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!

[ajuliafan]

Well I agree... I belive this is just ridculous. I lost my tracking number and my buyer left false negative feedback stating the phone was damaged even she declined insurance and never contacted me to inquiry about either. Now I have to wait 21 days for money that is rightfully mine!!!!! This is not how business is handled in the real world.

[femsol]

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@ajuliafan wrote:

Well I agree... I belive this is just ridculous. I lost my tracking number and my buyer left false negative feedback stating the phone was damaged even she declined insurance and never contacted me to inquiry about either. Now I have to wait 21 days for money that is rightfully mine!!!!! This is not how business is handled in the real world.

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Your situation is exactly what I was afraid would start to happen. eBay/Paypal in their infinite wisdom and weak attempts to explaint this as protecting the buyers has opened up a whole new world to scammers leaving sellers very vulnerable.  I would suggest that if you continue to use eBay and Paypal then in your listing  state firmly that insurance is required at the expense of the buyer.  You have your insurance certificate and confirmation and a claim can be filed.  It is ridiculous to go through those steps though when you can just start doing business on alternate auction sites and payment processors  that are welcoming us with open arms.

[sandypurins]

The 21-day part is in section 10.6 of PayPal's User Agreement...

10.6 eBay Item Hold. PayPal, in its sole discretion, may place a hold on a payment you receive for an eBay transaction when PayPal believes there may be a high level of risk associated with the transaction. If PayPal places a hold on your payment, it will show as "pending" in your PayPal Account.

a. Release of eBay item hold. PayPal will release the eBay item hold after 21 days unless you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the hold. PayPal may release the hold earlier if either of the following applies:

b. The buyer leaves positive feedback on eBay, or (ii) PayPal can confirm delivery. PayPal will confirm delivery if you use USPS, UPS or FedEx to ship the item and (i) use PayPal shipping labels, or (ii) upload tracking information to PayPal via the transaction details page. This applies to US domestic transactions only.

c. Additional hold period. If you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the eBay item hold, PayPal may hold the payment in your Account until the matter is resolved pursuant to this Agreement.

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/UserAgreement_full&...

[berryfine1]

Okay, I get all that and it's fine, I get that it's for protection, not problem.  However, just wondering, can you use the funds you recieve to ship via paypal shipping.  I'm just starting out on ebay and have 36 auctions ready to end I know paypal is the best way to ship so are they going to let me use the money the buyer paid for shipping to actualy ship the item?

[sandypurins]

If the buyer's payment is held, you will not have access to any portion of the payment to pay for shipping... you will need to purchase shipping using other funds.

[berryfine1]

Okay, so I just started selling.  I have 0 feeback and a new paypal account, does this mean that they will automaticly hold all of my funds?  I am really upset that I will not be able to use the money the buyers send specifically for shipping to actually ship their items.  Is it standard practice that because I am new they will automaticly hold all funds?

[femsol]

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@berryfine1 wrote:

Okay, I get all that and it's fine, I get that it's for protection, not problem.  However, just wondering, can you use the funds you recieve to ship via paypal shipping.  I'm just starting out on ebay and have 36 auctions ready to end I know paypal is the best way to ship so are they going to let me use the money the buyer paid for shipping to actualy ship the item?

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I have never used PayPal shipping as I always assumed there was another hidden fee.  I downloaded the USPS Shipping Assistant for free years ago, you can print your labels with or without postage and delivery confirmation is free.  I am a casual seller, the post office is within walking distance and as I do not have an accurate scale I always print without postage.  You have a USPS labele with a tracking number immediately no matter what the size of the package.  I would rather the post office tell me the exact postage then PayPal--that is how much I trust them not!

[dm3372]

PayPal does not have the legal authority or the right to hold people's money until there is a dispute or until after 21 days. The number of days to file a dispute is 45 days after the seller receives the payment and before the buyer receives the product. Then if something goes wrong, the buyer would have until 45 days to file a dispute, not 21 days while PayPal holds the money.

I feel sorry for PayPal, but believe me or not, PayPal have to have the legal authority to do that. And unless they have the legal authority to hold funds for 21 days for any reasons, it's illegal and can end up with lawsuits and challenges in the Court. The Government have to agree to pass the law to allow PayPal to hold funds, which is not going to happen.

[femsol]

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@dm3372 wrote:

PayPal does not have the legal authority or the right to hold people's money until there is a dispute or until after 21 days. The number of days to file a dispute is 45 days after the seller receives the payment and before the buyer receives the product. Then if something goes wrong, the buyer would have until 45 days to file a dispute, not 21 days while PayPal holds the money.

I feel sorry for PayPal, but believe me or not, PayPal have to have the legal authority to do that. And unless they have the legal authority to hold funds for 21 days for any reasons, it's illegal and can end up with lawsuits and challenges in the Court. The Government have to agree to pass the law to allow PayPal to hold funds, which is not going to happen.

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for those not aware and believe this is illegal the user agreement is being contested in a class action law suit and the links can be found throughout these pages but many of us keep posting it as it is not too late to join. I always like to caution though that if you enter into the class action thinking there is money to be had that is generally not the case--I joined in the class action out of principlie and wanting eBay/Paypal to confront these issues and apparently since the US Federal Reserve and the FTC are not taking at the actions that India, Japan, Australia and the European Union banking authorities are taking to either stop paypal practices and/or starting to investigate.

Here is the link if you want to read the law suit and it lists the law firm info with contact number to add your name and story--letssuepaypal.com   

 

[acousticlisa]

This is bull**bleep** the funds hold. I have 100% positive feedback. Most people never leave feedback anymore because according to Ebay, it doesn't matter anymore. Now not only am I being dinged fees for shipping, I can't access MY **bleep**ing money. I'm **bleep**ING **bleep**!!!!!