Experiences with PayPal holding funds as a new seller?

Topic summary

New seller facing PayPal fund holds: initial payouts were released within 24 hours after delivery once shipping info was provided; now the account is on hold pending supplier invoices, ID, and business details. Concern raised about potential prolonged holds, with fears (unconfirmed here) of 180‑day retention if not verified.

Reported experiences vary:

  • One business needed ~2.5 months to fully resolve; they disabled PayPal after a month, re‑enabled once verified, and advise keeping evidence of sales/pickups to speed reviews.
  • Another says every PayPal order is held and plans to drop PayPal in favor of credit cards, Amazon Pay, and Afterpay.
  • A participant asks if anyone has found a solution.

Mitigations suggested: ensure tracking numbers are uploaded (one user cites a tool that auto-adds tracking in Shopify), noting typical holds can be ~21 days but longer during investigations. An opposing view argues holds harm sellers and alleges PayPal benefits from interest on held funds.

Status: no definitive resolution in the thread. Common actions include promptly supplying documents, maintaining proof of fulfillment, temporarily disabling PayPal, or switching payment methods.

Summarized with AI on January 22. AI used: gpt-5.

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.