Thanks yes I have been around a while ! 

The hold on funds most likely was triggered when Ebay temporarily suspended my account 2 months ago after accusing me of attempting to sell outside of Ebay which I was not, and they lifted the suspension within half a day.  Maybe it triggers something with Paypal?

I do accept Paypal for pickups as I can't control this with buyers.  I always request cash on pickup but it is the buyer's choice how they pay.  And I am not interested in refunding their payment and insisting on cash as this doesn't create goodwill - it's hard enough getting a sale these days!  Most buyers know they have no rights for a refund for a pickup item (and I have always won that fight) but Paypal is still a convenient way for buyers to pay.  The proportion of my buyers paying with Paypal for pickup items has steadily increased each year, maybe now 40-50%?

I don't have a problem with being paid via Paypal for pickup items, I do have a problem with Paypal holding the funds for 21 days - funds which are not refundable to the buyer anyway.  Once the item is marked as 'Sent' the funds should be released.

So I will take this up again with Paypal via phone this time