Thanks guys, also, a while back I was selling multiple items, maybe 10 or so electronics, and my P.aypal account was limited quickly for "high risk activity" or something along those lines. I guess because I had just signed up.
I was asked for a bunch of documents to fax in...This was about 2 years ago and I don't remember at all what I was asked for, does anyone know what those documents are? I think one included proof of inventory.
Is there any way around them limiting my PP account in the first place? I guess just open a business account? If so, what documents will I need for that?
Once your account has been limited by Paypal, you are "officially" on their radar. When opening an account (especially a business/premiere account), if your account has ever gotten to the point of being limited and then being subject to a review by staff members... then your account will be continually monitored.
I've been able to open several PP accounts without sending in any documents whatsoever. I've had sales per account go up to $8,000 per month. I always do the following:
- Resolve disputes immediately. Do whatever I can to avoid any reviews by staff members. Stay away from transactions that can be flagged by PP filters as being "suspicous" (this includes several sales from the same vendor, several returns to the same person, etc). I limit my PP transactions to those that are absolutely necessary (ie, I NEVER make purchases from my PP account, only accept money).
- When I make a sale, I IMMEDIATELY withdraw all funds. I have one bank account associated with each PP account. This bank account exists for the sole purpose of use with the PP account. After transferring funds from PP to my bank account, I immediately withdraw all funds from the bank account (WAMU account, I keep $10.00 in the account at all times, never more). Always keep your PP balance at $0.00.
- If making a sale of more than $500, ask the buyer to split the money between more than one paypal account. Always stay under the radar. If you are having trouble doing this, then you should really have your own merchant account. Remember, PP is a private company and NOT a bank - they don't have to follow the federal laws governing banks. Have your larger sales processed through your merchant account.
Again, problems tend to occur when your account activity is flagged as suspicious and then reviewed by PP staff. That's the time when they'll ask you to fax in documents. Regardless of how many documents you fax in to them, it really won't help you.
They ask for proof of inventory for specific reasons:
- As an eBay-type business, they want to make sure you're not selling stolen or counterfeit goods.
- They want to make certain you are actually selling goods, as opposed to simply transferring money (something about anti-terrorism policies) around.
When handled correctly, I've never had to fax documents in to PP to maintain a business account.
- The only times I've needed the business documents were for opening the dedicated bank account. I paid $120 (in NY) for a business DBA certificate and then opened a bank account using the certificate. If you need to open a bank account under a different name try using the "Trust" method. Open a trust account (with the proper trust documents filled out, pretty easy, just email me for details and samples) - let's call it the "John Doe Trust". Your bank account is then opened up in both your name and the name "John Doe Trust". When filling out credit card information, etc, the bank will accept the first two names of the trust (First name: John, Last name: Doe). This does NOT seem to work with business/DBA accounts as most venues require you use the personal name associated with the account.
Strangely, PP doesn't seem to track IPs. I've used the same computer and IP to manage up to 13 PP accounts at a time (just to see if I could). Also, I am from NY so the place you come from may make a difference (there are tons of people living in the same building in NY, sharing the same IP).
The "quality" of the social security number you associate with the account seems to be the most important aspect of what they'll let you do with the account. If you have poor credit, or have had problems associated with a particular social security number, then you'll tend to have more problems with PP. If you use a social security number with a better credit score, and/or a "clean" profile, it's pretty amazing what PP will let you get away with.
