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admin : Thursday, January 6, 2011, 9:51

Hold placed on funds

We posted 5 items on E-bay to sell, and one sold within 2 days. Having done business this way in the past, we shipped the merchandise after receiving the payment. The customer was satisfied with his purchase and we thought things were going well and excited to continue in this venue.

Then we received an e-mail from Paypal stating that our funds would be held for 21 days. We are a small business and have never operated this way. Even when we accept credit card payments, we receive our money within 2 business days.

How is this legal? How can they justify making us ship the item before we receive payment, as if the customer decides to keep the item and reverse the charges, we are out the money and the item? What kind of business is this anyway? How can they be the worlds leading service merchant with this policy?

After we questioned this policy, the customer service representative hung up on me, then sent me another e-mail questioning our selling ability when we are a small business in south central Indiana that enjoys an excellent reputation. Over the past 7 years we have not had one negative customer feedback. Because of this, we will no longer sell anything on E-bay, use Paypal, or buy anything on E-bay. We will also spread the word not to use this service, and discourage customers and friends not to buy on E-bay as the only option available is to use Paypal.

Submitted By:: Mark Horlings (newarkmark2)

Location: Bloomington, IN USA


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