Friday, May 02, 2008

Paypal 21 Day Hold - What can eBay Sellers Do?

What can eBay Sellers do about PayPal's 21 day hold policy?

Paypal's new 21 day hold policy for items sold on eBay has many sellers upset.

Without no understanding of what item will have money held, what are sellers to do?

We've read the Paypal 21 day hold policy for eBay sellers ourselves several times and it is 100% unclear as to what the exact critia is that determines which item or seller is subject to this 21 day hold.

One very feasible option for sellers who sell any volume is getting a Merchant Account. The fees are most often lower than what Paypal charges. You money is deposited automatically, often daily, into your bank account. And, all the merchant account providers we researched do not hold money as Paypal's new policy does.

For the smaller seller where a merchant account may not be feasible try accepting only checks and money orders. This way you get paid directly and as an extra you pay no PayPal fees.

Another feasible option would be to leave the eBay selling venue, set up your own webstore, preferably with merchant account as primary creit card processor. Possibly just offer PayPal as another payment option. Believe it or not but you can use Paypal outside of eBay without the threat of having the monies held. From what we read the 21 day hold imposed by PayPal only applies to those transactions within the eBay venue that whoever deems risky.

We may have mentioned this in one of our other PayPal 21 day hold posts, but if our money was held, especially on an expensive item, it would not be shipped until we recieved payment. After all doesn't the eBay buyer also pay for the shipping costs? Are the sellers supposed to take ALL the risk having both the money for the product and shipping out there in limbo ( actually it most likely sits in an interest bearing account that PayPal reaps the benefits from). The seller ships item, buyer claims never got, seller loses all, eBay and PayPal still get paid. This 21 day hold policy sounds real fair.

Any other options or suggestions you may have as a reader are welcomed.

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