PayPayl Hold Policy????!!!!!????

kugelmanco

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1,027
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I have been getting rid of a bunch of singles on eBay recently, and just sold a couple yesterday. Received payment this morning for one (actually from a Bench member as I recognize the name ! :)) and I logged into my paypal account. Immediately noticed a red box at the top:

"Important message about your account. From now on, money you receive will be temporarily held in a pending balance. To learn more, please read our funds availability policy"

WHAT!?

Never had a problem with my paypal, never even had a claim filed...never been late on any eBay fees, and have not used the gift option for payments!!!
My feedback on eBay is 434 with 100% Positive Feedback!!!!
So I read the "funds availability policy":

___________________________

"We might be throwing some new words at you here, but we promise to explain them in full detail. As part of our Funds Availability Policy, "reserves" may apply to certain accounts. A reserve is a percentage of your payments that'll be released at a later date. A related term is "payment hold." A payment hold is a type of reserve in which 100% of the funds received are held for a specified amount of time

Why does PayPal hold payments?
Payment holds ensure that sellers have sufficient funds in their account if, for example, a customer files a dispute. This allows PayPal to provide a fast and secure payment service to you and your customers while keeping our prices competitive.

We know this is a change in the way we do business with you and we hope you understand that, if your payment is held, you haven't done anything wrong. In deciding whether to hold payments, we review many factors including transaction activity, business type, and customer disputes

When do payment holds apply?
Payment holds may be applied to some or all transactions in your account. Here are some common reasons for holding payments:

You have limited history or selling activity with eBay and PayPal
You have an eBay feedback score of less than 100 or received fewer than 20 Detailed Seller Ratings in the last 12 months, and do not have a record of good performance
If you have low Detailed Seller Ratings or other indication of below standard performance on eBay
You have a high rate of customer disputes, claims or chargebacks
You're selling in a high risk category or industry such as, but not limited to, tickets, travel, gift certificates, computers, consumer electronics, or cell phones
Your payment activity is inconsistent. For example, you have a spike in selling activity or you started selling in a new category without an established history in that category
The account information you have provided is incomplete or inaccurate
If your payments are held, PayPal will provide you with notice specifying the terms. The terms may require that the amounts received into your account are held for a certain period of time. PayPal will re-evaluate your account periodically and contact you when we stop applying payment holds.

If your payments are held, the funds will be shown as "pending" in your PayPal balance.

When does PayPal release the payment?
Payments will be held in a pending balance for a certain time period. For example, if you receive a $100 payment (after fees), the $100 will be held in a pending balance for the specified amount of time. After the hold is released, the money will be available for withdrawal.

The money may be released sooner if:

We can confirm that the item was delivered**
Your buyer leaves positive feedback. (Applies only to eBay items.)
To get access to this money more quickly, please process this order right away and communicate with your customers early and often.

What can I do to avoid payment holds?
Here are some things you can do:

Improve your DSR feedback rating
Avoid buyer disputes, claims, and chargebacks.
If you have a buyer dispute, resolve it quickly.
Process your orders right away and ship quickly using a service that provides tracking and delivery confirmation
Communicate early and often with your buyers
Make sure you confirm your address and phone numbers and keep them up to date
Verify your account and keep your financials up to date
I'm a new seller. Will payments I receive be held?
Not necessarily. If you're a new seller with PayPal, we may hold your payments until you establish a record of good selling performance.

I'm a tenured PayPal seller. Will payments I receive be held?
Not necessarily. If you don't have a record of good performance or have limited selling activity or other indication of potential performance problems, your payments may be held."

Can held funds be used to pay for shipping?
If you print labels and pay for shipping through PayPal or eBay, the cost of shipping will be released from your pending balance shortly after purchase. Printing labels on eBay and PayPal is free. You're charged only the cost of shipping.

______________________________


OK that's all fine and dandy, but I do not fit any of the categories that would make me get this "payment hold".
I am just wondering if this has happened to anyone else yet? Is this a brand new policy I wasn't aware of? What happens if the person on eBay does not leave any feedback at all???? I have a handful in my sold folder that I have contacted about leaving feedback but no luck yet.
The only thing I can think of is that paypal is pretty much telling me to use their USPS shipping service to print the labels - which I believe is probably more profit for paypal.
 

mintman2

New member
133
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You should call paypal and plead your case.

I wish some governmental agency would step in and stop these abusive, and I'm guessing quite possibly illegal, policies and collusion to create and maintain a monopoly by ebay/paypal.

Can't remember what the term is but isn't paypal simply a money transferring company ? How in the world can they tie holding your funds together with things like your dsr's ????????? Next thing you know they'll want to know what bar you drink at and ask the owner if you pay your tab in a timely manner and if you tip well.

Not to mention they want you to ship your merchandise without having access to your money ?!?!?!?! What the hell is that ? So you go print postage thru paypal and they suck that out of your bank account or credit card since they're holding your money and you have no paypal balance. Hmmmmmmm, lessee here........ They have the use of YOUR money until they decide to release it while at the same time you have more out of pocket expense and possibly more total costs overall.

ABSURD IN THE EXTREME !
 

mintman2

New member
133
5.00 star(s)
The only thing I can think of is that paypal is pretty much telling me to use their USPS shipping service to print the labels - which I believe is probably more profit for paypal.

You're darn tootin'. ebay/paypal don't do anything unless it makes a profit for them. You know they have a deal worked out with the usps. No way in the world they'd keep a system like that if they didn't. Nor would they "give away" DC at 19 cents or free for priority.
 

kugelmanco

New member
1,027
5.00 star(s)
ok....exactly what i thought - they want me to use their shipping service to include the tracking number in the shipment.
the representative was pretty cool about it and he said that he can see that i am in good standing and have had no problems. he said they randomly do this for "buyer protection".
if i do use their label printing service, the amount for shipping will be released from my pending funds so that i am not out the money for shipping. i will still be out the money for the item until it is delivered or positive feedback is received. which still makes me feel kind of uncomfortable sending items before actually being able to see the money in my account. i was assured that this will not be a recurring problem as long as i can prove that i am a legit seller - which i thought would have already been proven by now.
i did tell him that if this happens more than a few times i will definitely be calling back! i have a nice bunch of singles listed on ebay and several recently sold i am still waiting payments for. so still a bit nervous about this whole ordeal - o well, what can you do?


well this is kinda idiotic - paypal is owned by ebay and paypal is saying they won't release my funds until delivered or feedback is left
yet this is the rule stated on ebay:

"Some members choose not to leave Feedback or forget to leave Feedback, even when the transaction has been hassle-free. However, most members understand how important Feedback is for the eBay community.

Although members aren't required to leave Feedback, you can email the member and ask them to leave Feedback for you."


??!!!??
Now will definately use delivery confirmation every time i sell something!!!
 
Last edited:

mintman2

New member
133
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If you accept paypal and don't use Dc you're just setting yourself up to be ripped off !


It just gets better and better. Paypal said they place holds on payments "randomly" ??????? These people have absolutely no idea how things work. The ONLY reason they can get away with that kind of crap is because, at the moment, they have a stranglehold on the online auction market !
 

indigo27

New member
762
5.00 star(s)
It's now at the point where I won't use eBay to sell anything anymore. Why bother with all the hassle?
 

Jaybo374

Active member
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I quit buying on Ebay when they began requiring PayPal. To be truthful, I am a lot happier buying cards on Sportslots.
 
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