Why is PayPal holding money? How to get your funds back?

724 views - August 2, 2022

One of the biggest concerns for any business is slow capital turnover, in which, the money being held on PayPal is the main reason why countless companies are struggling and trying to find ways to solve it.

With that in mind, Synctrack has become a powerful partner for every business to minimize dispute rates associated with tracking orders.

Now let’s analyze the problem up and down before learning how Synctrack greatly benefits your business. 

Why does PayPal suspend payments? 

Before using a Paypal account, sellers may inquire about potential issues, so they can get a better understanding of a method they use.

In order to help ensure that the platform is secure for both buyers and sellers, PayPal states that the business temporarily suspends payments. Even though the money is yours, PayPal will temporarily prevent you from accessing it in order to make sure there is enough money in your account to handle problems like chargebacks or disputes

Once the buyer validates that they have received the ordered item in the condition that was described, funds are released.

Your payment may be suspended for a variety of reasons including:

  • Your PayPal account was inactive since it has not been used recently.
  • The payment you have received is considered unusual for your typical selling pattern
  • PayPal has noticed a change in the selling price for a particular transaction. 
  • Customers may be unhappy with the products they purchase from you and request refunds.
  • Customers raise disputes because they cannot track their orders.

and so on.

In general, the main reasons come from unhappy customers who raise disputes and request refunds.

Indeed, still many companies now manually add tracking PayPal numbers; however, this process always has errors and requires a lot of human resources, especially for a company with thousands of orders per day.

Why is paypal holding money?

Why is paypal holding money?

How long does PayPal hold money?

When a buyer uses PayPal to make an online payment, the money is often kept for up to 21 days in some cases. If there are no issues with the transaction, the money will be released afterward. 

In case the buyer certifies that they have got the products in the condition they were promised, the money will be released straight away.

More info at: How to track a package paid with PayPal?

What are the risks?

It doesn’t matter how honest you are as a seller, it is a truth that fraud and consumer unhappiness are big issues in specific product categories and areas.

Just accept that eBay, other platforms, and PayPal will safeguard their bottom line as they frequently have to pay for buyer protection claims.

Or even if you open your own sales website, the risk can be much higher when your cash flow is too slow. For any business, this is extremely detrimental to business operations. As a business owner, you should consider more about this money-holding issue.

What are the risk when PayPal holding money?

What are the risk when PayPal holding money?

How to get your funds more quickly?

To help PayPal funds release more quickly, sellers can take a number of activities. One of the following steps will assist in releasing the eligible payments:

  • Print a USPS or UPS shipping label via PayPal: It helps automatically update your tracking information and delivery confirmation on the USPS or UPS websites. Because PayPal will track your package and release the hold one day after the courier confirms the delivery, this is a very efficient way to get money off hold on PayPal sooner.
  • For services or intangible items, update the order status as follows: Update the order status for non-shipped items, such as e-books or knitting lessons, and PayPal will release funds in seven days.

Apart from those common ways, we recommend you should invest in technology to optimize the order processing and fulfillment from the time any transactions start.

As mentioned above, tracking numbers are a key factor that helps your business avoid countless problems after an order is done. Therefore, the importance of applying technology to sync tracking numbers from your online stores to PayPal now is a no-brainer.

Let’s move to the next part, we’ll introduce a powerful tool Synctrack to you!

Synctrack Sync PayPal Tracking – No more PayPal holding money

Why use SyncTrack – Add tracking auto?

  • Setting up a dedicated PayPal sub-account is safe and simple.
  • Connect to multiple PayPal accounts to save money.
  • A quick and simple way to enable tracking data submission to PayPal.
  • Access to submission status in real-time
  • Always keep reports of completed orders and tracking information submitted in the last 30 days/today/this month/last month/all time up to date.
  • Add tracking information to Paypal automatically
  • Transfer tracking numbers from previous orders to PayPal.
  • Quicker access to funds
  • Paypal’s seller protection
How to get your fund quickly with Synctrack

How to get your fund quickly with Synctrack

Final Words

You probably already understand how risky Paypal holding your money is for your company. As mentioned above, this happens for many reasons and one of the main causes is on the customer side.

It’s time to improve every process in your company, with a strong tool like Synctrack, you will not worry about adding a thousand tracking numbers or the urge of the customers anymore.

Tags: how to get your fund quicklyPaypalpaypal hold moneyShopifysync trackSynctrack

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