I recently opened an account with PayPal. I purchased XXXX PayPal " MyCash '' cards ( PPMC ) for {$500.00} each and loaded them to my account in anticipation of making a few purchases on Ebay, the parent company PayPal. PPMCs are sold at various retail establishments, and in my case, I not only was required to show identification when I purchased them, but I also kept all receipts related to such purchase. Via a website that is, upon belief, authorized and/or maintained by PayPal, I loaded the PPMCs to my PayPal account. Because of limitations imposed by PayPal of {$500.00} of loads per day XXXX and {$4000.00} per month ), the XXXX PPMCs I purchases were loaded to my PayPal account over two consecutive days. 
Approximately one day after the second PPMC load ( which was within the guidelines and rules established by PayPal ), I received an email from PayPal that my account was limited due to what was described as " high risk '' activity and that PayPal would be freezing my $ 1K in deposited funds for 180 days in order to make sure there were sufficient funds to cover any payment reversals. 
I telephoned PayPal and spoke to a representative in its " Account Limitations Department, '' and was told essentially the same thing that was related in the email. Although I explained, and the representative conceded, that there were no payments made ( and thus there could not be a basis for any payment reversal ), I was told PayPal would not change its position. I also offered to provide copies of my PPMC receipts and other supporting documentation to establish that my purchase of the XXXX subject PPMCs was bona fide, but this offer was rejected. 
PayPal 's actions are unjust, unfair and punitive in nature. While I recognize the need to have certain loss prevention policies in place, I believe there is something fundamentally wrong with a system that cites this as a justification for detaining a customer 's money but does not provide a route for appeal or other process that would enable a customer such as myself to refute the implication raised through clear and convincing documentation. 
