Money On Hold - Paypal Thinks I'm A Merchant!
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I friend just sent me some money to buy a couple of items for him in his new house while he's overseas. Not only did it arrive less a significant fee but it's on hold as Paypal has classed it as a sale and expects me to come up with proof of shipment etc. My account is "Personal" as far as I know and I seem to remember receiving money in the past without this problem although I see a Merchant ID listed in my profile details. I'm not in business and don't want to be a merchant!
- I need the funds directly and could choose some other way of getting it. What happens about the fee if I choose to refund it?
- If I can refuse the money, can I tell Paypal that I'm not selling goods, services or digital content (in fact anything at all!), and have my friend resend it in some way that makes it available to me without delay?
- Is this problem something to do with my account or the way he sent it?
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Its down to how the payment was SENT to your account.
1. If they sent using money > goods / services option then paypal would see you as a seller and apply the new seller hold. They would also charge you a fee.
2. If they had sent using the send money > family / friends option then you would have had the payment instantly with no fee. (However that option is not available in every country).
Advice is voluntary.
Kudos / Solution appreciated.
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Thanks for the info. I checked with him and he thinks he must have made a mistake sending it in a hurry on his phone. I am hoping that Paypal support can help me sort this out tomorrow.

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