HORRIBLE IDEA TO HOLD FUNDS FOR 21 DAYS!!!

[gearhed78]

  Holding funds from sellers until the buyer leaves feedback is the worst idea EVER! Since when does Paypal become an authority on buyer satisfaction?? A smooth transaction is all that I wanted from Paypal. If they are going to hold funds, then they should make it very clear BEFORE you use them!  Keeping my money in their account for 21 days is a HUGE disadvantage of using Paypal. Stick to transferring funds,not trying to be a satisfaction authority!

[masey1951]

I called paypal this morning because I have sold 5 items that have been delivered and positve feedback was left for me. (All shipped out of my pocket)

BUT With that said.. according to PAYPALS police they can hold new users funds for up to 21 days OR .. BIG OR.. they WILL be released before then IF they have been delivered and you can show this w/ tracking that PAYPAL has because I am printing my shipping using PAYPAL OR a positive feedback is left for you.

I met all this .. 4-5 days ago!!!!!!!! I have emailed.. worthless waste of time... as all you get are auto msg's that have nohting to do w/ why you write them.. so I called............. and she says... well "we do stand behind our policy" I said then why are you still holding my money? Well let me look she says.. and she says.. OOOOO I will release those funds to you..

I then ask.. HOW can you have a policy that you expect me to follow when PAYPAL DOESNT?

She says.. well after 3-5 more days.. it would have released them auto. So that is more time they really hold money...and as I pointed out it sure doesnt say THAT in thier policy.

AND....TO TOP IT OFF........she told me why dont I ask buyers to leave 5 star feedback as soon as they win, before you evenship the items...... that way I can get my money and ship to them out of thier money....... I mean is this place for real???? REALLY?

I said you are in violation of your policy and she says.. no Im not.. like it was personal... jesssssssssssssss I hung up and shortly after that I got a email... explaining this below to me... which means... till I reach 20 sales and it sounds like more according to this forum, I will have to call EACH AND EVERY TIME I MAKE A SALE TO GET MY MONEY. WHAT BULL! Makes me so upset.

I saw Ebay offers other ways to get payments BUT on one you msut be a top seller w/ like Silver status and that means I am months or years form that and 2 they want even more private information about you and after this fiasco.. I wont give anymore of my private info out.

Ebay item holds are used to improve security and buyer confidence on
eBay. For new sellers or sellers with less-than-optimal customer
satisfaction ratings, payments may be held as a precaution until the
buyer receives their item. Your payments will typically not be held if
you meet all the following requirements:
    * You have been an eBay member for 6 months or more.
    * Your total feedback score is 100 or greater.
    * Your buyer dissatisfaction percentage is less than 5%.

Or, if you meet all the following requirements:

    * Your average detailed seller rating is 4.5 or greater.
    * You have received 20 or more detailed seller ratings in the last
12 months.
    * Your buyer dissatisfaction percentage is less than 5%.

If you’ve had more than 5% dissatisfied buyers in the last 30 days, you
are required to offer PayPal or a merchant credit card.

......................

As you CAN see.. PAYPLA is blaming it on EBAY.. but as they are owned by Ebay I guess its a easy way to pass the buck... (ours)

I understand policys.. but 1. If "I" must follow them.. then why the **bleep** dont they? 2. IF "I" must wait on MY money why dont they have to wait on collcting thier fee's that added up w/ the other thousands they get make a nice bit of interest for them while we put more money out shipping to the customer, put out our products and get nothing but worry over will we get our money at all?

Unhappy seller!

[Horsepoo]

I too was a vitim of Pay Fail, I did every thing right.. as a result the only ones that made out were the buyer- they have the item- ebay they have their fees.. Pay Fail- they have their fees, and I'm still out my money. I called the support # and asked them if they are holding my money in an interest bearing account and was told no they aren't holding it they just haven't released it yet.. WTF ? is that.  I was told that I could not accept money orders because they are not considered a secure payment and con not be tracked... BULL **bleep**... ONCE AGAIN THE GREEDY ARE GETTING GREEDIER...  WILL WE HAVE TO BAIL THEM OUT TOO!!  I am done with them, as soon as I can get my money!!

It's time the American people stop letting these companies take advantage there are other options out there, and if we all stick together they will be out of business. Stand up and be counted!!!!

[cmaypay]

WOW, YOU JUST HIT THE NAIL ON THE HEAD.  YOU ARE CORRECT, DON'T BELIEVE PAYPAL, THEY WOULDN'T DO THIS UNLESS THEY WERE MAKING MONEY DOING IT.  I ALSO WAS STARTING UP A DROP SHIPMENT BUSINESS, BUT NOW AM RETHINKING THE WHOLE THING.  I JUST DON'T GET HOW THEY CAN LEGALLY HOLD YOUR MONEY, THEY ARE NOT A BANK OR CONTROLLED BY THE FEDS?  HMMMM.  MONEY LAUNDERING. IS THAT WHAT YOU CALL IT.  THEY WILL LOOSE A LOT OF BUSINESS OVER THIS.  EBAY SELLERS SHOULD JUST ACCEPT  CHECKS OR GET THEIR OWN MACHINE AND RUN CREDIT CARDS, IT COULDN'T BE ANY MORE EXPENSIVE.  TAKE MONEY ORDERS AND CASHIERS CHECKS OR USE WESTERN UNION.  THEN I GUESS BUYERS WILL HAVE TO WAIT A LITTLE LONGER FOR PRODUCT, UNLESS SELLERS HAVE THEIR OWN FUNDS BUDGETED FOR SHIPPING AND HOLD SHIPPING MONEY AS IT COMES IN TO THE ACCOUNT FOR THAT PURPOSE.  HOW MUCH A MONTH DO YOU SPEND ON AVERAGE FOR SHIPPING OR QUARTERLY OR YEARLY AND SET IT ASIDE WHEN YOU DO A STARTUP OR IN YOUR YEARLY BUDGET PROCESS OF INCOME AND EXPENSES GUESSTIMATES.  DON'T KILL YOURSELF OVER IT, BUT MAKE A BESST GUESS EFFORT AND THEN KEEP A MONTHLY, YEARLY TRACK OF SHIPPING COSTS FOR YOUR NEEDS, SO YOU HAVE FUNDS TO SHIP PRODUCT.  DROP SHIPPERS, ALL YOU GET IS THE MONEY YOU NET, SO YOU AREN'T PAYING THE SHIPPING OUT OF POCKET, IT GOES TO THE SUPPLIER AND IS PAID OUT, I BELIEVE., SO EBAY I DON'T THINK  IS INVOLVED WITH YOU ON THIS.  WELL, HOPE SOME OF MY WORDS OF WISDOM HAS HELPED.  I AM OUTRAGED AT HOW PAYPAL AND EBAY ARE RAKING IN YOUR MONEY AND YOU SELLERS ARE DOING A LOT OF VERY HARD WORK FOR THEM.  HHMMM. CMAY

[pikachoo]

Yes they are making money off every positive balance account. Even if funds are not pending or being held, they are collecting interest on ALL accounts. And as the copied statements below show, they also AGREE that our principal IS OURS BY RIGHT AND THEY HAVE NO RIGHTS TO IT! So why are they holding them?

5.1 Balances. You do not need to maintain a Balance in your Account in order to make payments. If you do hold a Balance, PayPal will hold your funds separate from its corporate funds, will not use your funds for its operating expenses or any other corporate purposes and will not voluntarily make your funds available to its creditors in the event of bankruptcy. While your funds are in our custody, unless you enroll in the Money Market Fund sweep, PayPal will combine your funds with the funds of other Users and place those Pooled Accounts in one or more bank accounts in PayPal's name. Balances in U.S. Dollars that are held in Pooled Accounts may be eligible for FDIC pass-through insurance.

5.2 Assignment of Interest to PayPal. You agree that you will not receive interest or other earnings on the funds that PayPal handles as your agent and places in Pooled Accounts. In consideration for your use of the PayPal Services, you irrevocably transfer and assign to PayPal any ownership right that you may have in any interest that may accrue on funds held in Pooled Accounts. This assignment applies only to interest earned on your funds, and nothing in this Agreement grants PayPal any ownership right to the principal of the funds you maintain with PayPal. In addition to or instead of earning interest on Pooled Accounts, PayPal may receive a reduction in fees or expenses charged for banking services by the banks that hold your funds.

[fjp800]

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@pikachoo wrote:

Yes they are making money off every positive balance account. Even if funds are not pending or being held, they are collecting interest on ALL accounts. And as the copied statements below show, they also AGREE that our principal IS OURS BY RIGHT AND THEY HAVE NO RIGHTS TO IT! So why are they holding them?

5.1 Balances. You do not need to maintain a Balance in your Account in order to make payments. If you do hold a Balance, PayPal will hold your funds separate from its corporate funds, will not use your funds for its operating expenses or any other corporate purposes and will not voluntarily make your funds available to its creditors in the event of bankruptcy. While your funds are in our custody, unless you enroll in the Money Market Fund sweep, PayPal will combine your funds with the funds of other Users and place those Pooled Accounts in one or more bank accounts in PayPal's name. Balances in U.S. Dollars that are held in Pooled Accounts may be eligible for FDIC pass-through insurance.

5.2 Assignment of Interest to PayPal. You agree that you will not receive interest or other earnings on the funds that PayPal handles as your agent and places in Pooled Accounts. In consideration for your use of the PayPal Services, you irrevocably transfer and assign to PayPal any ownership right that you may have in any interest that may accrue on funds held in Pooled Accounts. This assignment applies only to interest earned on your funds, and nothing in this Agreement grants PayPal any ownership right to the principal of the funds you maintain with PayPal. In addition to or instead of earning interest on Pooled Accounts, PayPal may receive a reduction in fees or expenses charged for banking services by the banks that hold your funds.

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I absolutely agree!!! And I have to tell you what a PAIN it is now to comply with their new policy. Whenever my company mails an item... We now have to go to each individual sale lited in PayPal and add in the tracking number... Considering that we sell at least 20 items per day... That is a great deal of unecessary work... Maybe we can bill PayPal for the extra time needed to comply with their new policy????

[fjp800]

The new policy is OUTRAGEOUS!!!  This is what I have done as a protest and will continue to do!!!!!... I transferred all of my funds from PayPal to my bank account.  Spread the word and.. Just maybe, PayPal will get the message!!!  Withdraw all your funds as they become available!!!

Like we do not have enough to do!  Now I have to really push for feedback OR .. If not purchased via E-Bay..keep track of every item we mail AND notify PayPal when they are delivered.. I sell in volume and they [PayPal] has NO idea what a Pain this new policy is. Or if they do.. they just don't give a crap about Sellers..  Let's not kid ourselves...  This new policy has nothing to do with Buyer Protection...  By holding YOUR money for up to 21 days.. They increase their profits!!!  We are not talking about pennies here.. We are talking about Millions of Dollars!

[gameaddicts2010]

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@fjp800 wrote:

The new policy is OUTRAGEOUS!!!  This is what I have done as a protest and will continue to do!!!!!... I transferred all of my funds from PayPal to my bank account.  Spread the word and.. Just maybe, PayPal will get the message!!!  Withdraw all your funds as they become available!!!

Like we do not have enough to do!  Now I have to really push for feedback OR .. If not purchased via E-Bay..keep track of every item we mail AND notify PayPal when they are delivered.. I sell in volume and they [PayPal] has NO idea what a Pain this new policy is. Or if they do.. they just don't give a crap about Sellers..  Let's not kid ourselves...  This new policy has nothing to do with Buyer Protection...  By holding YOUR money for up to 21 days.. They increase their profits!!!  We are not talking about pennies here.. We are talking about Millions of Dollars!

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So this is your big protest idea? If you are going to protest, why not just close your account? Find another merchant service that will make it as easy as paypal does to run your business. Find a merchant service with either the same or lower rates than paypal. I assume these are the reasons for you not closing your account in protest in the first place, correct?

[fjp800]

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@gameaddicts2010 wrote:

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@fjp800 wrote:

The new policy is OUTRAGEOUS!!!  This is what I have done as a protest and will continue to do!!!!!... I transferred all of my funds from PayPal to my bank account.  Spread the word and.. Just maybe, PayPal will get the message!!!  Withdraw all your funds as they become available!!!

Like we do not have enough to do!  Now I have to really push for feedback OR .. If not purchased via E-Bay..keep track of every item we mail AND notify PayPal when they are delivered.. I sell in volume and they [PayPal] has NO idea what a Pain this new policy is. Or if they do.. they just don't give a crap about Sellers..  Let's not kid ourselves...  This new policy has nothing to do with Buyer Protection...  By holding YOUR money for up to 21 days.. They increase their profits!!!  We are not talking about pennies here.. We are talking about Millions of Dollars!

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So this is your big protest idea? If you are going to protest, why not just close your account? Find another merchant service that will make it as easy as paypal does to run your business. Find a merchant service with either the same or lower rates than paypal. I assume these are the reasons for you not closing your account in protest in the first place, correct?

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The problem is that, like it or not, the vast majority of customers perfer PayPal... Especially on e-bay!  So, I reallty do not have a choice.  Even though using a credit card [Master card, Visa, etc] would cost me less in fees.  I tried Paymate in place of PayPal...and guess what... my sales went down.  Customers actally feel that something is not right if they buy from e-bay and they cannot pay for the item via PayPal.

You do what you can do.. and the best for sellers, like myself, is to  withdraw all the funds as they become available.. At times I had over $15,000 sitting in my PayPal accoount.. Today I have a few hundred dollars waiting for delivery confirmation.. and those funds willbe withdraw as soon as I can withdraw them... If everyone did this PayPal would rethink this policy..

[jlawhone]

Is that what's going on?? Because I have 4 or 5 paypal transactions that say completed, but my balance is ZERO. And it's never done that before.  So, now i have to beg my buyers to leave feedback just so I can get my money when the buyer gets around to leaving feedback??!  That's horrible. And I won't be using Paypal any longer, either.  Bad idea, Paypal. VERY bad idea.

[fjp800]

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@rmc wrote:

I agree that it is very problematic for PAYPAL to hold funds that do not belong to them. They do get their transaction fee but hold t he rest. Some of our sales are drop shipments which means that we do not purchase the product until it sells and the we ship using the customers payment, this hold down inventory and allows us to sell for less. Paypal and ebay's irresponsible policy threatens this entire process. The paypal rep tells me that their are reason why they do this and one is if your feedback total sales number is below 100 you automatically get held on occasion. I believe this may not be legal and we are seeing an attorney about this 12/18/09. Paypal says they do not accrue interest on the held funds but I don't believe it. This entire thing is wrong and very poor business practice. They must have so much business they don't care about loosing a few. I also asked this, Even though there may be a low total sales number there have been no troubles with any shipment or customers. Their answer, "It doesn't matter if you are a good business owner, only the number matters" They also told me basically that if I didn't like the policy I should feel free to cancel my account and go elsewhere. I hope everyone affected by this and those that are not yet affected will call, complain and seek a change in this stupid unprofessional policy.

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I am in TOTAL agreement with your post!!!!  I am a vloume seller and on any given day I have at $500.00 on hold... Most on this list is international... Thus on tracking for 1st class mail.... So my money is held for 21 days..MOST OF THE TIME!.. No feedback...No release of my funds!!! 😞