Common mistakes to avoid in Paypal and Moneybookers

I’ve experienced that Paypal and Moneybookers expect their users to read the terms and conditions thoroughly and strictly adhere to it. Now, that is the right thing to do and every user should take care to ensure that they have read and understood the terms and conditions. But I do understand there are many people out there who will yawn ten times by the time they finish the opening paragraph. So, here’s a brief summary of what mistakes you should avoid at all costs to ensure that you’re not barred from using Paypal or Moneybookers due to a violation of terms and conditions or that you are restricted from using their services to the fullest:

Both Paypal and Moneybookers have strict policies against having multiple accounts and they shall permanently disable your account if they find that you have violated this condition. There’s little you can do then except pleading with them to consider your case and give you back your account. It is like a dead end for Indian users of Paypal since they have to provide their PAN while registering initially.

Just wait for a few more days and if you don’t see the deposits contact Paypal, but please don’t try to guess the deposit amounts. Many people just enter the example amounts for no logical reason whatsoever and then they receive the warnings.

Again, just wait for a few days for the verification letter. It has to come all the way from London and might take a while. If you try to guess the code you receive a stern warning from Moneybookers – DON’T TRY TO GUESS THE CODE.

Well, it’s no problem when you enter a pseudonym while registering at but you’ve got to use your real name over here. If you really have entered false names then you shall have to produce certificates or documents to support your claim.

Moneybookers doesn’t allow you to change your currency after your first transaction; and this ‘first transaction’ includes your verification of your credit card. So, be sure that you have selected the currency most beneficial to you. For most of the Indian freelancers I would believe that USD is the currency most beneficial in the long run.

What To Do When Paypal Permanently Limits Account

This is the major undoing of countless users who one fine day suddenly feel that they ought to have two or more Paypal accounts. Now, it is strictly stated in the terms and conditions that you cannot have more than one account, no matter what. Yes, you may have a business account and a personal account in your name but you cannot have two business accounts or two personal accounts in your name.

Now, it so happened that this genius writer decided to make multiple Paypal accounts one day. He made them and he hadn’t had the slightest clue that he wasn’t supposed to do so. Then came the email from Paypal; here is the text –


“We’re sorry to let you know that the use of your account is not in
accordance with the terms and conditions of our User Agreement and
therefore has been permanently limited.

What’s the problem?

Our system has detected that you have multiple PayPal accounts, of which
one or more has been limited for engaging in activities which do not comply
with our policies, including:

 1. Reports of excessive buyer complaints for:
        a. merchandise or services not delivered or significantly not as
described; or
        b. payments you received which your buyers did not authorise/approve to be
made; or

 2. Negative balance(s) due to insufficient funds to cover refunds for
claims or chargebacks awarded in favour of the buyer; or

 3. A violation of another PayPal policy or agreement you have with us

What does it mean to have a permanent limitation?

You will no longer be able to use PayPal’s services to send or receive
payments with this account or your other accounts which have been limited.
However, you can still view your transaction history.

What happens next?

Any balance in your PayPal account will be held for up to 180 days (or
longer as required and permitted by law). This balance will be used to
offset any obligations that you have to PayPal or your buyers and to cover
future refunds for claims or chargebacks that buyers may file against you.

After the 180 days hold period (or longer as required and permitted by law)
has expired, if there is any balance remaining, we’ll send you an email
letting you know when and how you can withdraw the money from your account.
Please note, that your PayPal balance is auto withdrawn to your linked bank
account in India.”


I was flabbergasted! I had some pending payments and I didn't know what to do with them! So, I wrote to Paypal saying that though the primary fault was mine, I at least deserved a warning before my account was terminated.
They replied that they will review my account and after a few days, to my surprise, this is the email I received from them –


Our review is complete and we have restored your account.

We appreciate your patience and thank you for your help in making PayPal
the safest and most trusted online payment solution.



I feel I was lucky since I didn’t carry out any transactions through the new duplicate accounts. Anyway, this is one mistake you should best avoid. However, if you are reading this too late then probably you could come up with a genuine explanation that your intentions weren’t malicious and that you are ready to provide any kind of documents they require to prove it.
Good Luck!