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Mon Oct 6 2008 21:51:43

PayPal Holds eBay Seller Funds

By: Ina Steiner

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I've gotten a few reports from readers that PayPal was being very aggressive about holding eBay sellers' funds since it granted itself permission to put a 21-day holds in place in certain circumstances. This post on Cliff Saran's blog only hints at the seriousness of the policy while demonstrating its sometimes unintended consequences.

 




Comments (44) | Permalink

Readers Comments

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: tj

Tue Oct 7 00:46:44 2008

This 21 day hold is nothing; the big Paypal scam going on now is with BIN items, be very careful if ANY buyer buys more that 3 BIN items in any session…then pays for each one separate.
I guarantee you will ship & after 3-5 days Paypal will freeze the payments (remove from YOUR account) as suspicious activity…and you will loose every time unless you use FedEx tracking etc

I know I lost serious money with this…and most buyers never repay the seller

Terrible system

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Noway

Tue Oct 7 01:14:54 2008

We all know Paypal is a rotten payment system and they always ALWAYS side with the buyer on and dispute real or imagined.
To TJ: Can you give a little more details? Price range, item type, sounds pretty serious considering everyone is currently trying out variations of BIN.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Raymond

Tue Oct 7 05:12:07 2008

Paypal scam also extends to e-checks. When paypal cannot freeze a sellers account they basically freeze the buyers funds by holding e-checks for excessive periods of time. Ten days after an e-check was deducted from a buyers bank account the buyer contacts me asking if their order had shipped. Paypal was still showing the e-check as pending and had not credited it to my account. I had a second customer paypal  showed as paying by e-check which was still pending. I contacted that customer and explained their order would ship the same day e-check showed cleared by paypal. Buyer informed me they did not pay by e-check.

When paypal shows an e-check payment pending the account details provide no information until the e-check clears. No email or shipping address is made available. Unless the buyer contacts you or you can contact the buyer through the site they purchased on there is no way to contact them.

October, 20 you can no longer request money orders or checks. 28 million people in the U.S do not have bank accounts, money orders are their only option. Millions more have bank accounts and no paypal accounts. If no checks are allowed millions more potential customers are lost. With the economy going downhill a business needs every customer it can get.  October, 20 ebay eliminates millions upon millions of those potential customers. In the last six months I did not get any money orders, in the last week I have gotten two.

You cannot run a profitable business under these conditions. If you want to be profitable you have to take checks and money orders and you have to get paid. Money in a frozen paypal account is of no value. Ebay and paypal policies operate more like scams than user protection.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: eBay is Scum

Tue Oct 7 06:20:20 2008

Common knowledge that eBay is anti-seller so why would anything PayPal, ebay's ugly sister do be a surprise? We use it because we HAVE to not becuase we want to.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Henry

Tue Oct 7 06:20:24 2008

paypal and eBay will both be valueless within a year, eBay should be thriving in this poor economy, two horribly run companies, i can't imagine why the stock is flying so high at $17.00 should be more like $4 or $5.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Patrick Alexander

Tue Oct 7 07:29:38 2008

One of the first signs a company is failing is when they start to be slower paying their ''vendors.''

With eBay, the sellers are the ''vendors'' and PayPal is the ''accounts payable'' dept.

Smart sellers have already figured this out and know where it can end up.

Please don't get caught with more $$ than you can afford to lose tied up in this ''payment system.''

You could lose it all. And also be victimized by phony ''chargebacks'' for months or years to come.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Rich

Tue Oct 7 14:43:47 2008

Walmart is now offering Paypal. I wonder if PP will hold THEIR funds? I'm off the WM bandwagon...

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Cash Back Gal

Tue Oct 7 16:24:27 2008

PayPal is not a bank and is not FDIC insured. They can do anything they want. It's really very scary. If you have big money in PayPal, then send your funds back to your FDIC insured bank.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: o.c.d.collectibles

Tue Oct 7 22:45:23 2008

I wouldn't be surprised if ebay is bought out by walmart. It would be a good fit. Paypal can hold all the funds they want, they won't be able to hold mine, because I'm still not going to list on ebay with that kind of policy in place. I feel sorry for anyone who has to suffer with that kind of treatment, and I wonder why they would stick around and accept that kind of treatment?
I'll bet paypal would NEVER hold funds from Buy.com.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: hank

Wed Oct 8 00:28:35 2008

Right, because Buy would sue them so fast your head would spin.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Wed Oct 8 09:20:05 2008

How selfish of my fellow sellers!

They actually want to be treated like a valued seller by Paypal, Ebay and their buyers?

Sorry, but that is not how society works nowadays. It is all about you sacrificing your own self-interest so others can get your goods and services, without paying. THta you lose on the deal is of no importance. It is your duty to comply, just like in Nazi times.

Ebay and Paypal just profess a culture that is now typical in America, where business people are supposed to bend over backwards for their customers, even if that means it produces losses and the business will eventually fold. You may even see your funds and property confiscated if you do not comply, or worse.

You busienss person are only of value to Ebay, Paypal and its buyers as long as they can suck you dry.

If you are a masochist or an altruist and need this daily abuse, keep going.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: sid

Wed Oct 8 09:36:26 2008

Re: Raymond's post.  Because of so-called ''glitches'', I have had two E-checks that NEVER showed cleared on eBay even though they showed cleared in Paypal.  One buyer sent me a copy of his ''cleared'' status page to prove it was indeed safe to ship.  Months later they still show ''pending'' on eBay.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: sid

Wed Oct 8 09:42:39 2008

Oops, make that WEEKS later.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Ed Tomchin

Wed Oct 8 11:08:31 2008

What happened to the lawsuit in Australia to block eBay from monopolizing methods of payment?  There was talk for a while of a suit or investigation by the Justice Dept. for eBay doing the same thing here.  Where did it go?  There definitely is a need for action.  A couple of weeks ago a buyer in Europe simply filed a ''Not as described'' complaint on an item he'd won without ever contacting me.  Didn't even know about it till I got an email from PayPal saying they'd seized the full amount of the sale and shipping ($125) till the problem was resolved.  It took three weeks and a $25 settlement to the buyer before I got my money back.  And I had to complain to PayPal and wait again while they 'investigated' before I was able to actually see the money back in my account.  Since then I've simply flat refused to take PayPal in payment, though I'll continue to use it to buy merchandise. {wink}

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Linnette Gallagher

Wed Oct 8 11:30:32 2008

WOW, I had no idea this was going on. I have not sold anything in quite awhile, I do buy a lot of glassware and I always pay with paypal. Maybe we should all email them at the same time and crash their system ha ha.  This sucks big time. I do not like being told how I can and cannot pay for my items, a lot of people we buy from ask for money orders and we are most happy to do so. When the new payment plan goes into effect, I would bet that paypal fees skyrocket.  

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: RicRoe

Wed Oct 8 11:34:31 2008

Account holds on PayPal are the latest trick used to inflate the PayPal balance ledger.

Users will notice the increase in account holds that seems to take place in the last month of every quarterly reporting period.

It's not a coincidence, its's the companys latest gimmick.  From here on out, PayPal will increase account holds and slow down fund transfers every March, June, Spetember, and December.

It's another reason why eBay has imposed the PayPal only policy.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: conmor

Wed Oct 8 11:58:45 2008

Totally agree that this must change.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Ed Tomchin

Wed Oct 8 12:48:24 2008

This is probably redundant but I finally have had it up to here (makes cutting movement across top of head) with the eBay-PayPal cabal and found the following stuff and did the following things, probably which are inadvisable:

DOJ / FTC http://www.usdoj.gov/atr/public/guidelines/215247.htm PayPal-eBay (DOJ 2002) PayPal, Inc. and eBay, Inc. provided competing person-to-person payment systems used largely to complete transactions following eBay auctions. Even though the person-to-person payment systems offered advantages over the other means of payment, the Department decided not to challenge eBay's acquisition of Pay Pal principally because other means of payment substantially constrained eBay's ability to increase fees after the acquisition. Efficiencies to be gained by integrating PayPal with eBay were also a factor in the Department's analysis. Integrating the two would make transactions more convenient for eBay buyers and also improve the detection of fraud by combining the information that had been separately amassed by the two companies.

FBI http://www.fbi.gov/pressrel/speeches/mueller021506.htm In the wake of Hurricane Katrina, for example, we worked with the American Red Cross, eBay, PayPal, and MasterCard to review more than 6,000 websites purporting to be legitimate fund-raising efforts for hurricane victims. We shut down numerous fraudulent websites and referred nearly 100 related criminal matters to our state and local law enforcement partners.

We are also working with our private sector partners to educate the public about Internet fraud. Together with Monster.com, Target, and the Merchant Risk Council, among others, we are keeping consumers informed about auction fraud, identity theft, re-shipping scams, and foreign lotteries.

FTC - Economics of Internet Auctions Conference Report (PDF format)
http://www.ftc.gov/be/workshops/internetauction/Auction_Tra
nscript_public.pdf

FTC
- eBAY - eBay letter to FTC commenting on their new rules.
http://www.ftc.gov/os/comments/behavioraladprinciples/080411
ebayinc.pdf

FTC
- Economic Insights from Internet Auctions - A Survey.
http://www.ftc.gov/be/seminardocs/040128bajari.pdf

F
TC
- Results of search of FTC documents for the terms (PayPal AND eBay AND (antitrust or monopoly or restraint) [34 interesting hits]
http://search.ftc.gov/query.html?col=decision&col=full&col=hs
r&col=news&op0=%2B&fl0=&ty0=w&tx0=+ebay+paypal+&op1=&fl1=&ty1=w&tx1=antitrust+monopoly+restraint&op2=-&fl2=&ty2=w&tx2=+&dt=an&inthe=604800&ady=1&amo=10&ayr=2008&bdy=9&bmo=10&byr=2008&tp=any&nh=100&rf=0&lk=1&sc=0&ws=1&charset=iso-8859-1&ql=a

I
have this day filed the following complaint against eBay/PayPal with the FTC and the Justice Department.

''I would like to enter a complaint against eBay/PayPal for antitrust acts, monopolistic behavior and restraint of trade in that sometime before the end of this year (2008) eBay will only allow payment for a purchase via it's wholly owned subsidiary, PayPal.  In a set of guidelines written by the Justice Department and the FTC in 2002, eBay was allowed to acquire PayPal because ''the (Justice) Department decided not to challenge eBay's acquisition of Pay Pal principally because other means of payment substantially constrained eBay's ability to increase fees.''  Once eBay places the PayPal only rule into effect later this year, that constraint on eBay no longer exists and they have a ruling monopoly on trade and are exercising an arguably unlawful restraint of trade.''

Also, running the following search (ebay paypal antitrust monopoly) on Google comes up with over 4,000 hits some of which are very interesting.

Whoof!  Who's that knocking on my door this late at night?

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: Elizabeth

Wed Oct 8 15:31:14 2008

To Cash Back Gal, I've just recently noticed that PayPal is stating that they are FDIC insured at the bottom on one of their policy pages.  I was under the same belief as you until saw it the other day.  Don't think they can say it and not be so; but who knows.  They do amazingly horrible things to people at will, with little repercussion so it seems.

PayPal Holds eBay Seller Funds   PayPal Holds eBay Seller Funds

by: wiczeg

Thu Oct 9 01:04:47 2008

I had $175 payment for eBay item held by PayPal , I did not like the Idea That PayPal wants to hold the Money , So I refunded all  of it ( Right away ) back to the Buyer , then I contacted the Buyer and expalained why I refunded the Money , He told Me PayPal is puting a Hold on the Refund also , He  is not going to get the refund for aprox. 7 more days .

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