A dealer friend of mine forwarded me this note from another dealer. Has anyone else heard of PayPal adopting this practice? ===================================================== "Thank you for your message on eBay. Paypal has started requiring powersellers to maintain a 15% reserve (15% of all sales for the last 6 months) in their account for 6 months at a time. You cannot access these funds for ANY reason for 6 months. This policy was just instituted by them and is utterly absurd as no other payment processors out their require something like this from Platinum Power Sellers with perfect feedback." ====================================================== Just trying to verify. If true, it does seem quite absurd to me. Thanks to anyone who has knowledge of this. I did search the PayPal recent policy announcements and couldn't find anything. Thanks.
this could be a great thing for buyers. How mnay buyers have gotten stiffed on a sale after paying, only to have the seller walk away and close all accounts? Leaving the buyer with no money and no item. This happend to me once - albiet with a very small monetary purchase - and paypal told me they would lock the account, and if money was ever transffered to it again, they would credit me. I also understand how much pressure is placed on sellers on Ebay. It does seem that buyers can pay and recieve the item only to claim they didnt, and the seller is forced to give the money back. lose-lose??
Would seem to me that if Paypal actually did that there would just be a lot of powersellers who would continue selling but drop their Powerseller status.
I had some bitter experiences with this outfit. They are simply using their customers to earn interest on their money. Crooked!
I don't believe it's true. Check with PayPal directly. I just made a PayPal withdrawal and left much less than 15%. Did your 'informant' mention when this 'policy' is going into effect ?
That is why it so important to pay the sixty-five cents extra for delivery confirmation. I've had two buyers recently claim they didn't receive their shipments... after emailing them the tracking numbers they both suddenly "found" the items. Sellers (as well as buyers) must protect themselves.
As a seller I have found you better cover your ( ! ) if not your in for trouble. The fees are overwheming, I do transfers to my bank account as they charge for a checkand transfers take less time to get your money ...and if you have a credit card listed / on file with e bay and pay pal any charge backs they got you and most sellers have their account linked to a bank account. I can see e bay and pay pal pricing them selves out of business.
Immediately after getting payment I request a check to be mailed to me. Then I ship the items sold to the buyers. It's worth the $1.50 fee to get a check mailed to me as I don't want to link a real account to PayPal as they don't need access to that in my opinion. If they held any funds in PayPal for any reason, the buyer would have to wait until those funds are released for me to ship.
A few months ago (I'm trying to remember the details) I bought a number of fairly expensive items and paid via PayPal. I had plenty of $$ in my account, but PayPal paid via eCheck instead of instant payment. Their claim was that the payment wasn't really instantaneous and they still had to wait for accounts to get settled...which costs them money. I had made large purchases in the past and never ran into this. I suspect they're looking to reduce costs and improve revenue streams...for shareholders. The problem is (for us) that they really don't have any serious competition so they can do pretty much as they please.
