With over 300 million accounts, PayPal is one of the largest payment providers on the entire Internet. Again and again there is criticism against PayPal, including the Consumer protection has already sued PayPal's usage guidelines. PayPal is considered a secure payment service provider - but problems and disputes are becoming more and more common for consumers and sellers. In this blog post we write about our experiences with PayPal, customer service and our blocking of our accounts.
PayPal support hotline: 069 945189832
Complain about PayPal? Instructions can be found here:
Bad reviews about PayPal on the net
There are many complaints against PayPal on review portals on the Internet. on Trustpilot the company has 1.2 stars - 85% the ratings are "unsatisfactory" (as of March 12, 2021). In general, it is often reported that accounts are arbitrarily frozen and for 180 days (sometimes longer) can be withheld. Customer service is also criticized, which is said to be difficult to reach or unable to help. The German support from PayPal is trying hard, but unfortunately your hands are tied in the event of a block. No one can be reached by phone who can remove the lock - or view it. In general, poor accessibility and a lack of communication within the company are criticized on the Internet.
Account blocked without notice
One morning we got an email that our accounts were 'about to be closed'. All of our money is withheld and we cannot and may never use PayPal again. After initial confusion, this was confirmed to us after a telephone inquiry: We are permanently limited, the business relationship has been terminated.
"Account closure initiated" - money withheld for 180 days
PayPal's customer service
Time and again, PayPal's telephone support is heavily criticized. We rarely had bad experiences with the company's telephone customer service. On the contrary: the majority of the employees were very committed and took the time to examine the situation. Unfortunately, the employees could not solve anything themselves on the phone, always referred to the back office or had no authorization to view the reasons for the blocking. Nevertheless, everything that was necessary was done to help us. The commitment was always there.
Particularly noteworthy is the business customer support (Business Support from PayPal), which was always very committed.
Objection to the block - no response from PayPal after 6 weeks
On the first day of the ban (on 02/02/2021) we had already sent an objection to the so-called AUP email. This was recommended to us by PayPal customer service, as PayPal customer service can neither remove the block nor view it in detail. Allegedly, the AUP department is responsible for the locks. We were told the ban was final and not to be challenged. There was never any other answer.
Our previous tips should your ban be unauthorized
- Try to stick with it. Call PayPal Support: 069 945189832
- Write emails to [email protected]paypal.com (even if there is no reply) and explain your situation.
- Maybe take legal advice and ask PayPal to release your funds.
- Find another payment service provider.
- Contact request to [email protected] or [email protected]
- If you are not (yet) blocked: Never “store” a lot of money on PayPal!
What we want from PayPal
Update: March 19, 2021 - Rejection one day after internal objection
After weeks of waiting and no response, we raised an objection internally via the business customer service. This was rejected within 24 hours.
We contacted the Executive Office again by email, with a formulated objection, and at the same time we are still waiting for the complaint to be lodged with cfpb / consumerfinance.gov - as we have not violated copyrights or guidelines.
We ask PayPal to check our block again and to contact us if you have any questions. If further information is required from PayPal, employees are welcome to contact us at any time. We will stay tuned and inform you about the further process.
Update: April 2021 - The final statement from PayPal
Dear Mr. Lucas Kleipödszus,
Thank you for your inquiry to PayPal regarding the limitation of your PayPal account, registered with the email address [email protected]
Furthermore, we refer to your request to delete your data from the PayPal platform.
As part of the strict financial and legal obligations that PayPal is legally obliged to comply with, PayPal must store customer data for a certain period of time to protect against fraud, money laundering and financial crimes. In addition, as stated in the agreements you have with us, PayPal may store your personal data in order to comply with applicable law or to defend us in legal disputes. For legal reasons, no data may be deleted during the retention period.
The retention period for customer and transaction data at PayPal is ten years. This period begins on the date you closed your account or the date of the last significant activity on an open account.
Please note that PayPal will save the data even if your account is closed or limited until the retention period expires. After that, they will be deleted automatically.
If you close your PayPal account, or if it is permanently restricted, as in this case, your data will no longer be processed for the purposes associated with the use of active PayPal accounts. That is, they are only processed when it is essential. Even if we cannot delete your data immediately, it will only be processed to a minimal extent and will be automatically deleted after the statutory retention period has expired. We assume that this is what you want.
Your data is still in this retention period. Therefore, PayPal is currently unable to fulfill your request for data deletion. However, your data will be automatically deleted after this period has expired. Until then, your data will be securely encrypted until they are deleted from PayPal's systems. Thank you for your understanding.
We regret that we cannot delete your data immediately. We hope that the reasons for this can be seen from the information given in this letter. In the event that you wish to pursue this matter further, please contact the data protection authority that oversees us, the Commission Nationale pour la Protection des Données or the National Commission for Data Protection (CNPD). Address:
15, Boulevard du Jazz
Tel .: (+352) 26 10 60-1
You can contact us with further questions at the e-mail address [email protected]
If you do not agree with this final statement from PayPal, you can contact the following offices to submit an official complaint against PayPal:
- European consumer center Germany
c / o Center for European Consumer Protection eV
- Commission de Surveillance du Secteur Financier (CSSF)
283, route d'Arlon
We gave PayPal the chance to reopen our accounts or delete our data. Neither option was considered by PayPal. It seems as if everything is regulated internally how to proceed.
That is why we opened a complaint about the CSSF Luxembourg. It cannot be that we have to wait 6 months for our money and we are accused of copyright infringement.
Update: 05/21/2021 - Complaint about CSSF (Luxembourg Financial Supervision)
In response to the email from PayPal that the “accounts remain blocked”, we filed a complaint with the Luxembourg financial supervisory authority.
As of May 21, 2021:
In the aforementioned matter, we refer to your e-mail from May 18, 2021 and
would like to inform you that on May 4th, 2021 PayPal (Europe) S.à rl et Cie, SCA,
asked for an opinion on your complaint. The opinion
from PayPal (Europe) S.à rl et Cie, SCA will not be sent to us until the next few days.
We would like to point out that we are obliged to comply with Article 5 of the CSSF
Ordinance n ° 16-07 on the extrajudicial settlement of complaints established
Adhere to the procedural sequence.
We are curious to see how it goes on and we will keep you posted. We go through each additional higher authority until we get justice. Wait 6 months for your own money? Ridiculous that a corporation “may” or get away with something like that - legally the whole thing is very likely not okay.
Then update the complaint: PayPal took a position on the blocking and communicated the reasons to the CSSF. We then refuted or counter-argued these reasons. Afterwards PayPal was asked for a position one more time.
Have you also had negative experiences with PayPal?
Through our blog entry, we have reached a lot of people who have experienced the same or similar. Thanks a lot for this!
Feel free to write in the comments about your experiences with PayPal, as a buyer or seller. We are interested in your opinions. Have you been banned too? We are happy to answer and share our experiences with you.
Should we go to court, we will post this case here too!
After 7 months: recovery of the accounts
On August 9th, 2021, after more than half a year, our business account was released again. After a further three days on August 12, 2021, the private account and another business account. It all took a long time, and we weren't told what conclusion they came to - but obviously the blockage that was once set for alleged "violations" has been lifted.
After 9 months: renewed blocking ?!
On Saturday, September 25th, 2021 ALL accounts were blocked again. Same reason - same procedure. I feel, I honestly say it, kidding. Unfortunately, you can only guess what the whole thing does to me psychologically. I will now go the way that I contact the banking supervisory authority again and then possibly take legal action against PayPal. It cannot be that we are unlocked first and then, despite all the effort, are locked again out of the blue.
Despite contacts to business support, as well as to PayPal via e-mail, etc., our accounts were blocked again. It's enough now! We are now taking another position on the Luxembourg Banking Authority (CSSF) and will take legal action if necessary.
October 8th, 2021: Renewed approval + termination of the accounts
The accounts were all released again, with written notice (2 months' notice). Had it happened that way at the beginning, we would not have lodged any complaints. But we do not want to accept this termination because the whole procedure has been very time-consuming up to now. We no longer use PayPal for business purposes!
Here is the termination:
We urge you to remove all references to PayPal from your website. This not only includes the removal of PayPal as a payment option, but also the removal of the PayPal logo or shopping cart.
If you have a remaining balance, you can debit the money to your bank account. Information on debiting your PayPal account can be found in our Help Center. "