'Why is my PayPal money pending?': 5 reasons why PayPal holds funds, and how to expedite your transa

July 2024 ยท 3 minute read

When a buyer makes a purchase and uses PayPal , the online payment service may put the money on hold for up to 21 days in certain instances.

The funds will be released when the buyer confirms that he or she has received the item in the promised condition. You can also expedite the release of funds in a few ways.

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There are a number of reasons for why funds could be placed on hold, including:

1. You're new to selling. New sellers need to build up their buyer-seller credibility and history. Once you've established a successful transaction record, your status can change.

2. You haven't sold anything in a long time. Similar to being a first-time seller, if you haven't sold an item in awhile, you'll need to rebuild your credibility.

3. Customers filed formal complaints for a refund, dispute, or chargeback. If you've been flagged by multiple customers for various issues, PayPal may delay the availability of your funds. According to PayPal , the best way to remedy this is to work directly with buyers to ensure that issues are resolved as quickly as possible. To prevent complaints, be up front about shipping costs, item condition, and return policy. You can also set up a customer service message to let customers know if an extreme incident like a natural disaster in your area is preventing you from shipping on time.

4. You have a suspicious selling pattern. PayPal will flag an account that has unusual activity, including a higher than normal selling pattern or a distinct change in the type of items sold.

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5. You're selling riskier items. Examples of these kinds of items include tickets, gift cards, consumer electronics, computers, and travel packages anything that is more expensive or event-related.

In such instances, funds will be held for 21 days by default, but sellers can take action to expedite their availability. This can include:

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