Crypto Sale Funds Hold

[ariesboy33305]

Why is crypto sale funds being held again for three days? It was my understanding that the hold was more for your first crypto sale, but NOT for every other transaction!  My last sale of ETH was for a larger amount, and that went immediately to my PayPal balance. I made this transaction logged into my personal Paypal account and it verified me using both facial ID and password. I am now losing money on a reinvestment opportunity due to hold and I was planning on doing this transaction on PayPal as well.  It's only $1,500 and not some five or six-figure transaction which would be more understandable.   This is no different than ransomware and feels more like short-term theft by PayPal....hope the mainstream media doesn't get ahold of this.   Is there a way of knowing BEFORE I do a sale if the funds are going to be held from me or not??  And I have read the 'Cryptocurrency on PayPal FAQ' which was not helpful.  And my app seems to think that this was an eBay transaction and I need to update my shipping address to get my money???!  I bought and sold crypto on CashApp and funds were always available instantly because I was verified by the app.  That's the point of verification....so we don't get our funds held from us.  It appears that PayPal is 'floating' our money for short-term investments of their own.  I would much rather pay fee for the transaction in exchange for not having the funds withheld from me and causing me to potentially lose hundreds in a missed re-investment opportunity.  So far, not a good experience on Paypal Crypto compared to other exchanges.   Also, it appears that resolution center is not accepting new tickets....keeps saying there is something wrong on their end.   Yeah, right!   Thank you for you prompt attention to this issue.

[Cthanatos]

Me too!

[Jake-R]

I sold a few hundred dollars worth of Crypto this morning and received the 72 hour hold notice. This makes me feel uneasy about using the PayPal platform for Crypto investments. I have a fully verified personal account.

[MariyaStoycheva]

Why do i have to wait sooo long DAYS Paypall to reliesed my fund from HD ???? Not fair... 😞

[StopTheHolds]

I’m loosing money as well. It’s not ok to hold our money but then have no problem taking it out of our accounts quickly. 🤬

[GoldenMystic]

Frustrating to buy so smoothly and have funds on hold at sell. PayPal is losing business by being behind.

[bitcoinroo]

Try to call them first, I did and they fix the same issue.  You can transfer your profits to your bank but the transaction will take few days to post. No more holdings!!!!!

[asdkljsklaj]

In my opinion, PayPal in using seller holds as a cash flow management tool.  Literally, as many have already suggested, PayPal appears to be floating seller funds.  They are using seller money to prevent having to use their own money to prevent payment friction.  

Paypal rationale for holds on seller funds: "In an effort to reduce payment friction with cryptocurrency, holds may be placed on transactions related to the buyer sending payments to our cryptocurrency vendor.  In other words, it is necessary for us to hold funds from the cryptocurrency seller while we wait for the buyer funds to clear."

Payment friction is a real concept, related to making it as easy as possible to buy something online.  Paypal is seemingly trying to say that they allow buyer transactions to process despite holds and make up for the potential deficits caused by buyer holds by holding seller funds.  

Lesson learned over-and-over again is to avoid PayPal at all cost.

[bitcoinroo]

They are just piggybacking with our money plus the heavy fee we are paying for each transaction. This is a novel way to make money, and they know it.

[M1herman]

Actually there is nothing in their user agreements about this hold. This is classic class action lawsuit material. I am going to reach out to some attorneys next week and get the ball rolling. I will probably have to set up a site so that users can be notified and updated on this fraudulent business practice and how they can join in the suit.

[christena1223]

Please let us know if the attorney thinks this may be case or class action. I've worked in banking for 19 years and this seems to go against Reg C. I'm not sure if crypto is under similar Compliance Regulations, but I don't recall seeing this hold in any of the disclosures. Thank you.