I had received some funds from my customer last month. Everything was fine until yesterday when I received the following email from PayPal. It has come to our attention that you may be the recipient of potentially unauthorized funds. We have initiated an investigation into this event. In the meantime, we have placed a temporary hold on the funds in question until the investigation is complete. This temporary hold will show as a deduction in your available balance. In the meantime, you are free to continue transacting using your PayPal account. How can I fix this as I find no open case in Resoultion center?
The problem is not on your side but rather at your customer side so there is nothing you can do. Just do not ship anything to your customer as it would most likely be reversed. It is possible that your customer uses a stolen credit card or uses a stolen account or something to that nature.
You can't do anything against it. I think your funds either come from hacked account or card or your payment may broke any police of PayPal. They will inform you after investigation.
Will this risk my PayPal account in anyway as I have not done anything wrong on my part. I have deleivered services to customer so I do not even have proof of good shipped. Will PayPal ban me or something?
No if he found any problems in this case than you wil only loss that amont of Tranc. All your amount and account will be safe and you don't need to worry about it.
Like we said earlier, it is not your fault in any way. You cannot be banned because of this. If anything, it is your customer which would suffer the consequences if he is found to be guilty. Think of it as someone who stole someone's credit card and go to your shop to buy some things. And then the credit card company found out that the card is stolen and now are investigating the thief. Basically that is what happened. You are just an innocent store owner.