PayPal messed up big time! They still withholding funds although transaction was canceled via ebay.

[happy_auction]

May be someone has expirienced this too? or can give advice?

In my case, funds are being withheld by PayPal since payment was send by the buyer (02MARCH), at no time were the funds available to me and hence I as the seller was unable to dispatch the item. PayPal advised that they would review buyers funds within 21 days.

It is now the 21APRIL, PayPal is still withholding funds, complains and cancelation requests are not being follwed up on by PayPal. 

This delay was neither acceptable to me, as the seller nor the buyer. Subsequently the buyer requested a cancellation of the transaction via ebay. Thus I initiated the cancellation via ebay - both buyer and seller agreed to the cancelation - that we expected the withheld funds to be refunded to the buyer, however in addition to the cancellation request the buyer had filed an "item not received claim" with PayPal at the same time, resulting in PayPal putting funds on hold.

I then attempted several times to issue a full refund to the buyer, however due to PayPal withholding the funds, it said there are not sufficient funds in my account, that PayPal blocked me from issuing the refund, that a dead end was reached.

PayPal really messed this transaction up big time!

Hence I filed several complains about the matter with PayPal, only to receive automated messages that funds are being withheld due to fraud protection but at the same time their message advised to send the item, which seemed rather odd and conflicting advice.

Still at no time were the funds made available to me to follow up on the cancellation request with PayPal, PayPal did not respond to my cancelation requests.

If I had a choice I would not use PayPal in future, PayPal lost me this sale, I now had to relist the item at a reduced price and subsequently also lost the promotional discount on 3rd party fees available at the time. All this is unacceptable and the worth experience I ever had with PayPal, in particular as a PayPal customer of well over 10 years, this treatment is a huge disappointment. For certain, I will avoid PayPal were ever I can.

the Buyer has now escalated his claim for PayPal to decide and it is my hope hope that the buyer will finally get his money back from the withheld funds.

However, while I am asked to respond to this escalation of the claim within 10 days, the options to respond are limited. I.e. I am not given the option to cancel the transaction via PayPal, in fact I am blocked to issue a full refund (option 1) to the buyer due to insufficient funds in my PayPal account, (option 2) I am unable to provide a tracking reference since the buyer requested cancellation of the transaction before the item was send out. and with PayPal withholding funds and blocking me from issuing a full refund, I obviously can not (option 3) proof that funds were refunded to the buyer by other means either.

This is a complete deadlock situation. PayPal messed this up big time. PayPal, I hate you!

[kernowlass]

@happy_auction

Paypal did not mess up ..........you did.

Your funds were held under the new seller hold, the faster you sent the item, the sooner the funds would have been released.

New seller hold that every new seller goes through. >>>

https://www.paypal.com/uk/webapps/mpp/security/ebay-payments-learn-more

If you decided to refund the buyer then if i were your buyer i would have given you neg feedback and reported you to ebay.

As your buyer opened a dispute then all you had to do is to contact paypal and ask them to release the funds back to the buyer.

As it is you are unlikely to be able to continue to sell on ebay as you have not complied with the new seller hold and already have a dispute against your seller status.

[happy_auction]

Dear kernowlass,

Thank you for your reply, however I am NOT a new seller on ebay, I have been selling and buying with Ebay/PayPal for well over 10 years, with well over 100 positive feedback profile, even had several high value item sales more recently without PayPal withholding any funds, so what ever PayPal is up to with their extortionate fees and withholding costumers funds illegaly for several weeks, this can not be acceptable.

Hence you are completely wrong in your assumption that I am a new seller, while I would never ever send an item before funds are not cleared and received in full.

The buyer and I agreed to cancel the transaction via ebay, still PayPal is withholding funds to the buyer, while PayPal is blocking me from refunding the buyer the funds they withhold. 

Please explain why this is my fault, PayPal is clearly at fault here, I send them several cancelation requests and several formal complains via their messaging system, but these requests are being ignored.

[kernowlass]

@happy_auction

The fact paypal have said that they would review at 21 days shows its the new seller hold BUT >>

The hold happens and is applied to .....

new sellers.

an unusual change in selling history.

a change in email address

suddenly selling a lot of high cost items.

etc etc etc.

The funds are being held now because the buyer opened a DISPUTE.

If you go to the resolution centre then there should be the option to refund, if not then you just need to contact customer services and ask them to release the funds back to the buyer.