PayPal Holding Cash

[Super64]

I’ve just sold one of my guns with the purchaser paying via PayPal goods and services. This is the route I’ve sold stuff for a number of years without issue. Today though I’ve had notification from PayPal that the money is on hold until the item has been delivered. The cash is in my PayPal account, but I can’t access it. I’ve had an email saying this transaction is inconsistent with my previous selling activity, I need to provide a valid tracking number and once the courier confirms delivery the money will be released the following day. I’ve never seen this before and I’ve never had any issues with previous transactions. No claims against me or anything. Has anyone else had this happen? Is it a new security feature PayPal is using or is it something I should be concerned about? I don’t normally ship until the money is in my bank account in case a purchaser tries to claim the cash back. I know it wouldn’t make any difference, it just makes me feel better.

[ak2m4]

Sounds like a charge-back to me

[EvilMonkee]

Yep potential scam 

[ak2m4]

@Super64 can you clarify a little, have you sent off the rif or literally the guy just paid and you're waiting to post?

[Tommikka]

Make sure the email is genuine and that the money is showing as held within your PayPal 

(without following any email links)

 

But PayPal do genuinely hold money sometimes

 

 

https://www.paypal.com/us/smarthelp/article/FAQ3297

[Super64]

I've not sent it off yet. I'll not get round to sending it until Monday, but I've looked on PayPal and they do mention that may hold on to cash until items have been delivered to prevent fraud or incase of items not being sent or not as described. It's not something I've encountered before so I'm still a little unsure. I'll look into it a bit more. I could understand it if I had recently been involved in a dispute, but that's not the case. I didn't know whether thus was now standard practice. The last gun I sold was around a month ago and PayPal didn't hold the cash. Anyone else had this happen?

[Crazy_Crystal]

PayPal holding money is pretty normal if the amount looks unusual to their algorithm. Or they pick up a key word in the notes for something they don't like.

 

But when they're providing the buyer protection they kinda do what they want.

[Rogerborg]

I've seen this a couple of times, I think it's becoming normal for them.  One chap doing 3D printing as a business was saying on Facebook that he'd just stopped accepting PayPal now because this was happening to most of his transactions, none of his customers were bothering to confirm delivery, and it then takes ages for the funds to clear.

 

Think about it from PayPal's point of view.  Buyer protection leaves them out of pocket every time a rogue seller bilks some rube and then vanishes with the money.  It won't take too many of those in the £100+ range for them to adopt this escrow situation as the default for any significant transaction.

 

And to be fair, your part of the contract is only complete when the promised goods are safely in the hands of the buyer, and not a second before.  From a buyer's point of view, this is how it should work.  Sucks to be a seller though.

[Guest]

I haven’t had it happen to my account yet, probably 15-20 transactions a month, about half selling half buying but several sellers have complained.

 

I wonder if it has anything to do with eBay doing their own escrow now, so PayPal losing out on that big wedge of cash.

 

 

[Enid_Puceflange]

I have had this happen a couple of times

there is an area to input the tracking number for the item, they (as has been mentioned) release the funds once the item has been delivered

 

The only issue I see is that the buyer doesn’t accept delivery at their front door. They then get the “attempted delivery” card through the letter box

They then ignore it and leave the item at the depot for a good few weeks before collecting it

 

I have some chump trying this on with me just now over an immaculate item I sent who is claiming it’s all damaged upon him getting it, 4 weeks after I posted it 🤬

Edited August 20, 2021 by Enid_Puceflange

[Super64]

Yeah, I’ve looked into it more and queried it with PayPal and it does appear to be legitimate. I guess I’ll just have to post the gun and hope everything runs smoothly. I suppose from a buyers point of view it is an added piece of protection. It’s just a bit of a pain as a seller.

[ak2m4]

Damn, didn't know Paypal now do this, if they start rolling this out on low transactions where items are sent via non tracking services, could cause all sorts of price hikes.

Edited August 21, 2021 by ak2m4

[Misery]

28 minutes ago, ak2m4 said:

Damn, didn't know Paypal now do this, if they start rolling this out on low transactions where items are sent via non tracking services, could cause all sorts of price hikes.

it seems to only be with higher than £80 transactions had it a few times when i sold on graphics cards

[Rogerborg]

29 minutes ago, ak2m4 said:

Damn, didn't know Paypal now do this, if they start rolling this out on low transactions where items are sent via non tracking services, could cause all sorts of price hikes.

 

I can't figure out the threshold.  The chap I saw on Facebook (which I can't find now, because Facebook) was flogging stuff in the tens of pounds, which surprised me.  I'm guessing that if you get too many (or any) contested payments or chargebacks then they might put you on the guilty-until-proven-innocent list.

 

Despite my habit of slamming in immediate but honest disputes/chargebacks at the first opportunity when a bad seller messes up, I do have a lot of sympathy with the good ones who get unlucky enough to be screwed over by a rogue buyer.

 

Then again, a seller could send a tracked postcard saying "Whistle for your item" and might win the case.  I hanker for the days when a fellow's word was his bond.  

[Enid_Puceflange]

Joabs Fcuked 😬

[novioman]

If he didn’t pay friends and family this is normal. 

[Brophy]

My brother has been a victim of someone claiming they haven't received the goods after he sent them, he did what @Rogerborg suggested and sent him a letter that he needed to sign for and gave the tracking to PayPal and they released the funds.

 

When I sell anything now, I always send it "recorded/signed for".

[ak2m4]

@Brophy how did you know that the person receiving didn't actually receive anything?  

[Brophy]

24 minutes ago, ak2m4 said:

@Brophy how did you know that the person receiving didn't actually receive anything?  

 

In this case, the guy was quite flamboyant on the private messages and thanked my brother for his "free" games.

Although my brother provided this as proof to PayPal, they still wanted to see a delivery acknowlegement.

 

I always think now to save the ball ache of sorting stuff out, just pay the extra quid or two (put it into the cost of the item) and have peace of mind.

Edited September 1, 2021 by Brophy

[Tackle]

28 minutes ago, Brophy said:

My brother has been a victim of someone claiming they haven't received the goods after he sent them, he did what @Rogerborg suggested and sent him a letter that he needed to sign for and gave the tracking to PayPal and they released the funds.

 

When I sell anything now, I always send it "recorded/signed for".

Unfortunately the post office (& some couriers) are still adopting the "dump it & run" method, blaming covid precautions, I got stung for a hazard4 pack during early lockdown, if I ship anything worth more than a tenner now I'll use a firm that guarantees waiting at the door for confirmation, might start looking at "click & collect" services for dear stuff ?

[ak2m4]

48 minutes ago, Brophy said:

In this case, the guy was quite flamboyant on the private messages and thanked my brother for his "free" games.
Although my brother provided this as proof to PayPal, they still wanted to see a delivery acknowlegement.

I always think now to save the ball ache of sorting stuff out, just pay the extra quid or two (put it into the cost of the item) and have peace of mind.

 

Damn, nothing surprises me the depths some people will go in order to obtain something for free.  @Tackle totally agree about RM, they have really let the ball slip on their "signed for" service.  They are supposed to double-check the address however I've noticed some will just hand over the package to the wrong address without a 2nd glance.  Luckily all signatures are GPS tracked, however I'm current in a battle with their claims department over a signed for package they delivered to the wrong address, they are being assholes

 

[Tackle]

43 minutes ago, ak2m4 said:

 

Damn, nothing surprises me the depths some people will go in order to obtain something for free.  @Tackle totally agree about RM, they have really let the ball slip on their "signed for" service.  They are supposed to double-check the address however I've noticed some will just hand over the package to the wrong address without a 2nd glance.  Luckily all signatures are GPS tracked, however I'm current in a battle with their claims department over a signed for package they delivered to the wrong address, they are being assholes

 

No offense, your fucked ☹️ 

I had the same problem last year, they delivered a ring to one of my "neighbors", I've a good idea who but it's proving it, RM did a so called investigation, they knew where they delivered it to but the signature was moody & when challenged by RM they denied signing for it, & RM refused to tell me who it was, citing data protection, but they admitted that they fucked up so no issues me or seller claiming, still sucks though.