Paypal to enact a new "rolling reserve" keeping up to 20% of your money for 3 months..How

commoncents123 · August 24, 2009 2:34PM

This is big. The Titanic has left port.
link

commoncents05 · August 24, 2009 2:37PM

PayPal’s Pires says sellers get a clear email notice explaining the reserve requirement 30 to 60 days before withholdings begin.

Until I get the email or call, I won't be preparing.

-Paul

commoncents123 · August 24, 2009 2:40PM

Perhaps I should say, "how will you react if you get this email or call"

TwoSides2aCoin · August 24, 2009 2:49PM

Work harder, pay more, get a fraction of what you've earned. Sign up for an eBay and PayPow™ account today. Start paying with your pay, pal.

Wolf359 · August 24, 2009 4:50PM

I always immediately withdraw. I'd say that coin doesn't ship until my money is freed. That'll end it real quick.

jfoot13 · August 24, 2009 4:53PM

<< I always immediately withdraw. I'd say that coin doesn't ship until my money is freed. That'll end it real quick. >>

ArizonaJack · August 24, 2009 5:20PM

I have stopped accepting Paypal on transactions over $300. I have considered tossing them completely, that means zero Ebay and no PP shopping car on site. Checks and MO only......
How will that hurt? About 50% of my web orders are check / mo already. If you want the coin, you will buy it. It is the buyers sense of " protection " that may be a hinderance.

JCMhouston · August 24, 2009 10:44PM

As ArizonaJack mentioned the biggest problem for sellers not taking CC's or Paypal is the sense of buyer protection. I wouldn't be sending a money order or personal check to someone I found on the internet unless I had a good history with them, in order to protect myself. Also the dealer, with a desire to protect themselves, will hold said check for at least two weeks to clear. This means sending payment and waiting 3-4 weeks before I have the goods in hand, I don't think that works for me.

I also saw a notice from Ebay a week or so ago that they are going to require another form of payment to be filed so in the event your main account doesn't have enough funds to cover a chargeback they can get it from the other account. I'm not planning on sending them another acocount to get money from, since the chargeback decision is made in their best interest.

OPA · August 24, 2009 10:52PM

It's been in affect for some time .. and according to PayPal it applies to less than 1% of eBay sellers ( probably only to those with low DSR ratings) So what's the bruhaha all about?

<< "PayPal spokesperson Amanda Pires told me that the reserve requirements are a new policy instituted earlier this year for less than 1% of PayPal sellers, and that they’re the most visible piece of a larger risk management strategy." >>

BillJones · August 24, 2009 10:54PM

<< Paypal to enact a new "rolling reserve" keeping up to 20% of your money for 3 months..How will you react? >>

If I were still involved with these people, I'd tell them to go to hell.

I think that eBay and Paypal are implementing a perfect going out of business strategy.

CarlWohlforth · August 24, 2009 11:33PM

It is a risk management strategy also used by the credit card companies. Less than 1% of sellers will be asked to keep a reserve. The reserve amount will range from 1% to 20%.

How will I react? I've never had a chargeback and am small beer so they will not withhold any of my money so I have no reaction.

This is small.

MsMorrisine · August 24, 2009 11:51PM

there are people on the discussion boards saying this will eventually become a policy for all paypal users.

291fifth · August 24, 2009 11:57PM

<< there are people on the discussion boards saying this will eventually become a policy for all paypal users. >>

These funds are a huge potential income source for PayPal. They are also have the potential to destroy both PayPal and eBay if the "rolling reserve" is applied to sellers who don't warrant its use (and that is most of them.) With eBay, the corporation, under intense profit pressure it will be interesting to see just how wise, or greedy, their management becomes.

coinmanic · August 24, 2009 11:59PM

<< I always immediately withdraw. I'd say that coin doesn't ship until my money is freed. That'll end it real quick. >>

I agree. I have 2 rules when selling on Ebay. I only sell what is physically in my poseesion. I only ship when the money is in my hands.

pheh · August 25, 2009 12:15AM

I already keep a reserve fund in my Paypal account. Paypal has covered the two bogus chargebacks I've had and one bogus item not received. One phone for each incident - none took over 15 minutes to resolve. I'm still enjoying this luxury liner, I'll let you know when my stateroom starts to flood.

gsa1fan · August 25, 2009 12:24AM

I had them hold mine when I first began selling on eBay. After the PayPal only policy. They told me $ would be released upon a positive feed back. Well~ I gave the buyer a partial refund. He gave me a positive feed back. It still was 5 business days before I got the balance in my account. He had the coin and $65 dollars of MY $$ before I had gotten paid for original Transaction!!! Have you ever waited on a E-check to clear? Mercy as long as they hold money, the fees they charge. Plus get interest while holding your $$. = Monopoly ~ JMO

SaorAlba · August 25, 2009 12:40AM

<< I always immediately withdraw. I'd say that coin doesn't ship until my money is freed. That'll end it real quick. >>

They will put an end to quick withdrawals next.

MsMorrisine · August 25, 2009 1:07AM

<< I always immediately withdraw. I'd say that coin doesn't ship until my money is freed. That'll end it real quick. >>

that could adversely affect your feedback, even excluding the DSR's.

LanLord · August 25, 2009 1:24AM

Now I have absolutely no interest in either paypal or ebay, but, I would think if paypal wants to hold your funds, there should be a requirement that they pay interest on funds that are locked.

This interest should be higher than the highest rate at which you could get at any bank (since you have no control over their decision to hold those funds).

I would think this should be a requirement for any private company that wants to hold funds in this manner.

ElKevvo · August 25, 2009 2:29AM

These funds are a huge potential income source for PayPal.

In my experience many companies, when faced with declining revenues or lower profits will, instead of taking a step back and reevalute the changes they have made to their business over the years and if the decisions have changed the core business model or negatively impacted the customers change them the business will instead attempt to increase the fiscal burden on the remaining customers therefore continuing the spiral. Why? Having to go back and re-evalute policies that YOU implemented and possibly admitting they were wrong or shortsighted is, in effect, and admission of failure by making a mistake. Tough to do when you collected $ as a bonus the year you implemented the change.

This is a good example of this...

K

al410 · August 25, 2009 3:27AM

From a buyers point of view I am comfortable paying for a coin from a person or company I don't know when paying thru Paypal. I understand that in the end the coin may cost a little more but when compared to only being able to shop local or being able to shop thru the many ebay stores and auctions then PayPal makes sense. If sellers are not willing to make the adjustments then they just stop selling on ebay. I guess I have been lucky, I have been buying and selling on ebay < nothing over $500 as a seller> and have had nothing but good exsperiences with ebay and paypal. Just wanted to post this because it is not all negative with PayPal, and ebay to me offers a good service.
AL

CarlWohlforth · August 26, 2009 4:07AM

<<Now I have absolutely no interest in either paypal or ebay, but, I would think if paypal wants to hold your funds, there should be a requirement that they pay interest on funds that are locked.>>

PayPal already does pay interest on money left there. It is like a money market account. A few years ago it used to actually make a different. Now that rates are so low the extra couple cents a month doesn't matter.

bestday · August 26, 2009 4:10AM

<< PayPal’s Pires says sellers get a clear email notice explaining the reserve requirement 30 to 60 days before withholdings begin.

Until I get the email or call, I won't be preparing.

-Paul >>

will paypal keep the interest money earned ,on the rolling hold ?????

Paypal to enact a new "rolling reserve" keeping up to 20% of your money for 3 months..How

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Paypal to enact a new &quot;rolling reserve&quot; keeping up to 20% of your money for 3 months..How

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Paypal to enact a new "rolling reserve" keeping up to 20% of your money for 3 months..How