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

[buythis005a]

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?

[aceantman]

thats Ok Paypal just lost  another $20 in fees as I just bought a computer and paypal rejected my payment.

so hope fully I disn't buy 4.

[nicoletteh178]

Same predicament.

What are we going to do? They are holding $600+ of my money and I have been with ebay for 15 years!!!!!

How do they expect small sellers to replenish their stock?

Maybe I just hit the nail on the head? I wonder if the larger companies are in ebays pockets?????

nicoletteh178

[nicoletteh178]

Thank you for this feedback. They have only just started to withhold my funds $600+ and paypal overdrew my bank account to pay bays fees!!!!
Advice, go to FOS first and try and scare the s..t out of them or give them a chance? I have emailed them today and several to paypal, which I believe is owned, or vice versa, by eBay?
Nicki
nic olette hau@ yah oo. co m. au

[nicoletteh178]

Ummmm, sorry but I have been with them for 15 years, in that time a couple of negatives, who doesn't get that with eBay, and quite suddenly they are withholding my funds?
Well, I guess if you are right, I may as well not bother anymore as without my funds I cannot re-stock.
Not a big player that is the problem. CORPORATE GREED.....
nicole ttehau @ yah oo. co m. au

[nicoletteh178]

Cannot agree with you more :)))
who has any money to start a competitive company?
nicol ette hau@ yah oo. co m. au

[nicoletteh178]

CORPORATE GREED is the problem.
I don't think I will be able to continue on eBay now but maybe this is their goal?????
nicole tte hau@ yah oo. com. au

[nicoletteh178]

That's it, let's do a class action against both of them!!!!!
Anyone out there with the know how, I'll be in it.

[nicoletteh178]

Ohhhh I wish they would destroy themselves.
Bast..ds
yes Alibaba is a good choice but we need to get it here in Australia and the USA

[nicoletteh178]

Well of course..........

[thecatspjs]

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@phorum_junkie* wrote:

Of course it is legal, do you honestly think Paypal don't have a team of legal experts to go through their terms and conditions making sure they pass muster with the site policies are applied to.

It is actually some years ago since Paypal added the policy that they can hold funds up to 21 days however it was only used with dodgy sellers, they now apply it to all newish or seldom used accounts.

Remember Paypal offer buyer and seller protection and if an unproven seller can withdraw their funds quick enough then Paypal has to cover the loss and at best it will cost them time and money to recover the funds from the seller, at worst they have disappeared of the face of the earth never to be found.

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Actually in particular circumstances it is not legal.

Hence the release of funds by Paypal in what appears to be a growing number of cases when the matter is reported to the FOS.

Unless there is cause, under our Australian legislation funds should not be held due a Paypal policy whim - there needs to be a justifiable reason that is supported by Oz law. 

Perhaps you should become a little more savvy about our legislative frameworks as well as read the actual terms of conditions of Paypal in Australia, before declaring something is legal or not when you (or I) can not possibly tell from an OP, if it is or not.