How long does PayPal hold money? PayPal is one of the largest online payment processors in the world. It is the fastest and the safest way to send your money or make an online payment from anywhere to anywhere.
It is the most convenient platform for small business owners to collect payment for their goods and services in a secure manner.
But sometimes, PayPal will put your money on hold for up to 21 days to ensure there is enough money in your bank account. Though there are many reasons to hold your money on hold, the most common reason is to make sure that the platform is safe for both buyers and sellers.
How long does PayPal hold money?
PayPal will hold your money for up to 21 days, but there are ways to get your funds released quicker.
If you are a first-time seller and a payment you received is on hold, you can get your funds sooner than the 21-day waiting period by using PayPal Supported Carriers to send the product. You can print a shipping label from your PayPal account. The tracking information and delivery confirmation will automatically be updated on your account, and PayPal will release the funds to you one day after the delivery is completed.
You must manually upload the tracking information if you use a supported carrier and handle the shipping yourself. PayPal will release your funds within a day of the courier confirming delivery. You can check the available PayPal-supported carriers by going to Activity > Add Tracking Info > Shipped by.
If the transaction is for a non-tangible service, such as an archery lesson, you should update the transaction manually. Set the order status as Completed, and you should get the funds seven days later.
Why Is Your Money Put On Hold or Unavailable?
Just because your money gets put on hold or becomes unavailable doesn’t mean you have done anything wrong. And if there is a hold put in place, only you will know if it happens. This is good news because it won’t affect or harm your seller reputation.
There are different reasons for a hold to get put in place. But, it’s a risk management strategy to make sure there are enough funds available just in case something happens. Here are some of the more common reasons why a hold might get placed.
You Haven’t Been Active for a While
If you haven’t sold anything in a while and then your selling pattern becomes active again, your account could get put on hold. This is to help stop suspicious activity and make sure that the transactions are credible. It won’t last forever and it could happen randomly.
Just make sure you keep a positive selling history and you can build your credibility back up as an established seller.
A Recent Transaction Was Considered Unusual
If you all of a sudden start making transactions in a different country or spending with unusual activity, you could have your money put on hold. This is to help protect you against any possibility of fraud.
For example, if something doesn’t fully match up with your regular spending patterns or payments activity. The hold on the payment status will help make sure that it’s actually you making the transaction.
There Was an Unusual Change In Your Selling Price
Sometimes people sell all sorts of different things at all sorts of price points. But PayPal will put your account on hold and flag any unusual sales activity. This can include if there’s suddenly a big change in the price of the product or the type of product that you sell.
Your Selling History Is Short or You’re New to Selling
It could be high risk if first-time sellers have spotty selling activity or the items are high in value, for example. There could be a hold placed only as a precaution to make sure that the transaction details run smoothly.
You Start Selling Higher-Risk Items
There’s nothing wrong with selling things like tickets, consumer electronics or gift cards. It’s just that those items might get considered riskier. Other things like travel packages, computers or anything that has to do with an event might also get flagged.
If this happens, funds will only be held for 21 days to make sure everything is legitimate. This will help with customer satisfaction and ensure that everyone gets what they need.
How to Avoid or Speed Up the Hold Process
If your funds are put on hold for some reason, there are a few things that you can do to help speed up the process. There are also a few other things that you can do beforehand to help avoid the possibility of a transaction being flagged.
Here are a few ways to help avoid or speed up the process.
Communicate with PayPal
Communication goes a long way. If you know of any upcoming sale amounts that are larger than usual, communicate those details with PayPal customer service. This will help avoid any payments getting held.
It can also include if you have any other distinct changes to your selling patterns. Maybe you have a new kind of marketing strategy that will generate more sales. Or you might have a new item for sale that’s much more expensive than your usual products. Whatever it is, being upfront can leave everyone satisfied.
Keep Your Customers Happy
Staying in contact with your customers throughout the sales process is important. Sometimes a customer might have a question or request a refund. Staying on top of those details can help with the overall customer experience.
And to keep customer loyalty, you also need to keep your account in good standing. Holds can be common for new sellers and other factors like complaints can also contribute. But keep your account positive and quickly deal with any issues that come up to reduce the possibility of funds getting placed on hold.
Have Documents Ready
Holds can happen for any number of reasons, even if you’re an experienced seller. But having the right documentation in place can speed up the process if it happens. Be prepared should you have to send anything to PayPal to confirm the details of a transaction.
This can include a buyer’s receipt, a copy of the item’s description or any shipping information to track where it gets sent. If a hold gets placed, it can get lifted by providing this documentation or if the buyer receives their product.
How to prevent PayPal from holding funds
You can prevent future payment holds by building a positive seller history. Avoid refunds, disputes, and chargebacks, work with your customers to clear any issues, and set up a customer service message to prevent conflicts and claims. For example, if there’s going to be a delivery delay because of inclement weather, let your customers know. In short, practice good customer service habits and make sure there is nothing odd or unexpected happening with your account.
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