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Now Paypal holds funds for 21 Days????

Started by Count,

32 posts in this topic

Count

Count

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Posted

New eBay Seller Standards and Payment Holds Explained

 

Monroel Hi everybody, I’m Monroe Labouisse, director of PayPal’s business on eBay in North America. A couple of weeks ago, Jim Ambach at eBay elaborated on some recently-announced changes that are intended to make eBay a better and safer place to buy and sell.

 

Since eBay’s announcements, I’ve been talking to sellers, reading blog and board posts, and reading news stories about the coming changes. During last week’s eBay Town Hall, some eBay sellers expressed to me concern that the Safer Payments initiative may affect their businesses. Specifically, there is concern over what we call eBay item holds – where PayPal may hold a payment from an eBay sale for up to 21 days.

 

Before I dive into specifics, let me take a few moments to explain what’s happening and why.

 

First, it’s important to understand that the Safer Payments initiative is designed to increase buyer and seller satisfaction on eBay by helping to ensure successful transactions. Safer Payments, as Jim described, requires some sellers to offer safer payment options that we know buyers trust – such as PayPal or major credit cards. Second, sellers should understand that only a very small percentage of transactions – and I can’t emphasize enough the words very small – may result in funds being held by PayPal.

 

While new to eBay sellers, the concept of requiring safer payment methods and item holds isn’t new to ecommerce. In fact, many banks, merchant accounts and online marketplaces like Amazon have similar rules - and for good reason. The goal of the Safer Payments initiative is to increase the likelihood of successful transactions in the marketplace. By introducing our Safer Payment initiatives, we believe that everyone will benefit – including sellers, because buyers will be more likely to become repeat shoppers. And as we all know, repeat shoppers benefit the millions of great sellers within the eBay marketplace.

 

The bottom line is that established sellers with a good track record should not be concerned. PayPal will not hold payments for eBay items if sellers:

 

* Have been an eBay member for more than 6 months, and

* Have a total Feedback score greater than 100, and

* Have a buyer satisfaction percentage of 95% or better.

 

or:

 

* Have an average Detailed Seller Rating greater than 4.5, and

* Have received more than 20 Detailed Seller Ratings in the last 12 months.

 

And for sellers who are new to eBay, all you have to do to minimize your chances of being impacted by eBay item holds is follow good selling practices like shipping quickly, using tracking, communicating openly with your customers and providing a good buying experience.

 

If your payment is subject to a hold, PayPal will release the hold after 21 days. We may release the hold earlier if either of the following applies:

 

* The buyer leaves positive feedback on eBay, or

* PayPal can confirm delivery of the item.

 

By improving the customer experience in the marketplace, buyers will continue to return to eBay, which will ultimately grow sellers’ businesses. We believe that by implementing good selling practices we can continue to make eBay one of the best places to shop on the web. And I want to reemphasize that only a very small percentage of transactions will be impacted by eBay item holds.

 

I hope that this blog post has given you more information on our upcoming Safer Payments initiative and has helped you understand how it may affect your business. I look forward to your comments and questions.

 

Regards,

Monroe

 

Editor's Note - 3/28/08 - This post is now closed to comments as Monroe has made another post on this topic here. Please continue the conversation on this new post

 

 

 

ARE YOU KIDDING ME????:frustrated:

 

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abracadabra

abracadabra

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http://boards.collectors-society.com/ubbthreads.php?ubb=showflat&Board=4&Number=2189504&Searchpage=4&Main=117758&Words=paypal&topic=0&Search=true#Post2189504

Is this the same thing that was discussed here? It sucks for honest new sellers but if I were buying from a newbie it would ad an extra level of comfort. Unfortunate, but it's becoming necessary due to the level of fraudulent sellers. Not that this will stop them, but if it makes them work a bit harder it seems like a good idea to me.

-William

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ant

ant

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how will this work? if the funds are held the item wont ship. i am not worried being a seller with good standings. but it sounds like a catch 22 to me.

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DrWatson

DrWatson

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The bottom line is that established sellers with a good track record should not be concerned. PayPal will not hold payments for eBay items if sellers:

 

* Have been an eBay member for more than 6 months, and

* Have a total Feedback score greater than 100, and

* Have a buyer satisfaction percentage of 95% or better.

 

This is a newbie problem. I am not concerned. :juggle:

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Bronty

Bronty

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Does Paypal get to hold the funds interest free for 21 days?

 

They already get interest free loans. If I sell something on May 1 and don't take the money out for a week they've gotten a short term interest free loan right there. Times that by millions of people and they're laughing all the way to the bank! *Anybody* that keeps a positive paypal balance is giving them that free loan.

 

Knowing paypal/ebay I sure can't see them paying interest on that 21 day hold!

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mister_not_so_nice

mister_not_so_nice

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What about new sellers? Who the hell is going to want to do business when funds will be held for 21 days? This is yet the biggest joke.

 

I remember a time in my youth when we would send/recieve a "Check" or "money order" in the "mail"

 

Let them make PAYPAL too difficult to use. I prefer checks anyway

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JLA_ALL_THE_WAY

JLA_ALL_THE_WAY

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Does Paypal get to hold the funds interest free for 21 days?

 

They already get interest free loans. If I sell something on May 1 and don't take the money out for a week they've gotten a short term interest free loan right there. Times that by millions of people and they're laughing all the way to the bank! *Anybody* that keeps a positive paypal balance is giving them that free loan.

 

Knowing paypal/ebay I sure can't see them paying interest on that 21 day hold!

 

Doesn't paypal also pay you interest for keeping your money in their account?

 

Don't sound too free to me? :shrug:

 

Rick

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G.A.tor

G.A.tor

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Doesn't paypal also pay you interest for keeping your money in their account?

 

 

I've never received a cent in interest. Are you saying you have?

I have, every month I get a paypal interest payment... right now it is only 2.28%, but just 6 months ago, it was over 4% (better than my local bank)

 

got a 1099 INT from paypal too (thumbs u

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G.A.tor

G.A.tor

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Yes, but don't you have to place it in a special paypal account to draw that interest? I don't trust them that much and that rate isn't high enough from them to buy my trust.

not sure, it is my business account....I withdraw the money pretty regularly, because even ING direct at 3% is still better....but, it often time sits there for a week or 2, and I do get paid interest (shrug)

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mister_not_so_nice

mister_not_so_nice

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Yes, but don't you have to place it in a special paypal account to draw that interest?

 

No, the interest is earned on your balance. So if you have a PAYPAL acct, you have th eacct needed to earn the interest. I've received 'dividend' payments from them before, but not very much :( . If I have a balance of $25 or less I just leave it there instead of transferring to my bank acct, so I get a few cents.

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Bronty

Bronty

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wow this is all news to me. I am in Canada - any other Canadians on this thread want to chime in? I can't remember getting any interest ever, although I haven't had a paypal balance in some time. Are they screwing us Canucks?

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