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?

[bullitprooftools2016]

It maybe an old thread but the issue is still relevant for some sellers.  I think holding someones money for 21 days is a bit cheeky.  Ten days for newbies maybe.....but 21???

[book-of-hezekiah]

My pleasure. I'm glad I could actually be informative on the threads! You're not the only one being caught by the time-frames, either!

I like what you said about the issue. I wish you all the very best with your business here 🙂

[garthj85]

No they cannot - it is unlawful !!

They are not a Bank, they are a web site that facilitates a transaction between to people / entities. They have no legal right to withhold the funds.

They say it is for the seurity of the Buyer - Garbage. In any event PayPal has assurance for that. Nothing to do with eBay (apart frmo the fact they are owned by PayPal)

It is all about keeping large sums of money if the back for 21 days earning interest for eBay to sure up their falling revenues.

I have submitted a complaint to the Department of fair Trade.

[davidc4430]

i think if it upsets you so much you should refuse to use paypal.

btw, i had to do the 21 day hold myself, didnt like it, wrote to the finacial ombudsman ect.

in the end you have to let em hold your money or stop using paypal, but then you cant use ebay can you, not properly.

[imastawka]

Ebay and Paypal are now separate companies.

It is not ebay holding your money.  It is Paypal.

Good luck with your complaint

[davewil1964]

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@garthj85 wrote:

No they cannot - it is unlawful !!

They are not a Bank, they are a web site that facilitates a transaction between to people / entities. They have no legal right to withhold the funds.

They say it is for the seurity of the Buyer - Garbage. In any event PayPal has assurance for that. Nothing to do with eBay (apart frmo the fact they are owned by PayPal)

It is all about keeping large sums of money if the back for 21 days earning interest for eBay to sure up their falling revenues.

I have submitted a complaint to the Department of fair Trade.

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Paypal WERE owned by eBay, not the other way around.

eBay and Paypal have been entirely separate companies for about a year now, so none of Paypal's revenue/short term interest earnings go to eBay.

if you are going to start official proceedings (which are sure to fail) you might like to apprise yourself of the current situation, not what you think used to be the case.

[*tippy*toes*]

Did you see when this thread was started? Yet, you are calling this a "new" thing? I'm sure at least you'll give the Dept of Fair Trading a good laugh over after work drinkies. They probably need a good laugh. I know I had a good guffaw when I read your rants. I laughed so much my belly hurt and had eye water. Haven't had a good belly hurting laugh for yonks. Thanks for that!

[zeekoevlei]

I have been a member of paypal/ebay for over 10 years. 654 purchases and sales, flawless record.

Two weeks ago I sold an ipod for £74 which tracking shows was delivered 10 days ago. No complaint from purchaser but paypal is still holding on to my money despite several efforts to reach them - and no response to complaints. Now I speak to ebay. They (Kiera) can see no reason for the payment pending status and confirm that there is nothing wrong with my record or with this transaction. But they insist that because paypal and ebay are `separate companies' they cannot do anything other than refer me to paypal. Paypal is unresponsive. I am caught inbetween. Everyone knows that paypal and ebay are effectively hand-in-glove whatever formal legal separation exists. My only conclusion is that it is no longer safe or satisfactory to sell on ebay - not least because there is no alternative to paypal if you want to be part of ebay. Is it right that loyal customers/clients should be treated so shabbily?

[davidc4430]

no, absolutly no they should not be able to treat good honest sellers so shabbily.

i rekon you should tear up your ebay/paypal union card and walk away.

show this terrible company your not going to take it anymore.

that'll show 'em, they can stick their selling platform where the sun don't shine.

who needs them huh?

why theres a million other places you can sell your stuff with much better rules.

good luck with that matey.

[streetbeastshop]

if paypal`s team of legal experts are so great how come the paypal only payment option didnt last.