PayPal money may be pending for up to 21 days if you’re new to selling, and also if you’re selling high risk items, or there’s been issues with your sales.
When a buyer makes a purchase and uses PayPal, the online payment service may put the money on hold for up to 21 days in certain instances.
The funds will be released when the buyer confirms that he or she has received the item in the promised condition. You can also speed up the release of funds in a few ways.
Here’s why your PayPal money is pending, and how to prevent it.
Why funds could be placed on hold on Paypal include:
- If you’re a new seller. New sellers need to build up their buyer-seller credibility and history. Once you’ve established a successful transaction record, your status can change.
- If you haven’t sold anything in a long time. Similar to being a first-time seller, if you haven’t sold any item in awhile, it’s possible when you do paypal will put your money on hold for period of time hence you’ll need to rebuild your credibility.
- Customers filed formal complaints for a refund, dispute, or chargeback. If you’ve been flagged by various clients and customers for multiple issues, PayPal may delay the availability of your funds. According to PayPal, the best way to avoid such instances is to work directly with customers to ensure that issues like this are resolved as quickly as possible before they file for chargeback.
However, to prevent issues like this, try to be up front about shipping costs, item condition, and return policy. You can also set up a customer service message to let customers know if there will be any extreme issue that will trigger the delay in your returns or shipping segments and make sure they get it in such cases it will avert them filling for charge back.
In such instances, funds will be held for 21 days by default, but sellers can take action to expedite their availability. This can include:
- 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.
Printing a USPS or UPS shipping label: If you print a shipping label directly from PayPal, the tracking number and delivery confirmation will be automatically uploaded. Provided that the package is delivered without incident, the funds can be released three days after delivery.
Adding tracking information: If you print your own shipping label outside of the PayPal platform, be sure to upload your tracking information so that PayPal can verify that the package was shipped and delivered. Similar to the above step, the funds will be released three days after delivery.
Notify buyer to confirm order: Once your buyer confirms that they have received the item, your funds will be released.
Now you have seen the most common reasons that would warranty paypal to withhold your funds and also how to prevent such instances.