$4,000 payment on Paypal

A person wants to buy a couple of items from me using PayPal. It totals to about $4,000. That's the highest I ever received from one customer. My question is should I accept it? Would PayPal put a hold on me or limit my account? I have a business PayPal and highest I sold was last month which was one customer paying me $1700 and everything went smoothly. But is $4,000 too high? I really don't want to pass on the opportunity to earn good money its just I heard a lot of crazy stories about PayPal which leaves me wondering if I should.

Call them. They will tell you. I know.

If your account is legit, I don't see why it'd be an issue. There's no harm in contacting Paypal to notify/ask them about the payment though.

If the deal is legit - go for it .

$4,000 is consider high risk to paypal. It depends upon which country are you from and the track record on your paypal before they decide if your account is worth keeping. Usually account would be limited and Paypal would ask for invoices to prove that you are indeed able to deliver. If you have account that are documents verified then usually paypal will take a higher risk and allow your payment to go through as their compliance department will be able to take legal action on you if you fail to deliver.

Paypal limit accounts for a reason which they believe it may bring some risks & in the worst case PP can be negative . As long as your account is FULLY legit , you should be just fine . Most of the time , PP will just ask you for more documents regarding your business , identity in case you got a lot of orders & reached some kind of milestone .

The account should be legit with no suspicious activities/track records. The buyer's account should also be legit. You should have invoices/doc to prove the purchase - if in case PayPal limits the account, u can show the docs/invoices to them. And calling them before getting the payment will also help.

Paypal says: I only one call away. I'll be there to save the day. SUPERMAN got nothing on me. I only one call away...

One of the usual causes for account limitation in paypal is sudden increase of payment amounts. if your amounts are 500$, 1000$, and then you have a payment of 4000$, this is risky. you should contact them.

Not sure why people here are saying "$4000 is considered high risk to PayPal".. that's just plain stupid.

PayPal is a billion dollar company that processes payments for other billion and million dollar companies all over the world. If your business is legit and you have nothing to hide then you will have no issues with PayPal, regardless of how much your payments are.

The only time people have issues with PayPal is when they've done something wrong.. PayPal may suck in terms of their fees and random holds, but they're not the big bad wolf people make them out to be.. if you're legit then you won't have any problems with PayPal, any holds they would put on will be lifted quickly.. IF you're legit. I accept $xx,xxx payments in PayPal regularly, never had any issues!

If the the deal goes south, it is possible you might lose that money and pay a fee on top. It is better that you do this deal via Bitcoin. You also won pay a 5% fee, which is $200.

I dont see any issue here with receiving $4,000 to your PayPal account.

As long as your account is upgraded to a business account and your data is legit. (Real name etc.)

My advice would be to accept the payment only as "Family/Friends/Gift" otherwise your client could backcharge.

Personally I have my account always loaded with $xx,xxx and never had an issue regarding this matter.

all the ballers in this thread

hasa1015 said:

all the ballers in this thread

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Hush peasant..


@OP another good point I see raised above, always keep a solid balance in your PayPal at all times, if they see you leave money in to cover refunds and so on I think they give a lot more grace.. we've always done this, never had any issues.

t0mmy said:

Not sure why people here are saying "$4000 is considered high risk to PayPal".. that's just plain stupid.

PayPal is a billion dollar company that processes payments for other billion and million dollar companies all over the world. If your business is legit and you have nothing to hide then you will have no issues with PayPal, regardless of how much your payments are.

The only time people have issues with PayPal is when they've done something wrong.. PayPal may suck in terms of their fees and random holds, but they're not the big bad wolf people make them out to be.. if you're legit then you won't have any problems with PayPal, any holds they would put on will be lifted quickly.. IF you're legit. I accept $xx,xxx payments in PayPal regularly, never had any issues!

Click to expand...

It is consider as high risk to Paypal if the person is not ID verified with legal bank account linked. Since there is no legal recourse when the paypal balance goes into negative. As a payment processor, this is part and parcel of business to manage the risk of each individual clients before accepting their business. As you have correctly pointed out, if you are running "legit" business then it is not an issue. This is not an issue about how big Paypal is as a corporation but each Paypal internal management basically divide the business risk into regions, business categories and heavily relies upon statistics to make decision.
Example, Asians Paypal is controlled and managed from Singapore Paypal (which itself is regulated by Monetary authority of Singapore). When the statistics show that a particular user transaction trend is deviating from the normal procedure of a business than this will cause an alarm and Paypal will demand to see the supplier invoices and ID verification. If you are legit then this is not an issue since you should be able to provide all this but if you are running business that is against the TOS (example selling of e-giftcards) then be ready for the ban hammer and funds frozen for 180 days. After 180 days, if you are holding to an Asian Paypal then good luck to you. As Monetary Authority of Singapore will step in to conduct check on source of funds and to determine the legit of the transaction as part of anti money laundering measures. There is just so much more information that I cannot possibly type out all. In short, if you are legit like @t0mmy business then no issue. But if you are in the grey or black, watch out.

Also take note that on the coming 13th of Oct, Paypal is updating its terms of service for European and Asian clients. Believe some should have receive paypal email by now. Some key points of this update, Paypal seller protection would not be covering service providers for European and Asian paypal sellers. Next e giftcards seller will not be covered by seller protection too. If you ship to an address other than the registered legal seller paypal address then you will not be covered under seller protection too.

I don't think the problem is PayPal here, but rather the customer.

If he chargebacks the amount AND uses a credit card instead of PayPal balance to do so, you are basically screwed - so be careful, as you could lose your payment and your products, too. I would use another payment method - PayPal won't really protect you. There are thousands of cases of people being screwed by PayPal at just one click away.

It would suck losing $4000, just my two cents.

Don't know much about business and personal accounts so I'll ask shortly
Will there be any problem if I recieve let's say 4 k $ every month on paypal balance?From sites,youtube and e.t.c.
Will PP aks for any kind of documents or other kind of verification?

gonna miss a chunk of that 4000 for fees through paypal. Any chance you could have the person use a cheaper fee processor?

Depends on your year limits, you can find the link at the bottom of your account homepage: http://prntscr.com/cexdq4
Here's how it looks: http://prntscr.com/cexcrk

It all depends on your country. Otherwise, there aren't any other legal issues. Like someone said above, PayPal is a billion dollar company and $4.000 means nothing.
p.s. You can verify your account with them to increase the limits.

You're fine. Expect them to hold the money for a day or two though. Also as someone mentioned, if you have the ability, have them pay friends and family.