All right, so the hundred and 80 day dreaded PayPal limitation, this absolutely sucks. I have had this occur, but it occurs. Usually for accounts that have semi vigorous trading. Sometimes when you're dealing in software, this can be an issue. The reason what you need to do is, like I said, you're going to have these limitations. So you don't want to sell too much too fast.
You want to age an account. And oftentimes when these funds get held, you need to make sure that you're clearing funds right away. So you don't want to have more funds than you're willing to kind of lose in a sense for six months. So that's kind of hard for people to really realize like some people 400 $500 could be their month's wages in certain countries. I understand that that can be an issue. So with PayPal and a bit as a business You want to make sure that your first transactions kind of start flooding in in a drip effect or a drip feed.
So don't put all of your sales through PayPal, maybe just accept PayPal for a few days out of the month, you know, if you are accepting PayPal as a normal source of your services, etc, you need to realize that the best thing that you could possibly do with PayPal is deliver a service to start. Because when you deliver a service, it's much, much harder to charge back these things. When you have a product, you need to make sure that these things get shipped. And they have to have a tracking number. Even if you're sending something via email and you're selling via eBay like this is probably two thirds of what I see for these hundred and 80 day limitations is they're selling on eBay. The others come from, you know, just sometimes you're getting money.
You're accepting money from risky accounts. It's nothing to do with you. It's a third party algorithm in which they say, Hey, you know, you know seven bad people and you've only dealt with 10. So that's kind of a thing. You know, sometimes people it's within your own country, this can be an issue, but register an LLC, get a business, Id verify your account, be okay with a 180 day limitation because that's you will get your money, but you can't feel like you're losing like a livelihood. If that occurs.
Know that you'll eventually get that back. And in the meantime, you can find alternatives. But when these hundred 80 day limitations occur, there is to rest they go 90% of them go, you need to close down your PayPal. If you want to do this again, you need to open up a brand new PayPal basically. And you start over from scratch and I've done that before when I sold on eBay. I sold what was known as game saves.
You can see a lot about my history and I've written you know how I made a lot of my money online. I was having a great time with that until all of a sudden, because it was that ubiquitous, you know, I didn't have tracking codes, I was dealing with eBay. I had a lot of, you know, history that went to, to me, you know, over $10,000. I was verified, I was an LLC, all of that. But I got a bad buyer who just charged back probably 30 or 40 transactions on the same day. And he banned my account on eBay left me all negative feedback.
He got my PayPal accounts frozen for 180 days, it was terrible. It was it was a mess. And all that happened again. But what PayPal allowed me to do is because they finally realized, Oh, yeah, you know, the algorithm later discovered, this guy ended up you know, opening a ton of different accounts and they ended up linking those accounts together and found out it was really just one person that did all those chargebacks so my IP naturally through the algorithm gets cleansed, and he actually gets cleansed after the six months, you're able to come back on create a new account, you know, Just register that don't link anything back, don't link this to an eBay account. You know, you can obviously, if you're a e commerce store, you can start transaction processing transactions again. But oftentimes, there's just really that issue of people think this is it, it's over just the funds, just those funds are held for six months.
Again, you got to make sure that when you use PayPal in the beginning, don't put too much funds in there that you can't lose. So always be withdrawing when you're able to withdraw if you're not able to withdraw immediately or instantly. The reason why is you're probably doing online transactions that PayPal finds in the gray area. So be aware that that's usually also the same area where people get that hundred 90 day limit hit on them. So that's usually where it occurs. Otherwise, most times e commerce stores normal businesses that have the you know, flow of their business come in you maybe even you're a brick and mortar.
You can use PayPal and because you have a physical location It lends 10 times more credits to you when you do the verification again, and the chargebacks do not affect you nearly as much. I think they give you a quite a bit of leniency. Last I remember it was like a 3.5% charge back rate, and they still won't, you know, do any limitations on your account. So that's quite a bit to me. I think so. And when you do digital sales, they raise that up typing something like 7%.
So that's pretty fair, when you have a physical location that you've registered with them and an LLC and all that stuff. So just keep that in mind. That's what's necessary. When you have these limitations occur.