Re: Paypal Holding Funds

Experiences with PayPal holding funds as a new seller?

1 0 0

Does anyone have experience with PayPal as a new seller?

I set up a business account, and paypal requested shipping information to release funds on hold. When it was provided, they released the funds less than 24 hours after delivery.

Now my account is on hold and they are requesting supplier invoices, my ID, and business information. I am in the process of providing these, but I've read in other forums that PayPal will just continue to hold funds and may not approve certain invoices. I have also heard that they may suspend an account that isn't verified for 180 days.

I am a small business, barely making money, and I certainly can't afford to have my money held for 180 days.

Does anyone have experience having gone through this that you could share with me?

If I can't get this resolved ASAP, I'm going to have to disable it as a payment option, and I don't want to do that if I can help it.



Replies 5 (5)

3 0 0

We had this issue when we first went into business.  It took about 2.5 months to fully resolve and was very frustrating.  We ended up turning off Paypal about a month into it and then turned it back on after sorted out.  We haven't had any issues since.  Just make sure to keep evidence of sales/pick ups as they may ask for it and it makes it go faster.

1 0 0

I'm having the same issue with Paypal right now. They put a hold on EVERY order paid for using Paypal. I think I'm done with paypal. Credit card payments, Amazon Pay, and Afterpay should suffice.

4 0 3

Did anyone figure this out? I'm going through this pain now!

Shopify Partner
8 0 0

Thank you Theo for sharing this wonderful question. When I first started selling on Shopify, I had the same worries.

At that time, many friends told me not to choose PayPal. The reason is that while it is good and used by many people, PayPal can unexpectedly hold users' money. The time to keep money is only about 21 days, but there will be many cases longer because PayPal needs to investigate specifically.

Luckily, during my time doing dropshipping, I didn't encounter any major problems, all thanks to using this app This is a great tool that gives me comfort and peace of mind during PayPal transactions. All I need to do is set up the device to automatically add tracking number on Shopify.

The amount of money is transferred to the account much faster than if it is not used. This saves me a lot of time and uses it for more important things. I think this is a tool that many people should know and use. Trust me, this is a life-changing tool for you!

17 0 2

If you can avoid using Paypal do it!! they are a joke. They say they hold the funds to protect both seller and buyer, explain to me how this protects me as a seller! the customer still gets their product with money out of my pocket due to PayPal holding the customer's payment. So I am out money until they get their delivery and then MAYBE they will release the money.... excuse after excuse from PayPal. they do this to earn the interest off everyone's money... think about how many people use PayPal. now multiply that by a 30 day hold..... hmmmm big chunk of change for PayPal.