Build a Trusted PayPal Account: 4 Essential Tips. After working with PayPal to resolve complaints from sellers about their accounts, Hacecommerce has identified a common challenge: most issues stem from difficulties in building trust for PayPal accounts. Problems like high reserve rates, 180-day limitations, frequent review holds, or being blocked from making payments have one thing in common – insufficient account reliability. Below are some key principles to help you maintain a trustworthy PayPal account:
1. Provide Complete and Accurate Information
Ensure you declare all necessary information accurately and completely. Follow PayPal’s process to provide the required documents promptly. Responding quickly in the Resolution Center demonstrates your seriousness and willingness to cooperate with PayPal. Prepare the following information in advance:
- Business License
- Bank Statement (with the address matching your PayPal account address)
- Supplier details, including full name, address, URL, and contact information
- Agreements with suppliers, such as contracts, delivery schedules, logistics service providers (if applicable), delivery times, return/replacement policies, and liability terms for late or undelivered goods
- Customer service protocols for addressing inquiries
- Online feedback on suppliers from platforms like AliExpress or other marketplaces
- Order Tracking Information (tracking numbers)
If you have a previously limited account, resolve it entirely before creating a new one. Some users face immediate restrictions on new accounts due to unresolved issues linked to older, limited accounts.
All information must align across Shopify, bank accounts, and PayPal accounts. When withdrawing funds from PayPal to your bank account, ensure the account holder’s name matches. The company name must match the registered bank account name for business accounts. For instance, if your company is “Galaxy LLC,” the bank account should also be under “Galaxy LLC.” Before withdrawing funds, verify that the name on the order on PayPal matches your bank account details to avoid issues.
2. Maintain Good Account Performance
2.1. Key Metrics to Monitor:
- Refund Rate: ≤7%
- Disputes: ≤3%
- Complaints: ≤3%
- Unauthorized Claims: ≤1%
- Chargebacks and Bank Reversals: ≤1%
2.2. Additional Guidelines:
- Product Compliance: Avoid selling items that violate trademarks or copyrights or are counterfeit/low-quality. Refer to PayPal’s prohibited items list. Focus on products already sold on AliExpress, Amazon, or eBay.
- Manage Sudden Sales Spikes: Sudden increases in sales volume or payments (“explosive growth”) may trigger account reviews. Notify PayPal of anticipated spikes, especially for trending products or holiday sales. Contact PayPal support or reputable agencies to allow your account and expedite case handling.
- Resolve Disputes Promptly: Respond within 24 hours and resolve disputes within 7 days via the Resolution Center.
- Avoid Unusual Activity: Using a U.S. PayPal account for non-U.S. markets may result in restrictions due to suspected unauthorized activity. PayPal may require identity verification as per U.S. tax regulations.
- Limit Non-Commercial Transactions: Avoid frequent large transfers using “Send Money to Friends and Family” features. Consider activating PayPal’s “Mass Payment“ feature for free mass payments.
- Purposeful Transactions: Ensure all large transactions relate to business purposes (e.g., Shopify, Amazon, eBay, or T-shirt sales).
3. Efficient Customer Service Operations
Set up effective customer service processes on your e-commerce website and within your PayPal account:
3.1. On Your Website:
- Provide a comprehensive FAQ section.
- Enable easy order tracking with tracking information.
- Simplify refund and return processes.
- Offer customer support via phone, email, or messaging tools.
- Respond promptly to disputes to minimize open cases on PayPal.
- Ensure the payment email matches the sales email to prevent customer distrust.
3.2. Within PayPal:
- Customize the credit card statement name to match your business name or website. For example, if your shop’s name is “Superdeals,“ update the statement name from “Nguyen Van A“ to “Superdeals“ via Profile Settings > Selling Tools > Credit Card Statement Name.
- Adjust your PayPal account’s “Customer Service Message“ to encourage direct customer contact for disputes. Update this in Profile Settings > Selling Tools > Customer Service Message.
- Address customer complaints immediately. Proactively contact customers to resolve issues, avoiding multiple complaints from the same customer that could lead to account limitations.
- Act on supplier delays or product issues (e.g., damaged or faulty items) by notifying customers. To prevent future disputes, offer them alternatives (e.g., waiting or refunds).
3.3. Holiday Challenges:
During Chinese New Year, suppliers often face delivery delays and production issues. To mitigate disputes:
- Partner with reputable suppliers.
- Regularly update tracking information and shipping proofs.
- Handle cases promptly to maintain account performance.
4. Additional Tips and Notes
- Business vs. Personal Accounts: Business accounts are generally more trusted and offer more features, such as monthly financial reports.
- Enhance Payment Accessibility: If your Shopify store only has a PayPal button for payments, add a message like: “If you want to checkout with a Credit Card, please click PayPal and select ‘Pay with Debit or Credit Card.‘” Contact us for guidance on implementing this.
- Maintain a Balance: Avoid withdrawing all your PayPal funds. Use the USD balance to pay for Facebook Ads or suppliers, saving 3%-4% on currency conversion fees.
- New Sellers: For new accounts, funds may be held for up to 21 days. To expedite release, update tracking information as soon as your supplier provides it. Never use fake tracking numbers, as PayPal’s system can detect this, leading to account limitations.
- High-Volume Sellers: Consider ordering product samples to ensure quality if you’re selling large volumes. During peak periods, rent a warehouse in China to stock inventory. Contact us for advice on managing large-scale operations.
5. Final Thoughts
We hope these insights address your challenges when using PayPal accounts for payments. Your feedback is invaluable. Share your difficulties or suggestions with us, and we will compile them to discuss directly with PayPal’s management team to drive improvements.
For example, accounts receiving sudden high payments due to trending product sales often undergo PayPal reviews and freezes. Addressing such issues collectively can lead to better solutions.
This guide aims to assist those involved in drop shipping. If you have additional concerns or topics to share, contact our team. We’re committed to collaborating with PayPal to find practical solutions and share them with you.
If you’re looking for reliable support with PayPal account rental services or other payment services for your website, let Hacecommerce be your trusted partner. Together, we can simplify your payment process and ensure your business thrives.
