Paypal holding payments for up to 21 days--Something new to me

[Paul2660]

During a recent transaction on my website, I noticed that my payment from the customer was not sent to my account, instead placed on a 21 day hold.  Upon inquiring as to why this was done, I was told that PayPal can place any incoming payment in such a hold.  When I asked what is necessary to remove the hold, I was told that you need to provide the tracking information into PayPal, then wait for the package to be delivered, then wait for the tracking number to show the item was delivered on paypal's system. 

You can input the tracking number into the transaction, but there is no guarantee that PayPal will follow up. 

Paypal, will hold your money for 21 days, thus they are making interest on your funds, not to mention the up front fee they are taking.  Also note that the fee has been taken as soon as the transaction occurred, so PayPal is not waiting to get paid. 

If you dig into the rules regulations etc. PayPal notes that they can do this for any transaction, but they mainly are interested in new vendors or customers without a long positive history with PayPal.

Myself, I have been a member in good standing for close to 20 years, and have used PayPal for my website business payments for over 10 years.  I have NEVER had a payment held before, however after taking to PayPal, they implied this is something that happens all the time.  I have also never had any issues with PayPal where I had a customer ask for a refund, or make a formal complaint.

I want to make others aware that I asked PayPal how this effects eBay purchases, and they told me that they can and will hold a payment from a eBay transaction also. 

Not sure how others handle their eBay purchases and sales, but I have always shipped the item after the payment was made.  Now you have to assume that PayPal will release the funds and go ahead and ship your item to the buyer.  Not sure I want that option either, but for sales of used camera equipment, not sure how many other ways are available.

Just wanted to pass this on for others who are using PayPal for a e commerce.

Paul Caldwell

[Aram Hăvărneanu]

PayPal is a disgrace. Years ago they blocked my account and freezed my money until I sent them a copy of my passport, my birth certificate, and a proof of address. But sending them wasn't enough, as this dragged on for months and months with no feedback from them. Eventually they cleared my account, but a month later it was frozen again. By that time I had made sure I had no money in the account, so I didn't even bother contacting them again.

This was many years ago, and I have almost successfully avoided them since. However, a few months back I had to buy something from Ebay, and I could only pay through PayPal. I now live in a different country, and I have learned that I needed to create a brand new account, you can't change the country of the old account (not that i wanted to use that old account anyway). I made a new account, paid that Ebay guy, and got my merchandise. A month later (after I had already received my merchandise and I had not used PayPal since) I got an e-mail from PayPal asking me yet again for a copy of my passport, my birth certificate, and a proof of address.

Unbelievable.

[Two23]

There is a U.S. based service you can use to skirt around Paypal, or sellers who will only ship to a U.S. address.  They bid for you and forward the stuff.  They do take on a charge, of course.


Kent in SD

[luxborealis]

Yes, I found the same with my recent sales on eBay. It’s frustrating, but eBay their company PayPal have integration all locked up, so we as consumers really have no choice for the kind of reach they have.

What I find upsetting are the exorbitant fees eBay now charges. But again, they really have no competition with that kind of market reach. Kijiji (also owned by eBay!) is great for local sales, but that’s it, it seems.

[Paul2660]

Yes eBay and PayPal feel now approach 14 percent

I can live with eBay and PayPal making such rules. But for PayPal to impose it on my e commerce I find to be just a money grab.

My customers have never made a complaint and I have never had a contested issue.

Paul C

[BobShaw]

If the total value is significant and one of the customers is new they may hold the money until they can identify themselves as a genuine business. That is to stop money laundering and tax avoidance. As far as eBay and Paypal go well the fees are highish but you can buy and sell anything so I am OK paying. There is no better alternative and banks charge foreign transaction fees that are high also.

I just laugh at people who only sell to continuous US states. They are limiting themselves to a small market of about 5% of potential buyers. They probably don't have a passport and have never travelled out of their postcode.

I have bought and sold stuff all over the world with no problems. The only problem i have ever had was in my own country and PayPal just refunded me the money. Australia Post has an arrangement to ship US goods to a US destination and then forward them to Australia but it usually doesn't work with eBay.