Why is PayPal holding funds for sellers? This is a question asked by many sellers who experienced a time when their funds are unavailable.
Here you will find out why PayPal holds sellers funds, and ultimately how to get those payments released sooner.
How Long is PayPal Holding Funds
A seller payment can be placed on hold by PayPal when there is an issue with an order.
Paypal usually hold funds for 21 days or less, during which the money still belongs to the seller.
Those funds will be available for withdrawal by the seller once PayPal gets a confirmation that the buyer received the item ordered in the condition promised.
5 Reasons For PayPal Holding Funds
PayPal holds a seller funds for multiple reasons as defined in their user agreements.
– First-Time Seller & PayPal Holding Funds
New PayPal sellers can move out of this status by building up a history of positive selling activity and confirming their identity.
– Unusual Selling Pattern
Including changes in the average selling price, items sold, business platform and new spike in sales.
– Higher Risk Items
Including tickets, gift cards, consumer electronics and travel packages.
– Dormant Selling Activity
A seller needs to rebuild a positive history of buyer-seller transactions after a dormant activity for a long time.
– Disputes and charge backs
When multiple customers file for a refund, dispute, or charge back.
Visit PayPal User Agreement-Restricted Activities and Holds page for more details.
Tips To Expedite the Release of Money On Hold PayPal
Unless there is a problem with an order, a seller should be able to expedite the availability of their funds by:
– Printing a USPS or UPS shipping label from their PayPal account
– Adding tracking information
– Notifying the buyer to confirm the order
– Preventing refunds, disputes, and charge backs
Advantages of Using PayPal for Sellers
A seller with a paypal account won’t have to wait for customers checks to arrive in the mail and clear in their bank account. They also pay lower transaction fees to paypal comparing to what credit cards companies charge.
PayPal also offers seller protection policies that may cover losses from products lost or damaged during shipment, and allows sellers to dispute charge backs in their paypal account.
