Paypal Is At Fault, So They Say.

There has been a frenzy of people blaming PayPal for limiting their paypal accounts. They claim it couldn’t be anything they did that violated paypals AUP(Acceptable Use Policy). Many claim they didn’t do anything wrong and paypal is plain and simply wrong in limiting their account.

Beyond popular belief there are many programs that are illegal on the internet (AKA World Wide Web). Here are just a few of them.

Matrix sites (AKA Pyramid Scheme), Any site where you only get paid on recruitment of new paying members and does not have a tangible, retailable product. Adding a matrix to a Traffic Exchange, and Autoresponders makes them illegal.
Cash Gifting Sites, Any site that pays member to member, 100% commission of a sale. Where members only join and pay with expectation of receiving money in return.
High Yield Investment Programs (AKA HYIPS, Ponzi Schemes) Promises of big returns on your investment. Uses new funds from new member to pay old or first in members. There is no real investment.

You can join, promote, send and receive funds from sites like these and take the chance of getting your paypal account limited. However you can not blame paypal for doing what you should be doing. And that is protecting your business.

What can you do if Paypal Limits Your Account?

Paypal is a business and they have to abide by the laws of business, The FTC, And the SEC. With this in mind, I do not believe paypal has the right to hold your funds, unless You or a site You received funds from or has charges against them by the FTC, FBI, or SEC. With that said if your account is limited you do have options if in the US. You can spend the time to
1. Contact Your States Senator.
2. Contact Your States Dept. of Finance or where ever the money transfer licensing office is.
3. Contact Your States Attorney General
4. The SEC (Securities and Exchange Commission)

Keep in mind this may not get your account back, However it could get you the funds from your account.

Fact: Papal has been under fire for over 10 years and from what i have seen it is due to them trying to protect their business. Yes they have been in the wrong at times and made the changes the law required them to make.

Now Here Is Where The Opinion Comes In.

If you have a business online and you do not do everything you can to protect it, Then you will be out of business soon.
Want to know if you will be limited by Paypal?
1. Get involved with any of the types of sites i mentioned above and use your paypal account.
2. Buy or acquire a site that was limited may also get you limited.
3. Having Multiple sites using one Paypal account.
4. Only having funds go in and out from sites that offer traffic to your website or affiliate link.

You have a site online that people use and pay you to use. You have a business, Why on earth would you not do everything your can to protect it?
It is very simple, Get to know the law.
If the FTC considers a business model risky or high risk the chance of paypal doing business with anyone using that model is slim.

The sooner people realize this the better off they will be.

How Owners set themselves up to fail.

Owners put their members before their business and make it a no win for the owner.
Letting Members/Customers promote sites that are illegal puts you in the cross hairs of being shut down.
A member of your sites gets limited due to owning or promoting illegal sites, and you are sending commissions to them and/or receiving funds from them. You are setting yourself up to fail.
When you think going through a second processor to accept payments that go into your paypal account, You set your business up to be shut down or limited.
Paying your members/customers to use your advertising site will put you in jeopardy.

How Members set themselves up to fail.

The biggest thing is joining programs that make huge claims of profit without checking them out first.
Believing that all programs are legit.
Not following the terms of the sites they join.
Thinking they can do whatever they want on someone elses site.

Disclaimer: This is an opinion only, not an attack on anyone. If you feel this is an attack on you then you must have a guilty conscience. End Disclaimer

Resource: https://www.paypal.com/us/webapps/mpp/ua/useragreement-full