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Funds held for no known reason.

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Contributor

Funds held for no known reason.

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)?

1 ACCEPTED SOLUTION

Accepted Solutions
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Esteemed Advisor

Re: Funds held for no known reason.

7 REPLIES 7
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Esteemed Advisor

Re: Funds held for no known reason.

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Contributor

Re: Funds held for no known reason.

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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Contributor

Re: Funds held for no known reason.

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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Contributor

Re: Funds held for no known reason.

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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Contributor

Re: Funds held for no known reason.

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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Esteemed Advisor

Re: Funds held for no known reason.


@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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Esteemed Advisor

Re: Funds held for no known reason.

@WinterRoseDanlo 

 

Sadly i can only give you the information available and tell you how the system works.

If it was unhelpful and i couldn't change paypals policy just for you then i will make sure i don't give up my time to respond to any of your posts in the future so..........your welcome.  


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Please leave Kudos / Solution if I have helped you.