Paypal placing 'temporary hold' on refunded payment?

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Hi there, basically, via eBay i bid on and won an auction for a laptop, i paid using instant banks transfer and thought all was well. Unfortunately, the seller refused to post the laptop because the fund transferred to him were in holding by paypal as his requirement due to the low feedback rating was to post item in advance and then the funds would be released in accordance to the receipt. The transaction seemed incredibly dodgy.

I lost confidence in the transaction and opted for a refund. This was done by the seller promptly however, Paypal have put a temporary hold on the funds to be credited back to my account - although the funds have left my bank account by 2 days.
What does this mean? Although the seller had refunded my payment he has now deactivated all of his ebay accounts and i am worried that he might still be in receipt of these funds.

Am i sure to receive the refund Paypal have placed a hold on?

Thanks in advance
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Calvin Rossi

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Posted 8 years ago

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PayPal Jason

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Hi Calvin-

If you paid by bank, the funds have to complete the process of moving through the electronic processing system in order to be directed to your PayPal balance. In other words, payments take 3-4 business days to move from your bank to the initial recipient's account. Once they hit there, they can then be returned to your PayPal balance. We can't re-route the funds while they're processing.

If you have not received your funds (assuming this is a US transaction) within 3-4 business days, excluding weekends, please let us know.

PayPal Jason
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Brenda Neese

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I am on the other end of a similar transaction with paypal. I sold electronic tickets on ebay with the terms stated that I would email the electronic tickets within 24 hours of receiving cleared payment thru paypal. The person that won the bid paid thru paypal right away but paypal put a 21day hold on the funds (meaning the payment will not clear for 21 days). After the 21 day hold on the funds, the tickets will no longer be valid. Paypal told me they would release the funds earlier if I can prove that I shipped the item or I receive positive feedback, which means I must put myself in the position of trusting someone I have never met who has no proven history on ebay. I have been doing business with ebay and paypal for many years and have a 100% approval rating. The buyer has only 1 other ebay transaction and it is for a ticket purchased the day before my auction ended and as of this time they buyer has not left feedback on that purchase.

Needless to say, I am not going to email the tickets and my only option is to notify the buyer and advise them that paypal will not clear the payment for 21 days after which the tickets will no longer be good so I will let him out of the transaction without any poor feedback on my part. If he pushes it, which I don't think he will, I will agree to email the tickets after the 21 days as per the terms of the sale.

I don't think that it is legal for paypal to hold a payment for 21 days. No other banking institution is able to put such a long hold on funds they have received in trust. I am waiting to see a class action litigation over this.
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Same to what happened to me recently, my item (5PC. OF GLOBE 500) were sold to my japanese customer named Yoshiki Watamori with an ebay id: watashik for $58. Paypal hold his payment for 21 days. I have sent already the item electronically. Mr. Watamori leave me a positive feedback saying "Thank You" to my ebay account regarding with item he recently bought from me after that when i check his payment on my paypal it was then released. I'm happy that moment beacuse at last I can now widthraw his payment amounting to $58 to my UNION BANK ACCOUNT, so i requested the bank transfer last April 01 at around 5:00 am (gmt +8:00). But a problem came across when i check again my paypal by 10:00 am to check if there are new payment from my other customers. I was shocked when my request to transfer the fund ($58) to my bank account was reversed. According to paypal, the fund was not available during the time they reviewed my paypal account leaving a -$58 as my current balance. They asked for a proof if the item (5pcs. globe 500) was really shipped to mr. watamori. My point is, mr. watamori have already leave a positive feed back for that particular item so it only means that he fully received the item that he bought from me and according to paypal, to released the held fund, the buyer must leave a positive feedback to the seller. How come for the second time paypal held the $58 from mr. watamori for investigation. I suspected mr. watamori file a dispute against me because everytime i call him, he didn't answer my call and continously rejecting it. Ebay and Paypal give a protection to the buyers but how about for the sellers like us. Why paypal held again my fund even my buyer (mr. watamori) had already leave me a positive feedback for the item he bought last March 31, 2010.

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Joseph Nathan

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Why can't PayPal process payments/refunds faster....Its always 4 - 5 working days :(


If someone has little money in their PayPal account (enough to buy the eBay item)...thay then pay for the item (using eBay's Buy-It-Now and PayPal) then a few hours later the seller e-mails and refunds in full because he or she has ran out of stock and has forgot to update their eBay listing!.....YOU ARE THEN LEFT IN LIMBO BECAUSE YOUR MONEY IS TIED UP WITH PAYPAL FOR 4 - 5 LONG WORKING DAYS BEFORE IT IS YOURS AGAIN TO BUY THE SAME ITEM ELSEWHERE - THIS IS MY POINT - THIS NEEDS IMPROVING.
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tracey cross

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I'm still waiting for my refund over a week ago. A seller let me down. So he refunded my money the same day. The funds never left my bank account. Yet PayPal have had to take the money from my account which took five days. It's still on temp hold. Don't understand this process at all. The money never left my bank account so why take it from me then place it on a hold. Starting to lose faith in whole system. I've just been refunded today for a faulty item how long am I going to wait for this. It's not like I have money to throw around either.