Can an experienced seller tell me a bit about Paypal 21 days hold?

[Billy_Batts]

I got a fully verified 11 year old Paypal, after setting everything up, software costs, promotion etc they would be a big budget left.
When you sell an item on your website and they bought it through PayPal gateway, do they directly freeze your funds for 21 days? And is this forever?

Cheers.

 

[maxyy89]

Hi! They don't limit immediately your account but I think that is some limit to get limited for 21 day,some say is 500$ some 1000$. Till now I have made about 280$ in sales and didn't get limited.

 

[otk]

I am sure there is no limit that is associated with Your sales. It's rather related to disputes/claims/chargebacks % of Your total sales.

 

[bigopl]

I had 21 limit applied after reaching 1600 daily. They block "some" of the transactions for 21 days or 14 days when shipping tracking is applied (they count 14 days starting from they day you apply the tracking) don't want to scare You but from what I remember it was bussiness days not calendar. They decided they will block eery payment for 21 days ona a 60 day trail. The account was a business account with 6 years of retail sells. I highly advise to not use paypal on bigger volumes they will destroy your business and they don't accept dropshiping our first shop ended having blocked 10k $ for 180 days.

 

[maxyy89]

@bigopl That kind of shit from Paypal I've heard before. I really need to set up a credit card processor and hoping that Yaros will add more payment gateways. Is your PP acc with 10k still blocked and what is their explanation for blocking you?

 

[bigopl]

They blocked me for 21 days i borrowed alot of money to send orders. After 30 days they unlocked my money let me sell for a month and after that blocked account for a month (just to check eveything) i was unable to borrow more money and was unable to send half of the packages. after month they gave me the money. I started sending products but People already started making complaints. It's a really long story. Now my funds are blocked and people are taking chargeback from them.

 

[maxyy89]

What a horror story. Instead that they have limited your account but with possibility to at least get some funds so you can keep your store alive they just destroyed all your effort.

 

[bigopl]

They will tell You that they will block only part of orders but they kept all payments. We had a great store with a 2000k days chance but they decided to destroy it. Now we are starting all over again .

 

[maxyy89]

Haha yea that's interesting,they block some orders but keep all money. I wish you luck with restart.

 

[The Dropper]

PayPal is really a nightmare in Ecommerce hhh , i heard that this 21 days limit is necessary for them to check your business & sales volume so make sure not to stop orders after they limit your account , also they don't limit everyone but only the suspicious account , I personally don't have a huge volume of sales on paypal , but i know some friend who are doing +10K daily with PayPal only without problems . I got a different horror story , a customer contacted me this week telling me that paypal force him to create an account .

 

[bigopl]

Paypal can be cool as a second payment method but never make it the only method. It will ruine Your business when expanding fast.