Funds held for no known reason.

WinterRoseDanlo
Contributor
Contributor

So today a friend wanted to commission me for a piece of custom work. He used goods and services as he has always done when he has made commissions in the past. For no reason today, my funds decided to get put on hold. I called customer support and was told that once I shipped the item, i would receive the funds. no, this is not how my business model works. I GET THE MONEY, I buy my materials with said money, I make the product, and I then ship it. Receiving the money later would mean I have to put myself into debt to buy materials.

Representatives were unhelpful and refused to lift the hold on my account despite me describing exactly what my product was and what the problem with having my funds on hold was.
Ive already gone and refunded this because I was so fed up, he's just going to have to give me cash for this because I cant wait 3 weeks for the money.

Why did this happen to my account?!?!? Can any representative give me a real answer that isnt a copy and paste of your general help article (which does not help AT ALL)?

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1 ACCEPTED SOLUTION
12 REPLIES 12

WinterRoseDanlo
Contributor
Contributor

This is entirely unhelpful. How can i get my funds released? I cant fulfill services to customers if I dont get my $ before shipping....

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Dell14z
Frequent Contributor
Frequent Contributor

Your business model is corrupt. Requiring people to pay upfront to fund your materials is just not right. PayPal doesn’t release funds until delivery is made. I know it sounds archaic but it’s their policy.

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WinterRoseDanlo
Contributor
Contributor

Do you operate an online business that creates 100% custom art pieces? My business model requires - and has always required - payment up front for materials. my customers have NEVER had a problem with paying for materials. If my model is so corrupt, please provide me with a better alternative, or don't respond at all. Also, i have made many, many sales with paypal and have NEVER had a Hold placed like this.

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Dell14z
Frequent Contributor
Frequent Contributor

The better alternative is to have stock on hand to create your custom pieces. PayPal always updates policies and the reasons aren’t given. Obviously something triggered a warning to place funds on hold. You can whine about it and pout but they don’t change their policy to make us happy. You might consider a merchant account though I had to put fifty grand in an account as collateral. 

Cash is good or PayPal alternatives are available depending on your location. Most are dodgy though and you need to consider the risks

 

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berniemate007
Contributor
Contributor
Just continue watching! PayPal will eventually close its "doors" and flee with millions of dollars in "held" funds while we wait for a response from Mr. Or Ms. Virtual Agent. It is as certain a prediction as COVID19 was in 2015, when many leaders saw it coming and warned of its coming. Stay tuned....
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berniemate007
Contributor
Contributor
The better alternative is NOT to use PayPal. You will come to see the fraud being perpetrated with unlawful "holds" on funds for no reason other than to generate tremendous amounts of interest on our funds, held wrongfully and unduly long.
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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@WinterRoseDanlo wrote:

Do you operate an online business that creates 100% custom art pieces? My business model requires - and has always required - payment up front for materials. my customers have NEVER had a problem with paying for materials. If my model is so corrupt, please provide me with a better alternative, or don't respond at all. Also, i have made many, many sales with paypal and have NEVER had a Hold placed like this.


Look, you need to have some capital on hand to buy supplies to produce your goods so you can do what you need to do to keep your business running and not run it payment by payment or you will not make it in the face of these PayPal holds. @Dell14z is right. Besides, PayPal wants merchants that can adapt. Even these scammy sellers out here are able to adapt and make it work for them without really breaking any PayPal policies, strangely enough. Ethics yes, but PayPal policies not really. Strategize and make it work. The money you make, do you not reinvest some of it for supplies? What do you do with all the profit then besides living expenses?

 

PayPal will release the funds in 21 days if you can't provide tracking info.


Kudos & Solved are greatly appreciated. 🙂
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WinterRoseDanlo
Contributor
Contributor

Hi there!
I would like to inform you that I confirmed with over a dozen shop owners who use merchant services including Etsy, amazon, and paypal, and that this is something that has never occured for any of them. Additionally, all of these shops operate exactly the same as I do - it is not feasible for many of us to keep material on hand since many of them will only be used once, and predicting what customers are going to want is impossible.
Three individuals who use paypal for their shop have told me that they have never experienced this, and are extremely turned off from using paypal in the future - as I am as well - This thread, the attitude a "support" person is giving, and the lack of understanding is proof enough.

Also, did it ever occur to y'all that people like me need to pay their bills, and adding holds to accounts as "random security checks" can lead to significant debt, thankfully I had a family member who was able to cover the cost for now, but **bleep** guys... come on

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