Paypal money received "on hold"

20
Found 15th Jan
I sold an iPhone on eBay over the weekend. The winner paid almost instantly, but the paypal transaction was showing as "on hold". I sold a couple of other items on the same day, and those payments all cleared fine.

The buyer contacted both ebay and paypal and said for the payment to cleared, I need to post the item out and then it'll clear.

Looking on Paypal's site, it does state:

  • Provide tracking information (UPS, USPS, or FedEx) with delivery confirmation. Your payment should be available 3 days after we can confirm delivery.
  • If you don’t upload tracking information, but mark the item as sent on the Transaction Details page, your payment should be available 7 days for domestic or 14 days for international deliveries, after the item is marked as sent.

I can't help but feel this isn't right. I have to post out an iPhone without actually seeing the money, and got to have no concerns about a chargeback? Anyone else experienced this?
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Is your eBay / PayPal account quite new, or is the transaction amount quite a bit higher than your usual transactions?

This is fairly common on new accounts, and generally nothing to worry about.
20 Comments
Do not post before the money is in your Paypal account but i would cancel this sale tbh, the buyer sounds like he is ready to scam you, expect a "item not received" or the like if you were to post.
Yeah, I'm not comfortable with this at all... even though Paypal state the above and shes asking me to call ebay and paypal to verify...
Ring PayPal and eBay to confirm. Ask them what happens if the buyer tries to scam you.

Get a delivery that tracks and signs for. Has a good coverage if it goes missing etc.

Shouldn't really be an issue.
Is your eBay / PayPal account quite new, or is the transaction amount quite a bit higher than your usual transactions?

This is fairly common on new accounts, and generally nothing to worry about.
Yes, I have had this. Paypal say its for my benefit but as other posts can inform you, Paypal regard themselves as above UK law and are motivated to ensure eBay keeps racking up sale commission no matter how dodgy the buyer.

If you post and end up in a dispute, do not expect Paypal or eBay to support you to the full extent to which you are entitled under UK law. Expect them to side with the buyer.
Been a member since 2003, I sell in fits and spurts, but never had this before. Buyer just messaged me, saying:

"That is why they have asked that you call them as it is held your end not mine, I have paid and they will not release until you ship. Nothing more I can do. What do you want to do, I have never encountered this before and I buy lots online too. Let me know, if you cant ship then I will let you cancel if it is your preference, I can do no more. They are clear you need to ship as I have paid"

Can't help but feel i'm gonna get screwed somehow...

That being said, buyer has 100% positive feedback as a buyer, with a rating of 105...
Edited by: "mcscoobs" 15th Jan
PayPal does hold the money sometimes, usually for new sellers but I guess sometimes just to protect the buyer and themselves, especially with large transactions so if the seller doesn’t send the item then PayPal doesn’t lose out by having to reimburse the buyer. It’s a frustrating situation but I think sending the phone with tracking should be absolutely fine.
Thanks - Will it state anywhere that I can see, that it's an eCheque?
Richard_Richard4 m ago

Should do on your PayPal receipt when the buyer paid, should say echeque …Should do on your PayPal receipt when the buyer paid, should say echeque if it is and also a warning to not send until it clears. You would've noticed I imagine.


Cheers - yeah no mention of that luckily
If you aren't a regular seller and / or you've sold something unusual on your account then you will be subject to Paypal's 21 day hold.

Paypal are holding the funds, not the buyer.

As long as you log into Paypal and it says the transaction is paid but held (and it will tell you the options to release the funds) then it will be find to send the item. For a mobile you should be using Special Delivery. Only send it to the address Paypal give you and keep your SD and certificate of posting for 180 days at least.
mcscoobs1 h, 8 m ago

Been a member since 2003, I sell in fits and spurts, but never had this …Been a member since 2003, I sell in fits and spurts, but never had this before. Buyer just messaged me, saying:"That is why they have asked that you call them as it is held your end not mine, I have paid and they will not release until you ship. Nothing more I can do. What do you want to do, I have never encountered this before and I buy lots online too. Let me know, if you cant ship then I will let you cancel if it is your preference, I can do no more. They are clear you need to ship as I have paid"Can't help but feel i'm gonna get screwed somehow...That being said, buyer has 100% positive feedback as a buyer, with a rating of 105...


I don't see what the buyer is doing wrong but when I've sold things I've often felt a bit uneasy about some buyers. Just make sure the buyer knows that you have the IMEI and that if the phone "goes missing" it'll get blocked, or if "it's not working" he can't send back a different broken phone, then there won't be any reason (that I can think of) to try to scam you.
Welcome to PayPal ,worse company In history of conpanys... be scammed and they won’t give a dam ,love holding money just for fun

Good I hate them and there robots on the phone
Edited by: "ashmac" 16th Jan
Don’t know why people insist on selling phones on eBay. Envirofone or o2 recycle pay cash for phones. Sold loads and no worries at all!
XSerenityX4 h, 14 m ago

PayPal does hold the money sometimes, usually for new sellers but I guess …PayPal does hold the money sometimes, usually for new sellers but I guess sometimes just to protect the buyer and themselves, especially with large transactions so if the seller doesn’t send the item then PayPal doesn’t lose out by having to reimburse the buyer. It’s a frustrating situation but I think sending the phone with tracking should be absolutely fine.


I sold an item on ebay for close to £1K and money was put on hold until the buyer received it and left feedback.

Not a new seller and had plenty of other transactions spanning years. No negative feedback ever. They put it on hold because of the nature of the item being risky for the buyer (high fraud risk).

I assume iPhones fall in the same category.

Anyway, if this is the case, in the PayPal account it should say when the money is expected to be released. It will be released faster if tracking is uploaded and positive feedback left.
Edited by: "hearts22" 15th Jan
cmdr_elito6 h, 9 m ago

Don’t know why people insist on selling phones on eBay. Envirofone or o2 r …Don’t know why people insist on selling phones on eBay. Envirofone or o2 recycle pay cash for phones. Sold loads and no worries at all!


But don't they give you a lot less than that you could get from private sales?

I recall checking what my Samsung S6 edge 64gb was worth with a bunch of phone buying companies. I was offered around £140-165 if I recall. This was back in August last year.

I threw it on eBay and got £230 with the £1 maximum fees promotion.

Rather a large difference, I would just go full private sale over those sorts of companies. (Sphock, Facebook, gumtree and the likes).
kos1c20 h, 26 m ago

But don't they give you a lot less than that you could get from private …But don't they give you a lot less than that you could get from private sales? I recall checking what my Samsung S6 edge 64gb was worth with a bunch of phone buying companies. I was offered around £140-165 if I recall. This was back in August last year. I threw it on eBay and got £230 with the £1 maximum fees promotion. Rather a large difference, I would just go full private sale over those sorts of companies. (Sphock, Facebook, gumtree and the likes).


I’ve only sold Apple phones, on eBay they only typically go for about £10-20 more once you factor on eBay fees, PayPal fees, delivery and insurance. Plus there’s all the hassle.
Do you have your bank account registered to your PayPal account? If you are more a fund as you go PayPal user they know it’s harder to do chargebacks to you.
cmdr_elito31 m ago

I’ve only sold Apple phones, on eBay they only typically go for about £ …I’ve only sold Apple phones, on eBay they only typically go for about £10-20 more once you factor on eBay fees, PayPal fees, delivery and insurance. Plus there’s all the hassle.


If you're paying full fees I can understand. As a £200+ phone is looking at £20+ in fees.

My case was £1 max eBay fees and the usual PayPal %. So the difference was huge from private sales to a recycle your old phone company.

I would still go full private with shpock and Facebook over eBay (no promotion) and recycle companies.
Edited by: "kos1c" 16th Jan
cmdr_elito42 m ago

I’ve only sold Apple phones, on eBay they only typically go for about £ …I’ve only sold Apple phones, on eBay they only typically go for about £10-20 more once you factor on eBay fees, PayPal fees, delivery and insurance. Plus there’s all the hassle.


I only sell on ebay when they do the £1 promotion on fees and they do them often enough so 10% basically saved just like that (unless you need to sell urgently).

Delivery with RM special delivery is around £8 for a phone up to £500 and even with those companies you have to send them the phone with some form of trackable service and insurance...

Paypal is only about 5% if I remember well.

The difference between what you get by selling privately and using those recycling companies is usually quite noticeable.

It bothers me that they buy the phone from you for way below what it is worth on ebay and sell it on for above that so they're never gonna get my phones :{.
hearts227 m ago

I only sell on ebay when they do the £1 promotion on fees and they do them …I only sell on ebay when they do the £1 promotion on fees and they do them often enough so 10% basically saved just like that (unless you need to sell urgently). Delivery with RM special delivery is around £8 for a phone up to £500 and even with those companies you have to send them the phone with some form of trackable service and insurance... Paypal is only about 5% if I remember well. The difference between what you get by selling privately and using those recycling companies is usually quite noticeable. It bothers me that they buy the phone from you for way below what it is worth on ebay and sell it on for above that so they're never gonna get my phones :{.


As I said I always check but only ever found them going for £10-20 more than what I’m being offered. Bonus for envirophone is don’t need to send the headphones or chargers whereas eBay buyers will want that.
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