PayPal 90 day 10% reserve - Good or bad?

steven_garner

I always hear other sellers moaning about PayPal reserves and been fortunate enough not to have had one on my account,

I recently applied for Website Payment Pro as I believe this will give my customers between means of payment and in return bring more sales to my site but PayPal want a rolling 10% deposit over 90 days.

So basically everything I make today PayPal will hold 10% of it and return it in 90 days, tomorrow they will take 10% and hold it for 91 days ect.

I don’t see much of a problem other then the first 3 months (currently 10% over 90 days will be around 4K)

Do any other medium sized sellers have this sort of limit? is it working for you?

Currently the company has no debts and stock is purchased outright so it should cause too many issues after the initial 3 months, the major downside for me is the timing, this is 4K of stock im unable to purchase on the run up to xmas.

Will PayPal negotiate on this, maybe 10% over rolling 30 days? Has anyone been successful negotiating this?

Cheers

Steve

Maysie

i know someone who was totally shafted with this. Even 6 months after they had stopped selling on ebay they would not let them have there money back. This was a seller with over 40,000 feedback before they stopped selling. No disputes open no one after a refund. They had been selling for 3-4 years when it came into effect. In the end after being told by paypal countless things and getting really frustrated they just randomly tried sending me some money (about 9 months later i think) and it came from the rolling reserve figure. So they quickly sent me the balance as a personal payment so i could give them the cash. It was really ridiculous. I would be very wary. Paypal are a law unto themselves.