PayPal locks you out at $10,000 lifetime total

I just got an email telling me that I'm $752 away from being locked out of my Paypal account unless I "get verified".

You read that correctly, as soon as I spend $752 more dollars from my account, I'm locked out (even though I currently have a $2000+ balance).

The only way customer service said I can avoid lockout is to give them access to my bank account.

After 11 years of use, I have almost spent $10,000 through Paypal and the reward for my loyalty is being locked out for "security reasons".

1. I have absolutely no interest in having Paypal become a co-signer on my bank account.

2. After the Sony hacking last week that lost the personal info of 76 million people, we can't really expect that our data is safe. Sony is obviously much larger than Paypal.

3. It can't really be "A safer way to Pay" if I don't have the separation of them NOT having access to my account.


This is a total crock.

Seems quite simple to me. I've been a verified member for ages, but a few years ago I decided I didn't want paypal having access to my everyday bank account, so I opened an online checking acct with wachovia (at the time), keep about a $100 balance in there, and thats it. No more access to my important account...

Well... It may be some obscure law you have in the United States regarding money laundering (I'm not sure, I don't live in the US), which requires Paypal to do that.

Another reason I hate PP.

So set up a dedicated separate account. Not that big a deal really...

Theoretically you should be able to just make another account, remove your credit card from the old one, and add it to the new one. You can also apply for the credit card but that will involve a hard credit pull. Doing what the above poster said with making a secondary bank account and putting money into it is also an option. Kind of ironic; using a bank as an in-between for payments to PayPal, another in-between...

GavinTing wrote in post #12371356
Well... It may be some obscure law you have in the United States regarding money laundering (I'm not sure, I don't live in the US), which requires Paypal to do that.

There IS a law about single $10,000+ CASH transactions, but that would not apply here.

Give them your checking acct info, let them verify you, then deleted the checking account from paypal. Opening up a second bank account costs a monthly fee unless you meet minimum requirements.

DanThoman wrote in post #12371577
Give them your checking acct info, let them verify you, then deleted the checking account from paypal. Opening up a second bank account costs a monthly fee unless you meet minimum requirements.

Customer service said once you hit $10,000 , they need access to a valid checking account at all times.

vid1900 wrote in post #12371631
Customer service said once you hit $10,000 , they need access to a valid checking account at all times.

As others have mentioned set up a 'throwaway' account and drain it regularly. Problem solved.

K6AZ wrote in post #12371791
As others have mentioned set up a 'throwaway' account and drain it regularly. Problem solved.

I don't think it's that simple. Part of the reason they want access is so that they can withdraw from your account as well if they have a case or rule against you. It's total horse**** since if you have a bank account listed that's short your bank may charge you a nonsufficient fund fee. And the problem is you are at the mercy of their rulings/freezes/charge​s.

jnaks wrote in post #12372063
I don't think it's that simple. Part of the reason they want access is so that they can withdraw from your account as well if they have a case or rule against you. It's total horse**** since if you have a bank account listed that's short your bank may charge you a nonsufficient fund fee. And the problem is you are at the mercy of their rulings/freezes/charge​s.

It is that simple. If there is no money in the account they have no money to grab.

Also, it's not a smart move to not make good on a case that goes against you. PayPal will come after you and trash your credit. Google PayPal + collection agency.

My bank set me up a checking account with no checks thats free just for my paypal transactions. I never have more then $30 in it.

If you have money in another account at the same bank, what's to stop them from that money?

D.C. wrote in post #12372170
If you have money in another account at the same bank, what's to stop them from that money?

They just can't grab money from any account you have at a bank. They would need the account number of the other account(s). Of course, you don't want your throwaway PayPal account to have overdraft protection linked to another account/LOC.