Why Is My Money On Hold In Paypal

PayPal offers online sellers the ability to take credit card and e-check payments for their items online. While this process generally works smoothly, there may be times when PayPal places a hold on a payment that was received. There are a variety of reasons that this can occur. This hold can be placed on a payment for up to 21 days before the funds are finally released to the seller. Settling this situation requires proper documentation and helping PayPal answer a few questions.

Notify PayPal of any upcoming large sale amounts. PayPal may place a hold on an account that is suddenly receiving a large amount of sales, or if a big ticket item that is not normal to the account is sold. One way to ensure that your payments will not be held is to contact PayPal directly. Let them know of a new marketing promotion you are doing that may result in increased sales, or let them know when you list a big ticket item for sale. If you are upfront with them, this will reduce the chances of having your payment held.

Document the entire sales transaction. Be prepared to fax PayPal copies of the item's description, the buyer's receipt and the shipping receipt for the item to verify that it was sent. Typically, once the buyer receives the item the payment hold will be lifted.

Stay in contact with buyers through each step of their transactions with you. In some cases, a payment hold may be placed on a transaction if the buyer is unsure about your company or has filed a claim against you. Make sure that your customer gets his receipt automatically upon purchase and if he has any questions or concerns, address these promptly to avoid any misunderstandings.

Keep your PayPal account in good standing. Payment holds are common for newer online sellers who have been using PayPal for less than a year, or for sellers who have a lot of complaints, claims or negative feedback on the PayPal partner site EBay. Make sure your balance is always in the positive in your PayPal account and promptly settle any issues that may arise with them. Once you are a longstanding member with a good history, the chances of having a payment hold will decrease.

Avoid offering "high risk" items if at all possible. Selling items such as tickets, cell phones or non-tangible items, such as gift certificates, may flag a PayPal hold especially if you have not sold these items in the past. If you are going to sell these items, or have just a few to sell, notify PayPal. Communicating your selling plans with PayPal allows them to understand your business and clear up any potential confusion.

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Writer Bio

Kate McFarlin is a licensed insurance agent with extensive experience in covering topics related to marketing, small business, personal finance and home improvement. She began her career as a Web designer and also specializes in audio/video mixing and design.