customer service at PayPal and made somebody angry (there are documented cases of irate customers calling PayPal only to find out their accounts were limited moments after the phone call was made).
- PayPal has reason to believe you have more than the allowed two PayPal accounts (One Personal Account/One Premier Account).
- Somebody filed a complaint with PayPal about you (a buyer or a seller or an interested third party).
- You filed a complaint against somebody (a buyer or a seller).
- You initiated a chargeback with your credit card
- You initiated a chageback with your credit card company before you filed a claim through PayPal’s Buyer or Seller Protection
- PayPal thinks you are trying to avoid paying PayPal fees by charging excessive shipping & handling charges for your
- PayPal thinks you are using your PayPal account to speculate in the currency
- PayPal doesn’t agree with some content on your website (example: a man who ran a well known blog had his PayPal account limited because his website contained a link to the Pearl terrorist killing. He accepted PayPal donations on his website for his news blog).
- PayPal believes you are in violation of its User
- PayPal believes you are in violation of its Acceptable Use Policy (example: PayPal believes you used your account to purchase a dirty book or dirty magazine).
- PayPal believes you are in violation of their User
- You used your PayPal Debit Card to purchase material that PayPal finds objectionable (even if it’s legal in the real world).
- You charged too much money on your PayPal Debit
- You went on vacation and used your debit card in another state or another
- You used your PayPal debit card to make an online transaction that was not through PayPal (or a telephone order).
- You refunded a buyer through your PayPal account — but did not use the proper refund
- You lost a dispute
- You chose to use your PayPal account without verifying
- PayPal believes that your account information is not up-to-date — even if they have no grounds to actually believe PayPal tried to contact you over the phone and you did not
- You were the victim of fraud (example: you clicked on a link in an email that you thought was from PayPal but it was really a phishing website).
- You reported to PayPal an unauthorized purchase made on your PayPal account or your credit
- You moved into a house or new apartment that was occupied by somebody with a limited PayPal
These are all reasons as to why PayPal can and will limit your account. With a limited or frozen PayPal account, you have NO access to your own money. There are many, many more reasons as to why PayPal will limit your account and deny you access to your money. Any number of things unknown to you can trigger such an event.