PayPal froze your funds. Here’s where to start.
Save the account notice and follow PayPal’s instructions for review. We can help you explore processing options for future payments; we cannot release PayPal-held funds.
How aggregator and merchant-account structures differ
PayPal operates as a payment aggregator, so merchants use the platform's account structure and risk rules. Limitations, holds, and appeals are handled under the account-specific notice and applicable agreement.
A direct merchant account is reviewed for the specific business by a processor or acquiring bank. It may still include reserves, holds, or termination rights, which is why the complete written pricing, reserve, funding, and contract terms matter.
The practical next step: if the business needs category-specific underwriting, compare specialist processor options and written terms. An additional approved payment path can reduce concentration risk without promising uninterrupted processing.
The six-step recovery sequence
Steps 1–3 address the existing account issue. Steps 4–6 address future transactions and reduce reliance on a single payment path.
- 1
Read the email carefully and screenshot everything
Save the email, dashboard notice, balance, cited reason, support history, and any stated hold or reserve terms. The account-specific notice and agreement determine the next steps.
- 2
Submit the requested documentation to PayPal
Provide the records requested in the limitation or appeal workflow and keep proof of submission. Requests and review timing vary by account, and providing documents does not guarantee a particular release date.
- 3
Review the available escalation channels
Use PayPal's stated appeal or support process. If the issue is eligible for a CFPB complaint, submit the account-specific facts and keep the case number. A complaint does not guarantee a particular response, release, or timeline.
- 4
Start a specialist processor-fit review
If the business needs category-specific underwriting, start a separate review for future transactions while the PayPal issue continues. Specialist merchant accounts can also have reserves or holds, so compare the written terms.
- 5
Migrate active customers to the new processor
After approval, confirm gateway compatibility, token portability, recurring billing, checkout changes, and settlement reporting. Integration requirements vary by platform and processor.
- 6
Reduce concentration risk
An additional approved provider or complementary payment rail can reduce reliance on one account. It does not eliminate holds or interruptions, and each provider must approve the business it processes.
PayPal’s official account-limitation steps explain where to find document requests in the Resolution Center or Dashboard. Review timing depends on your case.
What happens next
Save the notice, balance, cited reason, support history, and available transaction records.
Submit requested documentation and use the stated appeal or eligible complaint channels. Track this separately from future processing.
Tell us what you sell, your monthly sales, and what happened with PayPal. No documents are required to start Cybin's initial review.
Cybin identifies likely-fit options. The processor may request more information and controls the underwriting decision and timing.
Review written terms, complete setup, and test checkout, recurring billing, and settlement before moving live transactions.
Continue the PayPal appeal or complaint process and track any hold or reserve milestones stated for the account.
Don't wait to review future payment options.
The existing balance and future payment acceptance are separate issues. Start the processor-fit review now, then compare written terms and integration requirements if an option is approved.