Is PayPal unjustifiably holding funds a common issue on Shopify?

misterplaid
Tourist
3 0 1

Have others had problems with PayPal unjustifiably holding funds just because their "algorithm" said they should?

Replies 5 (5)

TriS68
New Member
10 0 0

YES!!!! I've just decided to deactivate Paypal as an option. It's ridiculous!

misterplaid
Tourist
3 0 1
I’m curious- what did they do to you?
TriS68
New Member
10 0 0
They put a hold on 4 out of 5 orders. I then have to process the order with
my own funds, provide Paypal with a tracking number & then they release the
money about 1-2 days after the item has been delivered to the customer. It
takes extra time on my part & leaves me open to a customer potentially
canceling the payment after receiving the merchandise. It isn't worth the
extra time or worry when there are other payment options that don't require
me to do that kind of mgmt work.
misterplaid
Tourist
3 0 1
I’m considering pursuing a class action lawsuit against them for their ridiculous algorithm based hold policy. If interested in participating, please let me know. All you would have to do is lend your company’s name and be willing to testify if it came to that. The only reason they do what they do is to hold money longer so they can make more money off of it. It’s certainly of no benefit to the seller and of little benefit to the customer.

vdikhtiaruk
Shopify Partner
15 0 0

We just started our app - 3P ‑ Your Paypal Protection which was made to verify if customer used the same email for payment in PayPal as he use in your store. It will protect your PayPal account from future refunds and restrictions.