Complaint / review text:
I am a small-time/low-volume seller. I have had an eBay account for over 12 months, have no known buyer complaints against me and a 100% customer satisfaction rating. As soon as I receive payment, I mail the item within one day.
I was very satisfied with both eBay and PayPal and had no complaints against them until (like the previous people documented below) they capriciously put a 21-day hold on my account.
PayPal gave no advance warning and no reasonable explanation - just an email that a hold will begin forthwith.
I contacted PayPal and spoke to an intelligent, polite representative who apologized and assured me that this action was not initiated by any complaints against me, that there were no complaints against me, that I had done nothing wrong, and that this was just a new PayPal policy. (However, I do fit the profile explained below that "Accounts which don't complete at least six eBay transactions in six months will automatically have their PayPal funds held and inaccessible for 21 days ". But this explanation was not given to me by PayPal in any call or communication - I only read it in another consumer complaint against PayPal).
The PayPal representative also promised me that my money can be available in less than 21 days, that once the item has been confirmed delivered, the payment is available immediately. But that was not entirely true. What I discovered yesterday after calling PayPal again (and iterated below by a previous complaint) is that the payment is not available immediately unless I personally call in and request it.in other words, I had to call in, again, and literally "beg" for my money. Otherwise, it takes three days.
What the PayPal representative also did not tell me (and that I only discovered today) is that PayPal does not even use the funds that the seller provided for shipping to pay for the shipping!!! Those funds are also held. PayPal requests the shipping funds from my bank account! Wouldn't such additional steps and transactions cost PayPal more money? Well, maybe PayPal makes enough in interest from our accounts on hold to more than cover that cost in increased inefficiency.
If PayPal does accumulate additional funds from this new policy, PayPal certainly should be sued. After reading the previous complaints, I know PayPal certainly has created financial havoc, distress, and ruin to numerous faultless individuals (See:, and). At the moment, I have a $15.00 late fee on a bill that would not have been late if I had received my money from PayPal in the time I had expected from all previous transactions.
I hope we join together in a class-action suit against PayPal. I do not know where to begin, but would happily assist anyone who did.in addition, (1) I have surfed the web for PayPal alternatives and would like any suggestions; and/or (2) propose we develop a credit union-like PayPal alternative for sellers and buyers (again, I do not have the expertise or funds to do this); and (3) like a previous writer, also encourage Google to launch better auction site and better PayPal alternative as soon as possible!