I won’t reiterate how unethical and illegal this is, but I have new information that makes what they’re doing even worse:

A friend of mine who has a similar ebay account rating and falls under the paypal hold policy, called them and threatened them with a lawsuit if they didn’t release the money. Somehow on his account under the Resolution Center link, a “lift payment hold” or similarly titled appeared and when he clicked on it, he had to enter 3 bits of information to verify. I believe it was his SS, his email and his address. I witnessed him do this, and as soon as he did, the hold was lifted. This shows that PayPal has the ability to lift the hold before any of the other release circumstances.

This makes it worse because not only are they not being truthful about it being a random policy,they are lying by saying that they can’t lift a hold. They CAN they just don’t want to.

If the process was smooth and quick and worked as described, it would be one thing. If you want your money within the month it absolutely REQUIRES your involvement. You can meet all requirements for your payment to be released but it will not matter unless you waste your time and contact them (as if you havent been insulted enough already) or if a month transpires and you just sit and idly wait while they incrue earnings off of interest of YOUR MONEY that they have locked up and left you unable to access.

You are also left hanging in the wind as seller regarding shipment payments, which not only goes against the process structure of the Held Transactions, but totally undermines the business aspect of online auctions.

And what of the feedback? I have had buyers totally ignore feedback and move on with their lives and onto other auctions without ever leaving feedback. Contacting these people rarely helps, if ever. This itself undermines the feedback system of Ebay because now sellers will be totally afraid to leave negative comments or to approach buyers agressively after repeated unanswered emails.

I would like to join a class action lawsuit if one were to materialize.

Paypal has everyright to hold funds as a banking center I concur with this.
however….. it is not Paypal holding the funds, it is Ebay.

Paypal is following directives imposed by Ebay the hold is being intitiated on the Ebay side I know this to be fact after arguing exstensivly with both parties.
It started when I opened a new account under a new name for an expanded business last month.
I have been current with ebay since 2004 I am a powerseller with 100% feedback rating and lauded by Paypal for having a steller record.

When I open the new account the first 2 order no problem, the next all in a row have been held by ebay.Ebay say this is random hold and that Paypal is doing it. This is false
It is not random either!! and ebay is doing it, ebay does not have the authority to hold funds as they are not a banking center.
They are illegally hold funds and are telling Paypal to hold funds for them, this is illegal.

I tell what they are doing…… Ebay has lost many sellers due to thier backward policies that protect buyers and leave sellers flapping in the wind….
Paypal processes 1000 transactions per minute….now…. the longer they hold it the more money they can make on interest…

Interest……ing eh?

Since Paypal is owned ebay, ebay is making money on the interest for the orders they are telling paypal to hold.
Not only is this illegal it is “Theft by Deception”
They are stealing yours and my money for up to 21 days while they draw interest…while forcing us to pay for product without the funds we have earned with our selling prowness……

Does anybody here get a free ride from Ebay???
I don’t and there are many times ebay makes more than I do because they take value on the whole amount instead a percentage of just the profit like…. we all get….

Do you feel Offended.
I do!!

I agree when you told us about Ebay and Paypal scam on sellers. I live in Malaysia and I opened Ebay Store a few month ago. I opened my auction at 150USD but a few people from US bided my item until it reached 2400USD. After the auction closed, the winner refuse to pay but I have to pay for the loading fees around 80USD to ebay. Of course I do not want to pay because the winner refuse to pay also.

As the result. my ebay account was suspended and you know what? My paypal account also involved! I got this email from paypal:

“Thank you for taking the time to write to us with your concerns. I am
happy to assist you further.

We appreciate your interest in PayPal. Unfortunately our decision to
close your account is final.

PayPal reserves the right to close any account reported to be involved
in possible fraudulent or high risk behavior. In the event of a
dispute, PayPal will seek to recover the funds from you by debiting your
PayPal balance and, if there are not sufficient funds in your PayPal
balance, PayPal reserves the right to collect your debt to PayPal by any
other legal means.

Due to the potential risk of chargebacks or other action filed by
buyers, your balance will be held 180 days from the date of your
limitation. At that time, any remaining funds will be available for
withdrawal.

Sincerely sorry for the inconvenience that may cause you.

We appreciate your patience and understanding regarding this matter.
Thanks again for contacting us. It is my pleasure to assist you. Thank
you for choosing PayPal.

Sincerely,
Fanny
PayPal Account Review Department
PayPal, an eBay Company”

This is bullshit! They want to close my account but at the same time they hold my fund for 180 days!! I have around 2000USD in my paypal account and they treated me like this. I really hate paypal! Now i just wish after 180 days i can get back my money and hopefully paypal won’t give any bullshit reason for not giving it to me.

Paypal & Ebay sucks!!