Why is my PayPal money being held? (All you need to know)

To ensure the safety of its users for both buyers and sellers, PayPal tracks transactions, and occasionally PayPal resets them.

If you use PayPal frequently and money has been suspended, you may be wondering why this is happening and how long it will last. I did some research and here is what I found!

Why is my PayPal money being held in 2022?

PayPal will block money for buyers and sellers in 2022 for security reasons. These reasons include that the payment was unusual for your past selling behavior, you have been inactive for a period of time, the company has noticed an unusual change in the selling price, you are selling a product that may have disgruntled customers, or because you have recently started Selling items outside of eBay.

If you’ve been wondering how long PayPal holds can last, if there’s anything you can do to get your money back faster, and more, read on!

How long is my PayPal money held and how do I get it released?

Unfortunately, PayPal can hold your money for up to 21 days or just 24 hours.

How long the suspension lasts depends on why the transaction was suspended and what you’re doing to help PayPal get the information it needs.

If your PayPal transaction has been suspended for 24 hours, it’s because PayPal wants to make sure you have enough funds in your account to take care of any issues.

For example, if a disgruntled customer wants their money back, the money set aside by PayPal will solve the problem.

PayPal releases the money after 24 hours, no matter what day it was deferred.

If PayPal detects any problems with the transactions, they will review them and, depending on the company’s decision, allow or reverse them.

In addition, there are some things you can do to speed up the process and free up your funds. You can:

• Print a USPS or UPS shipping label
• Add tracking information, or
• Update order status

To print shipping labels or add tracking information:

• First, log into your PayPal account in the app or on PayPal.com
• Second, you need to go to the “Activity” tab
• Third, find the transaction you need to update and click “Get Funds”.
• Then click on “Product” and from there you can add the tracking information or print shipping labels
• When you’re done, click Submit

To add tracking information to an order, you must also upload a tracking number from a supported carrier.

PayPal will then release to hold your funds 1-3 days after the supported carrier confirms delivery (a list of PayPal supported carriers can be found here).

Note that after the shipping label is printed, the tracking information and delivery confirmation are automatically updated.

Once delivered, it only takes one (1) day to unblock your money provided the item is in good condition.

Additionally, updating an order status applies to non-tangible items or services, which means shipping labels cannot be printed and tracking information cannot be added.

To update an order status:

• Log in to your account, go to the ‘Activity’ tab and click on ‘Get money’.
• Then click on “Service or Virtual Product”.
• Finally click on “Send”

After you update the order status, you will receive your money within 7 days.

Why is my PayPal business money on hold?

There are several reasons why the money could be held in your PayPal business account. These reasons include:

• You are a first time seller
• You haven’t sold in a long time
• Several customers requested a refund, chargeback or dispute
• Your selling pattern seems unusual or different, or
• They sell more high-risk items

If you are a first-time seller, you need to build a positive transaction history.

Additionally, if you’ve been inactive for a while, you need to rebuild your positive transaction history.

Additionally, a great way to resolve customer disputes, refunds, etc. is to communicate directly with your customers.

Luckily, by communicating directly with your customers, you can easily resolve any issues that arise, so PayPal doesn’t have to intervene.

An unusual or deviant selling pattern refers to an increase in your sales, an unusual change in your average selling prices, your store platform, or the type of item you are selling.

Unfortunately, there’s no way to solve this – you just have to wait until PayPal can gather the information the company needs and release your funds.

PayPal’s high-risk items include “tickets, gift cards, consumer electronics, computers, and travel packages.”

Likewise, there is no way to fix this. Just wait for PayPal to release your funds.

Why is my PayPal money being held by friends and family?

Transactions made through PayPal by friends and family are strictly for personal use only and are not intended to be associated with any commercial or business transaction.

When money is withheld from friends and family, it’s because PayPal assumes payment was made for a good or service.

The company might think so because the person who sent you the money sent it through the “Goods or Services” option and not through “Friends and Family.”

The best way to solve this is to update the order status.

Updating the order status as mentioned earlier will notify PayPal that the money is going towards an untouchable good or service.

Even if the transaction is not a good or service, it is untouchable and should be approved within 7 days.

Why is my PayPal money being held even after delivery?

If your transaction is still pending after delivery, it may be because PayPal does not know the item was received or PayPal believes it was not in the correct condition.

In order for PayPal to release your money after delivery of the item, you can have your customer confirm receipt.

This lets PayPal know that your customer has received the item or service and is in good condition.

To acknowledge receipt:

• Sign in to your PayPal account, in the app, or on PayPal.com
• Switch to the “Activity” tab.
• Next, locate and select the original payment and click Confirm Receipt.
• Finally, click “Yes” to confirm the order.

Once your customer has confirmed receipt, PayPal should release the funds within a few business days.

To learn more, you can also read our posts on whether or not Verizon accepts PayPal, whether Instacart accepts PayPal, and whether Amazon accepts PayPal.

Conclusion

PayPal holds transactions for the safety of both buyers and sellers, to ensure that you have enough funds in your account to resolve any issues with customers such as disputes, returns, etc.

All blocked transactions remain yours during the block but are temporarily unavailable until your customer has received the correct product in the correct condition.

To prevent blocks from occurring, you must develop a positive transaction history on PayPal and communicate directly with your customers to resolve disputes.