@NorthcourtFarmD wrote:
Good morning all, Here is my issue. PayPal is withholding payments from my customers that insist on payment through PayPal. This is a bit of a problem as we require full payment upfront before delivery can take place. PayPal however claims that funds can be held for 21 days. In 21 days we have a turnover of between £5,000 and £ 17,000. This is a lot of money to be lost if PayPal decides to hold on to the funds. Besides we can not deliver to customer before money is in our bank account. Not in our PayPal account, but bank account. Our system will not allow us to deliver products until products have been fully paid. Here is my issue: Customer orders something and delivery is planned in i.e. two weeks and customer pays via PayPal. We make and deliver our products to customer: what will happen to our money if customer has a dispute? OUR company policy clearly states that on bespoke products no refunds will be given. Our company guarantees the customer 100% satisfaction with our products. We update our customers regularly with product pictures during the production process. PayPal however does not take this into account and a customer can always raise a dispute for whatever ‘monkey reason’. Even the law here says that refunds can not be given on bespoke products ordered online (which our customers do). So how can PayPal hold on to funds for 21 days if the law clearly states that for bespoke products which are approved by customer no refund can be given? This is a backdoor for customers to get their money back and keep the products. Surely PayPal can’t do this? Is there anyone here that could answer this?
Then perhaps PayPal is not compatible with your business. If customers paid with their credit card, they can still dispute the charge with their card issuer whether you use PayPal or a credit card merchant account. PayPal withholds the funds until your account is proven to be low risk in terms of disputes and then they will lift hold on your account upon review. The 21 day hold is to ensure the buyer gets what they ordered and if there are no issues, you can get the hold released earlier by providing proof of delivery. Your business policy of "no refunds" do not apply if the customer decides to go over your head when they are not satisfied with your service so if you have great customer service response then the customer won't go over your head to PayPal or their credit card issuer. Don't you have any confidence in your ability to provide customer service? Since you know how it works then you are prepared to provide the best service you can and try to have the least amount of disputes as possible. Instead of saying no refunds, tell the customers to contact you in the event of a problem and that their satisfaction is of utmost importance.
Kudos & Solved are greatly appreciated. 🙂
