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PayPal Tests New ‘Funds Availability’ Policy

Aims to educate new sellers about holds policy, allow faster access to their cash

PayPal is testing a new policy regarding the availability of funds that will “immediately impact new sellers” and should help them get their money faster.

Katherine Hutchison, PayPal’s head of Risk Management for the Americas, notes on the PayPal Blog that the policy being tested—which includes a new identification process—was fueled by feedback from new sellers, who were frustrated with the current policy that puts a hold on the money buyers pay them until they develop a selling history.

Currently, new sellers have to wait until buyers leave them positive feedback, the seller has provided tracking information, or 21 days after the transaction to have access to the funds, Hutchison reports.

She adds that many new sellers don’t understand this policy, but PayPal is working to change that with the test, which began this month.

“With some updated language on our website, clearer policies and adding an identity-verification process, we’ve been able to give sellers access to their money faster,” she says. “We’ve also made it more clear to sellers how many sales are needed to establish a pattern of successful selling. Once that pattern is established, sellers typically ‘graduate’ out of delayed funds availability.”

She asks sellers who are—and are not—part of the test to leave their feedback.

About the author

Olga Munoz
Olga Munoz is editor of In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.

  • Music1960s

    So Stupid. Eleven Years ago, I never would have gotten involved with ebay and paypal if this rule or law or whatever you want to call it was in effect. The buyer has the sellers item for 21 days and the owner of the item does not get their money? For real? Many buyers don’t leave feedback. 

  • Music1960s

    And forgot to add…Without Me and Without all the other small sellers, new or old, Ebay would not be Ebay and Paypal would not exist. Put that in your pipe and smoke it…

  • Yotano211

    This is a bunch of bull . Paypal was the worst track record in the world in dealing with people’s money. I will never give them my ID, I rather wait for the 21 day or proof of delivery is made.

  • 421cub

    Good News, thanks for posting and writing about this..

  • FedUp

    I used Ebay to print my labels, manually entered the tracking numbers into Paypal, the items were delivered and positive feedback was left and still I have to wait for my money. It states you can get your money within a day if the buyer leaves positive feedback. Ebay needs to stick to their own policies and stop holding onto other people’s money. And lets not forget that we pay for this aggravation.

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