Has anyone else heard of paypal holding payments until feedback is left ??

StaffsSW

jrm4 wrote: »

Paypal can and does earn interest on the money they are holding. They even combine many of the held payments and put them in one bank account so that the interest is higher. For some reason it is completely legal and they don't get in any trouble for it.

Can you clarify if this is "fact" or "opinion"...? Do you have any links or references to verify this claim?

As above, the money that is being held does not belong to Paypal, merely held in trust on behalf of the buyer until the prove they are satisfied.

I do worry about the "screamers" (to coin a phrase!) that make the most noise about having their funds held for 21 days.

jrm4

stevew8975 wrote: »

Can you clarify if this is "fact" or "opinion"...? Do you have any links or references to verify this claim?

As above, the money that is being held does not belong to Paypal, merely held in trust on behalf of the buyer until the prove they are satisfied.

I do worry about the "screamers" (to coin a phrase!) that make the most noise about having their funds held for 21 days.

Here is a link to a CNN report about PayPal holding funds and how the can gain interest http://money.cnn.com/2008/02/26/smbusiness/paypal_float.fsb/
And why do you worry abou the so called "screamers" you are referring to. Do you think that it's right for paypal to hold the sellers funds?

RFW I apologize for my past post I was talking about PayPal in the U.S. and I did not know that there was a different PayPal for the UK.

RFW

jrm4 wrote: »

RFW I apologize for my past post I was talking about PayPal in the U.S. and I did not know that there was a different PayPal for the UK.

No problem. There's quite a few differences, Paypal has more banking status in the US than here, although I believe that's due to change in the next few years.

I think the biggest fault with Paypal (and Ebay) is PR, they tend to do something that is unpopular without trying to explain it. The 21 days payment hold affects very few sellers but if you looked on this site alone you'd think it was a high percentage.

jrm4

I could understand them holding payments on sellers that have had some negative feedback or had disputes opened that they lost because of something they did. I have 100% feedback and have had one dispute that had to be settled by paypal which I won because I had done nothing wrong and they have held my last two payments one which is still being held. Thats what really gets me is why they are holding payments from sellers that have 100% feedback.

soolin

jrm4 wrote: »

I could understand them holding payments on sellers that have had some negative feedback or had disputes opened that they lost because of something they did. I have 100% feedback and have had one dispute that had to be settled by paypal which I won because I had done nothing wrong and they have held my last two payments one which is still being held. Thats what really gets me is why they are holding payments from sellers that have 100% feedback.

Feedback is meaningless, many scammers will hijack an existing account so holding funds for 21 days allows the buyer to notice that something is amiss.

StaffsSW

jrm4 wrote: »

Thats what really gets me is why they are holding payments from sellers that have 100% feedback.

Feedback can still be bought - a few ££ can buy you well over 250 positive feedback in a couple of days, ideal for duping unsuspecting buyers into thinking you have some sort of credibility.

markemarkpsv

kennyjosiah wrote: »

I have bought a few items this week on ebay - paid with paypal and then the buyer said I had to leave feedback before he could get the money released from paypal could I leave feedback and he would post - of course I was extremely dubious and refused - but I have now had a second seller asking me to leave feedback so he can get his money from paypal (he had already posted the item & I had received it and was great) - is this a new security measure as I have never heard of it before this week -

If its true it doesnt sound legal to me and absolutely ridiculous :mad:

Yes this is true. I am in battle with Paypal over two items because a newbie opened a case because he could not get a phone number for eBay. He opened that case with Paypal as "Item not received yet" this is two days after he has paid for the items (Dispatch within five clear working days) so the itemes in question are still not due for dispatch as of now, and the case has been open five days. I rang the buyer and he said he made a mistake because he wanted to get a phone number!!! Anyway the money for the items has now been held by Paypal even though the items are not due for dispatch yet. So the situation now stands, I will not post the items out because I do not have cleared funds as per my legal selling contract. So yes Paypal can do this even though it breaks the sellers original contract (Listing agreement). I say to all, eBay & Paypal who are the same people (Company) should learn a leson and if this happens to you go back to eBay and cancel your sale (You can do this without contacting eBay). This will make a lot of extra work for them and they will soon close these unfair loopholes in the system. I have 100% FB Power seller and top rated seller so they are not just doing this to newbies. A buyer is not entitled to the goods until the seller has the cleared funds. As for dispatching them and waiting for the buyer to leave fb before you get paid or waiting 21 days to be paid is a step to far in that Paypal is trying to control us and our money. How much profit is being made keeping millions of pounds locked up for up to 21 days?????? This is unfair and I bet only just legal doing this to sellers. Would you let your bank do this to you ???? I don't think so. This is one for the ginger nija on Watchdog.
We are the UK not the USA.:T

KiKi

markemarkpsv wrote: »

Yes this is true.

You know you're answering a question that's three years old, right?!

KiKi

charles111

kennyjosiah wrote: »

I have bought a few items this week on ebay - paid with paypal and then the buyer said I had to leave feedback before he could get the money released from paypal could I leave feedback and he would post - of course I was extremely dubious and refused - but I have now had a second seller asking me to leave feedback so he can get his money from paypal (he had already posted the item & I had received it and was great) - is this a new security measure as I have never heard of it before this week -

If its true it doesnt sound legal to me and absolutely ridiculous :mad:

Yes its happening to me as well. every item i sell on ebay is being held till i receive feedback from buyer saying they are happy before i can have funds received. I dont know why that is as i havent done anything dodgy in the past. Now am considering not to offer paypal on future listings as it takes too long sometimes up to 3 weeks to get money transferred to my account. Am sure its not legal but then again i dont think i can do anything about it.

Oliver14

charles111 wrote: »

Yes its happening to me as well. every item i sell on ebay is being held till i receive feedback from buyer saying they are happy before i can have funds received. I dont know why that is as i havent done anything dodgy in the past. Now am considering not to offer paypal on future listings as it takes too long sometimes up to 3 weeks to get money transferred to my account. Am sure its not legal but then again i dont think i can do anything about it.

You have to accept Paypal to sell on ebay. If you haven't sold on ebay for a while or the items you sell change the hold sometimes reappears. The quicker you send the item the quicker you get your money.

Just think of it like this by putting this hold in place paypal have now managed to increase both buyer and seller protection on and off ebay. So it is in fact a good thing even if its a PIA for you.

Ohh and this thread has risen from the grave for some reason.