Wednesday, May 5, 2010

Paypal 21 Day Hold

This is a confusing issue for many eBay sellers. So before you start freaking out, let's look at exactly what the Paypal 21 day hold is all about. It does not apply to every single seller, and may not apply to you. These are the conditions where the Paypal 21 day hold may apply.

1. Limited eBay and Paypal history.

2. eBay feedback of less than 100, with fewer than 20 DSRs in the last 12 calendar months.

3. Low DSRs.

4. High number or rate of customer disputes, Paypal claims, or chargebacks.

5. Selling in high dollar or "high risk" categories including electronics, gift certificates, cell phones, tickets, computers, and cell phones

6. Inconsistent payment activity or unusual spikes in sales. For example, sales in the thousands of dollars per week when the norm has been only a few hundred dollars.

7. Incomplete or inconsistent information on your account such as a disconnected phone number, an invalid mailing address, etc.

I have had clients encounter the 21 day hold when they started selling in high-dollar categories or started selling a new product line that is more expensive than their historical sales. If you are an established seller, the best way to avoid the 21 day hold is to gradually increase your sales over a period of time and ease into new product lines, rather than introducing a lot of new merchandise at once.

You can avoid the 21 day hold by doing the following:

1. Improve DSRs.

2. Do everything in your power to avoid buyer disputes - resolve them quickly so they don't escalate.

3. Ship quickly and always provide tracking information.

4. Communicate with your buyers.

5. Keep your personal information updated on both your eBay and Paypal accounts.

Happy Selling!

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