Why is PAYPAL So OBSESS when it comes to keeping Your MOney?

[Soldierswitlittlefaith]

sorry, i decided to break my silence over a period of 9 year's plus i've been on paypal & ebay platform and if, there is one thing that is consistent on these two platform it's the ability to keep your fund. they keep changing strategy on how to hold your money!

Do they actually make money by holding these fund for a specific number of days?
For the past 3 year's now i have been collaborating with an IT company who based in the United States. Currently, the project is no longer in progress but, i was among the lucky one's who where place stanby with increase in payment every month since, they are still of my service.

I have no problem with the company but, my problem is with uncle paypal because i have to manually send a customize message to paypal support team to either remind them to release echeck payment on hold or refund to the merchant.

surprising, a member of the support team will immediately release fund after few hour's of reading my message. So, it's  game. i know most customer's will never bother to get in contact with the support team. perhap's they just leave paypal to decide whenever they FEEL like.


Such act is bad & unprofessional for a payment processing company like paypal. In additional, i can provide proof of an email where they are requesting proof of an additional doc from my end. This got me upset, and in response, i sent a message to them,telling them that there will be no need for submission of an additional doc since, my intention is to close the account by the middle of this month.

Boom, fund was release immediately without hesistation!!
Also, i knew they actually took them to court in regard's to the 21 days hold in which they've ammended by updating pages of their website.

Guyz, becareful when you see "echecking payment on hold"


Pls, let me know what you thinks about this.

Thanks
Soldierwitlittlefaith

[Soldierswitlittlefaith]

 

[algorithminer]

How about you try to buy something online, or buy freqently online for 500-1000$.
How would you feel if there isnt a 21 day hold on your funds , so you can confirm with the seller that everything is okay.
If your buyers arent like that, do you expect an internet giant like paypal to make a special plan for just you ?

[Cnut237]

Do they actually make money by holding these fund for a specific number of days?

Yes, they do. All banks do this as well. So long as they hold your funds, they are earning interest on them.
Maybe not so much for one customer, but obviously it has a huge cumulative effect over all customers.

Additionally in the case of banks, the longer it takes to get your money out, the more likely you are to get overdrawn, and so incur fees (payable to the bank).

PayPal's user agreement does go into a little more depth:

"Any balance you hold in your business account represents an unsecured claim against PayPal and is not insured by the Federal Deposit Insurance Corporation (FDIC). PayPal is not a bank and does not itself take deposits. You will not receive any interest on the funds held with PayPal. PayPal combines your PayPal funds with the PayPal funds of other PayPal users and invests those funds in liquid investments in accordance with state money transmitter laws. PayPal owns the interest or other earnings on these investments. However, the claim against PayPal represented by your PayPal funds is not secured by these investments and you do not have any ownership interest (either legal or beneficial) in these investments. These pooled amounts are held apart from PayPal’s corporate funds, and PayPal will neither use these funds for its operating expenses or any other corporate purposes nor will it voluntarily make these funds available to its creditors in the event of bankruptcy."

[Soldierswitlittlefaith]

How about you try to buy something online, or buy freqently online for 500-1000$.
How would you feel if there isnt a 21 day hold on your funds , so you can confirm with the seller that everything is okay.
If your buyers arent like that, do you expect an internet giant like paypal to make a special plan for just you ?

@algorithminer, thanks for your contribution but i think is incorrect for one of the giant paypal processor to use same measurement for everyone (buyer's & seller's)

Every buyer/seller have history on paypal which is unknown to the each other at the time of transaction. for instance if, you are the buyer who is purchasing an item worth more than $200 or $300, paypal has much information about the buyer. it's their duty to protect the buyer if, they sense an unusual purchasing habit or unusual source of funding.

So, they got more information(s) than the seller  to either place the associated fund from the other end on hold for a specific time. vice versa

However, i think it's unfair to use same parameter over & over again especially after deducting your fee.

In mine own case, it's a seed monthly payment from same company. i did mention this.
Now, it make no sense to hold payment or present the receiver that echecking payment is progress while, the associated fund is not available neither to the sender or receiver. 


Note : that any payment of hold/echecking process will not be indicated to the sender.

So, they keep both the sender & receive in a dark room.

Thanks
Soldierwitlittlefaith

[Soldierswitlittlefaith]

Do they actually make money by holding these fund for a specific number of days?

Yes, they do. All banks do this as well. So long as they hold your funds, they are earning interest on them.
Maybe not so much for one customer, but obviously it has a huge cumulative effect over all customers.

Additionally in the case of banks, the longer it takes to get your money out, the more likely you are to get overdrawn, and so incur fees (payable to the bank).

PayPal's user agreement does go into a little more depth:

"Any balance you hold in your business account represents an unsecured claim against PayPal and is not insured by the Federal Deposit Insurance Corporation (FDIC). PayPal is not a bank and does not itself take deposits. You will not receive any interest on the funds held with PayPal. PayPal combines your PayPal funds with the PayPal funds of other PayPal users and invests those funds in liquid investments in accordance with state money transmitter laws. PayPal owns the interest or other earnings on these investments. However, the claim against PayPal represented by your PayPal funds is not secured by these investments and you do not have any ownership interest (either legal or beneficial) in these investments. These pooled amounts are held apart from PayPal’s corporate funds, and PayPal will neither use these funds for its operating expenses or any other corporate purposes nor will it voluntarily make these funds available to its creditors in the event of bankruptcy."

@Cnut237,

"So long as they hold your funds, they are earning interest on them"

thanks, now i know better


Soldierwitlittlefaith

[Soldierswitlittlefaith]

bump

[Negotiation]

I think PayPal is very poor at depositing money Because PayPal is not crypto-friendly it is very difficult to transact here and fees are high It is generally not friendly to any type of digital product There is no interest in depositing money when you deposit your money which is a risk to us.

[UserU]

Do you have a Business account? Paypal might get suspicious if a Personal account is used for business purposes.

[Soldierswitlittlefaith]

Do you have a Business account? Paypal might get suspicious if a Personal account is used for business purposes.

Nice point you made here.
well, i have both private & biz account.

Thanks
Soldierwitlittlefaith

[CristianOff]

I recently got into creating a company and make an actual product, then sell it to persons. I am self employed (aka sole trader so don't use a limited company).
I have 100% ethical business, everything is legal and fair. Well, I did not have any problems yet and thanks God I hope it will be like that for a long time. However
I am scared hearing PayPal, Stripe, Shopify Payments and other companies holding $30,000 or even $100,000 from a seller who also has a trustworthy product. Those sellers
must match the orders with their own money which is stupid as hell. Sometimes they simply issue a refund and still pay the fees to the payment gateway. I never had a problem,
but if I was in a similar situation that would be disrupting, especially since money are not returned for over 180 days.

Take a look at this reddit: Paypal froze over $70,000 in my account