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PayPal · Decline codes

What does the PayPal PAYEE_ACCOUNT_RESTRICTED error mean?

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PayPal's PAYEE_ACCOUNT_RESTRICTED error means the merchant's PayPal account is restricted, so it can't receive this payment. The buyer has done nothing wrong. Retrying won't help until the merchant resolves the restriction in their PayPal account; in the meantime, buyers need another way to pay.

PayPal description
The merchant account is restricted.
Type
Merchant account issue
Who declined
PayPal (the seller's account)
Retry
No, not with the same account or settings
Shopper action
Pay another way; the issue is on the store's side
Merchant action
Resolve the restriction in your PayPal account
PlatformDTC renewal
Paused, not blamed on the customer; retried until the store fixes its PayPal account

What PlatformDTC does

PlatformDTC treats PAYEE_ACCOUNT_RESTRICTED as a problem with the store's own PayPal account, not the customer's decline. A renewal that hits it is paused: the customer is not emailed or asked to update anything, their PayPal is not blocked, and no failed attempt is counted. It is retried automatically, at most every 12 hours, until the account is fixed, and the dashboard alert "PayPal is refusing renewals for N subscriptions" links the merchant to payment settings.

Why it happens

PayPal has restricted the seller's account. PayPal's error gives no reason; only the merchant's PayPal account can resolve it.

What the shopper can do

Pay with a card or another method, or come back later.

What the store can do

Log in to PayPal and follow the steps to lift the restriction.

Offer card payments so checkout keeps working meanwhile.

For developers

details[0].issue = PAYEE_ACCOUNT_RESTRICTED. It affects every PayPal payment to that merchant, so alert on it rather than retrying.

Frequently asked questions

Is PAYEE_ACCOUNT_RESTRICTED the buyer's fault?
No. PayPal says the merchant account is restricted.
Should subscriptions be cancelled when this appears?
No. Fix the PayPal account; PlatformDTC pauses those renewals without emailing the customer and charges them automatically once PayPal accepts payments again.

Sources

Related

Payments library