URGENT: Paypal is holding Money

New Member
7 0 0

Hi,

 

I am very frustrated with paypal. Everytime paypal is holding money until the product is deliver when i got orders from customers.

 

The status show pending or On hold and they release that payment after product is delivery.

But, for dropshipping business how its possible. If there is larger number of quantity then I cannot order myself. So, I have stopped my marketing site now.

 

Can anyone please suggests me to get out from this. Is there any way to make configuration in paypal so that paypal dont hold my money.

 

I contacted to paypal but they said I have to make some positive history. And I have already have 4 transaction successfully.

 

I dont know how much history they want to make. So, frustrated part here.

 

Please let me know if someone has faced this problem?

0 Likes
New Member
1 0 1
Same here. Got my 2nd sale, they held it. First sale was ok though. :(
Tourist
3 0 0
The exact same thing has happened to mine
0 Likes
Shopify Partner
24 1 3

paypal is getting more and more ridiculous and seller unfriendly. I don't use them anymore

Tourist
3 0 0

The holding time isn't too long it's about a week and is faster if you mark item as dispatched on paypal and fulfilled on shopify - it also helps if you add a tracking number on the paypal payment for a wait period on the hold.

0 Likes
New Member
5 0 0

Well, I can relate how frustration it is when PayPal holds money for no reason and specially in time when we have limited cash flow. Upon chatting with the PayPal team I came to know about their various Holds process, how often they holds money, reason for holds, for how long they holds, etc. Please refer to the article for complete information of PayPal holds and what you need to do in such situations. 

https://ecomsprint.com/why-my-paypal-money-on-hold-does-paypal-give-your-money-back/

0 Likes
New Member
1 0 0

Did paypal stop holding new payment transfers from your Shopify website? 

I am having the same problem and just wondering if it has resolved for anyone after a couple months of positive transactions?

0 Likes
New Member
5 0 0

Yes, once you update the tracking link on PayPay, it releases the funds. PayPal holds money for security reasons, to avoid customer being scammed by any fake online store. Once it verifies that the transactions are genuine and products are being shipped out to customers, it removes the hold.

0 Likes
New Member
1 0 0

This happened to me as well.  I run a subscription service that uses subscription charges to buy product wholesale that I then get to my customer.  I need the subscription money to complete the transaction, but big brother paypal will not release the money until the product is delivered to my customer.  How do they think subscription business works?  And for the pleasure of allowing them to be my middleman, I get charged almost 4%?!?  A**holes.  I'm done with paypal.

0 Likes