Paypal Withholding Funds to eBay Sellers for Up to 21 Days!

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This is a classic example of the problem when one entity with too much control owns the entire sales stream – from start to end – from offer to sale to payment: Paypal has started withholding payments that buyers have already paid until the seller not only ships the item, but “as long as the buyer doesn’t report a problem or leaves positive feedback”! “Your funds are pending – please process this order” demands the notice from Paypal “…This money is being temporarily held in your pending balance… It will be held for up to 21 days… It may be available sooner if we can confirm that the item was delivered or, if this is an eBay item, your buyer leaves positive feedback.”

The full notice reads:

Your funds are pending – please process this order

You received a payment from {name of Buyer}

This money is being temporarily held in your pending balance. It will be held for up to 21 days. While it’s being held, it won’t be available for withdrawal.

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We’ll move the money to your available balance after 21 days as long as your buyer hasn’t reported a problem. It may be available sooner if we can confirm that the item was delivered or, if this is an eBay item, your buyer leaves positive feedback.

To get access to this money more quickly, please process this order right away and communicate with your customers early and often.

{Payment details omitted}


We recommend that you:
Log in and go to the Transaction Details page to see if you’re eligible for seller protection on this payment
Ship to the buyer’s address on the Transaction Details page
Use a shipping service that offers signature confirmation
Save all tracking information or other proof of shipment
Let your buyer know their item shipped by adding tracking information on the Transaction Details page



In the meantime of course, the seller does not even have the funds available to them to pay for shipping! And what if the buyer decides to complain or say that they never received the item, or just decides to leave negative feedback – with the intent that the funds never get released to the seller?

We’re not sure exactly when eBay / PayPal started pulling this stunt – which, it must be noted, lines their pockets as they collect the interest on your money for a cool 21 days – but it came to our attention yesterday afternoon. Research indicates that it has been going on at least sporadically since last month, and why there hasn’t been more of an outcry is beyond us.

We smell class action lawsuit here – both over the monopolistic control that Paypal / eBay not only has but is now exerting over their users, and over that small matter of interest accrued on the withheld funds, which may amount to only a few dollars for the hapless seller, but will undoubtedly amount to millions for Paypal.

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The Internet Patrol is and always has been free. We don't hide our articles behind a paywall, or restrict the number of articles you can read in a month if you don't give us money. That said, it does cost us money to run the site, so if something you read here was helpful or useful, won't you consider donating something to help keep the Internet Patrol free?
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121 thoughts on “Paypal Withholding Funds to eBay Sellers for Up to 21 Days!

  1. It is my belief that all their purported ‘concern for risks’ and ‘buying experiences’ is rooted in a couple of factors;
    1. Like any organization that handles billions of dollars of transactions, they are seeking to leverage that flow to generate extra revenue. If they can hold onto your money for an extra 21 days while investing it in short term instruments – it adds up to a lot.
    2. They are trying to force users to provide more data on their activities, preferences, etc… and are basically tying your compliance to access to your own money.
    3. They are seeking to reduce their exposure on their buyer protection programs, and what better way to do that than to have proof of delivery before funds are even released to the seller.

  2. I sold a guitar for nearly a grand about three years ago. Paypal put a hold on the funds, then while the funds were on hold, the customer brought up a dispute, on a brand new guitar saying there was a small blemish on the head stock. Paypal and Ebay took the money out of my bank account, while the other payment was on hold. I was on my honeymoon in Hawaii, shortly after doing a 3 week tour with my band. So basically, I had no access to nearly 2 grand of MY MONEY, while I needed it on the road, and again on vacation. On top of it, the buyer was trying to pull a scam, and keep the guitar, after numbers of attempts to get a hold of him to return the guitar. I was told by Paypal and Ebay that they would not facilitate this process, and “sometimes these things just happen.” They both closed my accounts. I live in the Pacific Northwest. The buyer lived in Oakland. I basically had to send a friend of mine in the bay area to the guys house to strong arm him to get my guitar back. Why am I telling this story now? Because paypal has been putting a “random” hold on about every other LARGE payment that I receive, and sometimes not releasing it even after the buyer has marked it as delivered. So why do we put up with this crap? They are a monopoly. When they and Ebay were on the outs, there was rumor that a new payment service. I’m sure there will be rules we don’t like with any other service, but at least we’d have our choice of which service we can use. Sellers have no protection. It would seem that in this setting that the seller would have more protection. IF not for them, Ebay would not make money. The buyer has nothing to look at i if the seller doesn’t sell. I am well aware that I accept the terms of doing business with paypal, and that the small print is (although hardly) a disclosure of the of the shady shit they can pull. But when they hold what belongs to you, regardless of the buyer not having their merchandise, all while not affording shipping cost/operating cost to the seller, it makes it a scammers market, and neither one of those big corporate monopolies has ever shown to their customers that they give a shit. I doubt this will ever change. By the way – The guy Greg on this thread who keeps kissing paypal’s ass, seems like one of their employees who peruses these forums to throw users under the bus with the corporate rats we are all pissed off at. Why you would continue to defend paypal’s shady business practices on a forum dedicated to the disappointment of their service is beyond me. Sounds like a person with too much time on their hands and a great need to argue with people, for arguments sake. From what I’ve read, there are people still writing who are no more satisfied with his explanations or paypal’s service. Seems futile and like a lost cause, even if you are backing a winning horse. Paypal sucks….clear and simple.

  3. I’ve said this before and I’ll say this again. Paypal can drive you crazy if you don’t understand how it works and why. I see a lot of pissing and moaning and gross distortions and complete misinterpretations of what goes on. I’ve been using ebay and paypal for 13 years. My ebay id is renaissanceman13 if you want to check. I’ve butted heads with them on many an occasion. But 99% of the time if I have a problem I get it resolved expeditiously. Why? Because I made the effort to learn how their business model works. Their policies are there for a reason, and it will be explained to you if you have the communication skills necessary. If you don’t know how to ask for a supervisor or a specialist, or how to escalate an issue then it’s your limitations tripping you up. Paypal is universally used without problems by millions of people who understand the rules and have the maturity and common sense required. If your money is being held up there is a reason, and it will be explained to you if you make the necessary effort. Because I am an experienced buyer/seller with a proven track record and confirmed bank accounts I get my funds in 3 days and often the very next. I just opened a new account in Thailand in order to send funds to myself without fees. My transfer took about a week due to international transfer details. You people are largely responsible for your own problems because you don’t understand paypal and how it works, and you lack the patience and communication skills to avail yourself of the help paypal will offer to help and explain the rules. Grow up, put on your big boy pants (or girl) and deal with the adult business world as adults. Your incessant whining suggests that you complainers shouldn’t be even using paypal. There are millions of the rest of us that use paypal without the ranting and raving that comes from simple ignorance. It’s your responsibility to learn and understand how paypal works, and if you can’t, don’t use it

  4. It is absolutely wrong and borderline criminal for paypal to withhold anyone money short of reasons of fraud. But they persist, why, because they can. Your money in their hands = interest on that money-the longer paypal prevents you from banking your own money, the more they profit…or so one would think.

    I was sent an email from paypal recently citing that I was an excellent seller, doing a great job. (100%feedback, hundreds of sales) and by the way we are now freezing your auction payments for 3 weeks each sale, on a rolling basis.

    No reason given. None. Nada.

    So I called paypal and while the operator was very kind and patient and agreed with my contention that paypal is involved in highly unethical behavior, if not outright theft, she, the paypal representative did not know the reason my account payment are frozen, especially with my perfect record, she began guessing why, but offered no help in the end.

    The paypal decision-makers are very idiotic and foolish to make blanket policies that treat good sellers like suspected criminals.

    As a result, I will not sell but once every 3 weeks or so, after they give back my money that I earned, it is not their money, and they have no right to prevent me from using it to by shipping materials and paypal/ebay fees, I will now utilize other venues to sell as well. Paypal has alienated good ebayers with their hostile actions and attitudes. We pay your inflated cuts of our sales; final value fees, paypal even takes a % cut of our postage costs, now, with their idiotic actions, they will suffer the repercussions of less fees from me. And I am nobody, I mean nothing to the paypal elite, but… Multiply that by hundreds of thousands of good ebayers, and maybe the sociopaths that run paypal will come to realize that banning good users from accessing their money will not have positive results to their bottom line-$$$$.

  5. What after 21 days of wait, will we be getting back money?
    right now this is my 2nd day :(

  6. These idiots….I got this hold today, been on ebay for many years, just sold a item to Florida no problem.
    Now this time they are keeping the shipping money, wtf?
    I got 100% feedback.
    Am I supposed to wait till 21 days are up?
    frigging BS

  7. hello like most people on eBay selling eBay is earning interest on item you sold for instance
    funds availability policy
    this policy holds your funds for up to 21 day which in that time eBay is earning interest on your funds this is fraud as i can imagine that most if not all of you have no contract or agreed to these stupid policy’s
    for you to agree to this eBay must have your signature
    please make this a well known fact i have talked to a representative which i explained the situation they tried to change the subject many time but in the end i was told
    its our decision not to remove this policy form your account
    i would be interested to see other peoples response to this cheers

  8. This has been going on for several years. Many sellers try to find ways around it but end up getting their account limited. So it is best to ship fast and upload tracking to get the money quicker.

  9. So just o be clear, the 21 day hold is still in effect, right? I bought an item for $810 and it has been 5 days now and the seller hasn’t shipped or replied my emails since tuesday. I contacted paypal and they said they have put the money hold. Now all i can do is wait for 10 days till they decide what to do.Hopefully they refund my money

  10. “Dude” your name fits. As far as your naivete that is. But you are surely not “abiding”. They explained it to you, and you didn’t get it, I don’t think you ever will, and you’re still playing the victim. I understand what they told you. I’ve been there. I had to start over with new user ID because of past problems, WHICH I CAUSED!!!. I was mad as hell about what they do, but I know why, and I don’t fight it, it’s just business. It’s their game, their rules, you learn the rules or you don’t play. I had to go through the whole routine of establishing myself again. I followed their protocols and work within them. I have restrictions on how much I can put up at a time, but I’m not crying like a baby over it. It will change in time once I establish a track record. So when someone explains something to you, and you don’t get it, who’s clueless? Is it always the other person who’s clueless and not you? Is it always the big bad outside world, and not you’re failure to understand and accept its realities? Paypal explains the rules, and you don’t get it, who’s clueless? When someone else understands the picture and you don’t, is it them who’s clueless? Why am I having no problems with them, but you are? Is the world picking on poor “Dude”? Is paypal being mean to you? awwww, poor Dude. Why don’t you just grow up? Look in the mirror like the rest of the adult world and own your own baggage. If you post publicly then take the heat for sounding like a fool. Or don’t post. Don’t worry about what I say, after all, I’m “clueless”, right? So why do you care if you’re so sure of yourself? 90% of the people who use ebay have no problems. Why is that? Look at all of the sellers who make thousands of dollars a month, because they know their business and know the rules. Are they clueless because they’re not having your problems? Abide, Dude, look it up.

  11. @Greg Field
    I most certainly DO know what I am talking about and you are just being a silly fanboy.
    I had called PayPal when I first discovered the hold. They explained to me that I was a “High Risk” seller. With 100% positive feedback and never a problem, I asked them what makes me a high risk seller. They went on to explain that it was due to low number of sales and the item type that I sold – mostly used computer stuff. I asked how I could get out of the “high risk” category. They told me to sell more frequently. I very pointedly asked them this question: “You are telling me that I am a high risk seller because of the low volume of the types of items that I sell and to get out of that categorization, I would need to sell more of the same things?” The person said yes.

    Later, I found out that PayPal was being hit HARD by charge backs that they were on the hook for after creating merchant accounts for others.

    So, Greg, stop trying to blame the actual victims and be so insulting. You are absolutely clueless.

  12. Greg Field, they put the ridiculous hold on my payment when I had been on ebay for 13 years and on PayPal since the beginning (they put $10 in my account for opening it). The hold they put on my money was senseless, unwarranted and they couldn’t tell me why. So proud to have closed my PayPal account and will never put up with there BS ever again. Shame on your (disgusting) cheerleading!

  13. once again, most of the people here telling sob stories aren’t telling the whole truth. You screwed up and you don’t understand the process well enough to know why, so you have to blame paypal and ebay. Or you screwed up and you know it, but you want to complain and win sympathy. If you call someone there, and you may have to speak to a supervisor, your situation will be explained to you. I have caused myself problems like many of the ones talked about here, but I figured out why, and now there are NO real problems, minor ones once in a while, and on many occasions ebay and paypal went to bat for me in ways that they weren’t obligated to do, such as paying me for items from overseas that can’t be shipped back without requiring the seller to refund the money. They have on quite a few occasions refunded money to me without taking it from the seller as a gesture of goodwill and compromise between buyer and seller. . So quit whining, babies, learn enough about it or don’t play. Marsha there’s a reason they put a 21 day hold on your money. What is it? Did you ask? NOOO, it’s easier to whine and point the finger. Patty, you’re supposed to have the money on hand to ship the items right away. You’re mismanaging your business. You should reserve sufficient funds to cover your shipping in advance. You are lacking in good business sense and causing your own problems. “Disgusted Buyer”, you’re exaggerating for effect, or lying to cover your own screwups. You haven’t got a shred of credibility. You people are not taking responsibility for your own part in this. If you can’t figure out how to do business on ebay, if you don’t understand the policies, if you don’t call them for explanations, then you deserve all of this, and you should bow out and stick to tag sales and craigslist

  14. Once again, you people are largely victims of your lack of understanding of how the system works. For example, “THE DUDE” doesn’t know what he’s talking about. He’s too lazy to make the effort to find out why he had his particular problem, so he want’s to be the victim rather than take responsibility. . Terms of service are binding. Terms can be changed and updated quite lawfully and if you don’t read before you click it’s your fault. If you are not experienced dealing with paypal or ebay chances are you will run into the kinds of problems mentioned here. So call them and ask. You should not do ANYTHING on ebay until you know exactly how everything works. There is nothing done by ebay or paypal for “no reason”. There are inevitable problems, and sometimes people get screwed, but it’s not common in the scheme of things, the people complaining here are for the most part novices who didn’t do their homework. Paypal is now once again separate from ebay as of 2015. Terms and conditions have been updated, and if you don’t read it and then you suffer problems it’s your own fault. I just this now had a conversation with the US offices of paypal and they confirm what I already know, and what none of you people have bothered to research. New sellers on ebay are subject to a probationary period which will hold your funds for 21 days. This is to protect and ensure confidence in buyers who are buying from new sellers with no track record. After 90 days they will review and once you’ve successfully completed 20 transactions they can remove you from that restriction. But if you haven’t established a good track record, if you’ve had complaints from buyers or anything else that doesn’t look like you’re a good seller, that restriction will remain. You have to establish a track record. Paypal funds once deposited to your bank are available in 3 days. That’s how it works kiddies, so if you want to join the millions of grownups who happily use ebay every day without problems you’re going to have to learn how to do it right. If you’re new you’ll have to prove yourself and you’ll have to wait for your money. If you don’t want to learn the rules then use craiglist and stick to tag sales. Your childish whining here has no credibility to anyone outside your little world. From what I can see most of you are people I would NOT want to do business with.

  15. I sold an item on ebay last month, the funds were available (finally) to collect and I find out it will take another FIVE working days to forward me my money!

  16. I sold an item on ebay last month, the funds were available (finally) to collect and I find out it will take another FIVE working days to forward me my money!

  17. I sold an item on ebay last month, the funds were available (finally) to collect and I find out it will take another FIVE working days to forward me my money!

  18. I agree
    I sold stuff on eBay once before
    Was a lovely necklace
    There was no damage at all to it
    The buyer said it looked like it was chewed and a few diamonds where missing when I got it back
    I argued with PayPal and eBay they had pictures so they could see there was no damage no missing stones
    But still they have the buyer the money back
    And when I received the necklace
    Back I was horrified to see the damage they had done
    They bought the necklace on intending to steel diamonds then get money back
    And there was nothing I could do

  19. I agree
    I sold stuff on eBay once before
    Was a lovely necklace
    There was no damage at all to it
    The buyer said it looked like it was chewed and a few diamonds where missing when I got it back
    I argued with PayPal and eBay they had pictures so they could see there was no damage no missing stones
    But still they have the buyer the money back
    And when I received the necklace
    Back I was horrified to see the damage they had done
    They bought the necklace on intending to steel diamonds then get money back
    And there was nothing I could do

  20. @Greg Field: Sorry, but those terms were not in the initial agreement nor was it standard practice by paypal to withhold the funds.

    I don’t use PayPal any longer due to this ignorant policy.

    What they DO NOT tell you is that they are getting massive amounts of charge backs from nearly fraudulent – but not quite – vendors they have set up and they are trying to stem their losses and shore up their cash reserves – and getting interest – on the money they hold.

  21. FTC? Class action lawsuit? Forget it. You agreed to their terms and conditions. Any of you who are experiencing these exorbitant delays are probably doing something wrong, or you don’t understand how this works. And again, the notion that paypal would retaliate for a complaint made is ludicrous. I’ve been using ebay for 12 years, I’ve had a few problems, had to create some new accounts, but I get my money in three days, sometimes less. So instead of whining like little kids spend some time determining why it’s happening to YOU, and address the problem. Or, sell your stuff on Craigslist

  22. This 21 day hold is still in place and absolutely horrible for cash flow. Not only does the 21 day hold destroy business production, but allowing buyers a full 180 days to file a dispute is ridiculous.

  23. I’m so relieved that Ebay holds the payment until item has been delivered!! ???????? Because I’m wondering if I’ve been scammed. The seller said he mailed my Ipad 11 days ago, from Washington state. Sounds fishy to me. AND he can’t find the tracking number. Maybe he thinks he still gets the money I sent, LOL….. that’s what you get for being a scammer!!!

  24. The best place to file a complaint is at FTC, the more that are filed more leverage it will get with investigation and something being done with PayPal.

  25. This is the situation I’m in right now. Sold an item on ebay to a buyer in Brazil. Buyer paid. Meanwhile I had to dish out the shipping fees to Brazil from other sources. Paypal is now sitting on the funds until they decide to release them or if they decide to release them. This is an experience I do not wish to repeat. I’ll have to find another venue for selling my items. There must be a place where complaints can be made about this.

  26. well it just happened to me today and I am not going ahead with the transaction. I will issue a refund to the customer and if they really with to buy the item, they need to send me money directly into my account or paypal without ebay reference.
    this is my way of showing disagreement to Paypal. they can’t just do whatever they feel like. they are trying to manage the buyers protection Risk on sellers money now; and i ma not happy.

  27. Yea PayPal can be a pain in the ass when wanting your money right away. I would hope they would AT LEAST let a percentage or the cost of the shipping available for the item sold.
    Not only is my item sold, with no payment to me, but I have to take funds out of my own pocket to ship it. THEN… I have to wait for it to arrive THEN… I have to wait another 3+ days for PayPal to decide… OK Here’s your money… and for an added gift we’re taking a percentage for using us. LIKE A HAD A FREAKIN CHOICE. You can only use PayPal on eBay. What a bunch of crap. No wonder some people end up going postal on corporate assholes.

  28. Sorry, but from the perspective of the buyer (ME, the CUSTOMER) this policy is necessary because a few bad sellers are not shipping the item per their stated “ships in 3 days” or whatever, not responding to any messages sent by the buyer (ME, the CUSTOMER), then ONLY WHEN A QUESTION is asked through ebay problem (after patiently waiting more than 2 weeks) responding with statements like “didn’t you get my email on my explanation?” and finally generating a tracking number for a shipping that they still never ship (ME, the CUSTOMER keeps checking the tracking for days with no results and item still does not arrive). Thank goodness for Paypal because $140 is a lot of money for me to lose.

  29. I have had enough of ebay b.s., I will quit selling on there, I just sold an Iphone 5s two weeks ago, the money was available right away, paypal sent me an e-mail saying the I received the payment and that i should send the item. The buyer received the item, and the same day they put a hold on the money that was originally available and i’ve used parts of it to buy another item on ebay. I have a negative balance on paypal now. They buyer didn’t leave any feedback nor file any case. I have zero cases on paypal and zero cases on ebay. So I don’t know why they put the hold after it was already available. Why put it up as available in first place??? This is the biggest scam from paypal, they let you ship the item and then take the money back….that’s not cool at all. I need that money now to pay my bills….I’m not a power seller nor do I have a source of income as I’m a student. Someone needs to open another site like this with better rules and regulations to protect the sellers. This is full of c r.a…

  30. This week eBay notified me they’d withhold funds for 3 weeks on 2 items I sold, until I “establish” myself as a seller.

    What?! I’ve been selling on eBay for nearly ten years and have a 100% positive feedback score of over 500.

    I hope they investment money wisely while they withhold it from me to make even more money than they earn from the seller fees I pay both to eBay & then to Paypal, which they also own.

    Also sellers beware — I stopped selling 99 cent items awhile ago when I realized eBay & Paypal keep % of what you charge for shipping — I often spent more to ship items than I was getting paid to sell them.

    I suspect Paypal & eBay will eventually be forced to split, & some law firm will get millions from the inevitable class action, and eBay sellers will get pennies.

  31. put me on the list for a class action suit. 2 low scores by one buyer even though i let them return the item. 2 months later i am on probation and my funds are withheld as punishment. ebay says this is a safeguard. against what? they have my visa number to charge me anytime they want.

  32. I have had the same issue and am absolutely fuming.. My funds are withheld by PayPal due to me being a new seller, even though I have 100% feedback and always ship the next day.. I have registered a complaint with PayPal (for all the good it will do). Obviously this practice has been going on for some time and they are still getting away with it!!! Surely it’s illegal, but they are a law unto themselves. I have removed all items from Ebay, sent out final packages and will no longer deal with them or PayPal, whatsoever. Oh and if i end up owing any fees, I won’t be paying them, they can take it out of the interest they probably accumulated while holding onto MY money… LIVID!!!

  33. There was literally no reason for them to do this to me, so they said I was a new seller, I first sold an item in 2004. I have 100% feedback rating. The customer service is located in the Philippines. I told them that in this country, when you buy an item you pay for it before you get it. I also told them I am giving bad feedback for slow pay, which I have no intent on doing but, If we all do that, pay pal will have to shape up or ship out. Time for a new paradigm.

  34. I too am livid with the whole witholding of payment and do not believe it is legal. I contacted and asked them this question and was told that they must meet the need of customers and it requires them to do this. Yet, he was not able to cite and reference, law or actual policy. My funds are being withheld because my I had lower then average complaints on my shipping time to international customers. While at the same time my rating is still at 100%. I have never had a customer unhappy with what I sold them. The whold think is rediculous. The logic just doesn’t add up.

  35. I suggest sellers use eBay to attract buyers. Then leave a printed note which is sent with their purchase, directing the buyers to an alternative auction site which charges low or no fees, explaining that the prices are lower there as you don’t have to be charged those high eBay / PayPal extortionist type fees, and insulting, perhaps even unlawful waiting periods for your pay.

  36. Try the Fdic… I’m not sure if the Fdic has oversight, but Paypal does has “pass through” insurance, so it’s worth a try.

  37. I smell a class action lawsuit here, Banks don’t have the right to hold your funds, what the hell is going on here? These people are disgusting, underhanded thieves that feel like your money is their money? Sounds like the government to me! I am pissed!

  38. I’m in the same sinking PayPal boat, they have my money and won’t give it to me, after 13 years of selling on Ebay and using PayPal. They are supposed to receive payments for me and then give me the money, for a fee. I’ve paid my fee to them but they are not keeping up their service to me. I will never never use this useless company again.

  39. EBAY Quarterly Report:

    July 19th 2012 = Total Assets
    In Millions:
    28,258 = $28,258,000,000
    = 28 BILLION

    Compound Interest from 21 day holds on all YOUR FUNDS

  40. EBAY owns PAYPAL —- fyi —-

    just buy and say you never received package = (Free Stuff)
    If they put a tracking number on package – just say “not as described” = (Free Stuff)

    I now have 9 free laptops, 12 free iphones, 11 free ipads & I’m currently winning a bid on an infant from Uganda (fingers crossed) – International Shipping gets “misplaced” all the time.

  41. I was told that funds would be available after I made 25 sales (originally on ebay my funds were never withheld and I have 100% feedback.) After I reached 25 sales my funds are still withheld because some of my sales have been to Canada! HAHA. Which doesn’t count, they say! This is the end of my ebay selling.

  42. I believe why paypal holds your money for 21 days is quite obvious. The get interest from the money and then they give it to you. Greed has got the best of them and they don’t care about there sellers

  43. I just started a petition because of Ebay and Paypal holding funds. please sign it at

  44. This 21 day ruse has just been implemented on me too by PayPal. I too am incandescent.

    I played them at their own game: shipped the item to the buyer (small item cost, so no tracking info) – then refunded payment to buyer. Sent note to buyer saying that item had been shipped but also that I was going to refund their payment.

    I briefly outlined that as PayPal had written to me to say that I was considered to be a higher than average risk to prospective buyers, that I did not want PayPal to have another penny of my money, and that as I was not allowed to have it, I would rather refund the buyer the whole lot, than my pay any money to PayPal.

    Whilst my response is obviously much easier to contemplate for lower priced items – just imagine the utter astonishment of a buyer were one to have their payment refunded for a much larger sum of money.

  45. Just sold close to $400 in 5 different auctions, none of which will be available to me for an undertermined amount of time. In the past I’ve been shafted by buyers who canceled their credit card payment a full 3 months after purchasing and lost hundreds of dollars. EBay and Paypal did nothing. Now they want to withhold my cash and shaft anyone with crap to sell even more just to cover their own hind end. This is absolutely rediculous. Someone please get this class action suit started, or start another company that takes card payments online for sellers. This is absolutely rediculous.

  46. Ebay holding funds? Sold $48.13 USD on ebay with shipping. Paid USPS $29.53 to ship the items. Net $13.60 less Paypal Fees. For a $29.53 investment I am having to wait 21 days to have access to funds. What is crazy about the entire deal is Ebay will get their selling fees before I get paid! Have 101 100% possitive feedback and rarely sell on Ebay. Mainly use my account to purchase internet services. New Ebayer’s need to beware of the Ebay policy which is not clearly stated at time of listing item. Would make for a nice class action lawsuit.

  47. I opened a PayPal account for my Business and then one day, when there were funds in the account, PayPal decided to restrict access until I gave them confidential information such as Passport copies and recent Home utility bills with my address etc. I sent the info they requested but nothing changed. When I asked about it they said the Utility bill wasn’t recent enough as it was over a month old. Well duh, it’s a quarterly bill!
    Anyway, I have not been able to withdraw the funds that belong to the company nor use the business Credit Card that was attached to the PayPal account with any merchant that only uses PayPal for payment.
    PayPal hide behind the excuse they are required by law to insist on proof of identity but they only seem to use that excuse after you open the account.
    We need to record our bad experiences with PayPal on every Internet forum and social networking site (Twitter, facebook, LinkedIN, Kronircle etc) until PayPal’s funds (in terms of revenue) are restricted like ours.

  48. I used to regular Ebay seller and Paypal user. Had a seller rating of 1700+ aguired over 10 yrs. Got it cancelled. Cuz a buyer. Printed postage sent and RECEIVED by Buyer via UPS confirmation. Afterwards buyer tells Ebay never got the item Ebay Promptly Refunds his money. Even though it is proven he received it. Then Ebay demand I reimburse them. I refused they suspended my account. Ebay Buyer Protection is a joke. All it protects is crooks, scammers and rip off artists. Whether you are a seller or a buyer. This 21 day hold on sales. To me its just now ebay wants a piece of the action too. What a bunch of crooks.Any buying on ebay now I use a paypal with a Prepaid Debit Card as funding source. So they can ONLY take whats due nothing extra. I dont trust them at. Nor will I ever sell on ebay anymore. I was not a power seller but sold about 5K a year. So they just screwed themselves out of my business. I sell in other places.

  49. Maybe paypal should have been more clear about this policy with you, but I think 21 days of financing is well worth ebay buyer protection bringing higher prices to us sellers–think of the risk the buyer or ebay would have to take otherwise!

  50. I have now in last four months have gone through the 21 day hold, and during christmas time caused them to hold one day start to hold what was in my account and at time was 800.00 and so they found the last 20-40 transactions that would equal this and said they were holding these funds, and so first day or two forced all debit card transactions that should have pulled from my paypal funds but now since held forced to my backup checking account, and during holidays and with no warning, first day or two I was hit with drastic overdraft fees, causes not only did it causes me to overdraw my account at personal bank, but they send not one large withdrawal but dozen small ones each night and everyone one caused a $25 fee once account became overdrawn and the next night same thing so by time I could move funds around and try to block paypal from pulling out of backup source I was over $250 in fees in two days. Now buyers are more upset lowering my ratings cause to pay for postage and also inventory to sell was now behind causes for eBay to hold funds longer till better ratings. So called PayPal and they started had 6 cases recently on ebay but most were communication, those that had a lost package i always refunded quickly since have insurance on it. But rep said also could be new seller also, and been member since 2002, and sold in last 12 months about $40,000 through PayPal/eBay. This is only start of what now is more, so filed complaint about how they held all funds in account for 21 days even if money was funded form my own account, and filed with CA Banking division consumer affairs and PayPal sent response to my complaint and so I sent in my response to there reasons they stated, and so this part of government agency could not help anymore. So now have a Unauthorized Charge Claim on a large sale, and so hold $400 till resolve it, and sent in my postage shipping information in 3 days, and was not covered by the seller protection program they advertise due to never shows it was delivered, but since this is a Unauthorizes Charge claim, and not a NON Receipt claim I met the requirements in User Agreement, so now I am in process of arbitration with PayPal. But one last issues that have come up, I since funds being held issue have opened a BillMeLater line of credit which is part of this whole PayPal eBay company, so would not have issue of debit card funds not available if they deceived to hold again. So oddly my payment of $200 to line of credit this month did not show a payment on account, but yet they have cashed and the payment check to BIllMeLater has processed through my bank account, and so now they are researching the missed credit for payment. Also have noticed if I get refund from a purchase or something to my paypal account they are holding these and it states funds be available when investigation done. The refunds are about $20 for shipping cost a vendor is crediting me back for late shipments, and now these are being investigated, and what possibly could they do next will see. I have cut back 60% of items selling on eBay, but now other similar platform out there for this, and so have to deal with this monopoly they have me in.

  51. Long time Ebay user here. Been on Ebay since 1999. Always 100% feedback. Not a power seller, but I have excellent customer service and stand behind products that I sell. Just recently sold an item and suddenly was introduced to this 21 day hold policy. I lost the sale due to my customer not wanting to wait untill the funds cleared. Of course there is no way im going to ship an item that im not paid for yet. Thats insanity! Ebay stated that im below seller standards due to my shipping practices. Aperantly we are supposed to ship through them now and provide tracking numbers and such. Ive always done this outside of Ebay through my home business. Never had a problem untill now. Spoke with Ebay pleading my case that hows can they pull this crap on a long time seller with a great reputation? Since I didnt get the answers I wanted I complained my way up to a supervisor. Finally after getting the run around and becoming very frustrated Ive decide to close my account which of course they were unwilling to help me with. I complained more untill now they finally stated they will have a manager call me. Ill be sitting by the phone waiting for that call. Im done here. Im taking my business else where. Big business needs to understand how they got big in the first place. When you bite the hand that feeds you it eventually bites back. We the buyers and sellers have the power. We must join together to change things. They cant get away with this. I would never be in business if I pulled these shinangians on my customers.

    Extreamly Irate!

  52. This started in 2008, as early as June. Thays when I stopped selling on Ebay. Feedback of 6000, sales of about 90 items a month. More at Christmas.

  53. I was withheld some funds for a week or so, and the thought of having it withheld for 21 days horrified me. I now opt to sell my items on craigslist. It actually works on high-demand items.

  54. This has not been happening universally across the board, I think it happened to me last year but not lately. You can call paypal during the day and keep trying until you can get someone in the US, at that point someone will be able to advise you about this. Same goes for ebay. I believe that is how I resolved my issue, with the help of a customer service rep. . Your problems can be escalated higher, but once again you have to speak to someone in the US. You have to request a MANAGER not s supervisor. Lastly, there are problems enough without idiots out there making stuff up about paypal retaliating because you “make a stink”. The people who work the phones couldn’t care less about you or your life or your account, But they WILL try to help as best they can. If all else fails you can open another personal bank account, use another email address, set up new paypal or ebay accounts and then continue. I’ve had to do that a few times.

  55. I marked “shipped” on both eBay and Paypal on 12/April/2012, according to Paypal I should get my money within 7 days, however today is 30 April 2012 and I am still waiting for the funds to be release. My buyer has already left a positive feedback. I sent Paypal a few emails, everytime the response is the same, you guessed “marked shipped and you will get your money in 7 days. And they also told me a “positive feedback” is not a requirement for Paypal to release money. I ask the question both me and the buyer are happy with the transaction and the buyer has got the goods, why do you Paypal is still not releasing my money, they just ignore my question. I hope someone would do something to teach Paypal a lesson. I hope there will be a new systme like Paypal and I will definitely close my Paypal account.

  56. Speaking only as a buyer whose “spending limit” has been reached, I can only sympathize; but I do have a suggestion for sellers who are obliged for one reason or another to continue with payPal/eBay. Did you know that buyers have no clue that the mothership is doing this to you? I think it might help–a tiny bit–if your site included the information that payPal is hanging on to the money we sent you until we leave feedback. Since they’re lying, it won’t help much, but it might clarify matters a bit. I suggest this because, when I 1st started using eBay, I wrongly assumed that the rating system was for real, & left 4 star reviews when it seemed appropriate, until I discovered, from a plea on one seller’s site, that anything less than 5 stars branded you as Bad Seller. And this “21 day”–or 90. or 180 day hold–was news to me until I began to dive into the boards I won’t myself be continuing to shop on eBay, much as I’ll miss it, because their demands for a link to my bank account sounded pretty Nigerian-prince-ish to me, but I know there are other buyers like me who would appreciate being tipped off to our sellers’ problems. Remember, we’re not the enemy: we’re your allies against the real enemy.

  57. the 21 day hold is awfull i really have had enough of paypal they held over £200 of mine then i have to take ages emailing buyers to leave poss feedback and not many evn bother to leave feedback though they have the item and r happy the buyer not always got time to mess around with feeback straght away so the poor ebayer has to wait for paypal to relase funds or buyer to leave feedback its not paypals money but they treat it like it is i have had enough of paypal im leaveing

  58. What a system ?
    Let’s face it, the majority of eBay seller’s make very little profit from a sale, so in order to actually accrue any revenue, seller’s must sell many items, the more items sold, the more profit for eBay/Paypal.
    I thought crooks were usually hid in the shadows, not eBay, they steal in broad daylight.
    Corporate America has become disclaimers and contracts that favor them, not the members.
    As soon as I am able, I will say goodbye forever to eBay.
    Good riddance !

  59. 21 Days hold of MY MONEY. I sold a large item that was for local pickup only. Could not be shipped . Buyer came picked up Item. Marked a positive feed back. He got the Item.He called ebay and paypal with me. He paid for item through paypal . E-bay said mark it as shipped so I would receive my money in 7 days. They did not release my money. 12 days later, they still will not release the money. I was told 21 days and the money will be release . This is a scam. Shame on E-bay and paypal
    e-bay has $135. Paypal has $120 Buyer has the Item. (but I still don’t have my money) $4100 . So you really can do a local pickup only. And get the money for a long time. Buyer lives 40 min. drive.

  60. Paypal was holding $3000 of my funds which I could not do anything about.
    100% feedback, never any issues, and all trackable items.

    Now they suspended my account, because they think my account is linked to a suspended seller from 1 year ago.

    I need a lawyer for this bs !!

  61. Did it ever occur to all those buyers that the paypal protection system actually makes customers feel confident enought to buy from you in the first place? I just won a bid on a $700 camera. The seller has 100% feedback, but is answering in 3 or single word emails. He just claimed to have sent my item, but doesnt want to give me any proof of this. Now probably I’ve been scammed, and I should have bought my stuff from a seller with much more stars. But, I feel confident the @#$#$ who tried to steal my money won’t have access to it, as I’m filing a case right away.

    Do you really think that buyers like me would sent large amount of money to unknown sellers, if there wasnt the kind of security paypal offers?

    and NO, the rating system alone is obviously not enought to fight of scammers.

  62. I just received the same email of holding my money for 21 days . . I have a 100% feedback, and no complaints or cases against me. I am stunned. Its like paypal saying they are holding my paycheck for as long as they want now. This is an outrage. They already take a huge cut of my funds for doing nearly nothing. I am really fed up from being pushed from all sides these days. It becoming impossible to even live in this country.

  63. I just cancelled my Pay Pal account. I urge you to do the same. After almost 8 years, 100% positive feedback, I get hit with this load of b s.

    I tried to cancel my ebay account but can’t due to a recent payment.

    No more money from me Ebay and PayPal.

  64. wow! Just sold something on ebay and to find out this 21 day holding is bs!! I need the money now! no more selling on ebay thats for sure.



  67. Who ever came up with this 21 day “hold funds hostage” policy needs to be replaced with experienced business persons. Small business sellers & regular eBay sellers need their money now for operating costs and living expenses. Did anyone fail to mention that a gallon of gas / diesel is well over $3.00? Hiking the price of shipping – groceries etc. There was a time when eBay & PayPal were good companies with limited bull crap to put up with. Now that eBay / PayPal cater to the 2% whiner mooch buyers instead of the 98% good buyers, eBay sellers are dropping like flies. eBay / PayPal are bending over a $10.00 bill to pick up a dime.

  68. Wow – this is NUTS. I have 150 all positive feedbacks, and am a top rated seller, as well as a power seller. This account criteria was imposed on my account, holding every transaction for 21 days. After 6 phone calls to paypal, every agent agreed there was no reason that my account should be placed on hold. Finally, I got to one customer service manager who told me that “it is like an insurance policy” and that there was nothing I can do. They are currently holding over $3500 of my money, which has to be illegal. And I received no notice of it. CROOKS!

    sign me up for the class action suit, fella’s!

  69. I just got a notice from PayPal last night that starting yesterday my PayPal funds will be held for 21 days. I’ve been a seller since 1997 and have used PP since the very beginning. I have never had a claim or any problems. WTF!

  70. Each and every one of the sales I made from has been withheld by Paypal eBay, even though I had provided tracking information for most of the transactions and marked “shipped” on eBay. I have sent Paypal at least 7 emails and make 5 phone calls regarding the funds that I should have received by now, and every time I got different answers. But further apart from receiving the automated standard email replies from Paypal, Paypal has never replied to me to assit with my specific questions. Yes, I am so pxxxed off and so frustrated by Paypal, surely it’s not legal to withhold someone’s money even after someone has already provides and goods and services. Where can I find more help. Maybe that’s all stop using eBay and Paypal.

  71. Just found out about this issue with PayPal the hard way. I sold 2 items on ebay. No where in the listing screen does it tell you that your money will be held for any amount of time, nor does the email confirmation of the listing, nor does the email sale confirmation. The first hint that your money will be held is when you receive the email from PayPal about receipt of funds, at which point it’s almost too late to cancel the transaction because then your buyer has to fight with PayPal for a refund I’m sure .. not going to make many buyer friends on ebay that way! It seems to me that ebay/PayPal want to act as sort of an “escrow” agent, which is fine but both parties (buyer/seller) have to agree to that AND the way an escrow works is, both parties submit to the escrow agent and then everything is disbursed. In otherwords, if this was being done truly to protect buyers and sellers, buyers would make payment to the escrow agent and sellers would ship items to the escrow agent. Once the escrow agent receives everything, they send the item to the buyer and the money to the seller. But that’s not what’s happening here. I shipped my items out immediately so I no longer have the item I sold since it’s with the post office and I still have no funds. In addition, PayPal withdrew funds for shipping out of my bank account so I’m actually in the hole about $85. Isn’t the seller suppose to MAKE the money?? This is absolutely ridiculous and I have called PayPal about 5 times in the last 2 days and get different answers each time. They tell me on the phone that if my items are delivered Jan. 3rd (anticipated delivery date) that my money will be released 72 hours after that .. yet on my PayPal account summary, it says January 16th. Not to mention the fact that when you view the account summary, it is so confusing, you need a damn accounting degree to figure out exactly what the hell they owe you! I will most defintely be calling the FTC and contacting the Internet Crimes Complaint Center as well as the Chicago firm handling the class action. Thank you to those who posted that information here. I’m also closing my PayPal account as soon as they release the rest of my money .. assuming they actually do! This is a real shame because it seems like ebay/PayPal are trying to squeeze out the “little guy” who wants to sell on ebay (which is exactly how ebay started) and that they only want to deal with stores who sell. If I can only buy on ebay from a store, why not just drive to a local store to buy? What incentive is there to buy on ebay then? It’s fine if they want to hold your money if that’s what sellers agree to but it seems to me that they just try to “sneak” that in there which to me doesn’t seem very fair at all. Definitely an unhappy ebay/PayPal camper here!

  72. I just found out about this policy the hard way. I am a brand new eBayer with 5 recent sales and 100% positive feedback. Paypal wouldn’t release my funds for four transactions, even after 10 days had passed since shipping on 12/5/11. Two of the four customers I shipped to last Monday left positive feedback. Paypall listed today as the “estimated” date of funds availability. I called Paypall today (the following Wednesday) when I realized I hadn’t been paid. They told me that funds are not released until 3-5 days after the estimated delivery date. All of the packages, by the way, were received at least 5 days ago. The woman on the line told me entering tracking info would help to release funds. She proceeded to tell me that the usps tracking info I had entered was either false or incompatible with the usps web site. [Unfortunately my local post office had misinformed me that the “insurance claim number” could be used as a tracking number online. (It doesn’t work.)] IMPORTANTLY, she denied that positive feedback would help me get funds under their new policy. I explained to her that this directly contradicted the statements regarding holds on! I threatened to close my account TODAY if I wasn’t paid as soon as possible. Talking to a call center manager finally freed three of the four payments… I almost got off the line before I realized that they hadn’t released the fourth. The manager claimed there wasn’t any info to prove the item had been shipped. NOT TRUE! He complied when I made it clear that feedback had been left regarding the arrival of the package. I was ultimately paid the remaining money. I plan to clean out my account while they still have the capital to actually pay me. Abandon Ship!

  73. If there is a class action lawsuit I def need to know where to sign up. I have went through the same problem as many others and it has hurt me financially and personally. email me at [email protected] with any further info

  74. So I’m suppose to be paid today for some products I’m selling, not through ebay, and they can hold that money as well? Are there any other ways besides a check from my buyer or western union? I need to the money for the holidays, I can’t wait 21 fricking days??

  75. I talked to someone from paypal and they said that this is there “new policy” Thanks for the warning A-holes. I shipped through paypal and saved on postage and confirmation. now i am going to have to pay full price due to the holidays and counting on buyers money. If i went to western union and sent money, would the recipient have to wait 2 weeks? HELL NO. Also, if there picking and choosing who to withhold isn’t that discrimination? HELLO
    I too have 100 percent feedback with 295ish rating. Goodbye Paypal once this is through.

  76. Yep, that is total BS, I cannot Afford to lose money. Im making just a tad after ebay and Paypal fees. Once these transactions go through im done. Amazon or other online sells are going to get my business.

  77. Re:When paypal started this. They first did the 21 day hold
    on my funds on 6/6/2008.I waited 21 days and went to my bank and zeroed out my PP acct.. That was the first, last and only time PP held any of my money. I quit selling then.

  78. I talked to paypal some time ago and it is definitely an eBay problem, not a PayPal problem; some other people say they use PayPal with other selling places and don’t have this problem… Solution seems clear: use other selling places!

  79. They have it set up so as a small seller I am 100% dependant now on people to leave positive feedback to get my “score” back into a normal range, to bad I was hit by a string of people who thought it’d be funny to leave negatives and open cases before contacting me (another break of their own rules by the way). I spent 40 minutes on the phone with eBay and the said they understood but could do nothing. I can barely afford ship[ping charges without the buyers help. I think I’m done with eBay and will be using amazon from now on. I did file online complaint and will be calling an attorney.

  80. You know, there was this one time late in the summer, where I sold a couple of items up to $60. While Paypal was withholding my funds, I went below 0 dollars in my Bank account, forcing me have to borrow money because I got deducted 60 dollars for doing so. That’s a lot of money that I don’t have. Thanks PayPal.

    Good luck to whoever’s taking action against this.

  81. I being a biller/collector, know that Ebay and Paypal, are breaking FEDERAL laws. I too am effected by this CRIME eBay and Paypal, are doing by withholding funds for 21 days. I have filed a report with the Federal Trade Commission @ 1-877-382-4357. They have asked me to urge MORE people to call them and file a case against eBay and Paypal. Yes, they are breaking the law. When you call, after you’ve heard all the options, press “0”, and you will be connected to a live respresentative. Once they have obtained the information from you, they will give you a reference case number. They also, want us to file a complaint through the Internet Crimes Complaint Center @ I have done all of the above, please DO THE SAME. We can’t beat this if we don’t get involved.

  82. I just joined the class action lawsuit out of Chicago. You should too. Scroll down to Vincent Francone. And join us to stop this abuse!

  83. They are going out of business. This is why they went from taking 1 1/2% and jumped up to 10% but started giving waiving their posting fees. They expected sales to jump and they would be able to pay off their debt but since that didn’t happen they chose a swath of customers each month and borrow thier funds and give themselves a month to pay back those funds, using the next swath of clients to do so with. This needs to be investigated by a law enforcement agency. They are holding(using and borrowing) the funds of their customers almost like a ponzi scheme. They are running out of money and time doing this. And they should have to pay the sellers that they hold and use their money like any bank or payday loan company gets a return on their loan,hold or borrowed money. This is illegal. Not one customer on ebay or Paypal has agreed to let them use their money for 21 days like this. INVESTIGATE THIS FLEA MARKET!

  84. Following my call to Paypal today I received an email asking me to complete a “Customer Satisfaction” survey…. what fun I had.The final question was would I be prepared for a follow up pnone call, which of course I answered YES, penny to a pound I do not get one.

  85. I am seething; just spent a hugely unproductive, highly stress making, 15 minutes talking to some guy from Paypal on the phone.Apparently this farce will not continue as soon as I reach 100 positive feedback. He could not grasp the concept that if I were to walk into Argos/Tesco/John Lewis or any other store on the planet; pick up an item say a vacuum cleaner and take it home saying ” I will pay for it in 21 days if I like it” I would be charged with theft. All he kept endlessly repeating was “Well Mam (!) as soon as the purchaser leaves feedback you will get your money” which is fine if they do leave feedback, which sometimes can take a month for people to get round to. That’s it no more Ebay/Paypal for me.

  86. I just cancelled two paid purchases on eBay. I contacted the buyer’s outside of eBay (something that I have never done before), to pay me directly. I explained the 21 day money hold. The buyer’s responded very favorably.

    I believe that this can cause the 21 day money grab policy to backfire in their face. Please notify as many eBay sellers as possible to do the same.

    We the seller’s will come out the winner for once. You won’t have to pay Paypal’s high collection fees as well as any eBay final value fees. The only charge that you will incur will be the listing fees. That’s a pretty good dealfor us the sellers. And hopefully a very bad deal to the dictators at eBay.

    Now is the time to act. Cancel the sales and make life miserable for ebay, as they have made it for us.

    You may contact me with your input and ideas at [email protected]

  87. Is there any person out in eBay land that can help get a “SELLERS ASSOCIATION” started? We need to exert our power and let eBay and Paypal know that they are not going to get away with this thievery.

    Please help me help you. We can set up an association that will put some of the power in our hands. It is just what eBay and Paypal have been asking for.

    I am not familiar with the start-up of this much needed association. If you are or have been involved in such situations before, please help all of us. send your comments to Alan Ehrlich: [email protected]

    This is urgent.

  88. I haven’t read any place here where I think anyone understands the situation or the solution. No one is forcing any one to buy or sell on eBay. If you don’t like the way they operate then don’t deal with them. How did you live before the internet and eBay came along? EBay nor Pay Pal owe you anything, not to you nor me. I ran into this myself but I’m not crying about it. The buyers and sellers control the market but only if they participate, stop dealing with eBay and Pay Pal and sooner or later they’ll get the message. They can’t hurt you unless you let them.

  89. I’m A new seller on ebay and have currently made 47 transactions so far and WAS hoping to start up a small buisness. After this paypal Event cropped up it makes it even harder to break into the ebay market! if payments don’t get realeased unless proof of tracking is provided or the buyer leaves positiive feedback it small businesses in a sticky situation, Buyers dont want to pay extra postage charges on small items and most dont leave posotive feedback so the funding that is created through sales cannot replace the stock that’s just been shipped out and so waiting 21 days leaves everything at a standstill. I think its totally pointless and a total Ebay already had so much buyer protection, thier just using it to both of thier advantages. Just for the extra interest its getting them. I think That EBay and Paypal will loose a great deal of their users through this ‘EBay safety’ Need to get it SORTED!

  90. Something else and bigger that bothers me about this is, maybe paypal/ebay is in trouble and is going to go out of business holding all that money. Boy what a mess that will be. I think I’ll be looking into Amazon to sell stuff from now on. SUre wouldn’t want that to happen if they had a bunch of my money. HERE’s the law office that’s handling a class action, I think:
    Email them to put your names in the data base:

    Vincent Francone

    Legal Assistant

    Freed & Weiss LLC

    111 W. Washington Street

    Suite 1331
    Chicago, IL 60602

    (312) 220-0000

    (312) 220-7777 – fax

  91. This has just happend to me as well 2 days ago! I am ticked off! I always ship to my buyers the very next day after payment is recieved, mark as shipped and add a tracking number, so if ebay wants to say they need me to ship and show proof of delivery then they have shut thier eyes and are making this bunch of bunk up! i have perfect feedback scores/ratings and bend over backwards for my buyers, even paying out more then they paid in shipping cause they ask for a quicker delivery service after the invoice had been paid! I am fairly new but have sold over 20 items in 3 weeks, I am also buyer and have never had any problem with my shipments from others, now they have MY MONEY for MY ITEMS froze for 21 days and making crap up to try and justify it like we are retarded, basically pulling a goverment trip on us… Big Goverment… BIG EBAY! this is such a crock, I was trying to do something in my life to make some sort of something out of myself.. now i cant even bid on anything for other sellers.. and to those whom are saying ” How does it feel to wait aka buyers” I apologize you have had a bad experience? But some of us sellers do what we are sposed to do.. once an item is bought from me it is no longer mine and i ship it immediately! Ebay needs to be punished for this scheme.. and thats all it is… a frickin SCHEME.. I doubt at all after all this i will continue on ebay.. i dont enjoy MY MONEY being with-held from me no matter what.. and i will be damned if they get their fees paid on sells until they give me what was mine to begin with and sure as hell not theirs!!

  92. You are not alone. Paypal is holding 50 to 100 thousand ebay sellers accounts – right now! The key is the PRESS. Write to the press, post on the net, PUSH THIS STORY – ask other ebay members, tell others to email the Wall Street Journal, New York Times – BE UNRELENTING, AS THEY ARE UNRELENTING. The noise has to reach the PRESS – Once this hits the news – things will get better – Politicians will read it, attorneys will read it, other news will pick up the story – the press is the answer. Trust me, Paypal and Ebay have set this up – in secret – once exposed – they are finished.

  93. This is the worst. A couple months ago ebay arbitrarily put a selling limit on my account and now I find out paypal just pulled this 21 day shit on me. My account has 100% positive feedback and I always ship and pay immediately. I’ve got a few more things to sell on ebay, but after that I think I’ll try to take my business to amazon or bonanza or craigslist. I don’t care if I have to go to a less popular marketplace, anything is better than this abuse. These thieves should be ashamed.

  94. This happened to me today on a 385 dollar iPhone. I have been with them 5 months, own a store, have 167 Feedback with 100% score. I just sent the request to cancel the transaction to the buyer and hope she accepts. I would never ship an item without payment, and in this case its a 0 feedback buyer!

    Im dissapointed because ive been very successful on ebay and have a few days left before getting my sole proprietorship and sellers permit finalized. I was hoping to delve into wholesaling (straight from the factory, no middle men) but this sudden realization of “ePay’s” policies have steered me toward closing my account and switching to amazon

  95. Ebay and paypal are apparently running with this scheme. Despite being 5 Star, with sales of 15 thousand per month, I was relegated to ‘substandard’ seller last week, and this week, all my funds are frozen for 21 days. The substandard bar is so high, that almost noone can meet the bar, and that means that tens of thousands of accounts are being held for 21 days. That amounts to hundreds of millions of dollars – held for interest profits. If this isn’t “antitrust”, then what is?

  96. How in the depth of hell did PayPal/eBay escape the regulations for a bank? They process billions of dollars, now they hold customers’ monies for days (21, then 45, may be even 180) with immunity. They must be regulated and forced to pay interest on the balance they place on hold. Security and consumer’s protection are a must, place hold they can, but they MUST PAY INTEREST as banks do.
    Let us join a class action law suit AND inform our public servants of our intention to ensure everyone is treated equal (i.e. you charge me fees when I use your service, you hold my monies the you pay me interest, FAIR yes?)

  97. Thank you for the help, I think it is a disgrace that this is being done. If the customer does not leave feedback; which many don’t; I do not get paid. How dare they!!

  98. I have the same problem here, After i have send it out and the items and they buyers give my a good rating. My funds still freezing. and i have contact ebay and paypal via email. They are not solving my problem especially ebay. I contact Paypal, Paypal push the ball to ebay.

    What can do is we forward this link to other ebayer.
    Create more comments… Making the bigger news!

  99. So bad! Started all excited because I sold my fist item and now I cannot even get my money!!

  100. I am a disabled senior, selling small items on ebay to supplement a low pension. Have done so successfully and happily for many years. I have never owed them money or failed to mail an item. Now they claw back every little cent in overcharging on shipping fees, I used to add up to $1.00 to help cover the cost of packing and mailing materials, now ebay pockets that little bit extra and I have to pay for all my supplies myseld.
    Now they are withholding my money for no reason that I can see.
    I certainly hope there will be a class action suit, the amount may be smallish, but it is big to me.

  101. Susan: 1. how did you establish online shops; 2. does that eliminate the paypal hold even if you’re still using paypal?
    3. This sounds like the ebay/paypal connection is the only one with the hold, is that correct?


    Vincent Francone

    Legal Assistant


    111 West Washington Street

    Suite 1331

    Chicago, IL 60602

    Toll Free: 866-779-9610

    Firm Phone: 312-220-0000

    Firm Fax: 312-220-7777

  103. I had this happen with Ebay. They are currently holding the money on 4 sales, supposedly until they receive delivery confirmation. I am furious that they have my money, and my merchandise is in midair. I have online shops in 3 places, and I get my Paypal money immediately. This problem is only Ebay/Paypal (so far). I have moved my ebay auctions to my online shops.

  104. I forgot to say, anybody interested in joining a class action lawsuit, document all your contacts with them, do it email and make copies with dates,save it in a separate file on your computer and let’s DO SOMETHING ABOUT THIS! I’m one UNHAPPY OLD LADY!

  105. I’m 74 and started selling May 2011 some collectibles from mom and old auntie. Now I get a hold notice for 21 days. SO how do I ship? No extra money for anything.
    Yes, class action lawsuit sounds right. What type attorney would take this? I’m also an old legal secretary so I’m going to put out some feelers and see if somebody I know knows somebody who might take this type suit. There’s got to be some attorney out there who would do it!

  106. I happen to me last nite , I called both ebay and papal
    both companys answers were very strange. When I asked about when I would get payed I was told ship your item, Like Iam there employee. The fact is I have been on ebay for 4 years and have had no problems with my buyers. I saw on another blog that the seller had to wait longer than 21 days because he had to wait for the buyer to give the buyer a feedback.

  107. I HATE THIS. I sold a perfectly good computer and now I can’t even ship it, so I have to refund the money. I won’t be able to sell anything else through paypal. THIS SUCKS SO MUCH

  108. Paypal took back payment after they said they had undertaken an investigation and found that the payment to us was fraudulent. It was Paypals fault that the transaction was fraudulent but they deduct the money from us to cover themselves. I am still fighting this and believe that I will win.

  109. This JUST happened to me tonight. I have been an eBay user since 2005, have 375 pos. feedbacks and only one neg from a buyer. I found out tonight selling an item, and getting paid by a buyer, that PayPal was putting a 21 day hold on those transaction funds BUT NOT BEFORE THEY TOOK their 1.80 fee for the transaction. So immed. they got their money but I got to wait 21 days?! I figure my acct will get frozen right off because I called them up 3 times tonight and caused a row with them agents. This is legalized extortion and as a subsidiary of Ebay as a monetary transaction tranfer agent PayPal and Ebay are in bed together on this. They said they placed the hold because I had low ebay seller ratings. Buyers never did that for me and I didn’t bother to ask them to. Hello, they gave me pos. feedback for any sells I ever did! But PayPal and Ebay could care less, their attitude is oh well. In 21 days you can have your money but I am expected to send the buyer the item, using funds I usually use out of what they pay me through PayPal. Never had a problem til tonight at 8 pm. No two days ago either. Some prick in Paypal in their Accts dept had a hair across their arse and flagged my acct, because apparently they are mad I didn’t pay more fees to either ebay or PayPal?! So what to do. I am extremely upset. I terminated my in-progress ebay sells cancelling them, due to this policy. I will not wait 21 days for PayPal to release a buyers funds so that PayPal can get the interest, and I have to loose face, having to inform the buyer that the item will be delayed in shipping by 21 days because I haven’t been paid for it yet. Sure PayPal says I been paid by the buyer, but their holding onto it. For 21 days. Totally pisses me off, and if any attorney wants my case you can holler at me. I would love to start a class action suit against PayPal and Ebay for their thievery and manipulations! Disgusting. In a little while Ebay and PayPal will see me waving bye bye to them. No more me, as their client. I will not use their services after this month if they don’t straighten this mess out. Customers on either PayPal and or Ebay do not diserve this rotten treatment whatsoever from either company. Time to kick some corporate arse. Nice Paypal your policy as created a love/hate dynamic. I used to love your services, NOW I hate you! That goes for ebay as well.

  110. Paypal are bloody corrupt and a bunch of thieves! something really needs to be done about them!

  111. “Livid” starts to sum it up but still doesn’t cover the anger I have about this issue. I received my “notice” about this early this morning. I have called PayPal and emailed them. Here is my beef: I don’t sell anything on eBay. My PayPal account is strictly business. I am paid for services rendered. And still they tell me that they will be holding all my funds for up to 21 days – even tho the transactions has nothing to do with eBay whatsoever! Luckily the funds in there now are free up until this morning. I am transferring that money out and thinking about shutting my PayPal account down all together. This is just another way for PayPal to make money off our money from interest! I am contacting anybody and everybody that I know that uses PayPal to warn them. PayPal is going to loose alot of business because of this screw ball they threw!

  112. Paypal is holding moneu from 8 of my buyers! Since I have no money to ship their items, THE BUYERS are not going to get their items. OR THEIR MONEY! Paypal is withholding any refunds, as well! What do you “disgusted buyers” think about it? Do you think that they should be able to hold YOUR MONEY! I have 100% positive feedback, eamil to my customers when items ships and send tracking numbers. They have no reason to freeze my account, but they did anyway. Now people who bid and won the items can’t get the item or their money back for 21 days! Oh yeah! That really screws THE SELLERS! Dugh!!! The buyers are ALSO the being screwed
    by paypal. WAKE-UP PEOPLE!

  113. That’s 5 star right!!!!! That’s how it is with a lot of sellers! We pay you fast and YOU make us WAIT in the dark after we paid!! To those whining sellers, I say: how does it feel to WAIT for paypal and not have a clue of what to expect??!!! Get YOUR act together and you’ll get the BUYERS money owed to you through paypal faster!!!

    1. Spoken like a true moron who has no concept of linear time. You see, electronic payments are instant. This means eBay’s 21 day holds are artificially created, where it takes real time to drive, ship or fly an item around. Teleportation only exist in science fiction.
      eBay has taken to holding funds from all sellers, not just ones with poor track records. Know what happens when an item costs 120 dollars to ship and eBay only lets the seller have up to 15 dollars of the shipping funds? Yeah, you guessed it. You don’t get your item. Are you going to blame the seller for that too? Oh wait, you already did.

  114. GOOD PLAN only if it worked! ebay Buyers like me pay upfront, contact Sellers. then too often have to wait and wait for replies and shipping. They don’t notify if delayed, and then get into s twist, send insulting messages when asked about item delivery! But they all think they deserve 5* ratings and damn the Buyer for not giving 100% 5*

  115. 21 Days?!! I wish PayPal holds 10% of my money for 90 days…. And for no reason whatsoever. I am a very good customer!!!! Holding my money is completely unjustified…. I gas I’ll have to take my business elsewhere… Google Checkout seems as a very nice place.

  116. this little paypal scam goes well back before e-bay bought them, and is the reason i will not deal through paypal in any way, as a buyer or seller, or buy from anyone who’s only payment option is paypal.

  117. The message forums on Paypal are swarming with this – people are livid. And they are saying that if you complain to PayPal or make a stink, your account freezes all together.

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