Since when did Paypal become an escrow service?

[Uriel]

I'm mildly annoyed. The (Edit: Auzentech X-Fi) Prelude I was selling went as buy it now on ebay. Paypal have sent me a message that they are witholding funds until I receive positive feedback from the buyer or 21 days passes with no dispute being filed. They want me to post the thing now. I logged into my Paypal account, thinking I smelled a rat, but it looks like it's genuine.

Apparrently the transaction has come up as being as a high chance of fraud?! What the? I have 60+ 100% positive feedback on ebay and I didn't get any of this treatment when I sold a much more expensive netbook just before Christmas.

Edit:

PayPal Policy for payment holds for eBay items


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eBay and PayPal are working together to make it safer than ever to buy on eBay. One of the boldest steps we're taking is to identify transactions that pose the greatest risk of fraud and holding the payments from sellers for a period of time to help ensure that the transactions go smoothly.

If you have received more than 20 Detailed Seller Ratings (DSRs) in the past 12 months and your DSR average is 4.5 or higher, your payments will not be held.

What is a payment hold for an eBay item?
It is a hold that PayPal places on a payment you receive for an item you sold on eBay. The amounts held will be shown as "Pending" in your PayPal account. You still have access to all other funds in your PayPal account.

Why might my payments be held?
PayPal will hold payments in transactions where the vast majority of seller fraud occurs. Here are the most common instances in which a payment may be held:


You are new to eBay and sell an item above £50
You have a low feedback score and sell an item above £50
More than 5% of your transactions result in dissatisfied buyers*
You have a low Detailed Seller Rating (DSR)
You have not received a significant amount of Detailed Seller Ratings
You are listing your item in a higher-risk category
PayPal will not hold payments for eBay items if you meet the following criteria:
You have been an eBay member for more than 6 months, and
Your total Feedback score is greater than 100, and
Fewer than 5% of your transactions result in dissatisfied buyers*

OR
Your average DSR is greater than 4.5, and
Your have received more than 20 DSRs in the last 12 months

What will happen if my payment is held?
If you receive a payment that is held by PayPal, the amounts held will show as "Pending" in a separate PayPal balance on your account page. You will still have access to all other funds in your PayPal account.

Your funds will immediately be released when one of the following occurs:


The buyer leaves you positive feedback
21 days pass without a dispute, claim, chargeback, or reversal filed on the transaction

If you receive a dispute, claim, chargeback, or reversal on the transaction subject to the hold, PayPal may hold the payment in your Account until the matter is resolved, even if the claim, chargeback or reversal is made after the hold is released.

I am a new seller, will my money be held?
If you are a new seller and have a record of good performance, you will receive your payment instantly in the vast majority of cases.

Learn more about the PayPal policy on payment holds for eBay items.

* Buyer dissatisfaction percentage is measured by adding negative events as a percentage of your transactions. Negative events include negative & neutral Feedback, Detailed Seller Ratings scores of two or less, and Item Not Received or Significantly Not As Described disputes. Learn more about how your buyer dissatisfaction percentage is calculated.

[[GSV]Trig]

Cod or Haddock?
Sounds a bit iffy to me.

[Yosh]

I might be confused. But your selling a prelude (Car?) and took payment by Paypal?

As far as i remember, anything sold via Ebay, if you take the payment via Paypal the item must be shipped (cannot be collected), otherwise you break their t&c's, which is probably why your having trouble with them now

[Uriel]

I might be confused. But your selling a prelude (Car?) and took payment by Paypal?

Nope - soundcard. Auzentech X-Fi Prelude, that was briefly on the For Sale forum here before going on ebay.

[jim]

eBay and Paypal are fast sending themselves down the proverbial pan.

They're so insistent on protecting buyers, that they've completely forgotten about the sellers.

Not that long ago I sold a hard drive, and told the guy that I would send the item the next morning... however, I had a bad feeling about him and actually held off another day. So I log onto Paypal, and he'd retracted his payment, which I didn't even realise was possible... Paypal gave me two options - send them proof of delivery (not proof of postage, so basically evidence of tracked mail), or tell them that I hadn't posted the item in the first place. So the upshot was that he very nearly got away with a free hard drive... he deleted his ebay account a few days later, and no doubt successfully scammed a couple of other sellers.

I can't help feeling that they need to be a bit more wary because their position certainly isn't invincible.

[Yosh]

eBay and Paypal are fast sending themselves down the proverbial pan.

They're so insistent on protecting buyers, that they've completely forgotten about the sellers.

Not that long ago I sold a hard drive, and told the guy that I would send the item the next morning... however, I had a bad feeling about him and actually held off another day. So I log onto Paypal, and he'd retracted his payment, which I didn't even realise was possible... Paypal gave me two options - send them proof of delivery (not proof of postage, so basically evidence of tracked mail), or tell them that I hadn't posted the item in the first place. So the upshot was that he very nearly got away with a free hard drive... he deleted his ebay account a few days later, and no doubt successfully scammed a couple of other sellers.

I can't help feeling that they need to be a bit more wary because their position certainly isn't invincible.

I just cross my fingers and make a wish everytime i make a transaction through Paypal, but i agree it should not be like this, they should have a balanced system in place.

[da_ging]

if it helps apparently if you refund 1p then the funds are released from the hold

[KowShak]

if it helps apparently if you refund 1p then the funds are released from the hold

If that is true, Paypal have designed their new escrow service, which annoys sellers, then designed in a flaw so that it can be abused. The end result is that the system alienates users and doesn't offer any greater security. Way to go Paypal!

If Ebay / Paypal die, what is the best alternative?

[mmh]

If that is true, Paypal have designed their new escrow service, which annoys sellers, then designed in a flaw so that it can be abused. The end result is that the system alienates users and doesn't offer any greater security. Way to go Paypal!

If Ebay / Paypal die, what is the best alternative?

Bank transfers... with online banking its the way to go, and its coming into play whereby its same day in most cases... paypal is soon to die on its arse...

last month they withheld £2700 of my fathers money form selling a 15 year long stamp collection...

it took him 2 MONTHS to get hold of his money whilst they made him jump through hoop after hoop to prove who he was...

Pathetic...

They hold your money to ransom, and you cant make them give you your money :/

[Mighty God]

I hadn't realised that it had become an escrow service!

Oh well

[Uriel]

I still get nervous about giving out my bank details online though. I remember Jeremy Clarkson giving out his account number and sort code (think it was in the times) to prove it was safe and someone kindly making a 2 grand charity donation on his behalf.

[joshwa]

So what are your options now? Can you basically cancel the deal? There's no way I'd send the item and let paypal hold the money for 21 days...!! Try doing that in a shop, "Hi, I want this for 21 days, and if I'm happy I'll pay you!"

[Uriel]

Well, I could have cancelled the deal and refunded the buyer. I guess I could have used the refund exploit. I decided to go with it though, send the card off and pray.

It's particularly annoying as I'd have probably held off selling it for another couple of weeks if I didn't need the money fairly quickly. Just hoping they release the funds before my credit card bill is due

[mmh]

So what are your options now? Can you basically cancel the deal? There's no way I'd send the item and let paypal hold the money for 21 days...!! Try doing that in a shop, "Hi, I want this for 21 days, and if I'm happy I'll pay you!"

unfortunately ebay recently made it so you HAVE to accept paypal...

no way round it on ebay, if you wanna sell, you gott take paypal, regardless!

nice eh?

[mightymouse]

isnt that a bit like anti competition since ebay owns paypal?

recently i feel their fee for receiving payments is quite high especially if you receiving another currency. I had an idiot sent me in euros instead of pounds so they took a chunk out. i think it was like 2 euros and they took 50p from me.

but as a buyer i do feel superbly protected. however if i was a scammer then i would feel like a haven for me too

even disputes are taking forever now, it used to be just a few weeks nowadays it can be up to 2 months

[McPhee]

Not that long ago I sold a hard drive, and told the guy that I would send the item the next morning... however, I had a bad feeling about him and actually held off another day. So I log onto Paypal, and he'd retracted his payment, which I didn't even realise was possible... Paypal gave me two options - send them proof of delivery (not proof of postage, so basically evidence of tracked mail), or tell them that I hadn't posted the item in the first place. So the upshot was that he very nearly got away with a free hard drive... he deleted his ebay account a few days later, and no doubt successfully scammed a couple of other sellers.

That happened to me, i lost £50. Paypal couldn't give a hoot when i phoned them and i never got my money back (despite having a Royal Mail tracking number that confirmed delivery). They're a bunch of thieves!

I didn't use it for three years after that. Only just gone back to it today, and that was only because i had a sale waiting and haven't set up internet banking on my bank account yet. Wish i hadn't, i'd forgotten how expensive it is!