PayPal: Unable to receive funds until 21 days after auction???

[comicwiz]

Paypal just does not hold that policy to ebay. I know someone who started selling on bricklink.com and paypal held their $$ for 14 days for each transaction they had. I think it was for the first 2 months they used paypal.

 

I don't know if this has become a standard practice for new registrants. All I can speak on is my own experience, and having been on eBay since 2000, the holds started happening to me 9 years after I was already buying/selling on eBay.

[InvstmntComcSuply]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

[comicwiz]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

 

I have experienced a PayPal chargeback occurring 3 months after the payment was sent (and stamped "cleared"), so I'm not as readily prepared to believe PayPal will absorb the loss if anything happens during the funds clearing process.

[VintageComics]

It is a form of escrow on the part of eBay/Paypal.

 

I call it extortion based on the discussion we had in this thread about it.

 

They hold the funds to make sure that the seller complies with full eBay policy and once the item is shown as delivered and feedback left then funds are "released" by eBay.

 

The problem is that even if you comply fully with eBay policy, if someone leaves you a low DSR rating, eBay still holds your funds because the ratings a buyer leaves are subjective to how the buyer feels, not to how you performed.

 

It's a BS system that eBay has forced into place to prevent dishonest sellers from taking money out of Paypal accounts until the item is received by the buyer. Unfortunately, it affects the good sellers too.

 

Charge backs can happen whether eBay holds the funds or not.

[comicwiz]

It's a BS system that eBay has forced into place to prevent dishonest sellers from taking money out of Paypal accounts until the item is received by the buyer. Unfortunately, it affects the good sellers too.

 

Yes, and it conveniently allows them to earn interest on "held" money that would otherwise have been shipped-off into the sellers bank account. Ever notice how eBay/PayPal takes their fees immediately, even when they ask you to wait 21 days? I remember raising this issue somewhere else (another forum or message board), and one of the people offered up a scenario that made this practice illegal, but I don't recall the place or context of the discussion.

[VintageComics]

It's a BS system that eBay has forced into place to prevent dishonest sellers from taking money out of Paypal accounts until the item is received by the buyer. Unfortunately, it affects the good sellers too.

 

Yes, and it conveniently allows them to earn interest on "held" money that might otherwise have been shipped-off same day money is received into the sellers bank account. Ever notice how PayPal takes there fees immediately, even when they ask you to wait 21 days? I remember raising this issue somewhere else, and one of the people offered up a scenario that made this practice illegal, but I don't recall the place or context of the discussion.

 

Yup. I find it almost criminal that an eCheck takes 5-10 business days, transferring money from Paypal to your bank account takes 2-4 days in the US and longer in Canada but when they want their eBay selling fees from your bank account, it's instant.

 

Unfortunately, I don't always read the fine print in contracts and agreements but we all probably agreed to this with a check mark at some point.

 

 

[InvstmntComcSuply]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

 

I have experienced a PayPal chargeback occurring 3 months after the payment was sent (and stamped "cleared"), so I'm not as readily prepared to believe PayPal will absorb the loss if anything happens during the funds clearing process.

 

You are reinforcing my point with your example. Of course they are not going to absorb the loss. Just like they did not with your chargeback 3 months later. But the money is still "there" just like it was in your account for that 3 months.

 

You can argue that you don't like eBay holding your money, but that is a different argument.

 

 

[comicwiz]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

 

I have experienced a PayPal chargeback occurring 3 months after the payment was sent (and stamped "cleared"), so I'm not as readily prepared to believe PayPal will absorb the loss if anything happens during the funds clearing process.

 

You are reinforcing my point with your example. Of course they are not going to absorb the loss. Just like they did not with your chargeback 3 months later. But the money is still "there" just like it was in your account for that 3 months.

 

You can argue that you don't like eBay holding your money, but that is a different argument.

 

 

I realize funds clearing issues can happen whether or not you have a hold. My point however is that shipping an item while a payment is on hold is much riskier than normal circumstances, because without the hold, I can clear the money from PayPal before I ship with no restriction, and in doing so, would leave PayPal in the lurch to withdraw from account-diddly-squat if their funds clearing incompetence should reveal itself at a later date.

 

21 day payment limbo, not so much.

[500hpAudiS4]

He may have a new Paypal account. Here's some info I found on the Resolution Center section of Paypal. So technically according to the last statement, if the seller actually sent the item, that would be the quickest way to make the funds available to him.

 

Funds availability details:

Because you are a new seller with PayPal, money you receive from buyers will be placed in your pending balance. The money will be moved into your available balance within 21 days. You're considered a new seller until you:

 

1. Complete 10 transactions without any buyer disputes, claims, or returns.

2. Receive at least $250.00 in payments for goods and services.

3. Wait 60 days from the date you receive your first payment.

 

After you've completed these steps, your money will be available sooner.

 

Why isn't my money available as soon as my buyers pay?

 

By delaying the availability of the payments for up to 21 days, we have time to make sure there were no problems with the order. Problems can include disputes, claims, returns, or chargebacks.

 

When does PayPal release the payment?

 

If there are no problems with a transaction, the money will typically be released within 21 days after the buyer pays. If there are problems, such as a dispute, claim, chargeback, or return, we'll release the payment when the issue is resolved. After you fulfill the order and mark it as processed, typically the payment will be released sooner.

 

The money may be released early if:

 

1. You ship directly using USPS, UPS, or FedEx, or pay for shipping and print labels on PayPal. Once we know that the item was delivered, we'll release the payment within 3 days,

 

2. You mark an order as shipped or processed. (This applies even if you don't provide tracking information through USPS, UPS, or FedEx or if the order does not require shipping.) We'll calculate the expected delivery date and release the payment within 7 days of that date,

 

3. You mark the item as processed and we know that the buyer has received it and is happy with the item. We'll release the payment within 7 days.

 

 

[VintageComics]

Here's some info I found on the Resolution Center section of Paypal.

 

The only things that the Paypal resolution center resolves is how to make sure Paypal doesn't lose a dime.

 

 

[Dr. Balls]

Never heard of that? Is that true? Or does the seller mean, he wants to wait with shipping until he has the money in his bank account? Whatever he means, I paid and I think he has to ship the item as soon as he got the confirmation from PayPal. What would you do now?

 

I have never heard of this policy, and even an echeck takes 3-5 business days to clear the bank systems. Not 21 days.

 

It's not because it's a new Paypal account, it's because the seller has recently upped his Ebay listings, or is new to selling on Ebay. I have had a Paypal account since 2000 and last year they implemented this on me because I was selling stuff more frequently on Ebay. Complete, total hassle. But it's legit.

 

The seller can use those locked funds to ship the product via Paypal's shipping program - which he might not know about. I've had to tell that to sellers who have experienced the same frustrations.

[techvoodoo]

I won an auction on ebay (not comic related) and paid the US-Seller via PayPal. A few hours later I received the following Message from the seller:

 

Unfortunately, it may take several days for me to ship this item because Paypal decided to implement a policy which makes sellers unable to receive funds until 21 days after the auction. I rely on the funds received from Paypal to ship items and spent an hour today asking Paypal to release funds so I can mail this item to you.

I will ship this item out as soon as I receive payment from Paypal. I am doing my very best to provide you with good customer service, but Paypal is making it very difficult.

 

Never heard of that? Is that true? Or does the seller mean, he wants to wait with shipping until he has the money in his bank account? Whatever he means, I paid and I think he has to ship the item as soon as he got the confirmation from PayPal. What would you do now?

 

I had this same issue when I sold a few old camera lenses I wasn't using anymore. There was about 500$ worth of camera equipment sold and I didn't get the money until several weeks after the auctions ended.

 

They will release the amount needed to ship to you however, so he is wrong about that.

 

This system is setup when you have no/very little selling history. Once you get a track record of being a good seller your funds don't get held anymore. It's a thinly veiled attempt by ebay to protect the buyer, it's really just a frustration for all parties.

 

In any event you should tell your seller he is obligated to send you what you purchased now, not when the funds clear. It sucks for him but that's the rules.

[InvstmntComcSuply]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

 

I have experienced a PayPal chargeback occurring 3 months after the payment was sent (and stamped "cleared"), so I'm not as readily prepared to believe PayPal will absorb the loss if anything happens during the funds clearing process.

 

You are reinforcing my point with your example. Of course they are not going to absorb the loss. Just like they did not with your chargeback 3 months later. But the money is still "there" just like it was in your account for that 3 months.

 

You can argue that you don't like eBay holding your money, but that is a different argument.

 

 

I realize funds clearing issues can happen whether or not you have a hold. My point however is that shipping an item while a payment is on hold is much riskier than normal circumstances, because without the hold, I can clear the money from PayPal before I ship with no restriction, and in doing so, would leave PayPal in the lurch to withdraw from account-diddly-squat if their funds clearing incompetence should reveal itself at a later date.

 

21 day payment limbo, not so much.

That is a fine argument for someone who is unconcerned about debt collections and screwing up their credit. Paypal WILL pursue you for it as a legal debt.

 

But it almost always makes no fiscal sense for anyone who does even a moderate volume though paypal/ebay. Most of the time, we simply have too much going in and out of Paypal at a time to prevent them from pulling this kind of stunt, and when funds are reversed it is often well after 21 days anyway; eg.: your 3 month chargeback. Even if we miraculously had a zero balance when they did it, would you be willing to forego ALL future ebay/paypal activity?

 

 

[Dr. Balls]

By the way - that 21 day limitation clears up after a few months of selling. I've been selling regular on Ebay for awhile now, and my funds do not get held anymore.

 

Plus, I've never had my funds held for longer than two days after DC shows the buyer received the item. Well before 21 days (more like 5-7 days) The whole process is violating, but once you admit to yourself that you can't fight City Hall and get on with it - it's nothing but a minor inconvenience.

[comicwiz]

eBay in their infinite idiocy expects a seller to risk sending an item to a buyer, without any guarantee the money will be released, much less if the funds clear.

 

 

The money HAS been released (as much as any other payment you receive from a buyer). They have simply been released to eBay. eBay HAS the money. They are holding it to make sure sellers do not run off with $XXXX and never ship the item.

 

The seller is not "risk(ing) sending an item to a buyer, without any guarantee the money will be released" as the money is just as much "there" as any other buyer payment.

 

The funds clearing risk is the same whether the funds go to you the seller or to eBay as eBay will deduct chargebacks from your account at any time.

 

I am omitting the minimal risk of ebay/paypal bankruptcy.

 

I have experienced a PayPal chargeback occurring 3 months after the payment was sent (and stamped "cleared"), so I'm not as readily prepared to believe PayPal will absorb the loss if anything happens during the funds clearing process.

 

You are reinforcing my point with your example. Of course they are not going to absorb the loss. Just like they did not with your chargeback 3 months later. But the money is still "there" just like it was in your account for that 3 months.

 

You can argue that you don't like eBay holding your money, but that is a different argument.

 

 

I realize funds clearing issues can happen whether or not you have a hold. My point however is that shipping an item while a payment is on hold is much riskier than normal circumstances, because without the hold, I can clear the money from PayPal before I ship with no restriction, and in doing so, would leave PayPal in the lurch to withdraw from account-diddly-squat if their funds clearing incompetence should reveal itself at a later date.

 

21 day payment limbo, not so much.

That is a fine argument for someone who is unconcerned about debt collections and screwing up their credit. Paypal WILL pursue you for it as a legal debt.

 

It's more a commentary on the lopsided advantage and free-reign enjoyed by con-men and career scammers with nothing to lose.

 

Perhaps a commentary that should lump the whole financial system into the same category.

 

The ilk who use aliases, fake names and multiple PayPal accounts to move money back and forth, and who make it near impossible to trace, and even when by some miracle you find them, the well has been tapped dry.

 

I don't particularly take kind to being bent over and assaulted because the system doesn't care about justice, and throws a welcome mat out for riff-raff to screw around with people's lives.

 

At the end of the day, I still have a right to refuse any transaction I deem a high risk and that includes any terms of an agreement or rules arbitrarily thrown into the mix that expose me to undue risk.

 

Whenever I've fallen victim to this particular extortionist eBay policy, I haven't had any trouble communicating my concerns, and have talked buyers into seeing my side of the situation every time.

 

My main issue with what you shared earlier on in the discussion is that sellers must abide to eBay's ridiculous 21 day hold policy, and if they don't they're some kind of rogue sellers.

 

I'm proof that this isn't the case, and that eBay needs to be told to pound sound, and in cases like mine, twice.

[sterlingcomics]

He is not lying to you - but he could just ship the item.

 

Wow, they really make it hard to sell something. I'd personally have a problem shipping something with no funds in my account. Another case of trying to make it a better place and all they are doing is Fing it up more. (Not to say I would mess up the buyer it's clearly not their fault--just PP and eBay doing their stupidity).

 

Thank goodness I don't rely on eBay.

[DiceX]

Yes. eBay has screwed me with this money holding technique when I sell there.

I hate eBay with every ounce of stool in my body.

 

 

[sterlingcomics]

Yes. eBay has screwed me with this money holding technique when I sell there.

I hate eBay with every ounce of stool in my body.

 

 

I haven't sold there since 2005 maybe? I'm sure if I made the mistake to re-start they'll do this to me...NO THANKS.

[InvstmntComcSuply]

It is no different than Jimmy Linguini wanting to make up his own rules about canceling a Buy it Now sale, simply because the buyer hasn't paid in 24 hours. Almost everyone soundly berated him for that one (and rightly so).

 

It is part of doing business on ebay.

 

The main problem with holding a buyers order for 21 days, is that you are likely to get poor DSRs or even negative feedback. You will also not meet your "Tracking uploaded within stated handling time" requirement. If you are still a Top Ranked Seller, it makes it more likely that you will lose that status. It also makes it more likely that paypal will place holds on your funds in future transactions.

 

 

[sterlingcomics]

Yes. eBay has screwed me with this money holding technique when I sell there.

I hate eBay with every ounce of stool in my body.