PayPal holding payment from customers

rayal

I have sold some building products on eBay and the customers has paid using PayPal, but PayPal are holding the payment before it is released into my account for 20 days. I have used eBay for several years now and never had a problem I have 100% positive feedback on two accounts. With PayPal now holding the payments, I pay for the rather expensive postage due to weight through Paypal but it comes off of my credit card because they are holding my money. They charge there fees and they are earning interest on our money, surely this can't be legal? I have emailed PayPal and have had a reply but to me it's unsatisfactory and I have told them that I do not accept there explanation even though its now there policy. They are holding £130 of my money would it be fair to hold on to the product until I receive the money thereby having the customer wait. More and more I use the Internet for purchases and providing a service, PayPal has made me rethink my options.

theonlywayisup

Hi, don't worry. This is set in place for new accounts, old accounts which haven't been used for a while, high amounts, odd items or just about anything PP see fit to hold for.

Your funds are held until the buyer leaves feedback or 21 days after payment, whichever is soonest.

soolin

If you don't send the goods the buyer just gets their rmoney back, so the faster you ship the faster your money ir released.

The 21 day hold came in about a year or so ago and is dependent on selling history and type of product.

magpiecottage

Without considering the merits of the case, you may like to know that Paypal is covered by the Financial Ombudsman Service. If you have told them that you are dissatisfied and their response still leaves you dissatisfied you can ask it to look at the complaint provided your turnover is less than £1 million.

From what you say, you can now go to the Ombudsman. This will not speed up your payment but you may get reimbursed for extra expense and possibly a little for inconvenience caused.

theonlywayisup

magpiecottage wrote: »

Without considering the merits of the case, you may like to know that Paypal is covered by the Financial Ombudsman Service. If you have told them that you are dissatisfied and their response still leaves you dissatisfied you can ask it to look at the complaint provided your turnover is less than £1 million.

From what you say, you can now go to the Ombudsman. This will not speed up your payment but you may get reimbursed for extra expense and possibly a little for inconvenience caused.

And this is pointless. Paypal T&C are signed up to and updated periodically. By keeping your account you agree to them. This has been in place for some considerable time as Soolin says. So, you either do what they say or they keep your money for 180days!

soolin

magpiecottage wrote: »

Without considering the merits of the case, you may like to know that Paypal is covered by the Financial Ombudsman Service. If you have told them that you are dissatisfied and their response still leaves you dissatisfied you can ask it to look at the complaint provided your turnover is less than £1 million.

From what you say, you can now go to the Ombudsman. This will not speed up your payment but you may get reimbursed for extra expense and possibly a little for inconvenience caused.

The 21 day hold is fairly standard and it seems pointless to go to the ombudsman man which will merely have the funds held for the full 180 days instead pending review.

This hold was brought in to safeguard buyers, sellers now have to prove that buyer has goods, or wait 21 days for funds to be released, it saves scammers running off with the money.

RFW

rayal wrote: »

They are holding £130 of my money would it be fair to hold on to the product until I receive the money thereby having the customer wait.

No, its a sure way of never receiving payment.

Brooker_Dave

theonlywayisup wrote: »

And this is pointless. Paypal T&C are signed up to and updated periodically. By keeping your account you agree to them. This has been in place for some considerable time as Soolin says. So, you either do what they say or they keep your money for 180days!

Unfair conditions don't count.

HTH.

Brooker_Dave

rayal wrote: »

I have sold some building products on eBay and the customers has paid using PayPal, but PayPal are holding the payment before it is released into my account for 20 days. I have used eBay for several years now and never had a problem I have 100% positive feedback on two accounts.

It's a way for ebay/paypal to earn extra money, you can just imagine how the interest on all the held payments must add up nicely.

Consider using gumtree (ironically taken over by ebay) or the freeads in future.

rayal

I just hate being dictated to, of course I will send and have sent the products but it doesn't stop me being peeved, I served my country for 20 years and have run a successful small business for 20 years since and I get wound up when treated like a fool, I thank you all for your comments and answers but they can take Financial Ombudsman and periodic update of the rules etc and do as monkeys do with them. I will not be accepting PayPal payments in the future and I will do my level best warn people of there big brother antics.

I know I will get little success in my venture and it will be insignificant to organisations like PayPal but it will give me satisfaction in standing up and making a statement, after its the old saying ...... "if it wasn't for us they wouldn't be where they are".

I don't accept that it safeguards sellers and buyers, and lets not be naive to think it prevents scammers getting there hands on our money, it just seems to me its a way for PayPal to make a bundle in interest........

..... and yes 'magpiecottage' my turnover is less than a million ............. just

RFW

Brooker_Dave wrote: »

It's a way for ebay/paypal to earn extra money, you can just imagine how the interest on all the held payments must add up nicely.

Consider using gumtree (ironically taken over by ebay) or the freeads in future.

Much as you'd like everyone to believe this it still isn't true, even in the US where they are allowed to earn interest on held funds they distribute it back to customers who have been affected.