Returns-money automatically deducted from PayPal

[kerm531wl0]

I have been selling on eBay for 20+ years. Three days ago I received a request for return. I approve it immediately. Why has PayPal account deducted the item cost.  I transferred funds from my bank account to cover the deficit. This can take up to 5 days. Meanwhile I am not allowed to purchase from eBay or any other site. I have spoken to both PayPal and eBay and they have told me that this is the way it has always been handled. This is SO NOT true. Does anyone have any experience with this? Both PayPal and eBay contend that this is nothing new. I have had many returns and this has never happened. Hoping someone can give me direction or inform me that THIS IS something they have encountered. Thanks in advance. 

[argyleavenueantiques]

Always been that way with me...thank God I've never had many returns in 18 years.

Ebay and Papal hold YOUR MONEY hostage, till buyer returns item.

Then that money is used and returned to buyer.

If you do not have a Paypal balance, the funds will come out of your backup funds...likely that will be your Credit Card that's on file with ebay and paypal.

Never understood HOW they could legally do that, but they do, and they get away with it.

[kerm531wl0]

Thanks, I just got off the phone again with eBay customer service. The operator was lovely, kind and patient. Between the two of us- we figured out that this holding your money is part of the new 11/01/2017 user agreement.
I don’t like it either. Who has extra money sitting in their PayPal account? Certainly not me. I immediately transfer it into my bank account. I appreciate your response. Thanks again. Elizabeth

[Anonymous]

Glad I could help...but it not NEW...they have been withholding funds for years!!!!

[southern*sweet*tea]

When you have a case opened up, the funds from that transaction are automatically frozen in Paypal. It's been that way for as long as I can remember.  The money is there, it's just inaccessable.  It's certainly nothing new, the CS rep was just tellling you what you wanted to hear (correct or not) to get you off the phone.  From what I understand they are very good at that. 

[phcd1]

---

@southern*sweet*tea wrote:

...It's certainly nothing new, the CS rep was just tellling you what you wanted to hear (correct or not) to get you off the phone....

---

Correct!

This is nothing new. As soon as a case is opened, a freeze will go on for the transaction amount of the item in question. If you have a zero balance (which I highly recommend), your balance will be NEGATIVE.

Rule #1) Never trust what eBay CS Reps tell you ( that goes for a buyer OR seller!).

[tenbiksewingembroideryitems]

Yes, it will show a negative balance BUT you should not have lost the money for sure, until the buyer returns the item in the SAME condition as sold, the only diversion is if it was damaged.

[Anonymous]

How you going to prove if you receive an item back not as it was originally  sent to the buyer. ???

Ebay will not believe you and they ALWAYS SIDE WITH BUYER NO MATTER WHAT.

I actually had a rep tell me, "we assume our buyers are not lying"!!

I was laughing so hard when she said that, thought i was going to need medical attention!

OMG...**bleep**!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[mam98031]

As others have told you, PP has always put the funds from a transation that has an open Request or Claim in Ebay on hold.  Since this hold put you in the negative in your PP account, it is understandable why they will not let you use the account to purchase something until you take care of the negative balance.

You have two separate issues.

1.  The funds are on hold due to an open Request or Claim.

2.  Your account has a negative balance.

For reasons such as this, I always leave a little bit of funds in my PP account.  Since I sell on a regular basis, this is not a hardship.  But I always keep at least enough money in there to cover my average sale $$ value.  

While since you have been a member so long, PP isn't going to do anything to penalize you for being overdrawn, just be patient and it will all clear up once your transfer is complete.