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PayPal holding the money

jt88jt88 Posts: 2,838 ✭✭✭✭✭

I just sold a coin using PayPal. PayPal holds the money. It said once it confirms delivery it will release it after a day. So I used PayPal to print the shipping label so PayPal can automatically get the delivery update. One day after it delivered PayPal is still holding the fund. I messaged paypal and PayPal replied saying it now needs to hold 21 days or if I agree, PayPal can send an email to the buyer to see if the buyer confirms the delivery and happy with it. I said ok. PayPal sent the email and later my money is released. Below is what my buyer told me:

“I told them I received it.

Paypal asked if it was satisfied. What if I was not satisfied? Do I keep the coin
and no money for you ?”

I have a deal is pending with a buyer from UK. I was giving him three options: 1. Ebay with 10% off. 2. PayPal with 15% ( I am going to delete this option now. I don’t want to wait 21 days or longer to get my money). 3. Cash 20% off.

PayPal makes very hard for seller to accept PayPal as a payment option. What I really don’t like is PayPal don’t refund the fee when buyer asked for return. I think I will use PayPal only is absolutely the last source.

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    P0CKETCHANGEP0CKETCHANGE Posts: 2,259 ✭✭✭✭✭
    edited January 14, 2023 1:22PM

    Some MBA in their finance department must have realized that, at current interest rates, they could make money by holding that cash for an extra three weeks. Plus, it helps them manage chargeback risks. Neither is good for the seller.

    Nothing is as expensive as free money.

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭
    edited January 14, 2023 1:26PM

    I think PayPal is in real need for cash. They might using new money to pay the old money. That’s why they are holding customers money. I can see PayPal will go down with this kind of services.

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    DelawareDoonsDelawareDoons Posts: 3,254 ✭✭✭✭✭

    @jt88 said:
    I think PayPal is in real need for cash. They might using new money to pay the old money. That’s why they are holding customers money. I can see PayPal will go down with this kind of services.

    https://www.macrotrends.net/stocks/charts/PYPL/paypal-holdings/cash-on-hand

    "PayPal Holdings cash on hand for the quarter ending September 30, 2022 was $10.849B"

    Professional Numismatist. "It's like God, Family, Country, except Sticker, Plastic, Coin."

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    @DelawareDoons said:

    @jt88 said:
    I think PayPal is in real need for cash. They might using new money to pay the old money. That’s why they are holding customers money. I can see PayPal will go down with this kind of services.

    https://www.macrotrends.net/stocks/charts/PYPL/paypal-holdings/cash-on-hand

    "PayPal Holdings cash on hand for the quarter ending September 30, 2022 was $10.849B"

    How many percent of that $10.849B is from customers?

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    jesbrokenjesbroken Posts: 9,313 ✭✭✭✭✭

    @DelawareDoons said:

    @jt88 said:
    I think PayPal is in real need for cash. They might using new money to pay the old money. That’s why they are holding customers money. I can see PayPal will go down with this kind of services.

    https://www.macrotrends.net/stocks/charts/PYPL/paypal-holdings/cash-on-hand

    "PayPal Holdings cash on hand for the quarter ending September 30, 2022 was $10.849B"

    If those facts are accurate, then I wouldn't feel a cash shortage was evident, even with a declining coh yearly. My son left them for the same reasons as specified by OP. I have never had paypal hold my funds. Ebay does for 1 day, used to be 2 days. Is what it is.
    Jim


    When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln

    Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
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    BStrauss3BStrauss3 Posts: 3,166 ✭✭✭✭✭

    @jt88 said:
    How many percent of that $10.849B is from customers?

    There would be a corresponding obligation on the same balance sheet. The trick is how creatively it's named to make it hard to figure out.

    -----Burton
    ANA 50 year/Life Member (now "Emeritus")
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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    Last time PayPal holding my money was 7 days because it was only $45. looks like the larger amount the longer the hold.

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    DeplorableDanDeplorableDan Posts: 2,551 ✭✭✭✭✭

    I’ve had similar experiences with PayPal. My opinion PayPal is a greedy and disgusting company, they’ve done this unwarranted type of “withholding” crap for years to make interest off of other peoples money, and I think they’re the most unethical merchant in the business. If I had the option I would never use PayPal again in my life, there are so many better options these days.

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    ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭

    Paypal is awesome.

    I have been with them since the beginning.

    Paypal NEVER holds may cash.

    Disclosure: I am a stock holder of PYPL

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    @DelawareDoons said:

    @jt88 said:
    I think PayPal is in real need for cash. They might using new money to pay the old money. That’s why they are holding customers money. I can see PayPal will go down with this kind of services.

    https://www.macrotrends.net/stocks/charts/PYPL/paypal-holdings/cash-on-hand

    "PayPal Holdings cash on hand for the quarter ending September 30, 2022 was $10.849B"

    From the same link you can also check the liability. Customer’s money have to be as liability. You can’t just look at the cash in hand but you also need to look at the liability. 7.11% increased in liability.

    PayPal Holdings total liabilities from 2013 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
    PayPal Holdings total liabilities for the quarter ending September 30, 2022 were $56.171B, a 7.11% increase year-over-year.
    PayPal Holdings total liabilities for 2021 were $54.076B, a 7.47% increase from 2020.
    PayPal Holdings total liabilities for 2020 were $50.316B, a 46.25% increase from 2019.
    PayPal Holdings total liabilities for 2019 were $34.404B, a 23.11% increase from 2018

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    WQuarterFreddieWQuarterFreddie Posts: 2,548 ✭✭✭✭✭

    Ebay does the same thing to newer sellers. Holds payment until customer tracking documents delivery.

    Holds money for over a week after tracking documents delivery and positive feedback has been posted by buyer.

    Absolutely profiting from money held. 😤

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    CatbertCatbert Posts: 6,604 ✭✭✭✭✭
    edited January 14, 2023 3:26PM

    @WQuarterFreddie said:
    Ebay does the same thing to newer sellers. Holds payment until customer tracking documents delivery.

    Holds money for over a week after tracking documents delivery and positive feedback has been posted by buyer.

    Absolutely profiting from money held. 😤

    Yes, isn't this practice only applied to new sellers and once one is established, the practice ends?

    "Got a flaming heart, can't get my fill"
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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    Ebay did not hold my money, well once in a while it might for for few days. PayPal only started to hold my money last year.

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    MS66MS66 Posts: 200 ✭✭✭

    @Catbert said:

    @WQuarterFreddie said:
    Ebay does the same thing to newer sellers. Holds payment until customer tracking documents delivery.

    Holds money for over a week after tracking documents delivery and positive feedback has been posted by buyer.

    Absolutely profiting from money held. 😤

    Yes, isn't this practice only applied to new sellers and once one is established, the practice ends?

    Not really. If you "pause" using them for awhile, they'll treat you as a new account for this purpose.

    Generally speaking, PP is a despicable company.

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    spyglassdesignspyglassdesign Posts: 1,514 ✭✭✭✭✭

    I had ebay hold funds early on when I first started, but since I've been fast on shipping and no returns, they release funds pretty much within a day or two of shipping these days.

    I did have one sale that was over $1k early on that was held for 21 days. That was annoying. But if you are consistent and reliable, you should start getting the funds released faster.

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    DeplorableDanDeplorableDan Posts: 2,551 ✭✭✭✭✭

    @spyglassdesign said:
    I had ebay hold funds early on when I first started, but since I've been fast on shipping and no returns, they release funds pretty much within a day or two of shipping these days.

    I did have one sale that was over $1k early on that was held for 21 days. That was annoying. But if you are consistent and reliable, you should start getting the funds released faster.

    From what I understand, eBay “managed payments” replaced PayPal as their merchant last year. Our payouts now from eBay coins are no longer held and issued by PayPal, even if the buyer pays using PayPal. The OP was referring to a private sale using PayPal, not an eBay transaction.

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    bsshog40bsshog40 Posts: 3,777 ✭✭✭✭✭

    I'm on the buyer side. When I buy something on ebay, ebay takes it out of my debit card/bank. I don't pay with PP anymore.

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    When company like PayPal doing something like holding customer's money that would upset customers there is always a reason behind it, they just don't tell their customer why. I know some people leave their fund on PayPal account. They need to understand that PayPal is not a bank so there no insurance on the account and PayPal don't need to put down money reserve so if PayPal goes down all your money with PayPal might be gone. Look at the PayPal liabilities increase year after years since 2019. PayPal might be holding lots of bitcoins.

    PayPal Holdings total liabilities from 2013 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
    PayPal Holdings total liabilities for the quarter ending September 30, 2022 were $56.171B, a 7.11% increase year-over-year.
    PayPal Holdings total liabilities for 2021 were $54.076B, a 7.47% increase from 2020.
    PayPal Holdings total liabilities for 2020 were $50.316B, a 46.25% increase from 2019.
    PayPal Holdings total liabilities for 2019 were $34.404B, a 23.11% increase from 2018

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    DelawareDoonsDelawareDoons Posts: 3,254 ✭✭✭✭✭

    @jt88 said:
    When company like PayPal doing something like holding customer's money that would upset customers there is always a reason behind it, they just don't tell their customer why. I know some people leave their fund on PayPal account. They need to understand that PayPal is not a bank so there no insurance on the account and PayPal don't need to put down money reserve so if PayPal goes down all your money with PayPal might be gone. Look at the PayPal liabilities increase year after years since 2019. PayPal might be holding lots of bitcoins.

    PayPal Holdings total liabilities from 2013 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
    PayPal Holdings total liabilities for the quarter ending September 30, 2022 were $56.171B, a 7.11% increase year-over-year.
    PayPal Holdings total liabilities for 2021 were $54.076B, a 7.47% increase from 2020.
    PayPal Holdings total liabilities for 2020 were $50.316B, a 46.25% increase from 2019.
    PayPal Holdings total liabilities for 2019 were $34.404B, a 23.11% increase from 2018

    They are holding your money because you haven't earned their trust yet. Plain and simple.

    They never hold funds for me since I have a long history of successful transactions using their platform.

    Professional Numismatist. "It's like God, Family, Country, except Sticker, Plastic, Coin."

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭

    @DelawareDoons said:

    @jt88 said:
    When company like PayPal doing something like holding customer's money that would upset customers there is always a reason behind it, they just don't tell their customer why. I know some people leave their fund on PayPal account. They need to understand that PayPal is not a bank so there no insurance on the account and PayPal don't need to put down money reserve so if PayPal goes down all your money with PayPal might be gone. Look at the PayPal liabilities increase year after years since 2019. PayPal might be holding lots of bitcoins.

    PayPal Holdings total liabilities from 2013 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
    PayPal Holdings total liabilities for the quarter ending September 30, 2022 were $56.171B, a 7.11% increase year-over-year.
    PayPal Holdings total liabilities for 2021 were $54.076B, a 7.47% increase from 2020.
    PayPal Holdings total liabilities for 2020 were $50.316B, a 46.25% increase from 2019.
    PayPal Holdings total liabilities for 2019 were $34.404B, a 23.11% increase from 2018

    They are holding your money because you haven't earned their trust yet. Plain and simple.

    They never hold funds for me since I have a long history of successful transactions using their platform.

    I been with PayPal since 2008 and used PayPal for many transactions. Anyway good luck with your PayPal transaction.

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    jt88jt88 Posts: 2,838 ✭✭✭✭✭
    edited January 14, 2023 6:44PM

    @DelawareDoons said:

    @jt88 said:
    When company like PayPal doing something like holding customer's money that would upset customers there is always a reason behind it, they just don't tell their customer why. I know some people leave their fund on PayPal account. They need to understand that PayPal is not a bank so there no insurance on the account and PayPal don't need to put down money reserve so if PayPal goes down all your money with PayPal might be gone. Look at the PayPal liabilities increase year after years since 2019. PayPal might be holding lots of bitcoins.

    PayPal Holdings total liabilities from 2013 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
    PayPal Holdings total liabilities for the quarter ending September 30, 2022 were $56.171B, a 7.11% increase year-over-year.
    PayPal Holdings total liabilities for 2021 were $54.076B, a 7.47% increase from 2020.
    PayPal Holdings total liabilities for 2020 were $50.316B, a 46.25% increase from 2019.
    PayPal Holdings total liabilities for 2019 were $34.404B, a 23.11% increase from 2018

    They are holding your money because you haven't earned their trust yet. Plain and simple.

    They never hold funds for me since I have a long history of successful transactions using their platform.

    I don't know when was your last transaction with PayPal and wat was the amount, maybe your transaction is average $10. It is not PayPal trust you more than others but it is not worth the efford for PayPal to hold your money. Once you do a 10K transaction that will make you to pull your head out of the sand. I just ask couple of dealers and they told me PayPal did that to them. PayPal holding money is common. You can google it. Someone is suiting PayPal for doing that.

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    OPAOPA Posts: 17,104 ✭✭✭✭✭

    I stopped using Paypal a couple of years ago and had the pleasure of receiving a 1099k for $190 covering fiscal year 2021. It was a f&f transaction. For my ebay auctions, payments handled through ebay and not paypal w.o any issues or delays.

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."

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