PayPal freezes and fund holds
89 public merchant reports of PayPal freezes, holds and closures, median stated hold 180 days, $65k in stated USD holds. Each entry links to the merchant's original public post. Figures count only where the merchant stated them.
89freezes tracked at PayPal
$65kUSD held, where stated (22 reports)
180 daysmedian stated hold (44 reports)
Freelancemost affected industry, where stated
Industries affected
Freelance19
Ecommerce19
Creator/Digital products13
Marketplace seller5
Services/Agency4
Gaming3
SaaS/Software2
Coaching/Courses1
Reasons PayPal gave
Grouped from the reason each merchant reported.
No reason given17
Verification / documents10
Prohibited business / policy5
Account review4
High risk (unspecified)4
Dispute / chargeback risk3
Sudden volume change1
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All 89 PayPal reports
PayPalPublic reportCreator/Digital products2026-10-16A digital-products seller says PayPal has reduced their instant-access limit and is holding funds as sales grow. They report being told they cannot request another limit increase until a specified date.
Business typeDigital products seller
Amount heldNot stated
Hold lengthweeks
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportGaming2026-10-11An online gaming-products seller says PayPal has held every incoming payment despite the account dashboard showing that release requirements were met. The post does not state a reason or how long the holds will continue.
Business typeOnline store selling digital gaming products
Amount heldNot stated
Hold lengthNot stated
Stated reasonNot stated
OutcomeAll incoming payments still on hold at time of post
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-10-01A digital-goods seller says PayPal is holding part of the funds in a business account and will make them available in a month. The seller reports being told the restriction followed sales increasing too quickly.
Business typeDigital goods seller
Amount heldNot stated
Hold lengtha month
Stated reasonThe seller was told they had sold too much too quickly
OutcomeFunds were expected to become available in a month; release not confirmed
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-09-30 · PhilippinesA freelance digital artist in the Philippines had a PayPal account permanently limited after receiving payments for drawing commissions, and after appeals and a complaint to the country's central bank the limitation was removed.
Business typeFreelance digital artist selling drawing commissions
Amount heldNot stated
Hold lengthNot stated
Stated reasonTransactions deemed inconsistent with policy and user agreement
OutcomePermanent limitation removed after complaint to the central bank
Original public post (Reddit) ↗
PayPalPublic report2026-09-29A long-standing PayPal business account was limited with a document request, and after the poster submitted what was available the funds were released about 48 hours later and withdrawn.
Business typeBusiness account holder whose business no longer exists
Amount heldNot stated
Hold length48 hours
Stated reasonNone given
OutcomeFunds released after 48 hours and transferred out
Original public post (Reddit) ↗
PayPalPublic reportOther2026-09-23A business that has processed payments for over a decade says a 5% rolling reserve was reinstated on its PayPal account, holding 5% of income for 90 days, with no clear explanation given.
Business typeLong-running online business
Amount heldNot stated
Hold length90 days
Stated reasonTo protect against disputes
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2026-09-23 · PhilippinesA PayPal user in the Philippines says their account was permanently limited and funds received from a client were held for 180 days before becoming available for withdrawal. They asked how to withdraw the funds without a linked bank or card.
Business typeNot stated
Amount heldNot stated
Hold length180 days
Stated reasonNot stated
OutcomeFunds became available for withdrawal after 180 days
Original public post (Reddit) ↗
PayPalPublic reportMarketplace seller2026-09-01A used electronics reseller says a payment from a graphics card sale is being held under a reserve for 21 days.
Business typeUsed electronics reseller
Amount held$210
Hold length21 days
Stated reasonA PayPal reserve, according to the automated assistant
OutcomePayment held for 21 days
Original public post (Reddit) ↗
PayPalPublic reportMarketplace seller2026-08-23A marketplace seller says a dispute was closed before they could submit evidence, after which the payment account was permanently limited. The remaining funds were held for 120 days, and the poster had filed complaints but had not reported a resolution.
Business typeMarketplace seller
Amount heldNot stated
Hold length120 days
Stated reasonFinancial performance
OutcomeAccount permanently limited; remaining funds held for 120 days
Original public post (Reddit) ↗
PayPalPublic reportOther2026-08-20A long-standing limited company reports its PayPal business account was blocked and unblocked repeatedly over three months, with money movement blocked despite a healthy balance and repeated identity verification requests.
Business typeLimited company selling and servicing client equipment
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-08-19A freelance digital artist says a PayPal business account was limited and then banned after a first commission invoice of 100 USD was paid, with the client refunded through a dispute and a $16 dispute fee later charged.
Business typeFreelance digital artist
Amount held$100
Hold lengthNot stated
Stated reasonNone given
OutcomeAccount banned, client refunded via dispute, $16 dispute fee charged
Original public post (Reddit) ↗
PayPalPublic reportSaaS/Software2026-08-08A bootstrapped SaaS operator says payouts totaling about $300 failed for two weeks. The issue was traced to PayPal no longer supporting payouts to the operator's country, and the funds arrived after rerouting.
Business typeBootstrapped SaaS
Amount held~$300
Hold length2 weeks
Stated reasonPayPal stopped supporting payouts to the poster's country.
OutcomeThe payout was rerouted through another provider and the money arrived.
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-07-28A freelance service provider says their account was limited after receiving international client payments, which the provider flagged as unusual activity.
Business typeFreelance service provider
Amount heldNot stated
Hold lengthNot stated
Stated reasonUnusual activity
OutcomeAccount remained frozen at the time of the post
Original public post (X) ↗
PayPalPublic reportFreelance2026-07-26A freelance digital artist says funds were put on hold and a verified PayPal business account was placed under review immediately after a client payment, with documents requested before the commission was finished.
Business typeFreelance digital artist
Amount heldNot stated
Hold lengthNot stated
Stated reasonAccount review requiring proof of purchase, fulfillment and business description
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2026-07-25An online seller says a surge in sales led the provider to freeze their balance, and they were waiting for the account to be allowed to hold more money.
Business typeOnline seller
Amount heldNot stated
Hold length3 days
Stated reasonThe account received many sales in a short period.
OutcomeThe poster says they must wait for the account to be allowed to hold more money.
Original public post (X) ↗
PayPalPublic reportEcommerce2026-07-25 · PhilippinesA Philippines-based online store owner says the payment account was permanently deactivated after the first sale and after providing transaction and shipping documentation. The funds were reportedly held for up to 180 days.
Business typeOnline dropshipping store
Amount heldNot stated
Hold lengthup to 180 days
Stated reasonNone given
OutcomeAccount permanently deactivated; funds held for up to 180 days
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-07-24A digital artist in Southeast Asia says a PayPal business account was limited after receiving a 50 USD commission payment, and both the business and personal accounts were later limited as documents were requested.
Business typeFreelance digital artist
Amount held$50
Hold lengthNot stated
Stated reasonVerification requests including ID, business license, proof of fulfillment, supplier purchase proof, business explanation and website info
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2026-07-19A new account holder says a client payment is on hold for 21 days while the account undergoes review.
Business typeNot stated
Amount heldNot stated
Hold length21 days
Stated reasonAccount review; no more specific reason stated
OutcomePayment on hold while the account is under review
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-07-14An online bed seller says PayPal has held business-account funds for over 30 days while reviewing delivery proof. The seller reports that the funds remain unavailable despite repeated escalations.
Business typeOnline bed seller
Amount heldNot stated
Hold lengthOver 30 days
Stated reasonVerification of delivery; the seller says proof of delivery was submitted but not accepted by the back office.
OutcomeFunds remain held, and the seller says the business cannot pay manufacturers.
Original public post (Reddit) ↗
PayPalPublic reportGaming2026-06-15 · PhilippinesA student in the Philippines who sells in-game items and virtual currency says PayPal permanently limited their account and held their tuition funds for 180 days despite submitted proof. They say support agents gave conflicting accounts and they planned complaints with local regulators.
Business typeIn-game item and virtual currency seller
Amount heldNot stated
Hold length180 days
Stated reasonNot stated
OutcomeUnresolved at time of post; planning regulator complaints
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-06-13A business account holder selling physical goods says PayPal held a transaction worth 800 after delivery, citing a $200 monthly limit and a possible 21-day freeze; they are asking how to speed up release.
Business typeOnline seller of physical goods
Amount held800
Hold length21 days
Stated reasonNew account and account inactivity review
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportCoaching/Courses2026-06-08A freelance cybersecurity tutor says PayPal permanently banned their business account after a review required vendor and supplier documents they could not provide.
Business typeFreelance cybersecurity tutor
Amount heldNot stated
Hold lengthNot stated
Stated reasonNot stated
OutcomePermanent ban
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-06-04A freelancer taking art commissions says their account was limited and then permanently banned after their first commission, with funds locked for six months. They say the stated reason involved dissatisfied customers despite having only one happy customer who never complained.
Business typeFreelance artist selling art commissions
Amount heldNot stated
Hold length6 months
Stated reasonClaimed customers were dissatisfied with the business activity
OutcomeAccount banned and funds held for 6 months; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-05-26A seller running a pre-order merchandise drop says their account was limited after a surge in transactions and the provider demanded proof of fulfillment that cannot exist before production. They ask how to satisfy the requirement given goods are made only after the order window closes.
Business typeMade-to-order merchandise / pre-order business
Amount heldNot stated
Hold lengthNot stated
Stated reasonRequested proof of order fulfillment after a spike in transactions from a pre-order launch
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-05-25A creator says a payout was frozen in their payment account because the account name did not match the platform's records.
Business typeOnline creator
Amount held$2,112
Hold lengthNot stated
Stated reasonThe name on the payment account did not match the platform's records.
OutcomeNot stated
Original public post (X) ↗
PayPalPublic reportServices/Agency2026-05-16 · USA US-based web designer says their long-standing business account was limited after a large client payment, then permanently banned with about $1,000 frozen for up to six months. They say the issue was resolved within minutes after filing complaints with regulators.
Business typeWeb design / freelance web developer
Amount held$1,000
Hold lengthalmost 6 months
Stated reasonInformation used to create the account could not be verified
OutcomeResolved quickly after complaints filed with a state attorney general and the BBB
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-05-02A freelance video editor says their business account was limited and sent for review immediately after their first client payment. They note the account was registered under a non-legal name and ask whether that triggered the review.
Business typeFreelance video editor
Amount heldNot stated
Hold lengthNot stated
Stated reasonAccount review after first transaction; requested business documentation
OutcomeUnder review at time of post
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-04-24A digital illustrator says their account was limited twice around incoming payments for illustration work and they were asked to provide delivery and supplier proof that does not apply to digital services. They ask for guidance on how to respond.
Business typeFreelance digital illustrator
Amount heldNot stated
Hold lengthNot stated
Stated reasonRequested ID and proof of delivery, supplier purchase, and explanation of business and account activity
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-04-23An Asia-based freelance photographer says PayPal put a client’s deposit on hold for six days.
Business typePhotography services
Amount heldNot stated
Hold length6 days
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-04-14An artist who sells sketches says PayPal held money sent to their business account and requested legal documents.
Business typeArtist selling sketches
Amount heldNot stated
Hold lengthNot stated
Stated reasonPayPal said the account was subject to new-seller requirements and requested business documents.
OutcomeFunds remained on hold; the poster was seeking a way to access them
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-03-30A crochet maker says payment for a first international order is on hold in a new account. They have not yet confirmed when the funds will be released.
Business typeCrochet maker
Amount heldNot stated
Hold length21 days
Stated reasonThe poster says the account is new; PayPal’s message also mentions possible refund requests
OutcomePayment remained on hold at the time of the post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-03-28 · PhilippinesA Philippines-based freelancer says a first client payment received through PayPal was held for 21 days and asks whether it will be released on schedule.
Business typeFreelancer
Amount heldNot stated
Hold length21 days
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-03-24A bag reseller says PayPal held a client payment for 21 days and placed their new account under review for limitations; they are asking how to speed up the review and release.
Business typeBag reseller
Amount heldNot stated
Hold length21 days
Stated reasonNew account limitations review
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportGaming2026-03-24 · PhilippinesA virtual game-item seller says a payment of 900 dollars, also stated as 49,000 Philippine pesos, was followed by a restriction on accessing the funds and then an account ban.
Business typeSeller of virtual game items
Amount held900$ - 49K PHP
Hold lengthNot stated
Stated reasonNot stated
OutcomeAccount banned after identity documents were submitted; access to the received money remains unresolved
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-03-18A freelance motion designer says PayPal permanently limited their business account used for client payments and held funds for 180 days. They say the account was restored after persistent escalation, including a complaint to the BBB.
Business typeFreelance motion designer
Amount heldNot stated
Hold length180 days
Stated reasonRisk classification
OutcomeAccount restored after a BBB complaint and appeal
Original public post (Reddit) ↗
PayPalPublic reportOther2026-02-26An individual who sold a musical instrument says PayPal deactivated the account and held the proceeds for 180 days. After repeated calls, chats, emails, and a BBB complaint, the account was un-deactivated via live chat, though the stated reason remained unclear.
Business typeIndividual selling a musical instrument
Amount heldNot stated
Hold length180 days
Stated reasonEmail cited account opened while underage; poster disputes; later reason unclear
OutcomeAccount un-deactivated via live chat after repeated contact and BBB complaint
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-02-13A freelancer says a payment was held while the provider required business information they did not have.
Business typeFreelancer
Amount held2500 USD
Hold lengthNot stated
Stated reasonThe provider required business information.
OutcomeUnresolved; the poster asks whether the money will be released.
Original public post (Reddit) ↗
PayPalPublic report2026-02-08A business account holder says roughly 900 remains inaccessible and cannot be transferred or used.
Business typeNot stated
Amount held900ish
Hold lengthmonths
Stated reasonNot stated
OutcomeUnresolved; the poster says the money remains inaccessible.
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2026-02-07A digital commissions seller says the payment account was permanently limited after submitting identity and fulfillment information. The seller reports being unable to access their funds and had not resolved the issue at the time of posting.
Business typeDigital commissions seller
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeAccount permanently limited; access to funds unavailable at the time of posting
Original public post (Reddit) ↗
PayPalPublic reportFreelance2026-01-18A freelance web developer says the account was permanently limited after an identity check, leaving a client payment unwithdrawn.
Business typeFreelance web developer
Amount heldNot stated
Hold lengthNot stated
Stated reasonThe identity document was reportedly considered illegible.
OutcomePermanently limited; the second payment had not been withdrawn at the time of the post.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2026-01-05 · UKA UK online seller says PayPal froze an account after a customer payment and requested several documents about the seller and transaction. The funds remain inaccessible while the seller considers next steps.
Business typeOnline seller
Amount held~800 USD
Hold lengthNot stated
Stated reasonRequested identity, delivery, supplier, and transaction information to review the account and payment.
OutcomeUnresolved; the seller is considering small-claims action.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-12-29An online seller says PayPal placed a hold on a sale, then permanently deactivated the account and held $582 for an additional 180 days. The poster says no reason was given and is asking whether others have recovered funds sooner.
Business typeOnline seller
Amount held$582
Hold length180 days
Stated reasonNone given
OutcomeAccount permanently deactivated; funds held; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2025-12-15An online seller says their account was limited and their funds remained unavailable; they report having made two sales over four months.
Business typeOnline seller
Amount heldNot stated
Hold lengthNot stated
Stated reasonNot stated
OutcomeFunds had not been returned at the time of the post
Original public post (X) ↗
PayPalPublic reportFreelance2025-11-29 · ArgentinaAn Argentine animator and illustrator says their payment account was briefly limited, then restored after they submitted identity, bank, and business-activity documents. They withdrew their funds once access was restored.
Business typeAnimator and illustrator
Amount heldNot stated
Hold lengthLess than 24 hours
Stated reasonThe provider cited a violation of buyer-protection guidelines
OutcomeLimitations removed and funds withdrawn
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-11-23 · AustraliaAn Australian online retailer says the provider placed a 180-day hold on over $100k after repeatedly requesting additional documents. The retailer was unable to withdraw most of the funds and was seeking ways to challenge the hold.
Business typeOnline store
Amount heldover $100k
Hold length180 days
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-11-17 · KenyaA Kenyan writer says their account was permanently limited when they tried to withdraw a writing payout, stopping access to their earnings. They say the provider gave no reason and would not reconsider the decision.
Business typeWriter
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeAccount permanently limited; the provider said the decision was final
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2025-11-15An artist says their business account was permanently suspended and $640 remained inaccessible; they continued fulfilling customer orders using personal funds.
Business typeArtist selling art and merchandise
Amount held$640 USD
Hold lengthNot stated
Stated reasonThe provider said its values did not align with the business.
OutcomeThe business account was permanently suspended, and the funds remained inaccessible.
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2025-11-10A 3D artist and content creator says PayPal permanently banned their account after requesting identity verification and held $1293. Support declined to disclose the reason, and the funds are reportedly inaccessible for 180 days.
Business type3D artist and subscription-content creator
Amount held$1293
Hold length6 months (180 days)
Stated reasonNone given; support said the reason was confidential.
OutcomeAccount permanently banned; funds inaccessible for 180 days.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-11-06A dropshipping business says PayPal is holding $2700 needed to pay a supplier. The poster reports no resolution and says PayPal has been slow to respond.
Business typeDropshipping company
Amount held$2700
Hold lengthNot stated
Stated reasonNot stated
OutcomeFunds remain on hold; the poster says the issue is unresolved.
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2025-11-02An artist says a payment account was permanently banned after they began selling commissions and art merchandise through an online storefront. Funds were withheld, and the provider did not explain the reason or offer an appeal.
Business typeArtist selling commissions and art merchandise
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeThe account was permanently banned, funds were withheld, and the poster says an appeal was unavailable.
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2025-10-31A streamer says PayPal limited their account after donations for a personal fundraiser and prevented transfers to a bank. PayPal requested business and website information, and the limitation remained unresolved.
Business typeTwitch streamer and online creator
Amount heldNot stated
Hold lengthNot stated
Stated reasonPayPal requested business and website information.
OutcomeThe limitation remained unresolved, and the poster could not transfer funds to a bank.
Original public post (Reddit) ↗
PayPalPublic reportServices/Agency2025-10-20 · PhilippinesA Philippines-based proxy shopping service says PayPal placed a hold on incoming payments and then permanently limited the account, with funds held for 180 days. The poster believes a withdrawal attempt to a mismatched Filipino bank account triggered the action and is seeking ways to access the money sooner.
Business typeProxy shopping service
Amount heldNot stated
Hold length180 days
Stated reasonNot stated
OutcomeAccount permanently limited; funds held; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2025-10-08A business account holder says PayPal deactivated the account after citing suspected sales of sexually oriented materials or services, which the poster disputes. The notice said funds could be held for up to 180 days, and the poster is unsure whether to appeal or wait.
Business typeOnline recipient of payments
Amount heldNot stated
Hold lengthUp to 180 days
Stated reasonPayPal cited suspected unapproved sales of sexually oriented materials or services.
OutcomeAccount deactivated; release of funds remains unresolved.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-10-02 · UKA UK second-hand model seller says PayPal blocked withdrawals from their business account while reviewing transaction documents. They had uploaded the requested proof of sale and delivery but had not received a decision.
Business typeSecond-hand model seller
Amount heldNot stated
Hold lengthNot stated
Stated reasonAdditional checks; requested proof of sale and delivery for five international transactions.
OutcomeUnresolved; awaiting a further update.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-08-27An online retailer says its payment account was permanently limited after years of processing website sales. The provider cited a policy violation but gave no specific explanation.
Business typeOnline store
Amount heldNot stated
Hold lengthNot stated
Stated reasonPayPal cited an Acceptable Use Policy violation but did not specify what activity or products were at issue.
OutcomeAccount permanently limited, preventing the store from continuing to accept payments
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2025-08-25A streaming creator says PayPal limited the account and a transfer to Wise became stuck under review. The creator reports being unable to access the related income.
Business typeStreaming content creator
Amount heldNot stated
Hold lengthNot stated
Stated reasonNot stated
OutcomeUnresolved; the creator says the income is frozen with no clear timeline.
Original public post (Reddit) ↗
PayPalPublic reportAdult2025-08-24 · IcelandAn Iceland-based seller of adult/NSFW digital art subscription bundles says PayPal suspended their account and prevented them from creating a new one, leaving them unable to take recurring payments for three months while they search for an alternative provider.
Business typeDigital art subscription store
Amount heldNot stated
Hold lengthNot stated
Stated reasonNot stated
OutcomeAccount suspended and unable to open a new one; business down for 3 months, unresolved at time of post
Original public post (Hacker News) ↗
PayPalPublic reportFreelance2025-07-19 · IndiaAn 18-year-old freelance writer in India says PayPal permanently limited their account and is holding $428.41 from a completed writing job despite full proof of delivery and client confirmation, with funds only accessible after 180 days.
Business typeFreelance writer
Amount held$428.41
Hold length180 days
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2025-07-17A user says a client paid them through a PayPal invoice, the money was put on hold, and after submitting ID and transaction details PayPal permanently limited the account, leaving funds inaccessible for 180 days.
Business typeNot stated
Amount heldNot stated
Hold length180 days
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-07-16An art commission freelancer says PayPal restricted their business account after a client paid a down payment. PayPal requested documents and information about the services and transaction, and the freelancer was seeking access to the funds.
Business typeArt commission freelancer
Amount heldNot stated
Hold lengthNot stated
Stated reasonRequested proof of fulfillment, supplier purchase information, transaction details, and an explanation of the business.
OutcomeUnresolved; the freelancer was seeking approval and access to the funds.
Original public post (Reddit) ↗
PayPalPublic report2025-06-29A user says PayPal deactivated their new account holding a single invoice, and even after the 21-day hold ended they cannot withdraw the money during the 180-day period.
Business typeNot stated
Amount heldNot stated
Hold length180 days
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-06-22 · IndiaAn Indian freelancer says PayPal is holding a first client payment for up to 21 days. They contacted support to ask whether the funds could be released earlier.
Business typeFreelancer
Amount heldNot stated
Hold lengthup to 21 days
Stated reasonSecurity reasons
OutcomeUnresolved; the poster asked how to get the funds released sooner.
Original public post (Reddit) ↗
PayPalPublic reportServices/Agency2025-06-21 · EgyptA real estate cold-calling business in Egypt says PayPal permanently limited its account immediately after a client paid via PayPal, with funds stuck and no explanation or appeal option offered.
Business typeReal estate cold calling company
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-06-20 · IndonesiaA freelance illustrator and graphic designer in Southeast Asia says PayPal deactivated their business account citing an activity it could not process, holding funds for up to 180 days, and reports many similar cases among artists in the region.
Business typeFreelance illustrator and graphic designer
Amount heldNot stated
Hold length180 days
Stated reasonAn activity we could not process
OutcomeUnresolved at time of post; account under review
Original public post (Reddit) ↗
PayPalPublic report2025-05-26 · AustraliaAn Australia-based business says PayPal held $17,000 AUD for 180 days over suspected fraudulent activity, then said it was cleared but never released the funds.
Business typeNot stated
Amount held$17,000 AUD
Hold length180 days
Stated reasonSuspected fraudulent activity
OutcomeCleared but funds not released; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2025-05-19 · USA US small-business owner says PayPal froze a little over $15,000 in business funds for a risk review. The business submitted invoices, delivery proof, and client emails, but had not received a decision.
Business typeLocal and online small business
Amount helda little over $15,000
Hold lengthup to 180 days
Stated reasonRisk review.
OutcomeUnresolved at the time of the post; the business was waiting for a decision.
Original public post (Reddit) ↗
PayPalPublic report2025-05-16A user says their business PayPal account, opened on company details, was permanently suspended after three transactions with a $938 balance, which they were told they could withdraw after 180 days.
Business typeNot stated
Amount held$938
Hold length180 days
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-05-15A seller of synthesizers says PayPal permanently blocked the business account after an account review, freezing funds for 180 days. The provider cited a user agreement violation without details, and the poster says an appeal is not possible.
Business typeSynthesizer seller
Amount heldNot stated
Hold length180 days
Stated reasonViolation of user agreement (no details)
OutcomeAccount permanently blocked; appeal not possible; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportSaaS/Software2025-05-14A SaaS operator selling WordPress plugins says PayPal suspended their account and froze a balance of €80,000, citing a Terms of Service violation without specifics, and support stopped responding.
Business typeSaaS platform selling WordPress plugins
Amount held€80,000
Hold lengthNot stated
Stated reasonTerms of Service violation
OutcomeUnresolved at time of post; support tickets unanswered
Original public post (Hacker News) ↗
PayPalPublic reportMarketplace seller2025-05-12A record seller says PayPal permanently banned them after a buyer used disputes and a return-switch scam, then unexpectedly removed the limitation about three months later.
Business typeRecord seller on Discogs and eBay
Amount held$500
Hold lengthNot stated
Stated reasonBusiness relationship ended
OutcomeLimitations removed about three months later
Original public post (Reddit) ↗
PayPalPublic report2025-05-10A PayPal Business seller says their account was permanently limited without explanation a few months earlier, then received an email raising their instant-access sales limit, which they found confusing since the account was still banned.
Business typeNot stated
Amount heldNot stated
Hold lengthNot stated
Stated reasonNone given
OutcomeAccount remained limited at time of post
Original public post (Reddit) ↗
PayPalPublic reportMarketplace seller2025-04-25A small online reseller says the account was permanently limited and $200 was inaccessible, including money intended for shipping.
Business typeOnline resale business
Amount held$200
Hold lengthNot stated
Stated reasonActivity was said to be inconsistent with the User Agreement.
OutcomeThe account was permanently limited, and the funds remained inaccessible at the time of the post.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2025-04-11A small online seller says PayPal held money for orders that had already been delivered. The post warns that funds may be withheld for 120 days.
Business typeSmall business selling goods online
Amount heldNot stated
Hold length120 days
Stated reasonThe poster says the funds were held without cause.
OutcomeFunds were held; no resolution is stated.
Original public post (X) ↗
PayPalPublic report2025-03-30A small business owner says PayPal has been holding nearly $14k for 21 days, and they fear their business will collapse if the funds are not released.
Business typeNot stated
Amount heldnearly $14k
Hold length21 days
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportServices/Agency2025-03-18 · USAn online services seller says PayPal permanently closed the account for risk and later lost chargeback cases filed through a bank, leaving a negative balance and an almost $4,500 loss. The poster waited 180 days and is considering legal action.
Business typeOnline services seller
Amount heldalmost $4,500
Hold length180 days
Stated reasonRisk involved with account
OutcomeAccount permanently closed; chargebacks ruled in favor of customer; lost almost $4,500; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-03-11A contractor says a first $16,000 PayPal payment was held for 21 days, with release scheduled for March 30. The contractor was unsure whether it might be released earlier.
Business typeContractor
Amount held$16,000
Hold length21 days
Stated reasonNot stated
OutcomeUnresolved at time of post; release was scheduled for March 30
Original public post (Reddit) ↗
PayPalPublic reportRetail (in-person)2025-02-28 · CanadaA Canadian boat mechanic and seller says PayPal held funds from a credit card payment for 21 days, causing concern about cash flow for parts.
Business typeBoat mechanic and seller
Amount heldNot stated
Hold length21 days
Stated reasonNot stated
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportFreelance2025-01-04 · South AfricaA South African freelance illustrator says PayPal permanently banned the account after a first $150 payment and a document review, citing suspicious behavior. The poster refunded the client and is unsure how to receive future payments.
Business typeFreelance illustrator
Amount held$150
Hold length180 days
Stated reasonSuspicious behavior
OutcomeAccount permanently banned; poster refunded client; unresolved at time of post
Original public post (Reddit) ↗
PayPalPublic report2025A merchant says PayPal froze or held its funds (180 days). Stated reason: Permanent limitation.
Business typeNot stated
Amount heldNot stated
Hold length180 days
Stated reasonPermanent limitation
OutcomeNot stated
Original public post (Reddit) ↗
PayPalPublic report2025 · UKA UK individual seller (Financial Ombudsman case) says PayPal froze or held its funds (180 days). Stated reason: High level of risk. Outcome: two internal reviews + Ombudsman: not upheld.
Business typeUK individual seller (Financial Ombudsman case)
Amount heldNot stated
Hold length180 days
Stated reasonHigh level of risk
OutcomeTwo internal reviews + Ombudsman: not upheld
Original public post (UK Financial Ombudsman) ↗
PayPalPublic reportEcommerce2024-12-11An online seller says PayPal froze the account after a customer paid for an item using goods-and-services payment. The seller says access is blocked until an invoice is provided, which they do not have.
Business typeOnline seller
Amount held$40 and $700
Hold lengthNot stated
Stated reasonPayPal requested an invoice after flagging a payment for goods and services.
OutcomeUnresolved; the seller says the account remains frozen pending an invoice.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2024-12-07A reseller says PayPal paused then shut down their account with money still in it after about six sales, and is holding the funds for 180 days.
Business typeReseller
Amount heldNot stated
Hold length180 days
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2024-12-03 · EuropeA Europe-based seller on Depop and Vinted says PayPal permanently banned their account less than a month after signup and refuses to release funds for around six months, giving inconsistent hold periods and no reason.
Business typeOnline reseller
Amount heldNot stated
Hold length6 months
Stated reasonNone given
OutcomeUnresolved at time of post
Original public post (Reddit) ↗
PayPalPublic reportMarketplace seller2024-11-28 · UKA UK marketplace seller says their payment account was frozen over a money-laundering allegation, and they eventually wrote off the inaccessible funds.
Business typeMarketplace seller
Amount heldNot stated
Hold lengthNot stated
Stated reasonThe provider claimed the account was involved in money laundering.
OutcomeThe seller says the inaccessible funds were written off.
Original public post (X) ↗
PayPalPublic reportEcommerce2024-11-27An online seller says its payment account was put on hold pending proof that customer orders had been fulfilled. The seller says its store was offline, making it difficult to access the information needed to resolve the hold.
Business typeOnline store
Amount heldNot stated
Hold lengthNot stated
Stated reasonProof of fulfillment for customer orders
OutcomeStore was offline and the PayPal hold was unresolved at the time of the post
Original public post (Reddit) ↗
PayPalPublic reportCreator/Digital products2024-11-26A digital-products seller says PayPal payments are being held, leaving orders incomplete and preventing delivery of downloads. They are seeking a way to provide the products while the funds are held.
Business typeDigital-products seller
Amount heldNot stated
Hold length21 days
Stated reasonNot stated
OutcomeUnresolved; the poster says the held payments prevent order fulfillment.
Original public post (Reddit) ↗
PayPalPublic reportEcommerce2024-11-08 · LatviaA Latvia-based e-commerce seller says PayPal began holding funds from a handmade-products store, denied a request to release funds, and later banned the account shortly after the seller submitted verification documents.
Business typeHandmade products e-commerce store
Amount held10k
Hold lengthNot stated
Stated reasonNot stated
OutcomeAccount banned
Original public post (Reddit) ↗
PayPalPublic report2024 · UKA UK business (Financial Ombudsman case) says PayPal froze or held its funds (180 days, then balance kept). Stated reason: Acceptable use policy violation. Outcome: ombudsman did not uphold; funds used to offset losses.
Business typeUK business (Financial Ombudsman case)
Amount heldNot stated
Hold length180 days, then balance kept
Stated reasonAcceptable use policy violation
OutcomeOmbudsman did not uphold; funds used to offset losses
Original public post (UK Financial Ombudsman) ↗
PayPalPublic report2019-12An individual seller (Financial Ombudsman case) says PayPal froze or held its funds (180 days). Stated reason: Restricted activity. Outcome: ombudsman: not upheld.
Business typeIndividual seller (Financial Ombudsman case)
Amount heldNot stated
Hold length180 days
Stated reasonRestricted activity
OutcomeOmbudsman: not upheld
Original public post (UK Financial Ombudsman) ↗
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