Last Updated on March 15, 2023 by Jerome Donovan
This tutorial will show you how to make PayPal into releasing your payments more quickly if you have valid monies on PayPal that somehow got trapped. When monies are not deposited into your account on schedule, we are aware of the hassles this causes you. This frequently causes production delays, and you could have to take out loans to cover expenses while you wait for the money. In other situations, you can be receiving the money on someone else’s behalf who is getting frustrated with the delay.
A “payment hold” is when PayPal typically keeps the money for 21 days. Thankfully, you can convince PayPal to release the money more quickly. This article also covers the causes of the issue and offers suggestions for future prevention.
For people who sell things like clothes on Depop, this post will also enlighten you more if you even get your funds stuck by PayPal.
PayPal Funds on Hold
Reasons PayPal holds your funds
In many cases, PayPal will place a hold on your account when they need more information from you about a particular transaction or your account activity. Below are reasons PayPal will require information after holding your funds:
a. First-time seller
If you’re selling on PayPal for the first time, PayPal wants you to build an integrity history to show a positive buyer-seller pattern in your transactions.
However, you can trick PayPal not delaying funds as a first-time seller by verifying your identity and creating a positive history of account activity.
b. Multiple customers filing for a refund, dispute, or chargeback
If your customers are filing for a refund, dispute, or chargeback, it can cause PayPal to make your funds unavailable. The obvious solution is to work directly with your customers to resolve any disputes and chargebacks quickly.
In some cases, if someone’s PayPal account has been used illegally to buy your product, the account owner can file for a refund, dispute, or chargeback. In order not to be at a loss, make sure not to ship the items.
c. No sales in a while
If you’ve not sold in a while, you’ll need time to rebuild a history of positive buyer-seller transaction activities in your account. Thus, any funds received in this period will be unavailable in your account.
d. High-risk items
Did you recently sell higher-risk items such as gift cards, tickets, consumer electronics, computers, or travel packages? These items trigger PayPal to place a hold on funds until resolved. Depending on the item, you may never get the money back.
e. Unusual selling pattern
If there’s a change in your selling pattern, PayPal will hold the funds. This may include:
- a recent spike in sales;
- a change in average selling price;
- business platform; or
- type of item sold.
How to trick PayPal into releasing your funds faster
If you have no problems with the order or the items are not high-risk, you can get PayPal to make your funds available sooner than 21 days. Below are the steps to trick PayPal into releasing your funds faster:
1. Update tracking information and delivery confirmation
Updating your tracking information and delivery confirmation will trick PayPal to release the funds faster. Tracking information is automatically updated when you print a USPS or UPS shipping label from your PayPal account one day after delivery.
2. Add tracking information
You can add tracking information one day after delivery with PayPal’s supported carriers. This method will make PayPal release your unavailable funds within 3 days of the carrier confirming delivery.
3. Update the order status
For services or intangible items, just update the order status for PayPal to release your funds faster. Such items are items not shippable including knitting lessons, software, and e-books, to mention a few. For this method, PayPal will release funds in 7 days.
How to prevent PayPal from holding funds
You can always prevent the annoying “funds unavailable” notification by doing the following:
1. Check your PayPal notifications
Make sure to review the notification email in your account overview. If your customer has made payments but it isn’t immediately available, PayPal will notify you and the email notification is usually labelled “An important message about your PayPal balance”. This notification can also be seen on your Account Overview page.
The PayPal notification will give information regarding why payment is unavailable and how you can stop the “funds unavailable” from coming up in the future.
2. Prevent refunds, disputes, and chargebacks
Refunds, disputes, and chargebacks from multiple customers are reasons PayPal will not release your funds faster. Thus, you can trick PayPal into releasing your funds faster by:
- Photos. Make sure to post the actual photos of your product so that customers don’t have to file for a refund, disputes, and chargebacks.
- Shipping. You need to be clear about shipping and handling time. Costs and methods involved in processing orders should also be communicated to buyers to refine their expectations.
- Packaging. Ensure to deliver items in sturdy and appropriate materials to avoid damages that force the buyer to request a refund or chargeback.
- Tracking information. Make sure to upload tracking information of the supported PayPal carrier or print a USPS/UPS shipping label via your PayPal account.
- Return policy. Make sure your refund policy is clearly communicated to the customer upfront to avoid problems.
3. Work closely with buyers
Be responsive and helpful to customers. Work with them to issues from escalating and try to provide any needed information to minimize the number of buyer disputes, claims, and chargebacks. Also, you need to be honest with customers and try opening communication with them through the resolution center to resolve any misunderstandings.
4. Set up customer service messages in the resolution center
Set up a customer service message in the resolution center to prevent disputes. For instance, the case of a shipment delay due to a natural disaster in your region can prevent a dispute.
