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Paypal Temporary Hold - Transaction With Higher Risk

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arianzo's Avatar
Canada
2124 Posts
 Posted 01/04/2021  2:14 pm Show Profile   Bookmark this topic Add arianzo to your friends list Get a Link to this Message Number of Subscribers
I sold an item in ebay paid through Paypal and for the very first time I receive a Paypal email stating:" The payment from ******* is on temporary hold. We've placed the money on hold because we believe this transaction may involve a higher than usual risk".

I have bought and sold many items before and had several Paypal transactions, however this is the first transaction every for this buyer on ebay.

So, I want to know if the higher risk transaction is related to me or to the buyer because it it is related to the buyer who has never bought anything before, then the risk is on me and it would be better to cancel the transaction.

I know I can mail with tracking but I know of cases that even if the item arrives, then the buyer indicates that the envelope was empty and moreover, nowadays there is not signature option when shipping.

I don't care about the hold time but if it is a scam.

What do you do?
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GrapeCollects's Avatar
United States
8938 Posts
 Posted 01/04/2021  2:27 pm  Show Profile   Bookmark this reply Add GrapeCollects to your friends list Get a Link to this Reply
Basically if the item is A) higher than your usual sale price by a significant amount. B) untrusted or new seller C) New or untrusted buyer holds occur. Usually I just ship it as normal. Funds clear after delivery
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GrapeCollects's Avatar
United States
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 Posted 01/04/2021  2:54 pm  Show Profile   Bookmark this reply Add GrapeCollects to your friends list Get a Link to this Reply
10 days is much shorter than average. Usually 20-30 otherwise.
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arianzo's Avatar
Canada
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 Posted 01/04/2021  3:08 pm  Show Profile   Bookmark this reply Add arianzo to your friends list Get a Link to this Reply
Wait .... what I understand is that Paypal is not going to clear the funds until the items is received (tracking number) according to what I searched online.

But that is not an issue. I mean, I can receive the funds but the buyer always can ask for a refund and Paypal can just give the money back to the buyer using my bank account/credit card.

So for "C) New or untrusted buyer holds occur" the issue again is not the hold itself, I can have the money in 20 days no problem but my issue is if the buyer is going to say that the item was not received (no signature) or was not inside the package.

What is your experience with buyers with 0 feedback?

Because if the high risk transaction is because of a new buyer, how the hold of the fund protect me? Even after releasing the funds, Paypal can give the buyer the money back anyways.
Edited by arianzo
01/04/2021 3:10 pm
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macmercury's Avatar
United States
5829 Posts
 Posted 01/04/2021  3:13 pm  Show Profile   Bookmark this reply Add macmercury to your friends list Get a Link to this Reply
I would send the buyer the Paypal requirements, and reason for holding shipment, some time transaction of this kind takes longer than usual.

As long as the payment is cleared by Paypal, I would not worry, take video of shipping the package for proof.
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Rothery's Avatar
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 Posted 01/04/2021  3:24 pm  Show Profile   Bookmark this reply Add Rothery to your friends list Get a Link to this Reply
And make sure you mail it so you have a tracking number. If you are very worried then you can pay a little extra for "signature confirmation". Buyer has to sign in order to accept the parcel
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arianzo's Avatar
Canada
2124 Posts
 Posted 01/04/2021  3:52 pm  Show Profile   Bookmark this reply Add arianzo to your friends list Get a Link to this Reply
Because of COVID, there is no signature option.
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Rothery's Avatar
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 Posted 01/04/2021  4:11 pm  Show Profile   Bookmark this reply Add Rothery to your friends list Get a Link to this Reply


EDIT - OH, that's right you are in CANADA - My bad. We still have that option in the US


"Instead of the recipient signing their name on the tablet computer carried by the mail carrier, carriers will keep a safe distance, ask for the recipient's first initial and last name, enter the name in the signature field on the tablet and then leave the Certified MailŪ item. "
Edited by Rothery
01/04/2021 4:14 pm
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arianzo's Avatar
Canada
2124 Posts
 Posted 01/04/2021  4:21 pm  Show Profile   Bookmark this reply Add arianzo to your friends list Get a Link to this Reply
This is the reply I just got from Paypal (unfortunately, they only talks about holding of the funds

Welcome to PayPal messaging! My name is *** and I will be more than happy to assist you. Hi ****, I understand that you wish to verify your funds, don't worry I will exhaust all my resources to help you out today.
Your funds will be released 1 day after we confirm that your item was delivered.
If you do not complete the above steps, your money will be available 21 days after the purchase was completed.
Upon reviewing your account, I see that the below transaction ID is placed on 21 days hold. This is because the buyer has not confirmed the receipt as the buyer has to provide the confirmation. Since we need to ensure orders are fulfilled correctly and your buyers are satisfied with your goods/services.
We do not have an option to release the funds before the item got delivered. The purpose of holding the payment is to ensure that your buyer has received the item in the promised condition. Hence, without confirming the delivery, system won't allow us to release the funds.
Do not worry I shall provide you two options to get the funds released before 21 days
Please find the 2 options provided below:
1. If you have sold a service or a product and the item is delivered, here's how to add your tracking information or change the order status: #12288;
1. Log in to your PayPal account.
2. Click Activity at the top of the page.
3. Click Add Tracking next to the transaction you'd like to update.
4. If you sold an intangible item or service, select Order Processed in the box labeled "Order Status" instead of Add Tracking.
5. Fill in the applicable information.
6. Click Submit.
2. The buyer would be notified via email once the above steps are completed and the buyer needs to complete the below steps to confirm that they have received an item or service. Please send the steps below to your buyer so that they can follow it to release the funds for you:
1. Log in to your PayPal account.
2. Click Activity.
3. Find and click the original payment for the item.
4. Click Confirm Receipt.
5. Click Yes to confirm that you received the order.
The above provided are the two option which you can follow to make your funds released; else the funds will be released 21 days from the payment date.
We need a tracking number that shows item delivery. In this case, please contact your buyer and ask him to confirm receiving the item. Once the buyer confirms on his side, funds will be released immediately on your account that is on 1/21/21.
Please be informed that the payment hold will be released on 3 occasions:
1. If the buyer clicks on confirm receipt on their PayPal account after receiving the product (will be released immediately).
2. If the item shows that it is delivered to the buyer through the tracking details that you provide us after shipping the product (24 hours after the item being delivered).
3. After 21 days without any action from you or the buyer (which is the automatic release).
If ever the buyer can't confirm the receipt, the money will be on hold for 21 days maximum and after that the system will automatically release your money and can be withdraw/transfer to your bank.
Once the funds are released to your balance you shall be notified via email and once the payment has been released please do not attempt a withdrawal right away as it could go for an extended review period. Please kindly wait till the end of the day or the next day to withdraw once the payment has been released.
To withdraw money:
1. Click Transfer Money below your PayPal balance.
2. Select Money out.
3. Choose how you would like to withdraw the money under the "Instant" or "Standard" section, and click Next.
4. Fill in the amount you are transferring and click Next.
5. Review the details of your transfer, then click Transfer Amount Now.
6. Click Done.
The money will be deposited within 30 minutes for Instant transfers or within up to 72 hours for Standard transfers.
Withdrawals to a bank account typically complete in 1 business day but it may take up to 5 business days to show in your bank account depending on your bank's clearing process.
Feel free to reply whenever you're ready and we'll reply as soon as we can.
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Zurie's Avatar
United States
5671 Posts
 Posted 01/04/2021  4:38 pm  Show Profile   Check Zurie's eBay Listings Bookmark this reply Add Zurie to your friends list Get a Link to this Reply
All honest buyers start with zero feedback, although the risk to you might be slightly higher. I would be inclined to wait the 21 days for the funds to clear, and give the buyer the opportunity to back out of the sale when you explain the reason for the delay. You're right that he can always ask ask for a refund later, but if you ship with tracking, you should have some seller protection. Or, if it's not a big dollar sale, you could go ahead and mail it hoping for a problem-free transaction.
Valued Member
Canada
191 Posts
 Posted 01/04/2021  5:59 pm  Show Profile   Bookmark this reply Add Fefimo to your friends list Get a Link to this Reply
I had a sale that had a hold recently. Coin was shipped to Denmark without tracking and PayPal released the funds before the buyer even got it. No clue how they decide when to hold funds. I'm a new seller but it wasn't on my first dozen or so sales and not a new buyer.
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arianzo's Avatar
Canada
2124 Posts
 Posted 01/09/2021  8:25 pm  Show Profile   Bookmark this reply Add arianzo to your friends list Get a Link to this Reply

Quote:
Zurie
All honest buyers start with zero feedback, although the risk to you might be slightly higher. I would be inclined to wait the 21 days for the funds to clear, and give the buyer the opportunity to back out of the sale when you explain the reason for the delay. You're right that he can always ask ask for a refund later, but if you ship with tracking, you should have some seller protection. Or, if it's not a big dollar sale, you could go ahead and mail it hoping for a problem-free transaction.


Yeah, I agree everyone starts with zero feedback, and I'd sold to them before but cheaper items and without any "higher risk Paypal email".
The transaction is for $150, I don't know if for sure that is a big dollar sale.
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