If you sell/buy online you are probably familiar with Paypal. Wikipedia defines Paypal as: “an e-commerce business allowing payments and money transfers to be made through the Internet.” I use Paypal frequently without any problems. That is until Friday, when I received this email:
“We’re writing to let you know about a change to your PayPal account.
Starting 8/19/2011, money from payments you receive will be placed in a pending balance for up to 21 days. By doing this, we’re making sure that there’s enough money in your account to cover potential refunds or claims.
Even though you can’t access the money right away, please ship orders quickly and communicate with your customers. After 21 days, you can withdraw money from each payment as long as the customer hasn’t filed a dispute, chargeback, claim, return, or reversal.
The money may be available sooner if:
- We can confirm that the item was delivered.
- Your buyer leaves positive feedback. (Applies only to eBay items)
This change isn’t necessarily permanent. We’ll review your account every 35 days and re-evaluate if we should continue to hold your payments. If we decide to stop holding payments, we’ll email you to let you know.
Why are my payments being held?
We reviewed your account and determined that there’s a relatively higher than average risk of future transaction issues (such as claims, or chargebacks, or payment reversals). We understand that it may be inconvenient to have your payments temporarily held but please know that we didn’t make this decision lightly.
Before deciding to hold payments, we consider many factors. These factors include account and transaction activity, the rate of customer disputes, the type of business a seller runs, average delivery timeframes, customer satisfaction, performance and history.
Questions? Let us know
We understand you’d like to have immediate access to the money you receive and we’re here to answer your questions about this change to your account.”
After reading the email I was alarmed because I have a 100% positive rating on all my seller accounts. I called Paypal this morning to clear things up because there is no way I would allow them to hold my money for 21 days. The customer service representative that I spoke to said, “Oh, well your account is in good standing so this won’t affect you.”
I asked, “Then why did Paypal send me this email?”
She replied, “They were sent to everyone, in case your account status changes.” But even when I logged into my Paypal account this morning I has a red alert that “any money I receive will be temporarily held in a pending balance.” I haven’t made a sale online since Friday so I don’t know if indeed my money will be held.
Is this Paypal’s way to get me to sign up for Paypal Debit Mastercard? I don’t think that is a very good business practice.
Did anyone else receive this email?