HOLDS ON S&H VS ACTUAL GOODS - PAYPAL's USER AGREEMENT INADEQUATE

FourZoasBoos
Contributor
Contributor

I specifically asked for written documentation on PayPal's holding of S&H funds, as the user agreement makes no differentiation between payment for "goods" and payment for "shipping & handling", The rep stuttered and put me on hold, came back and said that the payment in full would be held, so I again stated that wasn't my question.  I said "I need a rational explanation on what basis Paypal is holding S&H funds when this is not specifically mentioned in the user agreement.  I need written literature that applies specifically to S&H."  I then asked if Paypal could distinguish between what portion of a payment goes towards goods, and which portion goes to s&H, and SHE SAID NO!!!!!!  I said, I know that to be untrue, as IT IS SPECIFICALLY SPLIT INTO CATEGORIES WHEN ANY EBAYER MAKES A PAYMENT.  Her reply was "oh, I don't know" so I again asked for written documentation of this policy and a specific statement regarding the holding of S&H Funds, was put on hold for 20 min and then disconnected.  I called back immediately, went through the same conversation, more holding time, and told my issue was being escalated, and I woud receive a response call within 24 hours.  Surprise Surprise, no call, no written documentation regarding differentiation between holds on S&H and on "goods".

 

The second rep I talked to said "Well, there are not 2 seperate transactions,  1 for shipping and 1 for the item, they are combined in the same payment."  I said "Again, that is not my question, Please give me written documentation specifically regarding S&H vs. holds on goods.  Besides that, your explanation isn't logical basis for holding S&H funds; Just because paypal counts this as 1 transaction, it is specifically split when the buyer makes the payment.  So, basically what you are telling me is that it is INCONVENIENT for Paypal to differentiate between S&H and not hold his portion of the payment."  So, of course I was placated by being told my issue was going to be reviewed and escalated, and, of course, I was not contacted back.

 

Has anyone else demanded specific explanation on why an escrow service would hold S&H funds?  Even if so, they should IMMEDIATELY be released upon entering of tracking information at the latest, as this is absolute proof that a shipment has been made.  Even if they can claim to hold payments for goods (which I think is also utterly ridiculous) they seem to have a sore spot for explaining their hold of an ENTIRE payment inclusive of shipping charges.

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8 REPLIES 8

JarkaP
Contributor
Contributor

I agree!!!! How is that even legal?  I had order where shipping was 50$ and held.  I shipped right away, why don't I at least have the 50$ of the payment???  I supplied tracking.  This makes sense, they should be forced to release shipping charges asap, no reason not to.  How wrong can this policy be?

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JarkaP
Contributor
Contributor

I called with same questions, I will post back if I get responded to, but I'm not crossing any fingers 😞

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FourZoasBoos
Contributor
Contributor

THANK YOU FOR CALLING IN!! Maybe if we can call them out on this smaller specific issue, that will be the first step in cracking their company policy of this idiotic 21 day hold.  There is definately a strong case here for mis-use of client funds, since there is no rational justification for holding shipping money, and not every buyer agrees to refund shipping, so PayPal can't say this money is being held for protection - It's use is already alloted for and in many cases woudn't be refunded to the buyer anyways!!

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darkjokerg1
Contributor
Contributor

I dont think Paypal realizes the backlash of this yet. I know alot of angry suppliers, shippers, order takers who are not getting payed because of this new practice. Honestly I am one of them. I called Paypal and asked for just a partial amount of $200 so I could ship my items from the $1G pending balance. Yes I understand that I do not sell items 7 days a week, fine. Yes I understand the item I was selling was not in the usual for me, great anti fraud. But I will go broke faster due to overdraft fees from my bank before either 21 days are up or someone leaves me feedback (not many people leave feedback on any ebay purchase).

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monsterducky
New Community Member

I was hung up on too!! They obviously dont have any answers at Paypal or Ebay..I think if enough people make noise over this issue they will have to refund shipping fees!!

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I went throught the same thing. This is outrageous! My advice: Better Business Burea, Class action lawsuit, Contact all your buyers and let them know whay their package is on hold and have them call ebay/paypal and ask why they are holdong the BUYERS money!


@FourZoasBoos wrote:

I specifically asked for written documentation on PayPal's holding of S&H funds, as the user agreement makes no differentiation between payment for "goods" and payment for "shipping & handling", The rep stuttered and put me on hold, came back and said that the payment in full would be held, so I again stated that wasn't my question.  I said "I need a rational explanation on what basis Paypal is holding S&H funds when this is not specifically mentioned in the user agreement.  I need written literature that applies specifically to S&H."  I then asked if Paypal could distinguish between what portion of a payment goes towards goods, and which portion goes to s&H, and SHE SAID NO!!!!!!  I said, I know that to be untrue, as IT IS SPECIFICALLY SPLIT INTO CATEGORIES WHEN ANY EBAYER MAKES A PAYMENT.  Her reply was "oh, I don't know" so I again asked for written documentation of this policy and a specific statement regarding the holding of S&H Funds, was put on hold for 20 min and then disconnected.  I called back immediately, went through the same conversation, more holding time, and told my issue was being escalated, and I woud receive a response call within 24 hours.  Surprise Surprise, no call, no written documentation regarding differentiation between holds on S&H and on "goods".

 

The second rep I talked to said "Well, there are not 2 seperate transactions,  1 for shipping and 1 for the item, they are combined in the same payment."  I said "Again, that is not my question, Please give me written documentation specifically regarding S&H vs. holds on goods.  Besides that, your explanation isn't logical basis for holding S&H funds; Just because paypal counts this as 1 transaction, it is specifically split when the buyer makes the payment.  So, basically what you are telling me is that it is INCONVENIENT for Paypal to differentiate between S&H and not hold his portion of the payment."  So, of course I was placated by being told my issue was going to be reviewed and escalated, and, of course, I was not contacted back.

 

Has anyone else demanded specific explanation on why an escrow service would hold S&H funds?  Even if so, they should IMMEDIATELY be released upon entering of tracking information at the latest, as this is absolute proof that a shipment has been made.  Even if they can claim to hold payments for goods (which I think is also utterly ridiculous) they seem to have a sore spot for explaining their hold of an ENTIRE payment inclusive of shipping charges.


 

 

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surplusdealdude
Advisor
Advisor

That is, without a doubt, one of the SILLIEST ways to split hairs I have ever heard of.

 

Paypal witholds the PAYMENT for 21 days.  THE ENTIRE PAYMENT.

 

Get used to it or use another service.

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tr_right
Contributor
Contributor

She probably stuttered because she was startled by such a stupid question. 

 

They tried to explain it to you already, so I won't bother.

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