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This is a scam, nothing more. I just lodged a complaint with the AFCA about my funds being held by PayPal, I suggest that everyone do the same. Things will only change if people speak up against this BS
Australian financial complaints authorities. Formerly the financial ombudsman. Just search for them and then use the complaint form it’s all online only takes 5 minutes
Had the same thing happen to us
Using paypal for 12 years, 100% feedback on ebay, over 10,000 sales, a handful of charge backs but only when refunded and paypal did not send the money to buyer they they went to bank and we just had a 20% of payments heard for 60 days
there was no warning or phone call just one day went on and was on there
spent next day trying to get someone to let us know what was happening and after 9 phone calls still now the wiser went to Onbudsment they sent a email for us got a phone call same day...
turns out that we on this for a reason only paypal know and wont share have been threw the list of reason and we dont tick any of them boxes whenever we ask them to clarify why has happened they just fob us off if very unprofessional and unethical
they said can remove the 20% for 60 days if give them 30K to hold, i personally feel like this is extortion and we are pursuing it further and have since removed paypal from our own website and dont take on amazon either and stop processing as many payments as can threw then and when ebay offers Adyen will be changing to them and completely removing paypal as a payment option due to this
it is honestly just a money grabbing exercise nothing more we will never use them in any business's we involved in already remove several and will warn every other business deal with also 🙂
The law suit was for holding funds AFTER 180 days for permanently limited accounts and NOT for the new seller hold >>>>>>>>>>>>
You should never use paypal for an item that is to be collected or personally delivered as you have 0 seller protection.
Your buyer can collect the item and then file a dispute for non receipt of item. As you would have no tracking number to prove delivery of the item to him then you may lose the dispute. (However with a large collect item you should be ok).
That is why Ebay give you the option of 'cash on collection' and you can state in your decription that that is the only payment you will accept. If a buyer pays with Paypal then you are allowed to refund that payment and re-state 'cash on collection'.
That way you have cash in hand / no wait / no fee / no risk of a dispute.
Ebay and Paypal are 2 separate companies and have 2 separate policies for holding funds for 'new sellers'.
If yours was an Ebay transaction then its an Ebay hold and Ebay authorise when paypal can release the funds.
Normally for Ebays hold funds are released when tracking shows the item as delivered + 1 days (if you use Ebay / paypal postage).
Info in this Ebay link below about Ebays hold.
BUT a quick tip on what I did when i started to sell on Ebay, to get around the hold I listed a load of low cost items cheaply (just broke even) but that way my 25 sales were quickly reached and the hold removed. Then I could start selling my usual items at a normal cost without waiting for the funds 😊