Payment Holds as a New Paypal Seller

Thu, Aug 5, 2010, by Ann Yo


Selling on eBay could be fun and challenging. You also need patience especially if you’re a new seller because you’ll be able to encounter different kinds of buyers. With PayPal’s "Payment Hold Policy, it could be an advantage or a disadvantage on your part as a new seller.

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If you recently had started selling on eBay and was able to successfully linked your PayPal account into your eBay account then that’s the first step that you need in order to handle those small transactions that you’ll be undertaking. All new sellers will then receive a notification from eBay telling that there will be a 21 day holding period for your profits earned. It’s not that easy to make money on eBay but once you start to familiarize yourself with their policies and terms of agreement, you could become one of their best new sellers.

At first, you’ll wonder how do these small earners will be able to ship without their money easily available to them especially that they are still starting. However, as you keep on reading within eBay’s site itself, it clearly said that once you can print labels and pay for shipping through eBay or PayPal, the cost of shipping shall be released coming from your pending balance, even just shortly after that label purchase so you don’t need to worry about paying for your product shipment. 

It will be instantly released and you can use that available balance to pay for your next shipping labels. Take note that 3 days after PayPal can confirm delivery using the provided shipment delivery/tracking confirmation number or after your buyer leaves a positive feedback then the rest of the payment shall be released immediately. PayPal will generally confirm the recent delivery of your item especially if you use UPS, USPS, or FedEx to ship any product/item and use the PayPal shipping labels. The other way is to upload the tracking information to PayPal through their transaction details page.

If you’re wondering where will the money go, whether it will be directly deposited into your bank or PayPal account since your two accounts are being linked together when you started selling on eBay, the answer is to your PayPal account. If the buyer pays using PayPal, the payment shall be credited directly to your PayPal account balance but when your payments are being held, you’ll both have a pending balance and an available balance. You can see this through your PayPal account overview page because it will show your PayPal balance amounts.

So if you are thinking to get money or cash from your PayPal account, you can just get a PayPal debit card and use it to withdraw through ATM coming from your available PayPal balance or transfer the money to your bank account and then get it through their ATM service. Always get the tracking data or information and upload it to PayPal when it comes to shipping any item or product. As much as possible, try to speak to their representative and inform any of them that the item or product has been delivered so that they will release your own funds on the very same day that you’ll send the item of what you’re selling to your customer.


Offer shipping promotions to attract buyers so that you’ll increase your profits especially if you’re a new seller.

You can use the URL for more information with regards to all payment holds and what they mean to you as a seller.

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7 Comments For This Post
  1. webseowriters Says:

    Very interesting post :-)

  2. BriannaMorgan Says:

    sucks when you make the money but have to wait to get it. Lots of places do this.

  3. 1hopefulman Says:

    Good to know if I ever need the service. Thanks!

  4. wonder Says:

    A very good and useful piece of information for us.

  5. Anuradha Ramkumar Says:

    I don’t sell at ebay but this is an information worth knowing.

  6. Stephen G Says:

    Ship using a PayPal shipping label so that delivery confirmation, and PayPal will release the funds after 3 days has elapsed after delivery is made.

    When does PayPal release the payment?
    The funds from each transaction will typically be released 21 days after payment, unless there’s a dispute, chargeback, claim, return or reversal on that transaction, or any other limitation on your account. The money may be released sooner if:

    Your buyer leaves positive feedback (Applies only to eBay items) or
    We can confirm that the item was delivered** and 3 days elapse. This gives the buyer enough time to review the order and file a dispute if necessary

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