Merchant services hold funds

[headflea]

I hate that paypal holds 30% of all transactions done through a virtual terminal in case of returns.Regular credit card companies DONOT DO THIS besides i believe it to be illegal for paypal to do.Wanting some comments on this.

[Misty11]

Hello headflea, 

Welcome to the Forums.  

A reserve is money temporarily set aside for payment reversals or chargebacks.

The money still belongs to you, but we hold it in reserve in case you receive a reversal or chargeback. If you do receive a reversal or chargeback, we'll use your available balance to cover the amount.

Rolling reserves – We hold a percentage of each transaction, then release the money on a pre-determined date. For example, if your reserve is set at 10% for a 90-day rolling period, we hold 10% of the payments you receive on Day 1 and release that amount on Day 91. On Day 2, we hold 10% of the payments you receive and release that amount on Day 92, and so on.

~ Misty

[headflea]

I understand the part you described to me.I dont understand why Paypal is holding the funds,mastercard,visa,discover,donot do it and any other merchant service DOESNOT do it,so why paypal. it should be my responsibility to pay it if there is a return.ALL I KNOW IS ITS ILLEGAL TO HOLD MY FUNDS LIKE PAYPAL IS DOING.

[MerchSvcAZ]

If you process over $1200.00 a month, its probably worth getting a real merchant account.  Some of us even offer to turn accounts off if you are seasonal.

[headflea]

how does your reply(

If you process over $1200.00 a month, its probably worth getting a real merchant account.  Some of us even offer to turn accounts off if you are seasonal.)

have anything to do with what i wrote.its absolutely useless info that you wrote. IM NOW CONTACTING THE BBB AND THE CHAMBER OF COMMERCE IN YOUR CITY AND TELLING THEM WHAT PAYPAL IS DOING, ITS ILLEGAL TO HOLD FUNDS IN ANY MERCHANT SERVICES ACCOUNTS MASTERCARD,VISA,DISCOVER DO NOT ALLOW SUCH BUSINESS PRACTICES.

[headflea]

If you process over $1200.00 a month, its probably worth getting a real merchant account.  Some of us even offer to turn accounts off if you are seasonal.)

[MerchSvcAZ]

PayPal has every regulation covered so I was mearly suggesting an altermative for you to use.  Sorry to hear that you are in this situation.