What will happen to the money I sent if PayPal won't release the money to the seller?

[Bay-fire]

On Sep 2023, I sent $530 to a seller. On my side, it says the transaction is completed, although the seller claims that on her side, the money is on hold until now. The seller has sent me screenshots that state the money is on hold until Jan 13 so I believe she's telling the truth. In Dec 2023, we decided to open a dispute so I could get a refund and resend her the money, but because I opened a dispute, her account got limited. Because of this, I closed the case to help lift the limitations from her account but until now, her account is still limited and the money I sent her is still on hold. What happens if she is unable to receive the money after 180 days? Will PayPal keep it on hold forever? Will they automatically refund it back to me?

I have dealt with this seller before and the previous transactions went smoothly and she was able to receive the money within seconds. I don't understand why there's an issue with this specific transaction.

[kernowlass]

@Bay-fire 

If its marked as completed in your Paypal account then you have paid. The fact its pending/on  hold  on the sellers account is between them and Paypal.

Funds for new sellers are held for 21 days but released more quickly if they provide a tracking number (delivery + 1 day).

If its a permanent limitation on the seller then funds are not released until 180 days but by then it would be too late for you to do a dispute.

You should have opened a dispute for non receipt of item and escalated it to a claim. Then you would have had a refund even if she had a permanent limitation on her account. By closing it you have lost all your options as 'if' she gets the funds at 180 days she can ignore you as you can't open a second dispute OR open a dispute after 180 days.

[Bay-fire]

Thanks for your response. I understand I shouldn't have closed the dispute. But the seller is a friend of mine and someone I've dealt with before so I trust that she will give me the refund once PayPal releases the money to her. I'm asking on behalf of the seller as well, if the money will ever be released to her. Or will the funds just be in limbo forever? And what happens to the money already in her account? She has contacted customer support and they simply told her to wait for the limitations to lift so it doesn't seem like a permanent limitation. Although she has been waiting since December and a fixed time for when the limitations would be lifted (if ever) would be nice.

[PayPal_Bindu]

Hello @Bay-fire 

Thanks for responding back! I understand your concern here! When an account is permanently limited, balance in the account will be held up to 180 days to minimize any potential risk during that period. After 180 days, customer will be notified about the ability to withdraw the balance. If the limitations are temporary, then the account holder has to resolve it by submitting the information listed in their resolution center. It usually takes 3-5 Business days to review the information. Once the limitations are lifted , the funds will be released y 21 days in the account holders balance. 

Thanks for the help @ kernowlass!

I hope this information helps, have a great day!

Bindu