PayPal will send a refund to a buyer whether you have money in your PayPal or not so I don't see the point for the hold either. On another note, PayPal does not care for the seller at all. My brother closed his PayPal after he sold an item on eBay for $250 and the buyer said they did not receive it. A case was opened on eBay at which point the money was obviously held by PayPal. UPS luckily takes pictures with their handheld device when leaving an item on the porch so it showed the item was delivered and left on the porch. UPS and eBay agreed my brother sent the item and fulfilled his responsibility as the seller and PayPal released the money. About 2 months later the crook buyer opened a case with PayPal and PayPal agreed to refund his money although eBay and UPS agreed the buyer received the item months ago. My brother's PayPal account was deducted the refund, so now he has no money and no product while the buyer obviously lied and received a $250 item for free now. Needless to say he closed his PayPal account but the way eBay scares buyers that don't pay with PayPal his sales are minimal compared to before. So don't tell me that PayPal holding my $5 is for the safety of both parties if they can just take the money from me whenever somebody wants their purchase for free. I wish their was a better way but until we get eBay to stop pushing PayPal payments from buyers (because no matter how you pay eBay will still refund your money if the seller really does **bleep** you over so using PayPal is moot) and letting them feel safe whether it's by credit card or any other online money transfer company then we are bullied into their rules of operation.
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