I have used Paypal sporadically for 7 years. I sell about 4 art prints a month, at an average price of $30. A year ago and more I was selling original paintings for more money, a few hundred dollars.
Last week, on the 24th of march a client from London purchased two paintings for a total of $700. She paid me. Paypal put it on hold. Why? (here's what the customer service people said on the three calls I had to make to them.)
1. "Because you haven't had much activity." WRONG. I sold each week for the last two months. If I go to the corner store for milk for the first time on two months I don't get questioned. Please someone explain this to me.
2. "Because there has a been a change in average selling price." SO WHAT? I mean, that's great right? It went from $30 to $300. I make more, you make more. Is there something happening here that I am missing? Are you thinking that I'm doing something suspicious or fraudulent? What is the rationale for holding my money because you think that I made too much? I asked? "I don't know" she said.
3." Because it hasn't arrived yet." So, is this the reason because you just said the reason was because the average price increased "too much". It's two reasons now? I sent the package via Fedex on March 27th, with $1,000 insurance. There is a tracking number. Are you only going to give your merchants their money after they can PROVE TO YOU that the merchandise has been delivered?
During my first call to customer service, it was suggested to me that in order to get the funds released immediately, I ask my client to go on to Paypal and check that she has received the package already so the system will release the funds. So I did. And guess what happened? My client, who lives in London, has never purchased anything on Instagram (where I sell some paintings) has never bought anything from me before, doesn't know me and is spending $700 decided that she did not, in fact, want to CLAIM THAT SHE RECEIVED SOMETHING SHE HAS NOT RECEIVED. She became suspicious. I don't blame her at all. I wish I had never asked her to do that. I cannot believe that Paypal is suggesting that merchants ask their clients to essentially commit mail fraud in order to get Paypal to release the funds to the merchant.
So, then I had to do some tap-dancing and feather stroking to assure my client that I was NOT up to something improper, like getting her money and having her claim she received something and then not shipping her what she purchased. I just can't believe that Paypal tells people that this is the way to get their funds that are on hold. It was suggested to me three times by their employees. Not to be dramatic, but it's mail fraud.
So, I give up. They have my money. They have charged me $33, I'm sure that is in their paid column.
When I asked the supervisor, Jin, what the reason is that Paypal is holding my money she said, "I honestly do not know the specific reason." You don't know the reason? Who does? There has to be someone else at Paypal who knows the reason my money is being held. Jin, who at Paypal knows the reason for the hold? "No one." I swear to God, she just told me that my money is on hold and that they aren't really sure why. When I refuted the first three reasons Paypal told me that they're holding my $700, she said she didn't know what the reason is. And that no one at Paypal knows why. But they're holding my $700 anyway, for two weeks, until the package arrives in the UK. How does this story end? I will never use Paypal again and I will badmouth them at every chance I get, all over social media. I am also contacting the district attorney and reporting them for bad practices and that is not an empty threat. They have my money. I have done nothing wrong and they are treating me like I am committing some sort of shady fraud business. You messed with the wrong artist.
