The PayPal and eBay funds loop

Like if this guide is helpful

I just discovered a very interesting system with eBay and PayPal (an eBay Company) You can file a complaint/case with eBay and then file the same case with PayPal, although Paypal claim to have a policy that they close a case if they find that the same case is being dealt with by eBay. this policy does not check the outcome of the case and unscrupulous buyers will exploit the system to tie your funds down.

Unfortunately calls to eBay or PayPal simply make you realise that the system is open to exploitation and if like me you have less than 10 buyer feedbacks in the new system, you are penalised when your negative feedback of two out of 6 items puts you in the over 20% negative feedback system.

This penalty is to hold your funds for 21 days, in effect you have no access to your funds even though you have sent the item and eBay/PayPal has verified this fact. So if you are a trading facilitator for other people you still have to pay them and eBay would still bill you for the sellers fees of course.

The complaints system is monitored by humans who also can make mistakes but who do their best I believe, while the penalty system is automated.

A lot has been said about avoiding problems with eBay listings and people are bound to make mistakes. so I won't repeat that here, but you are driven to wonder why a company has a policy to freeze funds in your account without a legal ruling to back this up like in a proper bank, and they are also above the UK law as the UK police can not step into an issue with PayPal because they are not a UK institution.

Word for the Wise - 'thread carefully and cover all bases'

Having said that, you are trading on eBay and it is open to the whole world so all manners of people are present just as they are in any world market place.

Happy trading

Have something to share, create your own guide... Write a guide