Tell HN: Do not store any funds in PayPal or use them for anything critical

Article summary

The author's PayPal account was permanently banned without reason or appeal, despite being a plain and boring consumer user. The author had used PayPal for over a decade for small purchases and occasional transactions. The only possible reason for the ban mentioned by the author is receiving fake invoice requests from unknown senders. The author warns others not to store funds in PayPal or use it for critical transactions.

Main themes

• PayPal account bans
• algorithmic errors
• customer support issues
• security concerns
• financial risks
• legal recourse

What commenters say

• PayPal's algorithms and automated systems can lead to false positives and account bans without sufficient justification or recourse.
• The company's customer support and dispute resolution processes are often unhelpful and frustrating.
• Some commenters believe that PayPal's actions are driven by a desire to hold onto users' funds and avoid liability.
• Others argue that using credit cards or separate bank accounts can provide a buffer against PayPal's potential abuses.
• There are concerns about PayPal's use of SMS-based login codes and the potential security risks associated with this practice.
• Some users have reported success in recovering trapped funds through small claims court or arbitration, but this is not always a viable option.
• PayPal's user agreement and arbitration clause can make it difficult for users to seek legal recourse or recover lost funds.