Tuesday, February 26, 2008

PayPal 21 day hold for eBay sellers

The real skinny on the new policy by PayPal 21 day hold for eBay sellers.
If this isn't a slam to sellers on the worlds largest online auction site eBay.

Who does PayPal & eBay think they are to determine a seller should have funds witheld for 21 days?

We will say there surely is bad and dishonest sellers on not only eBay, but other sites as well. Expecting sellers to ship items that are unpaid for is simply ludicris.

For the purpose of this post lets pretend I am an eBay seller. How do I know what item I sell may be subject to this 21 day PayPal hold? Is my feedback number low? Did I charge excessive shipping and handling? What gives eBay or Paypal the right to determine what my shipping and handling should be? As a seller this is my business, and if I choose to sell an item for .25 cents and charge $19.99 shipping and handling, that is mine and my buyers business. If the buyer agrees to the $19.99 shipping and handling and .25 cent item cost there is no place for eBay for PayPal to step in and say "We feel you charged too much for shipping and handling", so therefore we are holding your payment for 21 days. On PayPal's website you are instructed to not ship your item to buyer until funds clear. What does this mean? Make my buyer wait 21 days until I ship? That will only create one angry buyer as well as hurt my business. The eBay seller loses all around while eBay and PayPal lose nothing.

According to all the eBay and PayPal text on this matter I am supposed to ship my sold item to the buyer in the meantime. I won't get this money released until the buyer leaves a positive feedback mark or no disputes are filed. Many eBay users will agree that many buyers and sellers alike don't ever leave feedback. Provide proof to PayPal my item is delivered. It occurs all the time, the USPS for example delivers to wrong address or package is delivered and not scanned. Now how am I to prove the buyer actually did get the item and USPS forgot to scan it. Am I to drive from New York to Texas, raid the buyers house and photgraph the item they claim they never got? This entire 21 day hold policy by PayPal sounds like just a scam to rip off the users who use the Paypal system.

Lets ask a big company like Walmart to ship me a $3000.00 dollar television before they get my money or an agreement to pay them. I highly doubt I'll be receiving that tv. Yet eBay sellers are expected to do this. Selling on eBay does not look like an attractive thing for me. I am not going to have any company withold any funds on an item I would sell because they feel it may be suspicious. This new payment hold policy may be designed to deter those bad and fraudulent sellers but as an honest seller I am seriously going to consider whether I am going to sell anything on eBay, let alone my high priced collection of widgets. What happens when my high priced widgets have the payment held, the buyer claims they didn't get it, and I'm out my hundreds or thousands of dollars??????? The buyer got my goods, eBay and Paypal collected fees, the shipping company got paid, and I footed the entire bill. Further more the majority of ebay sellers are individuals and cannot make deductions for business losses and expenses. So as an individual seller your hit again.

This post is over so my pretend status as an honest eBay seller are over. These were just a few things for all the ebay sellers to consider. In our opinion the new 21 day hold on PayPal payments from items sold on eBay is not a fair and just practice to the sellers.


At 11:56 PM, Anonymous Anonymous said...

You are right on. I cannot believe Paypal and Ebay. This is ridiculous. I just sold a PS3 for $450 and it happened to me. I immediately just issued a refund. I am not nuts, I am not going to ship this and not have the money "possibly" available in 3 weeks!

I have heard so pretty crappy things about Paypal but this one is right up there with the worst.

At 12:50 AM, Anonymous Anonymous said...

right back at ya! they did it to me also. Ebay sent me the first notice stating,"Congratulations!you have won!SHIP NOW!" i was thinking Hmmmmm....no funds yet in paypal..ok! i'm a complete moron! i will do it!

Well i sent over the great news to the buyer and it pissed them off, they called preypal..i mean paypal and they released the funds.

just amazing, these two companies are a piece of work..well guess what, i'm going to sell again and see what happens..screw them.

At 7:13 PM, Anonymous Anonymous said...

This is nothing more than paypals way to collect interest on our money. Originally they would do this shi_ claiming that the seller was involved in a possible fraud transaction and they are holding the funds for 90 days. They got in trouble for it so this is their new scam.. I think I will start using gmail...I can't believe this shit..

At 10:53 AM, Anonymous Anonymous said...

I recently have been subjected to this so called policy, one which PayPal themselves refuse to follow. I had three items that followed their criteria and I had to pull teeth to have them release funds. I have 100 percent positive feedback and no problems, I am a good seller! This last one took the cake, I had positive feedback AND it's now 23 days and they still haven't released the funds NOR have they answered my repeated emails or questions why not. They are using your money to build up cash flow, pure and simple. they are a scam.

At 6:54 PM, Anonymous Anonymous said...

What is the deal, what is eBay and PayPal thinking? Do they really sincerely expect sellers to ship items with no money in hand?

Do they expect us to trust PayPal?

I have a 100% positive feedback and have been using eBay for years. What is the deal. I won't be using them again. I'm issuing a refund and already told my buyer he can send me a check if he wants it.

Let's join hands and band ebay, stand up and let our voices be heard.

At 12:51 AM, Blogger Unknown said...

I personally agree with this system. There are plenty of ways you can work with the PayPal policy for holding eBay payments to ensure you get your money as quickly as possible and everybody is happy.

At 9:52 AM, Anonymous Anonymous said...

I will not buy or sell on EBAY again until this policy changes. I have also notified all of my freinds who buy and sell equipment.

It is riduclous to expect me to wiat 21 days as a seller. Ebay and Paypal have dispute process.

At 11:08 AM, Anonymous Anonymous said...

Same happened to me. I WILL NEVER USE PAYPAL EVER AGAIN. Ebay owns Paypal. Not only is ebay milking the transaction twice, with the listing fee then also the transaction fee, but they are now holding AND USING YOUR money for 21 days. Very nice deal for them huh?

You just can't make enough money can you?

At 10:09 AM, Anonymous Anonymous said...

Same thing just happened to me. I issued a refund immediately and cancelled the transaction. The thing we haven't even addressed here is: What if the buyer is con him/herself? He or She gets the item, then comes on eBay and give you a back feedback. Yes, you can eventually, if you're lucky, get things cleared out, but what if that same seller returns you a crappy or damaged item. You're SOL for good. I stopped using Paypal and just invoice my buyer via Google Checkout or Moneybooker.

At 9:53 PM, Anonymous Anonymous said...

Even though I have been on eBay since 1999 with my accounts, they are now also placing a hold on my payments. But you have got to see why they do this. It is not about buyer protection and blablabla ... it is about the huge profits eBay is making on the interest of hundreds of millions of dollars they hold hostage under the pretense of buyer protection. I am just waiting for the class action lawsuit that will eventually stop this extortion.

At 9:11 AM, Anonymous Anonymous said...

I've been a member for over 10yrs buy/sell 100% positive feedback and now they are holding MY MONEY for 21 days. Called them and spoke to two different reps and both gave me a bunch of BS about it!! These Big business cash machines need to be stopped! What a racket they got going. Can u imagine the money they are making in interest with money that doesn't belong to them!!

At 1:59 PM, Anonymous Anonymous said...

Ebay and Paypal need to bring Meg Whitman back to steer the ship. I am also one of the poor bastards waiting for my money at the moment. As I hung on the third bullshitting phone rep yesterday I told them that I look forward to receiving some of their ill gotten gains when the class action lawsuit come out against them. Why do they hold funds when every paypal account has to provide a back up funding source? Seems to me that would be the likley place to go get the funds if a seller rips a buyer off. The other thing we are forgetting here people.... if you ship USPS through ebay and let purchase postage through them I doubt very much that ebay is getting an additional cut from that transactions as well. All courtesey of our current pinko liberal federal government Do you think ebay just collects the postage for the government for nothing? I'm fairly confident they get a volume discount. So now I ask......where are all the bottom dwelling scum sucking lawyers at this point. Get to work you frickin attorneys out there! Please mail one of those class actions law suit letters in the mail as soon as possible so I can get some of my money back. That I would gladly wait 21 days for or even longer as I'm sure will be needed. So long ebay.... hello yahoo... hello amizon.... let's make some money together!


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