Why are my funds on hold?

[nickada]

I am a treasurer for a homeowner’s association (HOA). Because my neighbors asked, In 2019 I started using PayPal to invoice and collect HOA dues. I’m trying to be aboveboard and professional, so I set up a Goods and Services account.

I am NOT selling anything; I am collecting HOA dues. I have not had any problems for the past three years. All of a sudden PayPal is holding the funds for three weeks.

I asked to have my hold threshold increased, but I was denied without any explanation, and I cannot ask for an increase for another month.

PayPal is now charging me more than $ 16 to hold the funds from each of my neighbors for twenty-one days.

While PayPal is convenient for my neighbors, it is NOT convenient for me, nor is it economical. This is unacceptable. Unless this issue fixed soon, after this year’s collections, I will NOT be using PayPal.

[kernowlass]

@nickada 

Depends as to how the payments are sent as to whether you are considered a seller or not.

If they sent using goods/services OR you sent an invoice / money request then you are a seller and subject to the new seller hold as per link below.

https://www.paypal.com/us/smarthelp/article/my-payment-is-on-hold.-why-is-this-happening-faq3297

If sent using friends/family then its a gift payment.

However if you are not a seller why do you have a business account?