PayPal is an online payment method that is widely used by sellers and buyers throughout the world.
However, quite a few sellers experience problems such as their PayPal accounts being limited or even banned for violating applicable rules.
To avoid this, here are some important rules that sellers must remember to keep their PayPal accounts safe.
1. Don't Accept Buyers Who Use PayPal Business Because It Always Causes Problems
One common mistake that sellers often make is accepting payments from a business PayPal account.
PayPal business accounts are often a source of problems because they are stricter in terms of transaction policies, verification, and buyer protection which tends to favor the buyer in cases of disputes.
In addition, many business PayPal accounts are used by irresponsible parties to make unfair chargebacks or refunds.
Therefore, it is better to decline transactions from business accounts and only accept payments from personal PayPal accounts to reduce risk.
2. Prohibit Buyers from Adding Notes to PayPal Because It Can Trigger Suspicion
When making a payment, PayPal gives buyers the option to add a note.
However, this feature is often misused by buyers to write something that can trigger suspicion from PayPal.
For example, a buyer could write “digital service purchase” or “item without warranty” or “balance conversion” which could cause PayPal to consider the transaction high risk or in violation of their policies.
Therefore, sellers should prohibit buyers from adding notes in PayPal transactions to avoid investigation and account restrictions.
3. Buyers Must Choose "Friends and Family" to Avoid Rogue Buyers
PayPal offers two types of payment methods: "Goods and Services" and "Friends and Family." If a buyer uses the "Goods and Services" method, they can easily file a dispute or request a refund even after receiving the product or service.
Many sellers suffer losses due to dishonest buyers who take advantage of buyer protection policies to unilaterally issue refunds.
To avoid unscrupulous buyers, sellers must require buyers to select the "Friends and Family" method.
With this method, the transaction is considered a personal transfer, so PayPal does not provide buyer protection. This reduces the risk of sellers experiencing chargebacks or adverse refunds.
4. Prohibit Buyers from Using Foreign Accounts to Avoid Scams and Currency Differences
Receiving payments from foreign PayPal accounts can be high risk, especially if the currency used is different from the currency of the seller's PayPal account.
Currency differences often result in high conversion fees, and in some cases, PayPal may flag transactions as suspicious because they originate from an unusual location.
Additionally, many cases of fraud occur when buyers use PayPal accounts from abroad, especially if they use VPNs or other methods to hide their real location.
Therefore, it is better to only accept payments from PayPal accounts registered in the same country as the seller to avoid the risk of fraud and account restrictions.
5. Require Buyers to Use Their Personal PayPal Name That Matches Their ID Card and Account
PayPal has a fairly strict verification system, especially in terms of data conformity between the PayPal account and the owner's personal information.
If PayPal detects transactions from an account that uses a different or suspicious name, they can immediately limit or even close the account.
To avoid this problem, sellers must ensure that buyers use PayPal accounts whose names match those on their ID cards and bank accounts.
This can reduce the risk of transactions being considered suspicious and prevent potential disputes that could be detrimental to the seller.
6. Create Strict Rules: If Buyer Violates Them, Balance Cannot Be Refunded
The seller must set clear and strict rules that if the buyer violates the rules that have been determined, then the balance that has been paid cannot be returned.
This is very important because PayPal accounts that make refunds too often have a high potential to be limited or banned by PayPal.
Many irresponsible buyers take advantage of the refund policy to unfairly claim refunds.
With this rule, sellers can protect themselves from unscrupulous buyers and keep their PayPal accounts safe from detection of suspicious activity that can cause accounts to be limited or banned.
Conclusion
To keep your PayPal account safe and free from sanctions, sellers must always be careful when accepting payments.
By implementing the above rules, such as declining payments from business accounts, disallowing notes in transactions, using the “Friends and Family” method, avoiding overseas PayPal accounts, and ensuring account names match, sellers can reduce the risk of having their PayPal account restricted or banned.
Always be aware and comply with PayPal policies to keep your business running smoothly without any obstacles!