|Wed Jan 13 2010 23:00:41|
New $20k PayPal 21-Day Hold Policy
By: Ina Steiner
To the Editor:|
I just spoke with paypal today and they have instituted a new policy where they hold payments for 21 days (or less) for all sellers who sell less that $20,000, yes 20k!, in every 3 month (90 day) period!
I couldn't believe this, I have sold for 12 years on ebay, have over 1600 positives, 100% positive, 4.9 or 4.8 on all seller ratings, and paypal told me today that payments to me will be held for up to 21 days!
I actually have a recording of my conversation with paypal, where the paypal rep (Kate) discusses the new policy, she clearly states the new 20k pending policy, and she says she read the new policy in a memo that came across their computers on Dec 30 09. I said that the 20k criteria is not listed on their "pending payments" webpage or on their website anywhere, she had no answer to that....
This policy does not fit with what they told you previously ("PayPal's Jeff Clementz and eBay Trust & Safety's John McDonald told AuctionBytes on Thursday that sellers who have been selling on the site for at least 6 months and have a minimum feedback score of 100 would not be affected unless their Buyer Dissatisfaction Rate for the last 30 days becomes greater than 5 percent. (See related story on Buyer Dissatisfaction Rates)."
The paypal rep also claimed that they make zero interest off of the funds that they hold; I'm a bit skeptical.... Ebay and paypal are no longer a "little guy" friendly community. It's all about the big sellers and store fronts.... It's too bad.
Have you heard of this new policy already? Please investigate this. Thank you!
Note from the Editor: See this AuctionBytes Blog post from 2 weeks ago, a follow-up inquiry has not received a reply.
Update 1/20/10: PayPal Spokesperson Sara Gorman responded to our inquiry via email: "There is no such policy that 21-day holds would apply to all sellers who sell less than $20,000 per month. This is a case of human error - the agent was incorrect."
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