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PayPal Letter of Authorization Example

When crafting a letter of authorization for PayPal, certain key elements are crucial to avoid delays or rejections. Screenshot below shows several questions and documents asked by PayPal on one of a business PayPal account. We will focus on Letter of Authorization and how you can generate one and remove PayPal restrictions

Based on PayPal’s requirements and common advice from the community, here’s what the letter should definitely include:

1. Clear Identification of the Account Holder

  • Business Name: Clearly state the exact business name as registered with PayPal.
  • Account Email Address: Mention the email tied to the PayPal account.

2. Purpose of the Letter

  • Specifically note that it is a “Letter of Authorization” and that it is for PayPal compliance or account verification purposes.



3. Statement of Authority

  • Explain your role as the business owner or authorized representative, affirming that you have the legal right to act on behalf of the company in all matters regarding PayPal.
  • Ensure your title matches PayPal’s expectations (Owner, Director, CEO, etc.) since PayPal may require the letter to come from someone with ownership or executive control.

4. Confirmation of Business Use and Compliance

  • Acknowledge that the PayPal account is being used strictly for business purposes, and mention that all transactions comply with PayPal’s terms.

5. Contact Details for Verification

  • Provide a direct phone number and email address where PayPal can reach you for any verification.

6. Date and Signature

  • Include the date to confirm the letter’s validity and a signature (electronic is usually fine if submitting digitally) to validate the document.

7. Professional Formatting and Language

  • Use a business letter format on company letterhead if possible, and keep language formal, which can make a strong impression of legitimacy.

What to Consider When Creating a Letter of Authorization for Your PayPal Business Account

If you’ve recently opened a PayPal business account or are experiencing a request for a Letter of Authorization (LoA), you may have encountered some hurdles in getting it approved. Many PayPal users, especially sole directors and small business owners, find this process unexpectedly complex and repetitive. Here’s what you need to know to create an acceptable LoA and avoid common frustrations.

1. Understanding PayPal’s Requirements for Authorization Letters

PayPal requests a Letter of Authorization to verify that the person managing the account is authorized by the company to do so. Typically, this document should:

  • Be signed by a company director or authorized individual (unless you are the sole director).
  • Be on official company letterhead if available, including business information like address, registration number, and contact details.
  • State explicitly that the signatory has the authority to manage the account and make transactions on behalf of the business.

2. Who Should Sign the Letter?

If you’re the sole director of your business, PayPal’s requirements can feel contradictory. For example, you may receive messages such as:

“The Letter of Authority must be signed by a Director who is not [account name].”

Yet in cases where you’re the sole director, the instruction often changes to:

“If [account name] is the Sole Director, they may sign the Authority Letter.”

To clarify, if you’re the sole director, you should state this clearly in the letter and sign it yourself. Double-check PayPal’s most recent guidelines to confirm the requirements specific to your account type and business structure.

3. Ensure the Document is Clear and Complete

Many users have reported issues with uploading their Letter of Authorization multiple times, only to receive vague feedback like “You need to send the letter of authority.” To help ensure your letter is accepted on the first submission:

  • Use clear, concise language.
  • Confirm that all requested details (like company information, director’s name, and signature) are present.
  • Make sure the letter is on company letterhead or includes your business registration number if letterhead isn’t available.
  • Include a date on the document, especially if you are resubmitting a revised version, as older dates may be flagged as outdated.

4. Upload Through the Correct Channel

PayPal specifies that documents, including the Letter of Authorization, must be uploaded directly through the Resolution Center within your account. Due to security reasons, they will not accept attachments via email. Ensure you are following these instructions to prevent unnecessary delays.

5. Consider Document Format and Readability

When uploading the letter, make sure it is a high-resolution scan or PDF. Low-quality images or documents with cut-off text could be grounds for rejection. Confirm that all text is legible, with no blurring or cropping of key information.

6. Check Back Regularly and Stay Persistent

Even with everything in order, some users report being repeatedly asked to re-upload their authorization letters without detailed feedback. Unfortunately, this can be frustrating but keep these tips in mind:

  • If you receive repeated requests, try slightly revising the document, especially the date, to reflect that it’s a new submission.
  • Reach out to PayPal’s support for clarification if the issue persists, as some users have experienced prolonged account restrictions.
  • Ensure the letter’s tone is professional, direct, and leaves no ambiguity about the authority of the signatory.

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