Why Did PayPal Terminate My Business Account? What Can I Do?

If you are a merchant selling online, then having a PayPal account is great for your business. You can easily and securely accept credit card payments without having to deal with an outside payment processor.

However, the problem occurs if PayPal terminates your account and deems you high-risk. This can really hurt your company and you won’t be able to accept payments should this happen, so what next for you?

Why Would PayPal Terminate My Account?

If you’re using PayPal for online sales, here are the most common reasons why your account could be suspended or terminated:

  • A buyer or PayPal user submits a complaint with PayPal targeting your business.
  • You have not yet verified your PayPal account in full.
  • Outdated account information.
  • PayPal has spotted suspicious transactions on your account. 
  • PayPal detects a login from an unusual location.
  • You’ve received a huge sum of money (more than your usual ticket value).
  • Acting against one or more of PayPal’s policies, such as selling illicit goods.
  • Your account has had a significant number of chargebacks.

PayPal may also classify your account as high-risk if you have a poor credit score.

What Next After Termination?

If any of the above happens, you may not be able to get back into your account.

PayPal account cancellation can inconvenience your company. Even if you don’t want to go down this path, you have no option but to contact PayPal to remedy your problem. If you’re unable to get back in, don’t panic—you also have the option of using a different payment service.

However, before doing so, it would be prudent to contact PayPal first. Start by understanding the specific cause for the restrictions. Next, you can appeal the cancellation via the PayPal Account Appeal Portal. Simply click the “File an Appeal” option, followed by “Start Your Complaint.”

Final Thoughts

Remember, there are plenty of other payment processors available to use in place of PayPal like Stripe and Dwolla. You can also process credit cards with Square or PayAnywhere if you just want to receive payments on your phone by taking a picture.

Author Bio

Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of Paypal micropayments UK. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.