Pay pal is holding my money because i am a new seller

[firsttimeselle1]

I sold a item it was paid for straight away. The buyer cant pick it up for four days. Because I am a new seller paypal wont release my money untll they get good feedback from the buyer. I know my product is perfect but there are a lot of dodgy people out there, and once they take the product they can say what they like. How do I stop this from happening ?

[kernowlass · Accepted solution]

Firstly feedback does not count for payment release, if it was ebay then read the link below. 

Make sure you scroll right to the bottom of the page or you will miss the release criteria times.

http://sellerupdate.ebay.co.uk/autumn2013/changes-payment-holds

Secondly if the funds are in your paypal account balance but pending then you are at no more risk than if they were in your bank account. The reason that paypal hold the funds is to protect themselves.

If a buyer files a dispute for non receipt then if you can't prove with a tracking number that the buyer received the item then you have to refund. If you don't have funds in your paypal account balance then paypal will pay the buyer back and then put your account into negative until you pay them back again. So that is why they hold your funds, it saves them the bother of waiting for you to pay them back if they have your funds pending, so they do it for new sellers until they have a good reputation for selling.

Thirdly why are you accepting paypal for a collect item? There is no seller protection on paypal for items that are collected and that is why its the only time that ebay allows you to put cash on collection on your auctions.

After all what is the benefit of accepting paypal when you can have instant cash on collection with no paypal fees and no hold when the buyer collects the item??

Personally i would ask the buyer (if you did not put cash on your auction), if they would be prepared to bring cash with them and you refund their paypal payment.