EcommerceBytes Letters to the Editor Letters to the Editor
Your emails to EcommerceBytes
For consideration, send your email to ina@auctionbytes.com with "Letters to the Editor Blog" in the subject line! Remember to include your name as you would like it to appear in the blog.
Mon June 8 2015 20:07:25

Sony Buyer Complains of PayPal Hold on Cancelled Order

By: Reader

Sponsored Link

Dear Ina,
Frustration with the highly unethical PayPal practices is nothing new to many people who use PayPal.  I am not someone who generally posts complaints but I am so angry that I really felt I had to share what happened with all of you. All I can say is; PayPal users beware!
 
I purchased a camera on Sony.com, at an extremely low price and paid for it using funds in my PayPal account. As is customary, PayPal immediately put a hold on my money, deducting it from the balance available for me to use.
 
Sony had authorized the purchase amount but shortly thereafter sent an email cancelling the order due to unavailability. However, PayPal is still freezing the funds in my account and informed me that according to their policy they are permitted to hold my money for up to 30 days - on a cancelled order!
 
I would think leeway of 3 to 7 days would be much more than enough for PayPal to process the release of my funds, it certainly is for every other payment venue!  

PayPal is using my money and I assume the money of many other people who have become enmeshed in their clutches.
J.




Comments (20) | Permalink

Readers Comments

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: Philip Cohen
Web Site

Mon Jun 8 20:24:38 2015

PayPal is a law unto itself. So, what is the lesson to be leant from such situation? Don't use PayPal unless absolutely necessary. Use one of the new online payment services: "Visa Checkout" or "MasterPass" ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas  

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: Ric

Mon Jun 8 21:36:07 2015

This practice by PayPal worked because of the big umbrella belonging to eBay, but with PayPal soon to become a stand alone company, this should not fly.

OP.... I would contact your local TV and print consumer reporters and see if they will publicize the unethical and unfair situation PayPal has permitted itself to put you in.

Be sure to emphasize with the reporters that PayPal told you they gave themselves the right to hold your money for up to 30 days on an order cancelled by the Sony people.

Dragging Sony's name through the mud ( along with PayPal's ) is justified because they claimed they were out of stock on an item which then caused PayPal to freeze your funds instead of treating you like a valued customer and refunding you in a reasonable time frame.

With PayPal soon to be a stand alone company, the last thing they want is to have their dirty laundry exposed as they attempt to lure investors into buying their IPO.

If the reporters do their job correctly, you will likely see a prompt release of the funds PayPal is holding.

They may also have a difficult time justifying their payment hold policy to a determined reporter, which would likely cause them to revisit their unfair policy and revise the time frame down to something more defensible and reasonable to their customers.

You can bet that the last thing PayPal wants at this time is to look petty and putative with regard to policy and handling user funds.

That black eye will not look very good in their pending Wall Street prom photo.


Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: spirit-of-shiloh This user has validated their user name.

Tue Jun 9 00:14:31 2015

A class action suit must occure to STOP PP's illegal practices.No bank would do this. I am so glad I no longer sell on eBay after being a 100% FB seller since 2000.eBay and PP are the biggest criminals on the planet.  

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: Chicago48 This user has validated their user name.

Tue Jun 9 06:57:33 2015

File a Better Business Bur complaint.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: Rexford

Tue Jun 9 07:04:13 2015

Ric states "OP.... I would contact your local TV and print consumer reporters and see if they will publicize the unethical and unfair situation PayPal has permitted itself to put you in."

I would actually do some research and dig up as many names of consumer reporters across the USA and make them all aware of this. There are a lot of weenies in the press with no backbone, but if you contact enough of them perhaps you will generate some interest with a few that do have backbone.

Why not go one step further and write this up on Facebook and ask folks to share.  Hopefully it will go viral.  I know that I would share it in a heart beat.

Ric is right, Sony won't like their name Linked to it.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: SirTinLee

Tue Jun 9 07:12:18 2015

I've never heard of such a thing! Paypal holding a buyer's money? Is this actually one of their rules? Crazy.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: GotToGetOut This user has validated their user name.

Tue Jun 9 07:24:45 2015

Yes, when buying always pay with your own credit card. Buyers always have the right to do this and most do. This also gives you double insurance if something goes wrong with the order. Your credit card will guarantee your order whether you buy something from a company or Paypal. Unfortunately, if you are buying on Ebay and you have a Paypal balance, you need to clear out your hole balance before you can pay with your credit card. This was another ploy by Ebay that may be changed now that Paypal is not part of Ebay. It saved Ebay lots of money on other credit card charges.

Ebay sellers don't have this advantage unless they're larger sellers and go for their own credit card accounts. Ebay has required Ebay sellers to use Paypal. Now that Paypal is spun off from Ebay there will probably be a time period that Ebay has to keep this rule in place but probably after a year or so, they will suddenly not require sellers to use Paypal.

Paypal was owned by Ebay so they were bound by Ebay's policies. I'm hoping now that they are not part of Ebay they will become more customer oriented (sellers & buyers versus Ebay) and will stop 21 day holds and this 30 day hold policy. They have been doing this 30 day hold for Ebay sales that have buyers claiming not as described (SNAD) even when the buyer is wrong and doesn't send the item back due to the problem. If a buyer complains about one part of an order that is made with one payment, they hold our order for up to 30 days too.

It's not right and I feel there must be some advantages to Ebay / Paypal for tax accounting purposes. Possibly this money that is on hold is still considered part of their assets and it makes the bottom line look better.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: tbyr This user has validated their user name.
Web Site

Tue Jun 9 07:50:24 2015

Lesson Learded:
NEVER NEVER PAY WITH EXSITING FUNDS TAKE THAT TO YOUR BANK ACCOUNT BEFORE PAYING.

ALWAY USE YOUR CREDIT CARD.  YOU THEN CAN COMPLAIN TO CREDIT CARD COMPANY AND GET YOUR FUNDSS BACK ON CREDIT CREDIT CARD.

IF YOU PAY WITH EXISTING FUNDS THERE SHOULD NEVER BE A REASON TO HOLD YOUR FUNDS FOR 30 DAYS WHAT LLAW IS THAT THAT SAYS THEN CAN DO THIS.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: ajeweler This user has validated their user name.

Tue Jun 9 08:50:53 2015

just think the ho will soon be running this company as he did with ebay under the table underhanded I think this is the beginning of the end!

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: ebaighsucks This user has validated their user name.

Tue Jun 9 09:22:43 2015

I have repeatedly stated on this venue:
File a complaint with the Attorney General in your state as well as California. You can do this online.
As soon as Paypal receives the complaint from the AG's office, your funds will be released. Good Luck1

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: toolguy

Tue Jun 9 10:21:27 2015

OP

Have you called Paypal customer service?

Instead of declaring war on Paypal maybe you should just ask for you funds back.

Put the effort where it'll work best, calling TV stations and newspapers isn't going to get your money back faster but a call to Paypal customer service might.

 

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: FREDDY This user has validated their user name.

Tue Jun 9 10:23:32 2015

I stopped selling on ebay 2 years ago.  
I also stopped doing anything with Paypal.  Nothing but rip off artists.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: a_c_green This user has validated their user name.

Tue Jun 9 10:47:37 2015

I'll second toolguy's question: nowhere do I see a mention of the OP actually talking to someone at PayPal. The phrase is ''up to'' 30 days; that doesn't mean they're actually going to sit on it that long. For complicated cases or disputes, sure; those could take a while to unravel. But when a major merchant like Sony.com has cancelled the transaction, I would not expect PayPal to really drag their feet for a month.

Absent from the original post are any dates at all. When was the transaction cancelled, exactly? Have you spoken with PayPal on the phone?

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: sasikat9 This user has validated their user name.

Tue Jun 9 11:27:51 2015

We recently made a large purchase at our local furniture store.  Payed with our paypal debit card. Everything was fine until the furniture company couldn't deliver the entire order and cancelled the order.  

The notice we go from paypal pay informed us of the fact and that the funds would be helded up to 30 days.  It took them less than 24 hours to credit us the 5000.00.

Most credit cards will tell you it will take a few days to process a refund. Paypal is no different.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: Cloud This user has validated their user name.

Tue Jun 9 11:55:19 2015

Sony should have canceled the authorization. They can now be penalized by the merchant account provider for not lifting the authorization. That doesn't mean that PayPal would follow up by releasing the funds but if Sony didn't release the authorization then they are to blame. You need to call them to see if they did.  

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: comet This user has validated their user name.

Tue Jun 9 13:15:35 2015

PAYPAL:::800.854.1366

I have had these same sort of things happpen and Paypal is by far the easier company to deal with but you DO have to CALL and have your facts in order.  

Out of the two Siamese Twins of ebay and Paypal PP is the better one to handle ANY issue;  they have released funds when they were held in what I considered to be an error and also cleared up other snafu's concerning not only ebay but outside co's I used their debit card for.

Almost always in ONE promptly answered English speaking call.

Hurry up tho once The Ho gets his grubby mitts on this as a full time gig the case will alter.  

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: donald This user has validated their user name.

Tue Jun 9 21:54:02 2015





I would never, ever use paypal funds to buy anythig. I always use my credit card.
My credit card is on my side. Paypal can not be trusted!



Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: leathermermaid8 This user has validated their user name.

Wed Jun 10 15:40:45 2015

The longer they hold the funds, the more interest they make on it.  Period.  I've had several instances where the seller refunded for something they no longer had or a postage charge, and had to wait an aditional 4 days to get my refund.  AND when the money finally appeared in my PayPal account, I still had to go in and manually send the money back to my bank where it came from.

Ridiculous.  If I can be charged immediately for something, I should be receving my "change" back the same way.  But this is another way PayPal squeezes money out of its users.  For some sellers, there's an even longer wait to be paid.  All about the $$$ the interest generates.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

This user has validated their user name. by: Marie

Thu Jun 11 02:59:33 2015

This could probably handled with one phone call to PP.  If you are just going by what it states on the website and allow the transaction just to go through the computerized process, there is little doubt you will have you money on hold for a few weeks.

But if you take the time to call them and explain the problem, then chances are pretty high that in a few short minutes your money would be returned to you.

Yes there are horror stories out there about PP.  And PP has done harm before to other customers.  But for the most part PP runs pretty darn good and their customer service is very good as well.

The best advice it call them.  I think you might just be pleasantly surprised at the outcome.

Sony Buyer Complains of PayPal Hold on Cancelled O   Sony Buyer Complains of PayPal Hold on Cancelled O

by: lostinNYC This user has validated their user name.

Wed Jun 17 17:51:33 2015

Had that happen to me the other day. A quick call too PayPal cleared it up: the hold comes from the merchant and they are the ones that have to remove it or it expires on its own.



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.