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admin : Friday, July 31, 2009, 15:04

PayPal Holding Money For No Reason

I recently sold a back massager on Ebay.  I needed the money, which was the reason I was selling it.  It sold very quickly, and the buyer payed right away using PayPal.

My intention was to use part of the selling price to ship the item, because I was limited on funds until my next payday (which was the reason I was selling it in the first place).  It did not work out like that.  PayPal held the funds and said they would not release them until the buyer provided positive feedback.  So I ended up having to use my already limited money to pay for the shipping, and now I am in a bigger pickle than before.

I have never had this problem before.  My Ebay feedback is 100% positive, and my 5 year old PayPal account has never had anything negative on it.

Needless to say, I will not be using PayPal for any future auctions.  In fact, all of my auctions will now state that I refuse to accept PayPal.

I understand that this holding of funds is to protect the buyer, and for someone with a poor track record or a newcomer I would see this as something acceptable.  But I have a clean record with Ebay and PayPal.  Since this does not count for anything with them, they have lost my respect and my business.


I contacted PayPal to find out exactly what triggered the hold on the money in my account.  According to the rep, even though I had 100% positive feedback, I only had 14 of them.  She stated that anyone with less than 100 positive feedback will always have their money held!  After doing a little research I found that this is one of the requirements of gaining “Power Seller” status-

“To qualify and remain in the PowerSeller program, members must…

Achieve an overall Feedback rating of 100, of which 98% or more is positive”

So you basically have to be a Power Seller if you do not want to be treated like some kind of shady criminal.  This seems quite unreasonable to me. Instead of taking into consideration the above stated positive factors regarding my accounts with Ebay and PayPal, they choose to single out something I never dreamed would be counted as a negative- the fact that I don’t have 100 positive feedback ratings, but only 14.

It would seem Ebay and PayPal are looking to discourage users who do not sell things regularly on Ebay.

Submitted by J. Rorie, USA

One thought on “PayPal Holding Money For No Reason
  1. Lynn on

    I received $80.oo refund ftom merchant for returned nerchandise.
    Paypal has “temporary hold” on MY money for 5-7 business days so they can collect the interest.

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