Following the receipt of payment for a product in the store from the purchaser, how much time elapses before I can gain access to the funds from PayPal? Is there a specific duration for which PayPal retains the funds within the system?
Topic summary
Immediate Availability with Conditions:
PayPal typically makes funds available in your account immediately after a customer payment is processed. However, actual withdrawal access may be restricted based on several factors.
Common Hold Scenarios:
- New or limited-history sellers: Funds may be held up to 21 days, released earlier with positive buyer feedback or 3 days after confirmed delivery
- High-risk transactions: Up to 21-day holds for high-value items or risky sales
- Withdrawal limits: Newer accounts may see full balance but face daily withdrawal caps (e.g., receive $1000 but only withdraw $500)
- Disputes/chargebacks: Funds frozen until resolution
- Reserve requirements: Percentage of payments held for specified periods
Improving Access:
Holds typically decrease as your store builds positive sales history and fulfillment records. You can contact PayPal support to request higher limits.
Alternative Solutions:
Consider Shopify Payments (if available in your country) to eliminate transaction fees, or bank transfer solutions for faster, hold-free payouts.
Hello again Lidia,
We already answered this in your other thread, so I’m just going to link to it here too, in case any other merchants find this thread and have the same question:
Cheers,
Stephen
1 Like
Hey @LidiaU ,
Great question!
When you receive a payment through PayPal on your Shopify store, the funds are usually available in your PayPal account immediately. However, there are some circumstances where PayPal might hold the funds. These holds may be influenced by factors such as your selling history, the type of product or service you sell, or the risk involved in the transaction.
Here’s a quick breakdown of PayPal’s funds availability policy:
- New Sellers or Sellers with Limited History: PayPal may hold funds in a pending balance up to 21 days. This is to ensure the transaction goes smoothly. The funds may be released sooner if the buyer leaves positive feedback or 3 days after confirmed item delivery.
- High Risk Transactions: If PayPal deems a transaction as high risk (for example, selling high-value items), they may hold the funds in a pending balance up to 21 days.
- Reserve: In some cases, PayPal may set up a reserve where a percentage of your received payments are held in your pending balance for a specified period of time.
- Disputes, Claims, or Chargebacks: If a buyer files a dispute, claim, or chargeback, PayPal will hold the funds until the issue is resolved.
I recommend checking out PayPal’s official documentation here for further explanation.
A normal process in owning a business is your partners (including the services you incorporate into your business) managing their risk, however, new entrepreneurs have difficulty navigating their way around these situations. If you find yourself with PayPal holding your funds you have some steps they recommend to follow here. Don’t forget that you can eliminate your transaction fees with us by adding Shopify Payments as a gateway (if supported in your country) option for your customers as well!
Hi!
In most cases, PayPal makes your funds available almost immediately after a customer places an order through your Shopify store. So once the payment is processed, you’ll typically see the funds in your PayPal balance within seconds.
However, there’s a bit more to know:
Instant vs. Withdrawable Funds
While the balance appears right away, PayPal may limit how much of it you can withdraw or spend instantly. This is especially common for newer accounts or stores that have a sudden surge in sales.
For example:
- PayPal might let you receive $1000 in a day, but only let you withdraw $500 immediately.
- The rest might become available after a short cool-down period (often a few days to a week).
Why the hold?
PayPal does this to:
- Prevent fraud
- Ensure sellers fulfill orders reliably
- Protect you in case of chargebacks or disputes
Over time, as your store builds up a good sales and fulfillment history, your withdrawal limits usually increase automatically. You can also contact PayPal support to request a higher limit — they’re generally responsive and helpful.
If you’re looking for instant or same-day access to your funds, consider using a Shopify Pay by Bank Transfer solution for your store. Since it’s a direct bank-to-bank payment, there are no platform holds, and payouts can happen instantly or within hours, not days.