Got an email yesterday from Paypal compliance asking about some transactions (see below.) This is for some shenanigans. When I went to log into my PP account, all they asked for was my ID and proof of address, which I satisified by uploading my driver’s license. Unfortunately there was no box to answer their questions. I’m supposed to call in to tell them that I guess. The odd thing was that I could still do shenanigans even though my account is currently limited.
Anyway, the point of this post is that if I call them up, it’s easy to explain this. Now if I had some Ebay sales on there or had people pay me, then it would be a very long and difficult call. I have heard this happening to others who ‘comingled’ their Paypal accounts. Then if they decide to permanently lock you, then your money is held for 6 months.
Paypal lets you have 2 accounts – 1 personal and 1 business. So there is no reason to not have 1 business account if you resell stuff and a personal account that does shenanigans on it. If you do it all in one account, then you increase your odds of getting eyes on the account and them wiping everything.
So I take it this is your personal account for things like friends paying you back for things you bought for them or even buying things from you that you do not want considered as taxable and they are checking to see if you are avoiding a 1099? I think I heard that personal payments are not taxable.
Otherwise, I doubt you would label them as shenanigans.
Some promotions they have had have been abused such as cashing out Debit GCs via PP to yourself and paying a fee because with some promotions it gets mitigated.