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I paid someone today but the receiver is saying that the payment will not be available till Sept 2. Why is that ? It worked instantly in the past. Can anyone suggest a reason?
You have paid, the fact its pending on the SELLERS end is between him and paypal as he is a new seller.
He is supposed to send your item promptly (trackable to prove delivery) and then his funds are released when tracking shows the item as DELIVERED + 3 days.
He is at no more risk now than if he had the funds in his bank account, the hold is to protect PAYPAL from new sellers that don't refund buyers in the event of a dispute (then paypal have to refund under buyer protection).
Tell him if he refuses to send then you would have to file a dispute for non receipt of item and that would impact on his paypal account as such an early seller and the time the 'new seller hold' lasts would be extended OR he may not be allowed to sell.
Send him this link.
Thanks for the prompt reply. However, in this case no physical goods needed to be shipped. A service - lawn mowing - was provided and completed. I paid after the service was completed. SO technically, the payment should be instant since there is no risk of the seller not delivering.
If its a virtual transaction OR a service then normally they have to wait the full 21 days.
As its hard to prove a service was in fact done then Paypal hold the funds in case you raise a dispute.