PayPal Closed My Credit Account

Last Updated:

We may earn commissions for purchases made through links on our site. Learn more on our about us page.

PayPal logo - They Closed My Credit Account

PayPal is used by millions of people across the globe. It can be a great way to not only receive payments from friends, clients, or family but a way to pay for things too. 

That being said, it has become almost like a bank itself. Because of this, that means that you may find there comes a time when PayPal closes your credit account.

This typically happens for a couple of reasons – suspicion of fraudulent activity, constant negative balance, and providing false information. These are all reasons that PayPal might close your credit account. 

But if this happens, that is not the only information you need at your disposal. So we have created this quick guide to help you out!


Why Does This Happen?

Closing your account is quite challenging and can lead to some serious situations. That is why understanding what could cause this is so important, even if you haven’t had it happen yet. 

There are a lot of reasons why PayPal might choose to close your credit account down.

Here are some of the reasons:


  • Suspicion of fraud
  • Consistent negative balance
  • False information


Is it Permanent?

The account may be permanently closed if you can not provide documentation to refute the suspicions of falsified info or fraudulent charges. This doesn’t mean you cannot open a new account, but you will have to do so with a new email address.

However, if the reason for closing the account is due to insufficient funds and you could not fix the problem after PayPal notified you, there is no way to go back from that account closure. You may need to wait a few weeks and then try again.


What Should You Do?

So if it happens, what you should do is probably the first thought that comes to your mind. If your account was closed for suspected fraudulent chargebacks or info, you must contest it. This can be done by sending an email to support.

You will be asked to produce proper documentation that can prove the charges wrong, and If you are closed for lack of funds, you will have to wait a few days and then set up a new account. 


Who Can You Contact for Help?

If you are in a place where you can contest the closure of your account, you may be looking for who can help you. You can, of course, reach out to PayPal support, and they can guide you through the proper channels.

If you want a more direct line with PayPal credit, you can reach out to their 24/7 support center via email, online chat, or email. To find the way that works best for you. 

For example, by walking you through the process of contesting the closure, you may end up contacting support through multiple methods. This is because you may have to produce documentation to help your case.


Can You Open a New Account After This?

If there is no way to retrieve or reopen your account, you may be thinking about opening a new account. Unfortunately, the truth is once an account is closed, you can not reopen that particular one. This means you may have to use another email as your information.

You can wait a few weeks, and then you can try to open a new PayPal credit account if it is for insufficient funds though it might be a little more challenging. In this case, you may need to wait several months and work on your credit score before reapplying for a credit account. 


Final Thoughts on PayPal Closing Your Credit Account

Though you can contest the closure of the account for a few reasons, typically, PayPal does not often reopen those accounts unless they are at fault. There are many reasons that PayPal wants to close your account. 

Understanding the whys behind that may help you avoid having to deal with that type of situation when it comes to your PayPal credit account. 

That is why we thought creating this quick guide for you was so important. We hope it helped answer all your questions when it comes to this issue.