Hey all,
sandypurins has answered this question but there are two things I wanted to clear up.
- The main reason behind placing holds on payments is to reduce fruad on eBay and PayPal. From buying and selling on my own account I know the majority of fruad happens on high risk items and accounts new to eBay. Until a user becomes experienced, holds may be placed on their payments in order to safeguard the whole PayPal system. The more positive feedback gained as a Seller the more your reputation with eBay and PayPal is increased, which leads to holds being placed less and less.
- There is no interest gathered by PayPal as the funds never leave your account while the hold is placed. The funds are placed on hold within your account, they never leave. To PayPal, there is no different in funds on hold and funds that are not on hold. They are both within your account so no interest is gained.
I hope this information helps you all Wayne
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