PayPal business account restricted or funds withheld?
Distinguishing account restrictions from payment claims.
Is PayPal restricting your business account, requesting documents or withholding sales proceeds? We review the grounds for the restriction, reserves and payouts. We distinguish the wish to continue using the account from a claim for payment of existing funds.
A reserve on ongoing sales, a hold on an individual payment and a permanent account limitation are different measures. A sound approach requires the wording of the notice, the payment overview and the agreed terms. A blanket reference to 180 days does not resolve every case.
01
Account restrictions and requests for evidence
We check which documents were requested, which you submitted and the basis on which PayPal restricted the account. Identity, business model, transaction patterns and specific buyer cases can raise different questions.
02
Reserves and withheld funds
We distinguish ongoing reserves, individual payment holds and offsets. The reserve schedule and transaction history establish the amounts actually affected. The displayed balance is not necessarily due in full immediately.
03
Payouts and termination of the contract
Continued use of the account and settlement following termination are assessed separately. We identify the responsible contracting party, applicable terms, due dates and possible steps out of court or in court.
04
Substantiating urgency where the business is at risk
Frustration over a restriction or a particular account balance is not enough on its own for interim court proceedings. We need specific information about liabilities falling due, available funds and alternatives. Earlier decisions in individual cases are not a promise that every balance will be released.
For companies, self-employed professionals and online retailers with a PayPal business account
PayPal has permanently limited my business account and is withholding funds.
We review the reasons given, the agreed terms and the composition of the balance. Continuing to use the account and obtaining a payout may be different legal objectives.
PayPal retains a reserve on every sale. Can you review this?
We distinguish rolling reserves, minimum reserves and individual payment holds. The reserve schedule, transaction reports and correspondence with PayPal form the basis of the review.
First, briefly describe the facts. We will coordinate with you how to submit further documents.
PayPal notices and the date of the restriction
The affected merchant company and business model
Transaction overview, balance and reserve schedule
Evidence of sales, deliveries and open buyer cases
For urgent matters: payment due dates, cash flow overview and steps already taken
Working with us
From the request to the mandate.
Before the assignment, we agree on the scope of services and remuneration. When taking over, we will name your legal contact person.
01
Inquiry
They describe the facts, the parties involved and known deadlines.
02
Acceptance of your matter
We agree on performance and compensation and name your contact person.
03
Case handling
The responsible lawyer will check your documents and coordinate the procedure with you.
PayPal for merchants
Questions & answers.
Must PayPal always pay out everything after 180 days?
A general assurance would be inaccurate. We review the agreed terms, the specific hold and any outstanding risks. A contractual clause must itself be assessed legally; its inclusion in the terms does not automatically make it enforceable.
Is a frozen balance of EUR 5,000 enough to obtain an interim injunction?
The amount alone does not decide this. The claim and particular urgency must be substantiated. The impact on your business, available funds and the time that has already elapsed may be important.
Does this page also cover a private PayPal buyer protection case?
This page is for merchants and business accounts. For personal purchases and refunds, please use our consumer law section.
English translation of our German website. Statutory references concern German or EU law. The German original remains available through the language selector.