I run a small online store selling custom fitness gear. Been using PayPal as my main processor for two years, everything smooth until last week. Sales spiked over Easter, pulled in about 45k in the last 10 days from 300+ orders. Thought we were killing it.
Then yesterday morning I log in and the entire balance is on hold. Cant withdraw a dime. Their automated email says something about unusual activity and risk review but zero details. Called support three times already. First guy said it might be a chargeback wave but we only have two pending and they are legit disputes. Second call they transferred me to someone who just read the script: under investigation, 10 business days minimum.Third time I got hung up on after 45 minutes hold.
Payroll is due Monday. Rent on the warehouse next week. Suppliers waiting on payment for the next batch. I tried linking my Stripe account last month as backup without fully verifying the business docs because we were rushing a promo and thought it was fine. Now they say that triggered a compliance flag across both. Feel like such an idiot for not double checking.
Tried emailing the executive team contacts I found online but no response yet. Have 12k in the bank personally but that wipes me out completely. Business might not survive this.
Has anyone dealt with a freeze this bad?
Paypal freezes 45K right before payroll and support keeps saying investigate
byu/Quiet-Sand-4169 inpersonalfinance
Posted by Quiet-Sand-4169
3 Comments
I know it feels catastrophic, but 10 business days is pretty standard for these reviews. What helped me was responding through the Resolution Center with super detailed info: order list, fulfillment proof, customer comms, refund policy. The more legit you look on paper, the faster it tends to move. Calling support rarely speeds it up unfortunately.
They did that to me about 15 years ago when I was running my ecommerce business. Eventually the money was unlocked but they scared me so much I immediately stopped using them. They can do this anytime they want and destroy you.
As a business you can apply for line of credit with a bank. We use ours for emergencies like this to get us through while we figure out whatever the cash flow issue is (usually for us it’s late payments from customers). You sound like you might have some business credit history so hopefully you can get a decent line