Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

Can PayPal legally place a 21 day hold on money that came from selling an item on ebay?

 

I sold an item for $200 ($194.90 after palpal had taken their fee) and as soon as the buyer paid PayPal placed it into a 21 day hold.

 

I have a 100% seller rating and this is the first time I have been denied access to my own money. I would have received a negitive feedback if I held off from posting the item until the funds had cleard.

 

Basically Paypal have found a way to give themselves an interest free line of credit at our expense. 

 

Surely this can not be legal in Australia?

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

phorum_junkie stated "Of course it is legal"

I suggest you read

Craig Comb, et al. v. PayPal, Inc.. a case involving Paypal freezing deposited funds for up to 180 days. The court ruled against PayPal, stating that "the User Agreement and arbitration clause are substantively unconscionable under California law."

 

Then there was the case for alleged violations of the "Electronic Funds Transfer Act" .  The settlement for that one in which those infallible lawyers got it wrong was that PayPal had to change its business practices, as well as make a US$9.25 million payment to members of the class action.

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

It appears that this is yet another EBay/PayPal policy designed to rid themselves of casual sellers. Remember a few years ago they were begging people to go through their garages and spare rooms and list on EBay to make some extra cash ? Not any more. We are not wanted so they are trying to make things as difficult for small sellers as possible. I was told I was considered a "new seller" and when I mentioned I had 100% feedback and had been with them as a casual seller for years it turns out the new policy looks at the total number of sales you have made and a couple of other criteria and then decide to classify you as a new seller so they can make life difficult for you to get your money (despite the hefty fees they charge). And, no doubt, make money on the withheld funds on the short term money markets.

 

I had my payment held up also - $ 20 lousy item and my payment won't be released until 24 December. Well, I have lodged a complaint with the Financial Services Ombudsman so hopefully that will cause EBay and Paypal some little pain. You have to complain about Paypal as there is no choice for EBay although on the surface of it this is a new EBay policy. Anyway they own Paypal and it is Paypal that is holding up my money so I dont care who gets the grief. I suggest anyone else who finds their way here and reads these comments does the same and lets try to get this ridiculous policy overturned.

 

I just wish someone like AliBaba would compete with these idiots worldwide and take all their business. Seems like EBay is just deliberately trying to run itself into the ground. 

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

I've just been looking at the women's clothing listings and there seems to be quite a few sellers that have in their selling terms that any item paid for by Paypal will NOT be posted until the funds are released in 21 days.....bank transfer is more acceptable. As a buyer, I can understand this, paying postage out of your own pocket must be hard, but for the buyer - all the protection is null and void.

Sorry, but I hit backspace on every one.

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?


@fred_foofighter wrote:

phorum_junkie stated "Of course it is legal"

I suggest you read

Craig Comb, et al. v. PayPal, Inc.. a case involving Paypal freezing deposited funds for up to 180 days. The court ruled against PayPal, stating that "the User Agreement and arbitration clause are substantively unconscionable under California law."

 

Then there was the case for alleged violations of the "Electronic Funds Transfer Act" .  The settlement for that one in which those infallible lawyers got it wrong was that PayPal had to change its business practices, as well as make a US$9.25 million payment to members of the class action.


What has California law got to do with Australia...and 180 days is just a tad more than 21 days.

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

It has absolutely nothing to do with Australia, but it does show that the paypal lawyers aren't infallible as Phorum Junkie was claiming. 

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

Are you the Paypal apologetic here or do you like being a doogooder? Sorry but most of us here have had it with the BS!
Message 16 of 76
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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

phorum_junkie is based OS mate.
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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

I believe PJ is here for 6 months of the year also.
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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?


@c_mount wrote:
phorum_junkie is based OS mate.

PJ is currently in Australia and is selling on at least 2 different IDs.

 

And just for the record, like me, she has had a paypal account since before it was called paypal and acquired by ebay.

I have never lost money because of paypal because I learned the rules before I started using paypal and have kept up to date with the changes.

 

Do I think this latest change is good.....no, definitely not.  There are also reports of non ebay funds being held and I am waiting to see if it involves private funds transfers that do not involve selling anything. 

 

If you feel the money is being withheld wrongly, just go to the Ombudsman.  There seems to be a fair amount of success with getting the funds released.

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Can PayPal Legally Withhold Money From Ebay Sales For 21 Days?

Apple and Google pays out after 2 months of selling an app in the app store.

 

Google Ads, Admob and RevMob pay out after 90 days I making revnue from Ads.

 

There was another one I was with ages ago but forgot the name of it and it was paying out  after 180 days.

 

These big companies have been doing it since the start so PayPal holding for 21 days is like nothing than the companies above.

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