If you have started receiving payments on PayPal from customers or even friends and family, you might notice that the money isn’t in your PayPal balance or account yet. Here’s why your PayPal money is on hold.
Read more: Everything you need to know about PayPal
PayPal will place a payment on hold if it needs more information about your activity, transaction, or business. A delay could be because of unusual activity, a change in your selling pattern, or if it’s a first-time transaction.
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Why is my PayPal money on hold?
Your payment might be put on hold if PayPal detects any unusual activity with the account. If you are a first-time seller, PayPal will temporarily hold all your payments until you build a positive seller history.
Suppose you have been receiving PayPal payments for your business already. If multiple customers have filed refund requests, raised disputes, or issued chargebacks or bank reversals, PayPal will place a payment on hold. There could also be a payment hold if you sell high-risk items like gift cards, tickets, travel packages, or consumer electronics. If you haven’t sold anything for a while, you will also have to rebuild your seller history.
How long will PayPal hold my money?
PayPal will hold your money for up to 21 days, but there are ways to get your funds released quicker.
If you are a first-time seller and a payment you received is on hold, you can get your funds sooner than the 21-day waiting period by using PayPal Supported Carriers to send the product. You can print a UPS or USPS shipping label from your PayPal account. The tracking information and delivery confirmation will automatically be updated in your account, and PayPal will release the funds to you one day after the delivery is completed.
If you use a supported carrier instead, you must manually upload the tracking information. PayPal will release your funds within three days of the courier confirming delivery.
How to prevent PayPal from holding funds
You can prevent future payment holds by building a positive seller history. Avoid refunds, disputes, and chargebacks, work with your customers to clear any issues, and set up a customer service message to prevent conflicts and claims. For example, if there’s going to be a delivery delay because of inclement weather, let your customers know.
Read more: How to cancel a PayPal payment
Can you withdraw money on hold on PayPal?
You will not be able to access any funds on hold until PayPal clears it.
I am not a seller. Why is a payment from a friend or family member on hold?
If you receive a payment from a friend or family member for the first time or after a long time, it will register as unusual account activity. In that case, PayPal will put the payment on hold for up to 21 days.