PayPal's 21 day funds hold policy

[Janet]

For those of you who do a lot of selling/buying on ebay.....what do you think of the new rules? I copied this from another forum where it was being discussed.



Here is the policy. This went into effect in January 2008:

EBay's FAQ about the21-day hold states: In a small percentage of cases where it has been determined the risk of dissatisfied buyers is higher, PayPal may delay release of the payment funds to the seller until the buyer has left a positive feedback or 21 days have passed without a dispute, claim, chargeback or reversal filed on that transaction.

The FAQs state that PayPal considers a number of factors in determining a whether a transaction may have a higher risk of dissatisfied buyers, including the following:

* Seller's % Positive Feedback in the last 30 days
* Seller's Detailed Seller Ratings in the last 30 days
* Final price for the item
* Shipping & handling fee
* Seller's eBay tenure as an eBay member
* Seller's total number of Feedback

PayPal will release the hold when the earliest of the following occurs: the buyer leaves positive feedback; 3 days after confirmed item delivery; or 21 days without a dispute, claim, chargeback, or reversal filed on that transaction. (PayPal said if a buyer leaves a negative feedback but does not initiate a dispute, PayPal would release the funds to the seller after 21 days.)
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[DianaB]

I hadn't heard of Paypal's new policy. I'm not sure that I would like it if I were a seller. Personally I try to post my feedback soon after I receive my item but I know that some people never post feedback. The sellers could get a little demanding on making us, as buyers, to post our feedback as soon as possible.

I can also see PayPal's point of view on returning money on filed claims. I have filed claims several times, mostly on items not received. I had one seller that I bought from that had wonderful feedback. They sold a lot of stuff at the same time I bought my stuff and none of it got shipped out. Negative feedbacks started pouring in on this person and I filed a claim and got my money back.

I can see that it would help them with the recovery of the money.

[Marilyn]

It's sad that they are doing this. I don't like that they won't let you withdraw but so much per month from your account. We bought a larger item and the seller did not have it to ship, so refunded our money, but we could not withdraw it all in one month, had to space it out over time. Not good!!

[Janet]

I wouldn't like that either....if it was my money and I wanted it.....I would expect to be able to get it.

[jrsygal37]

I'm not sure but right now I'm glad about it. I bought a Quickfire for my son for $199 which was a great price. The day after I bought and paid for it the seller pulled the auction (He had 100 for sale - so he says) Today I sent a note to ask if the item was shipped (It's been a couple of days since I won and paid) and I haven't heard back from him. His feed back is 96.6. percent and normally I would not have bought but the negs left were left for merchandise not received but the follow up said it was due to robbery and that a refund was made. Hoping / keeping my fingers crossed that my son gets his phone. At least with the new rules in effect I should be at least covered for the $207 spent should it not come. I hope anyway. Elaine

[judy]

I like the new rules. I buy a lot online and use Paypal as much as possible, not just on eBay. There must have been too many bad sellers for them to have to have gotten so drastic.

It seems to me that your seller did not cover himself for returns. I would imagine that small time sellers will have a rough time of it, and that's too bad.

Paypal is pretty tough with buyers too. I bought a mug a while ago, which came broken. I did not get a refund through a Paypal dispute because I had not insured it. Let the buyer beware.

I'm finding that sellers are bending over backwards for their buyers these days. I see it on Amazon.com, eBay, and lots of online stores too. I like it, but I hope that people don't start taking advantage of this.