I am in internet marketing and i am using Paypal for many years already, with only minor issues.
However, i know from many other people in the same business who had accounts frozen, not $300...but sometimes accounts with $10.000 or even more.
You made some mistakes, i am afraid.
Fact is that there is LOTS of fraud going on with paypal and online transactions, believe me scammers are everywhere.
ANYONE who opens a Paypal account, at some point, will be required to submit proof of ID and address, that is scans and copies of documents with the
address on it. For a new account there is a threshold which i think is $2500 where the account is temporary frozen until all the documents are
(I myself had a minor issue onec because i had to explain the fact to them that here in Spain, on "legal" documents there are always two (!) last
names..which makes the name on my paypal not match EXACTLY the name on my bills etc...and it took a few days to explain this to them)
Anyway, YOUR mistake was that you made a new paypal account and immediately did a relatively high transaction, likely some transaction country
country, ebay etc. which is always considered "high risk" because many scams etc. work that way.
I also understand you declined to give them your information, eg. your income, what you are expecting to get on your account etc..etc... They need
this information to determine what a "normal" transaction on your paypal would be....to detect when and IF a transaction COULD be fraudulent,
For example, if someone has an online business selling stuff, with an average monthly money flow of, say, $1000...if all of a sudden a HUGE sum like
$10.000 would be transferred it would raise suspicions since such amounts usually would not be transferred on this account.
In addition, you had a brand-new account where they (likely) did not establish what a "normal" transfer would be, they also didnt have your
information, proof of ID and address etc...and (as far as i understood)...you got angry with them as well and refused to co-operate them. This is
You could likely have resolved this by just complying to their silly requirements, which (to some extent) have merit seeing there is so many scams and
fraud going on. They NEED to protect buyers/sellers. By getting angry at them you hardly resolved anything....IN PARTICULAR seeing it was a new
account and they don't know you. (Different story if you are with them for a long time already, already called them, faxed your documents etc)
The funny thing is, that "routine review" was just a random, routine review which can happen occasionaly especially with new accounts. You turned the
random, routine review of an otherwise legit transaction which could have been resolved easily in two days into a problem because of your own
ignorance and childish/unprofessional behavior.
edit on 19-5-2012 by flexy123 because: (no reason given)