Why is PayPal Banned in Certain Countries?


In 191 countries, PayPal may be found in some form. In certain countries, PayPal only provides a restricted range of services. Many of these nations are located in the Middle East or Africa, and it has no business ties with any of them.


The fact that PayPal has surpassed eBay as the world’s largest third-party payment provider means that it now dominates online processing on a wide range of sites beyond its roots on eBay. In order to persuade you to utilize PayPal while making an online purchase, a large number of merchants are now doing their best to convince you to do so. However, doing so has both benefits and drawbacks.


Most money transfer services, such as Western Union, impose a fee for sending money to family members who are away at school or living overseas. PayPal, on the other hand, does not charge if you send money as a gift to a friend or a family member.


PayPal uses industry-standard encryption to protect the personal information of its users. Its servers check to see whether you’re utilizing the most up-to-date encryption software. Because of that, there are many companies that embrace PayPal in order to furnish customers with extra security. One of the examples of this is the Forex market, which is one of the largest markets around the globe. In this sector, as it is one of the decentralized ones, there are many Forex brokers accepting PayPal, in order to attract more consumers, whose priority is the safety of personal data and information. One of the brokers in the marketplace that accept PayPal as a payment method is the Xtream Forex broker. In addition to that, according to the Xtream Forex review, the traders’ data is kept on servers that aren’t linked to the rest of the internet, which makes using PayPal even more appealing for investors. In other words, even if hackers get access to PayPal’s systems, your personal information will still be safe.


You can easily purchase things online or send money from anywhere in the globe with the PayPal iPhone and Android applications. It is possible to make purchases on eBay as well as a wide range of merchants’ sites once you have downloaded the app and gone through the security requirements. In comparison to using a credit card, PayPal uses a PIN and/or your fingerprint to keep your funds secure.


Loyal PayPal users who make purchases from a certain merchant may take advantage of special discounts offered by the company.


Even though the PayPal payment system has lots of advantages, there are some reasons behind the fact that some countries don’t allow their residents to use it as a payment method.

Why Do Some Countries Ban PayPal?

PayPal provided complete local-based services in 26 different countries. In an additional 64 nations, you can only withdraw money into a bank account in the United States. A PayPal account is permitted in 83 other countries, however, money cannot be transferred to a bank account in those nations.


When the United Nations’ list of member states is compared to the PayPal list of nations having some service, it is discovered that 28 countries do not have any service.


If you pay for an item that costs more than £100 using PayPal and your credit card, you will not be eligible for additional protection while completing your purchase. Section 75 of the Consumer Credit Act protects you when you pay for anything between £100 and £30,000 using a credit card, and this includes purchases made with a debit card. This is due to the fact that the card company is jointly and severally responsible with the merchant if anything goes wrong. Section 75, on the other hand, only applies where there is a direct link between the debt (incurred via the use of the card) and the goods. It does not apply if you get a loan or make use of a payment service provider such as PayPal.


PayPal customers have reported that their accounts have been blocked without prior notice on occasion. Algorithms in the company’s systems are continuously monitoring every transaction for signs of odd activity, which might be anything as benign as a larger-than-usual amount of money being sent via its servers. When a bank account is frozen, it makes it difficult to move cash to another bank account or send money to another individual. PayPal may also place a hold on money that has been transferred in connection with an online purchase, and it may refuse to release the hold until the item has been delivered, making life tough for merchants that depend on the service’s services.


If you sell anything on eBay, it is possible that you may not get instant access to your PayPal money. Payments are often held by the payment provider for up to 21 days in order to protect against the potential of a problem with a particular transaction. Selling on eBay may be risky for sellers who haven’t had much activity, have a history of chargebacks, or sell specific types of goods that are susceptible to greater levels of fraud, such as electronics, gift cards, and event tickets.


Regardless of the above-mentioned reasons, some of the countries that ban PayPal payment methods, claim that it has security issues.