Why does PayPal take so long to Process Payments?

Why does PayPal take so long to Process Payments? PayPal is a convenient platform for small business owners to collect payment for their goods and services in a secure manner.

Sometimes, PayPal will put funds on hold for up to 21 days to ensure there is enough money in your account should any issues arise with the order.

There are several reasons why a payment may be on hold, and ways for sellers to expedite the release of funds.

Here’s everything you need to know.

Why does PayPal take so long to Process Payments?

PayPal notes that the company puts payments on hold to help ensure that the platform is safe and secure for both buyers and sellers.

Although the money belongs to you, PayPal will temporarily keep you from accessing it to make sure there’s enough money in your account to resolve issues like chargebacks or disputes.

Funds are released when the buyer confirms that they received the item they ordered in the condition that was advertised.

Some specific reasons why your payment might be on hold include:

  • Your PayPal account has been inactive.
  • The payment you received is unusual for your typical selling pattern.
  • PayPal found an unusual change in selling price for a particular transaction.
  • You’re selling an item that customers may be dissatisfied with.
  • You’ve only recently started selling items outside of eBay.

PayPal take so long to Process Payments

Why is my payment on hold?

There are a number of reasons for why funds could be placed on hold, including:

  • You’re new to selling. New sellers need to build up their buyer-seller credibility and history. Once you’ve established a successful transaction record, your status can change.
  • You haven’t sold anything in a long time. Similar to being a first-time seller, if you haven’t sold an item in awhile, you’ll need to rebuild your credibility.
  • Customers filed formal complaints for a refund, dispute, or chargeback. If you’ve been flagged by multiple customers for various issues, PayPal may delay the availability of your funds. According to PayPal, the best way to remedy this is to work directly with buyers to ensure that issues are resolved as quickly as possible. To prevent complaints, be upfront about shipping costs, item condition, and return policy. You can also set up a customer service message to let customers know if an extreme incident — like a natural disaster in your area — is preventing you from shipping on time.
  • You have a suspicious selling pattern. PayPal will flag an account that has unusual activity, including a higher than normal selling pattern or a distinct change in the type of items sold.
  • You’re selling riskier items. Examples of these kinds of items include tickets, gift cards, consumer electronics, computers, and travel packages — anything that is more expensive or event-related could be flagged
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How long does PayPal hold your funds?

As long as there aren’t any issues with your transaction or account (like an undelivered package or a customer filing a dispute), PayPal will release your funds within 21 days.

How can I access my PayPal money faster?

There are some steps sellers can take to help release PayPal funds faster. These include:

  • Add tracking. Use one of PayPal’s approved shipping carriers, and PayPal will release the hold on funds one day after the courier confirms delivery.
  • Print a USPS or UPS shipping label via PayPal. PayPal will track your package and release the hold on funds one day after the courier confirms delivery.
  • Update the order status for services or intangible items. For items that aren’t shipped, like e-books or knitting lessons, update the order status and PayPal will release funds in seven days.

PayPal take so long to Process Payments

How can I access my PayPal money faster?

There are some steps sellers can take to help release PayPal funds faster. These include:

  • Add tracking. Use one of PayPal’s approved shipping carriers, and PayPal will release the hold on funds one day after the courier confirms delivery.
  • Print a USPS or UPS shipping label via PayPal. PayPal will track your package and release the hold on funds one day after the courier confirms delivery.
  • Update the order status for services or intangible items. For items that aren’t shipped, like e-books or knitting lessons, update the order status and PayPal will release funds in seven days

How to prevent the delay of funds on PayPal

To make sure your money doesn’t get put on hold, try the following tips:

  • Check your email. Review the email sent from PayPal with the subject line “An important message about your PayPal balance” as well as the alert located in your Account Overview page. It will include information about why your funds aren’t available and what you can do to avoid this in the future.
  • Post real photos. Prevent refunds, disputes, and chargebacks from buyers by posting real photos of the items you’re selling, including detailed and accurate descriptions, being transparent about shipping and handling times, costs, and methods, processing orders promptly, packing items with care so that they arrive in good condition, and being clear on your return policy upfront.
  • Provide customer service: Do your best to communicate with and help your customers when they reach out. If you have a buyer dispute, work to resolve it as soon as possible.
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When Will My PayPal Transfer Be Available in My Bank Account?

When you receive your customer’s PayPal payment on an invoice, you will receive the funds instantly within your PayPal account.

To transfer funds from your PayPal account to your bank account, it usually takes between 3 to 5 business days; weekends and holidays may affect the exact timing of when your money is deposited. Also, additional holding periods may apply when transferring money depending on your bank account.

If you are a new seller on PayPal, funds may be held for up to 21 days while your payment is in a pending status. If the service you provide is intangible, please make sure to update the order to reflect this and the processing should only take up to 7 days after verification.

After PayPal has verified your identity to comply with anti-money laundering regulations and to reduce the risk of fraud, you can start transferring your funds from PayPal to your bank account.

To transfer money from your PayPal account to your bank, please refer to the following steps:

  1. Log in to your PayPal account
  2. If there is money in your account, you will see this on the Summary screen
  3. Click on Accept the Money
  4. Click on Transfer it to your bank
  5. Select the card or bank account you’d like to transfer the funds to and click on Next
  6. Enter the amount you would like to transfer from your PayPal balance and click on Next again
  7. Review the details and click on Transfer $xx Now
  8. Click on Done
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PayPal will then send a confirmation email with the transfer confirmation details including the total amount transferred and associated transfer fees.

PayPal take so long to Process Payments

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