Help!! I think something is wrong on my store

Payments + Shipping & Fulfilment
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Topic summary

Issue: A new dropshipping store isn’t receiving funds. A PayPal order shows as pending; soon after, PayPal deactivated account features and stated funds may be held for 120 days, citing a change in business nature. Another payout has been pending since November.

Context: The store sells t‑shirts and bomber jackets. PayPal wasn’t fully set up when the first PayPal payment occurred, then was configured afterward.

Why this can happen (per guidance):

  • New seller status requiring a track record and identity verification.
  • Inactivity periods that reset seller history.
  • Customer disputes or chargebacks (cardholder reversals) and refund volume, including potential unauthorized use claims.
  • Unusual selling patterns (sudden volume/price changes, platform/type of items).
  • Higher‑risk items categories.

Action items: Contact PayPal support via the provided link to learn the specific reason and required steps. Review PayPal’s documentation on fund holds (link shared).

Status: Unresolved/ongoing. Resolution depends on PayPal’s review and the seller supplying any requested information. The thread offers guidance but no confirmed outcome yet.

Summarized with AI on January 11. AI used: gpt-5.
2

Hi, @Magicmind !

Thanks for reaching out about your concern.

It can definetly be frustrating and confusing when this happens to your account. PayPal may impose a hold or restrict your account activity if they require additional information regarding a transaction, your business, or your account activity. Some of the reasons for this request include:

  1. New Seller Status: As a first-time seller, it takes time to establish a track record of positive buyer-seller transactions. However, you can overcome this status by verifying your identity and generating a history of successful selling activity.

  2. Inactivity Period: If you haven’t engaged in selling for an extended period, it will also take time to rebuild a positive history of buyer-seller transactions.

  3. Customer Disputes: When multiple customers initiate refunds, disputes, or chargebacks, it can affect the availability of your funds. The most effective way to address this issue is by directly resolving disputes and chargebacks with your customers. Occasionally, customers may request a refund, dispute, or chargeback due to unauthorized account usage.

  4. Unusual Selling Patterns: Uncommon account activity encompasses sudden increases in sales volume or changes in your average selling price, business platform, or the type of items you sell.

  5. Higher-Risk Items: Selling items with a higher risk factor, such as tickets, gift cards, consumer electronics, computers, or travel packages, may also prompt additional scrutiny.

The best and easiest way to learn how to resolve this would be to contact PayPal support directly for more information on why the hold has been placed on your account. Please find their contact details at this page.

You can also check out more information at this link which is on PayPal’s website about the hold’s process.

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