How to Unfreeze Money in a Paypal Account

By Alan Kirk

  • Overview

    Paypal is a very popular online payment system for e-commerce retailers and auction websites on the Internet. One of the best known websites that accepts Paypal payments is the auction website Ebay.com. If you are counting on using your Paypal funds for making purchases, you must make sure that you follow the terms of service for Paypal. If you do not do this, there is a risk that your Paypal account will be frozen and you will have to spend time trying to unfreeze it.
    • Step 1

      Contact Paypal to find out why your account was frozen. There are many different reasons an account can be frozen by Paypal. Some reasons include investing in Pyramid or Ponzi Investment Programs, failing to provide a product that you agree to sell, overdrawing your Paypal account with your Paypal debit card and not replenishing the account.
    • Step 2

      Discuss your issue with a representative at Paypal, and find out the steps they are requiring you to take to have your funds unfrozen. Keep in mind that it is possible that your violation may be so severe that Paypal will not refund your funds to you.


    • Step 3

      Ask how long your funds will be frozen. Paypal will freeze your Paypal account funds while an investigation is conducted. Depending on the offense, they can let you know how long this investigation might take and when you will find out if they will unfreeze your Paypal funds.
    • Step 4

      Contact the person who made a complaint against you to Paypal if you are aware who he is. Find out if there is anything you can do to rectify the situation with him or if he will rescind his complaint with Paypal.
    • Step 5

      Provide any information Paypal requests in a timely manner. The quicker you provide the required information to Paypal, the quicker your case will be investigated. They may ask for email records of correspondence with the person that made the complaint against you with Paypal to verify your claims. As an Internet merchandiser, you should always keep email correspondence on file for at least six months after a purchase is made in case a dispute arises.
    • Step 6

      Keep in touch with the Paypal representative. If you do not hear about a decision regarding the possibility of unfreezing your Paypal funds, call them. It's your money, so you need to stay on top of the situation as you attempt to get a resolution.
    • Skill: Challenging
    • Tip: Having your account frozen at Paypal does not mean you are guilty of the accusation made against you. It means that Paypal is investigating the situation. Approach Paypal in a professional and respectful manner when dealing with their representative.
    • Warning:
    • If you contact someone who has made a complaint against you, address that person respectfully and professionally as well. Attempting to threaten or intimidate him into rescinding his complaint could result in further action taken against you by that party.

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