NEED HELP!!!
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i use a drop ship company, which means i dont have a product at my residents that i can send, i am selling a product from another residents and making profit, however paypal has put a hold on my account to ensure that the customer i just sold to gets there item or i can make a refund, but as long as theres holds on the account i can not send money to the drop ship company for him to get his item...

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iloutoyou- You are running into one of the reasons why we're not big fans of dropshipping on PayPal. Unless you have enough overhead to cover the purchases, the slightest interruption to your cash flow can cause a serious problem. Another reason we have issues with dropshippers is if the quality of the item isn't as you've advertised, you're responsible for any potential loss associated with disputes, not the dropshipper.
If you find it hard to pay for one item for a seller, imagine trying to cover thousands of dollars due to people disputing that they're not getting what they ordered. And this very problem is what PayPal holding the payment helps alleviate. If we're holding the funds and the buyer files a dispute, you don't have to worry about covering a negative balance in your account since the payment is already held.
I know it's difficult with something like this, but in most cases those holds are there to minimize your risk and exposure financially.
Andy
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Hi Andy,
I have a question: Because we also use dropshipping as one method of selling, it is difficult wait the 21 days for payment release. Is it possible to waive the 21 days if the funds are in my secured bank account? The reason I ask is that we prefer to keep our funds in our paypal account for business purposes, and keep our bank account for personal purposes. The only exception is the personal input from our bank into our paypal account for monthly fees from places like eBay.
We run our company on customer satisfaction! Should our customers decide, for any reason, they want to return their purchases, we are happy to refund them. We have a Money Back Guarantee! This has resulted in PayPal assuming we are a high-risk company, which is not the case at all! Just as the customer in a brick-and-morter store has a time period to return unwanted items, we also would like to extend that privilege to our customers. It doesn't mean the product or transaction was faulty, it just means the customer has changed their mind! Does the fact that PayPal considers this procedure as high-risk mean that such a courtesy is not possible online? I am very concerned!
For example: In regular business bookkeeping/accounting, it is customary for businesses to have access to their ownership accounts for occasional debiting into their business. However, it is standard for a business to use their profits to fund further transactions, and save the personal owner account only for exceptions and not the normal daily transactions of the business. So, if I reserve enough funds into my PayPal account to cover all transactions, is it still necessary to have the 21 day time delay? How much is the minimum balance PayPal will accept to prevent the delay altogether?
Also, what are your Detailed Seller Ratings ( DSRs )scores, and where do I go to find what mine is? Is there such a thing on PayPal as Chargeback Insurance?
I hope I made sense... if you could let me know, I'd appreciate it, as emails to PayPal and eBay have gone unanswered.

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