I sell high-priced software and training so my typical transaction is over $2,000. Starting a few months ago PayPal started withholding some of my money. It's not consistent but the amount is roughly 10%. So right now I have over $14,000 withheld.
Has anyone else experienced this problem? I deliver good electronically so there is no shipping. In years past I was processing easily $400,000 each year with NO withholding. And I have never lost a dispute, although a few have been filed (less than 2 per YEAR).
This seems to be an egregious action on PayPal's part. I have an excellent reputation. Holding some of my money for MONTHS is unacceptable. I have started to insist that buyers pay me with a wire transfer. QuickBooks also offers a direct deposit for fees that are less than PayPal's.
