I am about to launch my store and before I do, I am trying to do as much research as I can in as many areas of the business as I can. Obviously one of the most, if not the most important aspect is my customers being able to purchase and pay without issues and then for my business to be able to collect payment and utilise those payments and profits to reinvest in the business as part of my business plan.
initial research into Paypal seems to lead me to a concerning number of instances where Paypal customers have had funds held due to what seems to be a number of potential reasons
I am working on small margins, with limited cash reserves so if there were cash flow problems that would be detrimental to the business plan.
My question(s) are
What is the feeling and experience of using pay pal for a brand new store and business?
Can the risks of withholding monies be reduced by implemented procedures on each order etc?
Are there options to using Pay pal without diminishing the customer experience and therefore sales overall?
I am very new to this process overall but i am learning and i would very much appreciate information from shopify owners rather than a broader youtube video
Using PayPal can definitely benefit your business quite a bit. But, as a new user your funds may be put on hold while PayPal verifies your business information or ensures that your orders are sent on time. There can be a host of other reasons but I encourage you to speak with PayPal directly and they should be able to present you with the best way to proceed to minimize any possible hold issues.
In regards to the process. It’s extremely easy to set up on Shopify through the payments section and you’re able to offer it as an easy checkout option in your Shopify checkout!
So to summarize I would definitely suggest speaking with PayPal directly and you should be able to get more information and hopefully ease this process for you!
Hi Lyrictees,
Money roll is always a big problem for small shop owners like us. How can we restock or even refund to customer if Paypal hold all our money. Happened to me once with my first shop, got my first 200 orders in a short times seem suspicious to Paypal apparently. Save yourself time & money by upload all the info to Paypal since the start. You will have more time & energy to grow ur business.
I use Synctrack as the tool to sync all my tracking info to PayPal, you should definitely try it
PayPal puts money on hold to ensure the platform is safe for buyers and sellers. So you cannot avoid it. First, you should understand popular case that Paypal will hold your money:
Your PayPal money might be on hold if you’re a new seller or your account has been inactive. - High number of Disputes
Your selling pattern is unusual or changed
You are selling high-risk item
The payment you received is unusual for your typical selling pattern.
PayPal found an unusual change in the selling price for a particular transaction.
Fortunately, there are a couple of things you can do to faster payment release
Add the Tracking number to Paypal so they can verify your transaction. You should do this immediately when your orders are fulfilled to minimize the time your money is being held.
I use a free tool to help me do that. Highly recommend, let it do this and you can save time for more urgent tasks
Use Paypal’s approved shipping carriers and they will release the hold approximately 24 hours after the courier confirms delivery to the buyer’s address.
Update the order status if the held payment is for a service or intangible item (e.g. piano lessons, e-book). They’ll release the hold 7 days after you confirm the order status as Completed.
Print shipping labels with PayPal. They’ll track the item and release the hold approximately 24 hours after the courier confirms delivery to the buyer’s address.
Yes, PayPal is a reliable payment option for new Shopify stores. PayPal is a widely recognized and trusted payment gateway that offers secure transactions for both merchants and customers. Integrating PayPal into your Shopify store can provide several benefits for new businesses:
Trust and Credibility: PayPal is a well-known and trusted payment provider, which can help instill confidence in your customers, especially if they are unfamiliar with your brand.
Global Reach: PayPal supports transactions in multiple currencies and is accepted in over 200 countries and regions worldwide. This can help you reach a broader audience and facilitate international sales The GP510.
Security: PayPal uses advanced encryption and fraud prevention tools to protect sensitive financial information, providing a secure payment experience for both buyers and sellers.
Shopify bought paypal transactions , so every paypal transaction do not go anymore in 2025 by paypal, also shopify show in their help that paypal protection will be cover only for us transactions or france transaction it mean if someone buy from you to shipi to mexico or any other country paypal protection will not cover you. So it is not woth it anymore i will drop this year paypal because they charge you 1 to 2% more in shopify and now do not cover international transactions.