Why dose paypal hold your money for 21 days?

[Rockerman007]

The reason why paypal holds your money for 21 days is so that they can receive 21 days of interest on your payment funds. Even though they have already taken a processing fee they want to make more profit from your money. I am disgusted that paypal treat new customers in this way!

[kernowlass]

@Rockerman007 

Nope, its because you are a new seller and paypal want to make sure that if you get lots of disputes as a new seller then the funds are there to use to refund the buyers and paypal does not have to refund the buyers themselves.

Funds are not held for 21 days, if you send trackable then normally funds are released when tracking shows the item as delivered to the buyer + 1 day, this allows for the time it takes to open a dispute for non receipt of item OR item received but not as described.

Personally if i was loaning someone money i would want to make sure they had a good reputation first.

https://www.paypal.com/nz/smarthelp/article/my-payment-is-on-hold.-why-is-this-happening-faq3297