Ebay/PayPal holding funds for three weeks.

[crus001]

PayPal is now holding funds that belong to the seller for three weeks. They are expecting seller to ship item before they release the funds. This is not right. How can they expect a seller to ship the item when the seller has not received payment? Yes it shows the funds are in paypal account but you can not transfer to your bank account for three weeks. At this point you are out the ebay fees, the paypal fees, the shipping costs and the value of the item you are selling while Ebay/PayPal is sitting there with your money drawing interest for them. Ebay has turned into one of the biggest thieves online today. It is on the verge of being a scam. I think that sellers like me should join together and start a class action suit against them. Other sellers give me your feedback on this issue.

Bob

[furniturem8kr]

It looks like ebay is forcing you to use their ship lables...then as they put it you will recieve funds quicker..This is not right.

[hondamedic]

Hi Bob and welcome to The Part Timers Forum.

PayPal recently released the info you need at this> https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=security/ebay_payments_learn_more&...

After reading up on it, f you have any questions please feel free to ask.

Hope this helps!

[kilnntime]

Paypal was holding my funds on my new account,  it never took 3 weeks to clear , I shipped the next day, put the tracking in and it released generally in less than a week.   I have less than 10 feedback and Paypal has removed my hold on funds.   This account , I don't think I have ever had a hold on it,  but then I have had it since 1998.

[luckys-book-collection]

   CANT  FIGHT  SOMETHING YOU  AGRED  TO  ,  WELCOME  TO  THE WONDERFUL  WORLD  OF    F  E  E B A Y

[kilnntime]

   CANT  FIGHT  SOMETHING YOU  AGRED  TO  ,  WELCOME  TO  THE WONDERFUL  WORLD  OF    F  E  E B A Y

Yep that too,  you agreed to it when you decided to list on ebay and get paid via paypal.  Its in the mice type

[crus001]

I have never agreed to this. In fact I have had my ebay and paypal accounts for over 10 yrs and they have never done this to me before. How can they expect me to ship an item that I have not been paid for, they have, but I haven't. I have never had a claim opened against me and I have sold over 4000.00 of items on ebay.

And out of the 22 sales I have  had they have never done this before. They say that if the customer does not complain the funds will be released within 7 days of confirmation of delivery. And what if the customer does complain? Another man on the forum offered the customer a refund but before the customer shipped the item back to him ebay refunded their money. Now the customer has the item and the money and the seller is just screwed!

[parklaneltd]

It sounds like an anti trust violation to me BUT it will be a class action suit like the microsoft internet explorer suit was David vs. Goliath -- however, if I were an attorney I'd JUMP at the chance to sue ebay - they are in violation of so many anti trust laws -- this whole incestuous relationship they have with pay pal smells. 

On the other hand - I imagine they take a LOT of hits from bad sellers too ESPECIALLY since they have zero control over sellers overseas - so perhaps this is their borderline illegal method of controlling those damages???

[bostongrammy]

I have never agreed to this. In fact I have had my ebay and paypal accounts for over 10 yrs and they have never done this to me before. How can they expect me to ship an item that I have not been paid for, they have, but I haven't. I have never had a claim opened against me and I have sold over 4000.00 of items on ebay.

And out of the 22 sales I have  had they have never done this before. They say that if the customer does not complain the funds will be released within 7 days of confirmation of delivery. And what if the customer does complain? Another man on the forum offered the customer a refund but before the customer shipped the item back to him ebay refunded their money. Now the customer has the item and the money and the seller is just screwed!

You have 25 feedback as a seller including only one in the past 3 years. Your recent sales were in a high-fraud category.

Since you didn't like the info in the page that honda linked to, here's the PayPal FAQ on holds:

https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=security/paypal_holds_faq

[billy_biggle_fan]

The holds policy has been in place for several years now.  Most payment processors have a similar policy of some sort for sellers in high-fraud categories, or with limited selling histories.

You know the fine print that you sometimes see that reads, "Your continued use of this service constitutes an agreement ... blah blah blah..."  This is one of those situations.  It's a good idea to check the User Agreement every so often, to note changes and see if you still agree.

[bustabeefy]

It is a pretty crappy move on Ebay's part. 3 weeks seems a little extreme, especially if you provide a tracking number for the item.

[2di4_jewelry]

If you use paypal/ebay for printing postage, and upload DC, the funds are released a couple days after delivery. You could have your funds held for the full three weeks if you ship international, or a package is lost. In which case you should be holding onto those funds. I never transferred funds out of paypal before the package showed as delivered. I think it's smart to have a reserve fund in case of an unexpected lost package, or return.

[crus001]

PayPal nor Ebay has the right to demand us to ship an item until we are paid. By doing such Ebay/PayPal is opening the seller to a lot of scams where the seller can lose his/her product as well as the money. For example if the buyer opens a complaint PayPal can refund their money without requiring them to return the product. I am not here to provide product to people for free. I do it to make money. Now with this stupid rule they have enacted the seller is totally at the mercy of PayPal. PayPal is a payment processor, not GOD, and do not have any legal right to hold funds from anyone. For example if you owned a convenience store and you sold gas and groceries to a customer who used a credit card. That credit card processor can not hold you funds to see if the customer is satisfied. Banking laws require them to forward funds to your account as processed. What makes Ebay/PayPal any better?

[crus001]

Hi bustabeefy, While I agree that three weeks is too long to hold funds, in fact one day is too long. They have been know to hold funds for up to 180 days. I have found out that there is at least one seller who PayPal froze their funds for over 9 months. That person is one of the plaintiffs that has now filed a class action suit against PayPal. The suit is now ongoing. Although it will probably take years to resolve, the process has at least been started. I hope PayPal has to pay out MILLIONS!!!!!!!!!!!X-(

[crus001]

It sounds like an anti trust violation to me BUT it will be a class action suit like the microsoft internet explorer suit was David vs. Goliath -- however, if I were an attorney I'd JUMP at the chance to sue ebay - they are in violation of so many anti trust laws -- this whole incestuous relationship they have with pay pal smells.

On the other hand - I imagine they take a LOT of hits from bad sellers too ESPECIALLY since they have zero control over sellers overseas - so perhaps this is their borderline illegal method of controlling those damages???

There are dishones sellers on ebay I am sure, however sellers like me who have never had a claim in the 10 yrs I have been there, should not be lumped into the same catagory. And even if the seller is dishonest Paypal nor Ebay takes the hit, The buyer is the one who suffers the loss if PayPal can not recover the funds. No skin of their noses. So since they are not the ones getting hit by the bad sellers, who the hell are they to act like they are Judge, Jury, and Executioner!!!!!!