21 Day Hold on Payments

[jpamboris]

Hi all,

I know there is another thread on this subject however i would like to open a new one based on another theory i have for this happening.

Let me ask, how much money do you think is currently on hold at any given time? We are talking millions of dollars, maybe even billions. This money would be held in Ebay's/Paypal's trust accounts before being released.

Can you imagine the interest earned on this money sitting in it's trust accounts? For me, this is just another reason for ebay/paypal to make money. And to be fair, a very smart way of doing things.

I think this has been the plan for a very long time. Slowly introduce all these changes for the "buying experience", slowly weed out the **bleep** sellers and then place holds on all payments for a certain period which can therefore earn millions in interest.

Happy Days!!!

FOR EBAY

[horizon1907]

Do we sound like Cynics ?? I think not !!!! 

[5kazam]

The cynic in me says that eBay's FVF income has been taking a downward turn, and this policy has been introduced to top up the coffers....

..... and to keep JD in the lifestyle to which he has become accustomed, and let's not forget the shareholders.....!!!

[digital*ghost]

The reality is, the main reason eBay have done this is to try and minimise the instances where sellers withdraw funds and any refunds to buyers cost them money, which they then have to chase after but probably never see most of the time.  

That also means that eBay / PayPal consider the majority of the risk for INR or INAD claims to have passed after 3-odd weeks, unless there's a different reason why the maximum is 21 days - that is, risk to their money, PayPal are obviously happy to risk everyone else's for 180 days. >_>

[i-love-my-sheep]

If everyone affected lodges a complaint with the FOS, it's going to start eating into that new found interest pretty quickly.  

I can understand doing it for brand new sellers, but they are doing it to long term, established sellers too, who stupidly opened a new account. It doesn't matter that the accounts are linked, or the funds go into the same PayPal account, they can be trusted.

[5kazam]

Yet, eBay continue to allow known scammers to trade on the site - in spite of reports being made all the time.  

So except for the reference to 'PayPal are obviously happy to risk everyone else's for 180 days. >_>', I don't agree with your post.

I think my cynical mind shot nearer the mark.

[digital*ghost]

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@5kazam wrote:

Yet, eBay continue to allow known scammers to trade on the site - in spite of reports being made all the time.  

So except for the reference to 'PayPal are obviously happy to risk everyone else's for 180 days. >_>', I don't agree with your post.

I think my cynical mind shot nearer the mark.

---

Well, I did say the main reason, not the only reason. 😉 It's obviously about money, and earning interest on some would have provided a neat incentive. 

But I also bet it costs eBay less (interest involved or not) to hold on to money and try to make sure they don't lose any to scammers, than it does to police the site properly and actually try to get rid of them, and the eBay MBG is also a minimised cost thing (to them) to try and retain buyer confidence in the site (i.e. "we can't guarantee a safe site, but we can almost guarantee it won't cost us or buyers anything when it isn't safe - ha ha").

[5kazam]

(This is my 3rd attempt at responding - bl00dy Optus!!!)

I'm quite sure it does cost them less to not police the site - even though they spout on about it being a 'safe' place to trade.  IMO that attitude is a cop out for eBay.  

And if they want to 'retain buyer confidence' it'd be a good idea if eBay remembered that a good % of sellers are buyers also.  With the current blitz on 'seller confidence'  the whole place could easily go down the toilet.

However, given the $billions that come into their hot little hands, wouldn't you think it was appropriate to spend $XX amount to (i) police the site properly - which would give more buyer and seller confidence, and (ii) fix all the stie glitches/outages - stop sending someone to Officeworks to buy paper clips, elastic bands and blue tack to keep the site going.

I realize (ii) is a bit off-topic - but the site glitches/outages do nothing to 'enhance buyer or seller experiences/confidence'.

You know, over the weekend, I was thinking about a thread from a couple of months ago - 'What do you like about selling on eBay' (or words to that effect).  I had a bit of a scrounge, but couldn't find it.  Buried under the 100's of posts put up by disgrunted sellers - MBG, PP extended returns policy, and now this - holding a sellers money for 21 days.  I wonder how many who posted positive comments on that thread have changed their minds.

(Anyway, off to ring Optus, again.  4 outages in 1 day, less than a week after the tower upgrade.  grrr!!  Thought, (cynical as always) maybe eBay owns Optus!!  That would explain a lot.)

[digital*ghost]

I don't disagree with anything you say, I mostly just wanted to point out that there's other reasons why eBay have introduced it as one of their own safety measures - i.e. with the impending split from PayPal it will be their own coffers having to front up cash for refunds on the MBG if the seller doesn't have any in their account, so a big part of the reason for the introduction of holds is to try and make sure they're not risking their own money. 

I remember the thread you're referring to

http://community.ebay.com.au/t5/Selling/What-do-you-love-bout-selling-on-eBay/m-p/1462129#M70333

I haven't changed my mind, but I do want to repeat one of the later comments I made, something along the lines of the truth being it's not eBay I love, but the job I have created for myself while using eBay. And that's what it boils down to at the end of the day - I use them, they use me, for as long as we're useful to one another. 

[5kazam]

Okay, but maybe, just maybe, eBay gurus should have thought hard and long about that piece of stupidity (MBG) before implementing it.

If I was a new seller on eBay, I would be extremely offended if I was considered to be 'untrustworthy' right from the beginning. How rude!!  Yeah, WE'LL TAKE YOUR MONEY (FVF's) when the auction hammer goes down, but we don't trust you to get your hands on YOUR MONEY.    Hrmph!!

For heavens sake, how easy would it be to get kicked off this site if a new seller didn't do the right thing.  Certainly wouldn't take too many negs., and wouldn't take long to get the DCM.   Look at what's happened to long-time sellers!!.  

And if that new/bad seller closed any bank accounts associated with eBay or PayPal, eBay, because they opened their big mouths and said 'we'll give you your money back (and you can probably keep the item as well', would have to pay out of their own pockets.  !!??!!

I think a few (a lot of) people in eBay heirachy were standing behind the door when it came to giving out brains.

I'm sincerely feeling for all those sellers who have THEIR money tied up.  I hope you all lodge complaints with the FOS.