Watch the video, or read the Blog Post below.

Let’s face it: PayPal can be a tricky opponent for us dropshippers, especially once we start scaling our businesses up and start expecting more and more cashflow. If you have been following my YouTube channel or this series of blog posts, you would know that at some point in my dropshipping journey, I have encountered a situation wherein PayPal has restricted me from withdrawing a significant portion of my funds for reasons unknown (or unspecific, at least). Although, towards the end of the video (and/or post), I have showed you how you guys can resolve this issue should you yourself be faced with it, and proved that there is nothing that a good conversation can’t fix.

What I wasn’t able to tell you before is, it actually happened again: this time, it’s even worse! What even is happening with PayPal, and why the heck does it keep on accusing innocent money-making accounts as though they are having suspicious transactions with their customers?!

In this post, we are going to discuss what exactly happened when PayPal blocked my account and prevented me from withdrawing funds — and how I was able to resolve the problem. I wish to share with you my methods and hope that it would be of any use when it happens to you, too.

PayPal: Dropshippers’ Biggest Enemy?!

Firstly, why am I complaining so much about PayPal and its operations when I can just take it off of my payment options? I mean, it seems like the better option instead of having to put up with their decisions, after all.

Actually, yes, that is doable, though not recommended. If you must know, more than 50% of all my stores’ transactions come through PayPal. If you are running an online store and are advertising your brand outside of the U.S., Canadian or Australian market, you should know that a great number of people rely more on using PayPal than having to directly input their credit card information onto our other payment gateway systems. That is because over the years, PayPal has proved its safety and reliability when it comes to transacting online. And in my opinion, the platform favors the buyers more than the sellers (which shouldn’t come as a surprise for you, considering that you are the one who is shouldering transaction and withdrawal fees).

Basically, we’re all stuck with it, even the platform does have a black-and-white system.

Context: What Happened To My PayPal Account

Let’s get right down to it. I’m doing this video and post because, as you may know, PayPal has previously blocked my account until they have finished their “review” of my past transactions and held 30% of my funds in case of chargebacks and future customer complaints.

I have also showed you how I pleaded to their team to reactivate my account since I have a good standing in terms of customer service and quickly responds to any customer inquiries. And thankfully, they responded to my appeal after a few days, and decreased the holding time for 90 days and the held funds down to 15%, which isn’t so bad as compared to my previous sanction. I have agreed to their terms (though it’s not like I have any other choice, unless I want to throw away all of my revenue).

All’s well that ends well, and ever since, I have been operating all of my stores peacefully and successfully. However, in an unexpected turn of events, just three weeks after they have implemented the new terms to my account, PayPal COMPLETELY blocked my account, and I could no longer use it for any transaction, AT ALL!


Apparently, the block was implemented because I was and still am living in Australia, even though my U.S. business bank account is registered in the United States, and that I have to create another PayPal account that is registered to the area where I am residing in.

Seems confusing? Well, it is, and this PayPal-trademark system is actually one of the reasons why so many dropshippers are so afraid of using it; they feel like they have no room to move because of the lack of transparency and clarity with the platform’s rule implementation.

How to Resolve PayPal Block Issues

Personally, I too was a little intimidated with PayPal at first, but over time, I realized that the only way to solve a problem is to face it head on. I reactivated my PayPal account that was registered in Australia and linked it to my U.S. bank account (since PayPal can hold multiple currencies, all my transactions were still done in USD, and the money will be transferred to my U.S. bank account. Here, I still get to avoid PayPal’s poor foreign exchange rates; the only difference is that the account itself is registered to my local area).

I also went ahead and contacted PayPal and asked about the block and what violations I might have done, if any. The thing is, you don’t have to feel discouraged to talk to PayPal about any of your issues or inquiries; they won’t bite, and they definitely won’t ask questions that would make you feel uncomfortable with regards to the way you are running your business. You and PayPal have a business relationship, and you have every right to reap the benefits that you are promised to be given — and yes, that includes reliable customer care from their team.

After a few days, I received an email from the PayPal Merchant Review Department:

Problem solved! Communication really is key!

Let’s Wrap It Up!

Yes, PayPal can be a pain in the neck, but trust me when I say that it is undeniably one of the most reliable and highly used payment gateway system in the market today. If you feel like you are being inconvenienced with the way they are operating and handling you account, don’t fret, but also don’t just put up with whatever they are saying! It is your right to complain and make an appeal should there be any problems or unexplained holds implemented to your account. If something doesn’t make sense, it is only right for you to receive a valid explanation and a method to resolve it for you to regain normal operations.

If you have any more questions about PayPal, contacting the platform for any questions, complaints or suggestions, handling account holds and rolling reserves, finding and selling winning products, creating the most profitable dropshipping stores, dropshipping in Australia or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, do not forget to subscribe to my YouTube channel!

Hey! I'm Grant Ambrose,

My WordPress website generates millions of dollars in sales each year and I put together this website to help you do the same

I believe that a lot of the time, we aren't doing things that will help our business NOT because we don't know how to do it, but rather we don't even know it is possible. My website aims to change this. My website is here to help show YOU what is possible - what YOU could set up in your business with WordPress to increase sales, automate tasks and (ultimately) turn your ideas into working WordPress solutions.

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