Paypal funds on hold

[comicscotty477]

So .... my funds are still on hold.

I have complied with everything that was required - within 1 day - and my funds are still on hold for possibly 3 weeks ... maybe less - who knows?

Not the 3 different paypal agents I spoke to - that's for sure.

I can actually understand the merits of using the held payment system in certain circumstances.

What I can't fathom is why payments are still held when grounds no longer exist to warrant it.

Forget any nonsense about 'buyers could leave wrong feedback'. If the transaction is done and the buyer indicates he's happy - get the cash freed up immediately. 

There's no valid reason to continue to deny customers access to their money.

All this is doing is alienating otherwise normal paypal/ebay users and making it more likely that we will attempt to find an alternative means to accept payment for goods. Clearly if that's not possible when using ebay, the inference is that otherwise loyal customers will make ebay/paypal their last choice to try and sell their items.

I wondered what was happening when I saw a sharp spike in sellers making items collect only/no paypal.

Now I understand.

I don't even know if it will happen again or not if I sell another item of a reasonably high amount. 

The agents I spoke to were perfectly well mannered and polite but unable to answer this when I asked.

[kernowlass]

@comicscotty477

Ebay or private transaction?

If private via paypal then you wait 21 days.

[comicscotty477]

It was a straightforward, normal ebay transaction. No different to the hundreds of other ebay transactions where I've sold an item.

[kernowlass]

@comicscotty477

Odd then, did you send trackable?

Only normally its released when tracking shows delivered + 3 days unless ebay have changed that since they split from paypal.

[comicscotty477]

It was sent using royal mail one day special delivery tracked and signed for. The buyer was more than happy with the delivery speed and the item.

[kernowlass]

@comicscotty477

So when did they receive the item?

[comicscotty477]

The buyer received the item yesterday morning and left positive feedback around lunchtime, once he had fully tested it to ensure it was as described by me.

[kernowlass]

@comicscotty477

OK well its too early for your funds to be released.

Under ebay rules the item has to show as delivered to the buyer PLUS 3 days.......and its not been 3 days yet.

Also positive feedback does not count for payment release.

Info in link below.

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

[comicscotty477]

That's part of the problem.

I've called paypal 3 times.

Once when I first found out that the funds were held and I was told it would be 21 days but could be less when reviewed. I then looked for the rules to follow to make it less than 21 days. At that stage I intended to simply refund the buyer and sell the item locally. My buyer was fully aware and pretty shocked at the payment hold. He is also an expereinced buyer and seller and realised that it could possibly happen to him as well - without any warning.

Against my better judgement I opted to carry on and sent the item as I described earlier.

The second time I called Paypal I was told that the funds would be released within 3 days as I had complied with all that was asked. 

I called a final time to query something and was told that the 3 day release was no longer being used and it would be a minimum of 7 days before the transaction was reviewed.

Regardless of when the funds are released .. 21, 3, 7 days ... my point is this.

What is the reason that the funds are being held at all?

I've fully complied with all that was asked.

The buyer has the item and is satisfied with it.

What do paypal have to gain from denying me access to my funds?

I can see no advantage for them. The only effect it has is to make me unhappy and less likey to use ebay/paypal to sell anything in the future.

Take my situation and multiply it by every member who's also in my position.

Prior to this I would have no hesitation in praising paypal for the seller and buyer protection process.

Now ..... I will be very hesitant in in using them to accept payment - in fact I'm pretty sure that I won't be any time soon.

[kernowlass]

@comicscotty477

The reason for the hold is normally for new sellers although there are other reasons as well.

If a buyer files a dispute and a new seller has withdrawn their funds and refuses to refund then paypal have to refund the buyer and try to recoup the money from the seller, if that seller is new they may just not bother with paypal and refuse to pay it back.

So paypal holds the money until that seller has a reasonable seller reputation and they can be fairly sure they will refund a buyer if they need to.