gummel
Regular Member
- Jul 7, 2019
- 253
- 512
TLDR: It appears that moving over €2,500 internationally is a big risk with PayPal... + Other potential reasons for bans & holds
I don't want to be a drama queen here & this is just my opinion based on very recent bans & very credible press sources + dozens of legitimate businesses being shut down without warning...
It's come to our attention by a recent case of a Paypal Account frozen which belonged to a charity:
https://www.theguardian.com/…/anti-money-laundering-eu-rule…
Appears that Paypal EUROPE (LUXEMBOURG) are scanning transactions over €2,500 (£2,257) the new EU Anti-Money Laundering Directive limit
Now, if you are a charity you probably have some clout by causing PP a bit of bad stink/embarrassment via press exposure
If you are a business & you happen to be hit by the ban hammer most likely you'll be stone walled, given the hard shoulder followed by empty boilerplate template responses leaving you no option but to give up/go bust or fight a lengthy battle assuming you've still got money to do so.
If you fight.... you run the risk of your money being held even longer with legal delays/appeals + the convoluted arbitration process which will likely get you nowhere as once the magic word of AML is mentioned all bets are off
It's a lucrative risk free money grab for Paypal & a dangerous business trap for vendors
IF YOU ARE A EUROPEAN PP ACCOUNT HOLDER & you are sending or receiving money trans continentally and the amount is over €2,500 it will fall under the new EU AML Directive... ie transaction will likely raise a FLAG which in turn will raise an account audit which exposes your account to instant closure + money grab!
IF YOU ARE NON EUROPEAN - we don't yet know what the AML scan limits are but we suspect it wont be far off the above
MONEY GRAB:
It appears just moving a large lump of money from your bank to Paypal is a flag too
We've had a recently had a case in our https://www.facebook.com/groups/paypalaccountclosed/ group of a gentleman who simply transferred $30,000 into his PP account....his own legitimate funds moved from from his bank who never had any reason to suspect the guy - yet to PP this was a red flag & his PP account was allegedly frozen...
:
AML laws are very hush hush - however, if a flag is raised - we suspect your account is sent for a manual review & under AML there only needs to be suspicion for the account to be frozen
The financial institution doesn't have to give you any reason for the freeze - with this law you are guilty until proven innocent & your balance will be held for 6+ months after which time you will have to prove your identity & jump through many hoops to get your money back assuming you live that long & you are not on living on the streets by then.
Under the new AML laws you are guilty until proven innocent & your money is fraudulent unless its determined it's not - your freedom to buy/sell/trade internationally is revoked by a decision maker who serves the company interest above yours.
&
What the AML lawmakers don't realise (or maybe they do) is the tremendous amount of damage they are doing to international trade - to young fledgling organisations who have their working capital frozen & that capital is then OFFERED BACK to others as "working capital loans" - it's a disgrace!
All because some stupid lawmakers lacked the long term foresight ...
Someone somewhere must have the figures of launderers & terrorists caught by this law vs all the ruined businesses who had their money stolen & held - I bet the number on the terrorist side is zero & on the ruined business side is horrific.
1. We advise you NOT to move over €2,500+ with institutions with a proven track record for trigger happy money freezes
2. We advise you to use Crypto for transfers over €2,500 as traditional methods of money transfers seem only to promote legal institutional theft.
3. We advise you to lower you trading volumes through any financial institution that is known for abusing vendors or civilian rights with AML laws.
OTHER REASONS FOR BANS
We suspect it's for the following reasons based on recent banned accounts:
1. - that sell goods breaching their AUPs
2. - we advise vendors against selling goods on annual recurring as this increases chargebacks as users forget what they bought & complain... Here vendors can get caught out through no fault of their own
3. or insinuation of potential/fast/big earnings
4. from non regular sources (as we mentioned €2,500 seems to be the magic number)
5. Sending or receiving money to linked relatives of blocked accounts
6. Affiliate marketing is your primary business activity - where you are trading as a "merchant on record"
7. Selling/promoting Bitcoin or Crypto or trading related products
8. %
RISK AREAS FOR LARGE MONEY HOLDS
1. A spike in business activity - yeah growing could be bad for your finances!
2. A spike in complaints/chargebacks
I stress that this is just our opinion & not FACT but it's based on communications with banned/affected vendors...
PayPal appears to be under no obligation to disclose reasons why they shut accounts down & they are quite ruthless in their dealings with vendors that appear on their radar...
From the vendors we spoke to ...they appear to ban with no questions & no mitigating factors are taken into play before they drop the ban hammer.
If you are a merchant using PP its wise to consider your trading volume/merchant suspension exposure as potential risks to business
Know the rules play the game!
I don't want to be a drama queen here & this is just my opinion based on very recent bans & very credible press sources + dozens of legitimate businesses being shut down without warning...
It's come to our attention by a recent case of a Paypal Account frozen which belonged to a charity:
https://www.theguardian.com/…/anti-money-laundering-eu-rule…
Appears that Paypal EUROPE (LUXEMBOURG) are scanning transactions over €2,500 (£2,257) the new EU Anti-Money Laundering Directive limit
Now, if you are a charity you probably have some clout by causing PP a bit of bad stink/embarrassment via press exposure
If you are a business & you happen to be hit by the ban hammer most likely you'll be stone walled, given the hard shoulder followed by empty boilerplate template responses leaving you no option but to give up/go bust or fight a lengthy battle assuming you've still got money to do so.
If you fight.... you run the risk of your money being held even longer with legal delays/appeals + the convoluted arbitration process which will likely get you nowhere as once the magic word of AML is mentioned all bets are off
It's a lucrative risk free money grab for Paypal & a dangerous business trap for vendors
IF YOU ARE A EUROPEAN PP ACCOUNT HOLDER & you are sending or receiving money trans continentally and the amount is over €2,500 it will fall under the new EU AML Directive... ie transaction will likely raise a FLAG which in turn will raise an account audit which exposes your account to instant closure + money grab!
IF YOU ARE NON EUROPEAN - we don't yet know what the AML scan limits are but we suspect it wont be far off the above
MONEY GRAB:
It appears just moving a large lump of money from your bank to Paypal is a flag too
We've had a recently had a case in our https://www.facebook.com/groups/paypalaccountclosed/ group of a gentleman who simply transferred $30,000 into his PP account....his own legitimate funds moved from from his bank who never had any reason to suspect the guy - yet to PP this was a red flag & his PP account was allegedly frozen...
:
AML laws are very hush hush - however, if a flag is raised - we suspect your account is sent for a manual review & under AML there only needs to be suspicion for the account to be frozen
The financial institution doesn't have to give you any reason for the freeze - with this law you are guilty until proven innocent & your balance will be held for 6+ months after which time you will have to prove your identity & jump through many hoops to get your money back assuming you live that long & you are not on living on the streets by then.
Under the new AML laws you are guilty until proven innocent & your money is fraudulent unless its determined it's not - your freedom to buy/sell/trade internationally is revoked by a decision maker who serves the company interest above yours.
&
What the AML lawmakers don't realise (or maybe they do) is the tremendous amount of damage they are doing to international trade - to young fledgling organisations who have their working capital frozen & that capital is then OFFERED BACK to others as "working capital loans" - it's a disgrace!
All because some stupid lawmakers lacked the long term foresight ...
Someone somewhere must have the figures of launderers & terrorists caught by this law vs all the ruined businesses who had their money stolen & held - I bet the number on the terrorist side is zero & on the ruined business side is horrific.
1. We advise you NOT to move over €2,500+ with institutions with a proven track record for trigger happy money freezes
2. We advise you to use Crypto for transfers over €2,500 as traditional methods of money transfers seem only to promote legal institutional theft.
3. We advise you to lower you trading volumes through any financial institution that is known for abusing vendors or civilian rights with AML laws.
OTHER REASONS FOR BANS
We suspect it's for the following reasons based on recent banned accounts:
1. - that sell goods breaching their AUPs
2. - we advise vendors against selling goods on annual recurring as this increases chargebacks as users forget what they bought & complain... Here vendors can get caught out through no fault of their own
3. or insinuation of potential/fast/big earnings
4. from non regular sources (as we mentioned €2,500 seems to be the magic number)
5. Sending or receiving money to linked relatives of blocked accounts
6. Affiliate marketing is your primary business activity - where you are trading as a "merchant on record"
7. Selling/promoting Bitcoin or Crypto or trading related products
8. %
RISK AREAS FOR LARGE MONEY HOLDS
1. A spike in business activity - yeah growing could be bad for your finances!
2. A spike in complaints/chargebacks
I stress that this is just our opinion & not FACT but it's based on communications with banned/affected vendors...
PayPal appears to be under no obligation to disclose reasons why they shut accounts down & they are quite ruthless in their dealings with vendors that appear on their radar...
From the vendors we spoke to ...they appear to ban with no questions & no mitigating factors are taken into play before they drop the ban hammer.
If you are a merchant using PP its wise to consider your trading volume/merchant suspension exposure as potential risks to business
Know the rules play the game!
