Item collected but account says - You'll receive your funds within 1 day of delivery.

[JillBW]

I just sold a desk that someone came to pick up & they paid with Paypal - my account is now saying - You'll receive your funds within 1 day of delivery. How do I tell the system it isn't being delivered?

Thank you

[kernowlass]

@JillBW 

Be careful as you have no paypal seller protection for items personally delivered or collected.

They can file a dispute for non receipt of item and if you can't prove delivery with tracking then they would get their funds back again.

However >>> 

With payments received for tangible goods Paypal would request valid tracking information confirming the item has been delivered to the buyer. They can validate the tracking information online, so once it is delivered they can release the funds. IF you have received the funds for a service / virtual or digital sale or no tracking number is applicable Paypal would be unable to release the funds any sooner than 21 days.

However If you mark the transaction as processed then the buyer may have the option on their account to mark the transaction as delivery/satisfied. If the buyer confirms this by clicking on the "Confirm Receipt" button, funds may be released sooner ie 7 days after the buyer verifies receipt. This is not always available or guaranteed. 
If not then sadly its 21 days.