PayPal risk control tightened, freezing a large number of accounts

The sellers reported that their PayPal accounts were reviewed, and funds were frozen, accounts were cleared, etc., and the amount involved ranged from hundreds of US dollars to tens of millions of US dollars.The sellers reported that their PayPal accounts were reviewed, and funds were frozen, accounts were cleared, etc., and the amount involved ranged from hundreds of US dollars to tens of millions of US dollars.

01 PayPal freezes a large number of accounts

Since the end of March, PayPal’s risk control has become stricter for all to see.

An industry insider revealed, “Enterprises that would not trigger PayPal’s wind control in the past were also audited by the platform, including some cross-border big sellers who have been listed.”

For more small and medium-sized sellers, after the account is frozen for 180 days, the account funds are directly transferred and cleared.

Hugo Cross-border learned from the understanding that sellers with PayPal account problems have more or less infringement, fraud, fake sales, and excessive customer complaints.

We learned from the user agreement on PayPal’s official website that PayPal has the right to restrict, cancel, suspend accounts, freeze balances, and charge a fine of $2,500 per transaction for each violation of the Rules of Fair Use when a user violates the Rules of Fair Use. It is inferred that the money deducted from the seller should belong to the penalty for violating the transaction.

Industry insiders speculate that the problems of incorrect goods, trademark infringement, flooding of counterfeit goods, and high rate of chargebacks frequently issued by independent stations have become the incentives for PayPal to vigorously “clean up” this time.

Compared with the Amazon platform, independent sites do not have a standard, unified customer service system, and consumers can only launch complaints to payment systems such as PayPal after fruitless communication with sellers. As the number of complaints from consumers on independent sites continues to rise , PayPal’s regulation of compliance will only get stricter in the future in order to maintain the platform’s goodwill.

In fact, this is not the first time that PayPal has taken action, as time goes back to late March 2020, when PayPal cleared thousands of seller accounts, and all the funds of the accounts involved were frozen directly at that time, with a loss of more than $100 million.

Actively trying to save themselves

After the accident, in order to reduce losses, the seller is also planning more secure self-rescue measures:

One is to actively appeal and lift account restrictions.

After the account is blocked, the complaint has become the “subconscious practice” of a number of blocked sellers.

According to the industry media, now led by some listed companies, built a variety of groups related to blocked numbers, to collect, statistical data of blocked merchants; offline countermeasures to discuss, the follow-up may also be filed against some institutions to promote the progress of rights.

Focusing on the individual, a Shenzhen seller said that after the account was blocked, he found the platform customer service to explain the delivery situation, the amount received in the last month, the product customer complaint rate, and the specific situation that has been reviewed, and submitted a complaint.

Second, consider a more compliant and stable third-party acquiring channels.

At the same time, many sellers are also comparing other third-party payment platforms, in order to get rid of the chain reaction brought about by reliance on a single channel.

It is understood that the independent station acquiring business is different from the collection business. It mainly provides consumers with a variety of payment methods such as credit cards, bank cards, and local electronic wallets by building payment ports on websites or APPs. The convenient payment experience and The stable payment success rate can effectively reduce the chargeback rate of consumer payment backend and improve the sales conversion of the overall website.