Temporary Hold on Refund

[fruit_fling]

I paid for something through paypal (not on ebay) but then almost immediately cancelled as I found a problem with my order. I made and cancelled the order on 17/09, got my refund back on 20/09 but it a temporary hold has been placed on it. I understand that this has something to do with the payment actually being taken from my bank account. However, the payment has now cleared from my bank account, but my refund is still being held. Does anyone know how long it will take for my refund to be released? Thanks!

[krs352]

This is clearly a scam to make money (on interest).  Previously a piece of paper hand written (Cheques ha remember them) on and posted took 3 to 5 days to clear in some ones account. In an electronic instant payment age there is absolutely no excuse for Paypal or any other company to hold on to money.   Paypal are playing a dangerous game here as this and other forums show, and as people are clearly getting fed up with this 'hold of funds' they/we and I will find alternative was to pay and get paid. My refund has been on hold for a week now - the working days number is a myth in the electronic payment world. Personally I shall be looking into alternative payments until Paypal stop this scam.

[Spanky5150]

I had a retailer ACCIDENTALLY charge me twice for an item, and am now forced to wait 3-5 days for a refund of money that was taken from my account without my knowledge. $600 to be exact. Their problem, now I'm being punished. An honest mistake on the retailer's part, some real BS by PayPal.

This has overdrafted my account, and now I face overdraft fees on other transactions I had done already. There would be plenty in my account had they just returned my money. Now the retailer is hurt by their mistake, because I'm going to shout it from the rooftops:

Not my fault, PayPal, absolute load of crap for you to hold money that you should not have in the first place!

Beware, buyers, it ain't all it seems to be. I'll gladly use a credit card next time, and give Visa the fees, they stand by their service.

Buyer protection my arse.

I hope someone sees this before they delete it for being derogatory of their service.

[Chessstudy]

It is the experience of many that Paypal is not willing to look into individual cases and act in an inconvenienced persons best interests as regards Temporary Holds. If penalty bank charges have been incurred because Payal is in this area as thick as two short bricks why not ask them to compensate you? If they refuse you could ask the banking ombudsman to look into it.

Paypal gets a percentage of the seller fee, in return they offer various guarantees. So does Visa and similar and with them you can talk to a person who is empowered to do something instead of effectively saying "this is the way it is so you have to wait." That sort of thing is an insult to the client, has nothing to do with customer service quite the opposite.

If Visa were to act as Paypal does there would be an enquiry, I feel so sorry for the Paypal customer service people who know they are fobbing off others but are unable to do anything else if they wish to keep their job.

Paypal is a second rate service as regards temporary holds, I know of no other organisation that holds onto an undisputed refund for long after it is clear that a refund is due to their customer. I treat as I find, paypal has done enough to make me wary of using them for any large purchase as if a simple straightforward refund becomes due I will have to wait the best part of two weeks until they do me the favour of giving me back my own money.  

[Chessstudy]

For the record, I bought on 10th July, the purchase was cancelled on the same day, The debit hit my account on 12th July.

Paypal released their hold on my funds sometime today - 17th July.

I reckon this is the best that Paypal's current set-up can do.

[penfold007]

paula_paypay has said that when you make a payment by bank transfer through paypal, paypal sends the funds immediately to the seller, if the seller does a refund you have to wait till the funds have cleared your bank account before the refund shows up as NOT having a temporary hold on it, and those are her exact words on it............ WELL..... I ordered an item on ebay, payed with paypal on the 1st June 2013, it was payed immediately by paypal to the seller.  On the 5th June the funds were taken by paypal from my bank account, on the 7th June the seller made a full refund.......YET, even though paypal had taken the money from my bank 2 days earlier they STILL put a bloody temporary hold on IT.  the only reason for a temporary hold is like paula said, if the funds had not yet been taken from the bank, BUT IN THIS CASER THEY HAD BEEN 2 BLOODY DAYS EARLIER!!!!! YET A TEMPORARY HOLD WAS STILL PUT ON IT........WHY..........

Makes you think they just put a temporary hold on them all eh?

[spart]

I have the same issue as everyone else, a refund on 'temporary hold'. That's annoying in itself but what makes it worse is there's no explanation of this policy on your website. I was baffled by the 'temporary hold placed' on my transaction history. 

I did a search on the help page and the only mention of 'holds' related to limited accounts.

The only way I found out about the policy was by registering on this forum. 

Paypal clearly don't want their customers to know about this 'temporary hold' policy.

I've learned my lesson and won't be using paypal where other payment options are available.   

[mcc1959]

I purchased an item with an Internet based company and paid using my PayPal account.  The funds were immediately withdrawn from my account and CLEARED my account within 24 hours of the transaction.  (This was confirmed by my bank.)  Less than 24 hours later the vendor notified me that the item was no longer available and they immediately issued a refund.  Upon receipt of the refund, PayPal placed a "temporary" hold on MY refund.   I spoke to a PayPal representation on Saturday June 8th and was told the funds would be released in 24 hours.  Today I called back in inquire about the refund (still on hold) and was told it could be as late as Thursday before the hold is released.  Two different PayPal representatives and two different stories.  I have read PayPal's explanation of temporary holds on refunds - in a nutshell it is fraudulent activity to hold funds that have cleared not only my account but also the vendor account that issued the refund.  PayPal is using MY money and that of other PayPal users to float transactions and earning interest on those funds.  PayPal is making millions off of deposits and illegal holds.  An investigation should be conducted and a class action suit should be filed against these blood-sucking thieves.     

[bgbone1]

I have to agree with you.

this is ILLEGAL!!!

just last year there was no temp holds on refunds.

they were instant

i too am going throught this same CRAP!

I made a purchase on ebay through paypal.

i decided i did not want the item BEFORE the seller shipped it.

I contacted the seller and seller issued refund no problem!!!!!!!!!

paypal holding my FREAKING refund.

this is BULLCRAP!

seller issued refund where is my FREAKING MONEY!!!!!!!!

[Chessstudy]

Paypal are annoying quite a few customers with their temporary hold policy. When funds are taken from your account within 2 days and you have to wait seven to ten days for a refund in todays modern banking world then something is very wrong. From past experience paypal will pay me no interest, yet they will hold my funds and those of many others for seven days or more and earn interest on those funds collectively. These silly people must consider it good business to tell their customers that the banking system is such that 7 to 10 days is the time a refund must take, it is the time it takes for sure, as regards "must take" Paypal could change that overnight. Paypal are in it for the money, they do not care if they frustrate users that need their own money in their own account sooner rather than later.

This is the second time that Paypal has done this temporary hold nonsense to me, they will not do it again in any significant way as I will in future be using them for small value items only.

[ag1time]

I'm currently waiting on $1500 back from a refund.  This will be the last time I use Paypal on anything other than ebay.  End of story.  . 

I guess the lesson here is that just because something is easy to use, doesn't make it easy overall.  There's always a catch.