paypal keeping funds

[muff111]

Why is it ok for paypal to now hold funds on item paid for over 55 days ago because out of the blue buyer disputes, I said send it back for refund, ebay said its too late for that, so she goes to paypal and they place a hold on my money and she never sent a tracking number or proof of return item, now I have to wait another 14 days for paypal to make its decision which will be in my favor, until then I can't touch money, why?

[surplusdealdude · Accepted solution]

Because they don't want to have to send a collection agency after you if you refuse to pay.

Because you gave them the right to do it when you signed the User Agreement.

[muff111]

it seems wrong that they have the item, wont return it, Im out the money until they make final decission on the case, all the buyer said was the changed their mind and need the money but doesnt want to return the item, I would think this is a open and close case if they dont return the item, but no. moneys still on hold....collection agency wouldnt have to come after me anyway as I am out both the money and item

[surplusdealdude]

Nobody ever promised you that life would be fair.

collection agency wouldnt have to come after me anyway as I am out both the money and item

But you have other money and items - they'll take those, instead.  Collection agencies are very good at that.

[smokinjoewide]

I just love how this thread is marked solved . Surplusdeal regurgitates the same answer he/she posts to every other question. 

[dwaldie]

Here's an email I sent Paypal this week...:

Your rolling reserve is unfair and illegal! As soon as my funds are available I am done with your service. I am a rental property owner with no physcial tranactions of merchandise. Your reasons for a rolling reserve do not apply to me and are obviously false statements so your company can earn interest on my funds!! You should be ashamed and I'm absolutely sure your business will suffer due to this appauling decision.!

I am extremely disappointed and although I am a small transaction business now, when I grow to be very large, you will not be on my list of service providers...

I am also reporting Paypal to the better business bureau!!

Good luck with your shady business practices, what goes around comes around....

[jay2you]

I AGREE THIS ROLLING RESERVE IS OUT OF CONTROL!  I DONT SELL ALL THAT VERY MUCH BUT NO MATTER WHAT THEY END UP EVENTUALLY WITH AT LEAST HALF MY BALANCE IN THIS RESERVE OR WHATEVER THEY WANT TO CALL THIS LITTLE INTREST SCAM OF THIERS. IVE GOT PERFECT FEEDBACK AND NEVER HAD A CHARGEBACK,  ARE THEY DOING THIS TO EVERYONE IF SO THEY ARE RAKING IN THE CASH FROM ALL THE INTREST FROM  OUR MONEY THAT THEY ARE HOLDING BACK.  IM JUST TOTALLY BAFFELED IS THIER SOMETHING IM NOT DOING RIGHT OR WHAT HERE AS THEY END UP HOLD ING MOST OF MY ACCOUNT BALANCE AFTER LISTING FEES AND ALL THAT HAPPY STUFF,THEY MAKE MORE OFF MY STUFF THAN I DO!

[jay2you]

IM THINKING THIS CANT BE LEGAL.  THIS IS TOTAL MISAPROPRIATION OF OF FUNDS THAT DONT BELONG TO THEM NOR DO THEY HAVE OR HAVE EVER ASKED FOR PERMISSION TO JACK ALL OF US UP IN THIS MANNER!

IVE WRITTEN TO THESE PEOPLE  TILL IM BLUE IN THE FACE AND CALLING THEM ON THE PHONE IS LIKE A POLITICAL NEWS CONFERENCE, THAT BEING A WHOLE LOAD OF RHETORICAL NONSENSE.

MOST OF US HAVE NEVER HAD A CHARGEBACK AND WE HAVE GOOD FEED BACK SO THAT WHOLE PLATFORM THEY ARE USING DOES NOT HOLD WATER. I COULD RESPECT THEM MORE IF THEY JUST CAME OUTRIGHT AND SAID HEY GUESS WHAT WERE JACKING ALL YOU FOOLS UP AND YOU CANT DO SQUAT.

IF WE ALL START CALLING AND LET THEM SPEND ALL DAY TALKING TO ANGRY PEOPLE MAYBE THEY WILL GIVE THIS CRAP UP. I DONT KNOW IM JUST WAY MAD OVER THE WHOLE THING.

[lion276]

I totally understand your anger.    I spent over a month all stressed out over it.  I kept trying to figure out why they were holding funds on sellers with spotless records.....spotless records that go back for YEARS.  I finally figured it out.  They are targeting those sellers because they are practically guaranteed to make interest.  There is very, very little risk of proven sellers doing something illegal or having problems with their buyers.    Since paypal makes interest off all the money they are holding wouldn't it make sense to hold the funds of the BEST small-time sellers?   They are thousands upon thousands of us small-time sellers.   Each of us alone don't amount to much....but put us all together and we are bigger than most companies. 

[pebbles]

The 21 day hold became PayPal in 2008 and no effective legal actions have taken to overutrn it.I am truly surprised.