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?

[lyndal1838]

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@streetbeastshop wrote:

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

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The paypal only method of payment did not last because it was never implemented in the first place.

The application was withdrawn by ebay before it was either accepted or rejected....nothing to do with legal experts.

[lyndal1838]

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@zeekoevlei wrote:

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?

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Have you bothered to pick up the phone and ring paypal?  They cannot be unresponsive on the phone, even if they don't answer emails.

Point out that the tracking is showing that the item has been delivered....if they can confirm that fact they will release the money while you are on the phone.

[kerrie2706]

So at the end of the day do we recieve interest on the funds Paypal are holding????

[kerrie2706]

good on you!

[kerrie2706]

On any one day how much money does paypal hold, has anyone asked where the interest goes for holding the funds????

I for one have had any problems as a buyer and I am a 100% seller

Maybe an idea the sellers who have complaints about them, three strikes you go on 21 days, why are the reputable sellers discriminated???

[daydreams_12]

Why are you dragging this thread up after 18 months of seeing the daylight?  This topic has been done many times before, if you look at the boards you will see that.

[padi*0409]

................and nearly 3 years daydreams since the rhead was first started..............sheesh.

[diidii.b]

This also happened to me a couple of weeks ago for the 1st time ever despite the fact i have been selling regularly on ebay for quite a while, have over 430 / 100% feedback & above average seller status. Really annoyed about it so emailed paypal & 2 weeks later still have had no reply from them. Would appear they have only recently started doing this to sellers as the many complaints about it have only just recently surfaced. Perhaps paypal are going broke or something & holding onto sellers money as a way to earn interest on other peoples money. Another way for them to earn money without spending their own!!!

Ebay & paypal.... wouldn't it be nice if there were Aussie based companies that offered AUSSIES the ability to buy / sell & pay WITHOUT all the BS stupid policies & rules that have ruined it for everyone & made us all hate these companies. If i didn't NEED to downsize & there was an alternative i would say goodbye to both companies & NEVER EVER return.

[*tippy*toes*]

No one is forcing you to use eBay or PayPal. There are plenty of other places you can try to sell your stuff. Put an ad in the local paper and see what it costs. Maybe the newspaper is making interest off all those ads? Google selling sites. There are lots. Whether you get buyers go there is a different story, but they are there. I'm sure PayPal would be making bucketloads of interest on your $5 or $10 that they're holding.

[tekstop]

May a direct credit for payment will be a solution instead of PayPal.
Gumtree is starting to look better no fees etc.