PayPal holding on to money in "pending"

[Michael4321]

I won an item on eBay  paid immediately via PayPal. The seller cancelled collection 30 minutes before I arrived. He said it is showing in PayPal as pending and will take 21 days to clear. He said he would accept cash and release the item but I could end up paying twice. Why is PayPal holding my money & not paying it into the sellers account straight away?  

[kernowlass]

@Michael4321

New seller hold that every new seller goes through.
The sooner they send your item trackable the sooner the funds are released.

If he refuses to do so then he may find he won't be able to sell using paypal.

HOWEVER he has no seller protection for items that are collected so he should only ever accept cash on collection.

So in this situation its different.

As you have already paid he would need to contact customer services and ask them to release your funds back to you and when you have them you can pay him in cash.

[Azryu]

Sorry to hear that happen to ya. It sounds like the seller was unaware of what they were doing when they decided to accept a payment on PayPal. When you sign up to start selling through eBay they will always hold the funds until three days after delivery until seller history is established.