PayPal Freezes “When $600 Million Went Missing” #ProcessorMatch

PayPal Freezes $600 Million Why High Risk Merchants Should Never Rely on Mainstream Processors In one of the most shocking fintech stories of the decade, PayPal froze over $600 million in merchant funds under its internal “risk review” policy. Thousands of business owners — from supplement sellers to digital product creators woke up to find their balances locked for 180 days or more. Some never got their money back. Behind the scenes, PayPal’s automated risk systems categorize entire industries as “too risky,” lumping legitimate merchants in with fraud. If you sell anything outside the traditional e-commerce mold, you could be next. This breakdown explains how PayPal’s system actually works and what high risk payment processors do differently to protect your merchant fund