If you have started receiving payments on PayPal from customers or even friends and family, you may notice that the money is not yet in your PayPal balance or account. Here’s Why Your PayPal Money Is On Hold.
Read more: Everything you need to know about PayPal
If PayPal needs more information about your activity, transaction or business, it will withhold payment. The delay could be due to unusual activity, a change in your selling pattern, or if this is your first time dealing.
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Why is my PayPal money on hold?
If PayPal detects any unusual activity in the account, your payment may be withheld. If you are a first time seller, PayPal will temporarily hold all your payments until you create a positive seller history.
Let’s say you are already receiving PayPal payments for your business. If multiple customers have filed refund requests, raised disputes, or issued chargebacks or bank reversals, PayPal will withhold payments. Payment may also be withheld if you sell high-risk items such as gift cards, tickets, travel packages or consumer electronics. If you haven’t sold anything for a while, you’ll also need to rebuild your seller history.
How long will PayPal keep my money?
PayPal will hold your money for 21 days, but there are ways to get your funds released early.
If you are a first time seller and the payment you received is on hold, you can receive your funds before the 21-day waiting period by using PayPal supported carriers to ship the product. You can print UPS or USPS shipping labels with your PayPal account. Tracking information and delivery confirmation will be automatically updated in your account, and PayPal will release the funds to you one day after the delivery is complete.
If you a. make use of Supported Carriers Instead, you have to upload tracking information manually. PayPal will release your funds within three days of courier delivery confirmation.
How to stop PayPal from holding funds
You can prevent future payment hold by creating a positive seller history. Avoid refunds, disputes and chargebacks, work with your customers to resolve any issues, and set up customer service messages to prevent conflicts and claims. For example, if delivery is going to be delayed due to bad weather, let your customers know.
Read more: how to cancel paypal payment
questions to ask
You will not be able to use any funds on hold until PayPal approves it.
If you receive a payment from a friend or family member for the first time or after a long time, it will register as unusual account activity. In that case, PayPal will withhold payments for up to 21 days.