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Paypal illegally holding money

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Contributor

Re: Paypal illegally holding money

PayBay is doing holds for 1 reason only...they’re using our money “on hold” to make money for free.
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Contributor

Re: Paypal illegally holding money

Isn't it a little bit suspicious that Ebay allow new sellers to sell their first few items without any mention of holding funds to the seller, hence making the new seller comfortable with the selling arrangements. Then to start holding money after about 4 or 5 sales. This practice, no matter how legal it is, is underhand and down right unethical. I will no longer be using either company in the future. I hope THEY are listening although I doubt THEY care anyway. Those of you in this forum who believe they are helping people by repeating the EULA diatribe are doing anything but helping. People's lives are being affected by this kind of shark tactics and you should ashamed of yourselves by defending THEM in this way.
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Esteemed Advisor

Re: Paypal illegally holding money

@ConstantG

 

Why would one be ashamed about the new seller hold that EVERY seller has to go through?

 

When a buyer pays you its never instant, paypal credit you the funds upfront and paypal takes the wait for the funds to transfer from the buyers funding source.

This is so there is no delay in the despatch of the item and its also why we get buyers on here wondering why their item is on the way but the funds haven't left their bank account yet.

 

BUT paypal only take that risk to them of crediting you upfront if you have built up a reasonable reputation as a seller.

Otherwise a seller may do xxx amount of auctions and then run off with the funds and not send items and paypal would lose money having to refund those buyers under their seller protection policy.

 

So would you be happy to 'loan' someone money that you didn't know in the hope that they pay you back? I doubt it so why should Paypal take that risk.

 


Advice is voluntary.
Kudos / Solution appreciated.
I do not work for Paypal.
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Contributor

Re: Paypal illegally holding money

I was hoping that you specifically replied to my comment as it is you that I refer to when I was talking about defending an immoral EULA. just because the law currently says that the policy is legal, doesn't mean that it can't be challenged. I did not say "one be ashamed about the new seller hold that EVERY seller has to go through?" I said that you should be ashamed for simply repeating the same response and not actually offering any meaningful advice. Sometimes all people need is to know that other people understand their predicament. When you make a purchase online the transaction is usually by a CC or debit card and is usually instant, this is a well known phenomenon and usually needs no explaining. Holding people's money for a long period of time is NOT a well known event and does need explaining to people before it happens. EBay and PayPal hide this kind of information deep within their terms and conditions. This is a well known method of deception that large companies use to confuse costumers and, if it is brought to question enough times can often lead to the policy being changed by law. That, my friend is the advice I would be giving to people here.
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Esteemed Advisor

Re: Paypal illegally holding money

@ConstantG

 

So you are saying that you would be prefer to hand over money to a stranger on the promise that they would pay you back?

Because that is what you are asking paypal to do??

 

You haven't given any 'advice' you just gave your 'opinion' on the new seller hold.

So again you are saying you are entitled to give an opinion and NOT give advice but I am not allowed to do the same for some weird reason?

 

When you purchase something online it is NOT always instant, that is why when I buy something from say for eg Amazon it is PENDING on my credit card statement for a few days before it clears. So thats that one out of the way.

 

As for holding it for a long period of time then if you send trackable you normally get funds released within 3 days of delivery, what is wrong with that?

So my friend personally I was perfectly happy to go through the new seller hold as I knew it was better for buyers to have sellers with a good reputation and they would get their goods and not have to waste times on disputes.

 


Advice is voluntary.
Kudos / Solution appreciated.
I do not work for Paypal.
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Contributor

Re: Paypal illegally holding money

There you go again! Have you ever heard about PPI fraud? Excessive bank charges fraud? Payday loan deception? These were immoral, but legal practices that were changed by law because people were rightly disgruntled by them. EBay and PayPal do not display information regarding this dodgy practice of holding money anywhere except deep down in their terms and conditions. If I had prior knowledge of this practice I would have definitely not taken up the service in the first place. For any one reading this article who is interested in taking up with eBay or PayPal, my ADVICE to you would be to think about if you are happy with this situation and if not, look somewhere else.
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Esteemed Advisor

Re: Paypal illegally holding money

@ConstantG

 

Citing things that were 'immoral or later found to be illegal' does not mean that Paypals new seller hold policy (which has been ongoing for as long as paypal has been in being) is illegal. 

Why would it be? They state they will hold funds for new seller as its common industry practice.

 

If you don't like it then you don't have to use paypal as a payment processor, there are lots of other options.

However if you are talking about 'ebays hold' for new sellers then that is a completely different 'new seller hold' policy if you take the time to read the differences between the 2....oh yes another company doing a new seller hold....amazing.

 

Oh and card companies do it as well.

https://www.creditcards.com/credit-card-news/how-long-can-payment-processor-hold-funds-from-business...

 

There are 254 million paypal accounts worldwide and lets say just for the fun of it that only 100 million of them are selling then that is 100 million that have gone through the 'new seller hold' without moaning about it.


Advice is voluntary.
Kudos / Solution appreciated.
I do not work for Paypal.
Contributor

Re: Paypal illegally holding money

I'm not saying that the new seller hold is illegal, however I think it is unethical. I am merely pointing out that they do not make the customer aware that it exists in a fair way. As this practice has a direct affect on customers finances, it should be clear at the time of setting up an account but it is not. Just in the same way that pay day loan companies have to have their charges displayed prominently on their websites and phone companies have been ordered to simplify their tariffs and banks have been forced to offer all types of accounts to customers and not just the the ones that have a monthly cost. If people knew this was going to happen, some would change their minds about joining and using the service. I know I would!
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Contributor

Re: Paypal illegally holding money

You'll become an established seller after: It's been more than 90 days since your first successful sale You've had more than 25 transactions $250 in sales
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Contributor

Re: Paypal illegally holding money

THIS IS THE EXACT SAME THING WE'RE GOING THROUGH RIGHT NOW. PAY PAL IS ENTIRELY FULL OF **bleep**. THEY ALONG WITH E-BAY NEED TO BE ERADICATED FROM THE COMMERCE STREAM BECAUSE THEY ARE RUINING PEOPLE'S LIVES AND BUSINESSES. THEY ARE ILLEGALLY HOLDING MY CUSTOMER'S MONEY AND MINE UNDER THE GUISE OF PROTECTING CONSUMER RELATIONSHIPS. NO MATTER WHAT I DO THEY WILL NOT RELEASE THE FUNDS. E-BAY IS ALSO GETTING RID OF THEIR MERCHANT ACCOUNTS AS OF MARCH 1ST 2019 WHILE SIMULTANEOUSLY ONLY ALLOWING PAYMENTS THROUGH THE PAYPAL GATEWAY...HMMM... WHAT A COINCIDENCE. E-BAY PURCHASED PAY PAL AT 1.5 BILLION DOLLARS IN 2002 SO THEY KNOW WHAT'S GOING ON. THIS IS SICKENING TO THE CORE AND HEARTBREAKING THAT MY BUSINESS HAS GONE UNDER BECAUSE OF THE BAIT AND SWITCH FALSE NARRATIVE MANEUVER. THIS IS A VERY SERIOUS ORDEAL CHRIS SO IF THERE IS ANYONE OUT HERE WHO IS READING THIS POST AND YOU WANT TO GET TOGETHER TO MAKE PAYPAL AND EBAY PAY FOR WHAT THEY ARE DOING, I WANT YOU TO ENTER YOUR EMAIL ON THIS THREAD AND I WILL CONTACT YOU.