I recently sold an item online and was paid by the purchaser using paypal. Paypal is apparently the only way to get paid. I have positive feedback on the site.
The buyer paid me. Paypal took their commission and now they are holding my funds. They claim they can hold onto my money for 21 days.
I have spoken to the purchaser. They thought they had paid in good faith and expected the item to ship. I typically don't ship a $900 item before the funds clear my bank, but Paypal is not releasing the funds. The purchaser is OK with paying me. Paypal has already subtracted their funds from their account.
I communicated with the buyer, who is anxiously awaiting their item. I am holding off shipment until I’m paid.
This, in my opinion, is an unfair and perhaps even illegal business practice. I would like to know where the funds are while I am waiting to get paid? Does Paypal invest them or bank them and earn interest on them? If so, then I am entitled to that also. Meanwhile, I made a purchase locally and charged it on my credit card. My intention was to sell the item I did sell and use those funds to pay my credit card. I will be charged interest while waiting to get paid. Who covers that?
It’s time to look for another marketplace that is not controlled by Paypal. I have no issue with buyer protection, but this practice borders on fraud. Most credit card companies offer protection against unscrupulous sellers. They allow you to cancel payment.