Temporary Hold placed on my refund!!!!

[slhixsons]

So I'm guessing that the problem that I am having with getting my refund put back into my paypal account is happening to a lot of others!!!!! I purchased a pair of shoes from ebay on the 16th. On the 19th the seller contacted me and said that one of the shoes was damaged so she was going to refund the money. I told her to refund the money on the 19th, and she did. That's not the problem.....the problem is.....It is exactly 4 days till Christmas and I need to order another pair of shoes, but until paypal takes the temporary hold off of my refund I won't have the money to purchase another pair of shoes!!!!!!! If paypal can front the money to the seller in order to get them paid in a timely manner, then they should be able to front the money to me, so that I can order another pair of shoes!!!!! This is the first and last time I will ever attempt to purchase something as a Christmas gift over the internet using paypal!!!!!  This has been an awful experience!!!!!  

[crazycatzmeow]

I sent $600 and had mis-spelled the email address and cancelled the payment right away.  It showed cancelled and it looked like the $600 was sitting there on paypal.  So I sent it to the correct email and ended up having $600 taken out of my checking account twice.  Both payments of $600 came out of my checking account the same day.  I called Paypal and they put a hold on the cancelled transaction and say that the hold will be 3 to 5 days and then it will credit to my paypal account and then it will take another 3 to 5 days to credit it back to my checking account after I iniate the transfer.  When I called I asked where does it say that there will be a hold put on a cancelled transaction.  I started with a customer service person and was asked to be transfered to a Supervisor.  I listened to a whole bunch of garbage and asked three times where this information is on Paypal, so I can read this hold policy.  No direction was given on where to find it and I have just spent over an hour looking all over on Paypal for it.  I called back and asked for it to be emailed or mailed to me, but they can't do that.   AMAZING..... I think we are all being jerked around and I have certainly learned a valuable lesson, as I am now overdrawn on my bank account and have to pay $70 fees.  If I had known I was going to get **bleep**ed, I would of transfered money into my checking account to cover the send transaction of $600 that they Paypal took out.  I was going to dispute it with my bank but it would just delay the refund that much longer.  WTH!!!

Learned my lesson and advise everyone to use a credit card for any transactions with paypal.  Your credit card company has better leverage to not pay a duplicate transaction or put the first transaction on hold until the issue is straightened out.  Just an FYI!!!

[malmo3921]

You got the right idea in using  a credit card so can get refund faster.

My situation is different so don't understand mine, but do understand how money flows through PayPal to others, holds on money to bank accounts, etc.  Here is what PayPal told me:

When you purchase, PayPal ]fronts] the money and waits a day or so to receive the cash from your checking account.

When a refund comes through, the cash behind it from seller is not there yet and PayPal makes not of that transaction but does not pay you with it's own money before the seller's money arrives.  You have to wait until they get the cash to your PayPal account from the seller doing the refund.

Now, people...both buyers and sellers...have accounts with PayPal so PayPal treats in similar fashion on how it moves the money. Sellers get money into their PayPal account...well so do some buyers...and use that to make purchases...leave for any refunds or whatever.  They don't just take it all out.  PayPal is set up for that so you have an account with them...similar to deposit and withdrawal in a checking account. You can even put money into your PayPal account to use later; leave a refund in there to use later, etc.

So..PayPal does not automatically determine what any individual wants to do with money in their account.  As I said,it is similar in a way to a bank account, only an account with PayPal.  When the refund $ actually hits your PayPal account, you will see a balance in your favor in that amount.  Once you see that $ balance...keep checking for it...you can put through a withdrawal of that amount to your bank account.  PayPal does not automatically do that for some time.

Hope this helps.

Doesn't answer my question but hope it does yours.

Credit cards 'front' or pay the money ahead when transactions go through so no delay time once they go through and will credit your account.  PayPal waits for the money and it takes processing time to go through banking system...when on the 'back end' like a refund.  PLUS PayPal does not automatically assume you want to drain your PayPal account once $ comes into it.  If you want sooner...well at least start the process to your account once you see a balance in your PayPal account...you need to send for it.

How they have always explained it to me.

[malmo3921]

Also similar to when you pay your credit card and the payment does not post to your account yet. They are waiting for the payment money to go through the banking system and get to them.  The cash payment did not automatically flow from one account to the other like it does between your checking and savings account at same bank.  It has to go through the banking system and that takes a couple of days or so, depending on weekends and holidays.

That is way finances work.

And PayPal does not automatically transfer funds in your PayPal account immediately into your bank account.  Those are two different accounts and PayPal does not automatically assume what you want to do with that money.  Some people leave in there for other uses.  It will do so after some time...if you are not also a seller having money going in and out of your account and often have a balance...it will often eventually send the $ to your bank account.  But it does not assume that for everyone or automatically transfer money out of your account.

Hope this helps clear up what happens.

Think of a payment or transfer or refund as notifying a desire to move money and where to and starting the process.  But it has to go through the banking system.  Credit cards front the money and make a little off you eventually for that...if you don't pay your balance before statement time.  Credit cards wait for the money paid to come through the banking system.  Cash payments through debit cards and checks take time to go through the U S banking and clearing system to transfer from one person's or company's account to another's.

[Fairshake72]

I am going through the same thing and you are right it might be best to use a credit card to make all payments and let Paypal get screened by the credit acrd company about why they need payment twice in order to release your refund that is on a temporary hold!  Thanks crazycatzmeow for making me see the light.

[rainwater4805]

I used either a credit card or bank Debit card a few times at a gas station and found that they put a hold on the funds larger than what i used just to assure that the funds would be there when they took it out. Thats if it were a debit card could cause an over draft. Just saying, I stopped doing that.

[wildwoman]

I don't like it that my money was put on temporary hold. It was a bank transfer and I want PayPal to change the way they do all this. If I paid with my credit card or direct bank transfer then it should go back immediately into my bank account. I cancelled the product because I needed the money back into my bank account and not sitting in my PayPal account. Are you listening PayPal?

[Techhawks]

I Don't understand. 

why did paypal put a hold on my transaction

refund was complete but my balance stays the same

on my bank statement, it says, paypal did take the money.

where did the money go? money just doesn't vanish in to thin air.

Some got an explanation or how long it will take for me to get my money back? 

[DelawareBear]

I think when eBay places someone's funds on hold..There should be an email sent to the person with an explanation of why this was done and when it may be released. You have my refund on hold now and I can't afford to have any of my money tied up! I am disabled and on a fixed income. So what little bit I have has to go a long way. Buying and selling on these sites have been the only way I've been able to get by and placing this money on hold for any reason.. Puts me in a bad spot.. and I know I can't be the only one out here in this situation. So,I think a courtesy email should always be sent when you place someone's funds on hold.. Thanx  Delaware_Bear

[wooo]

Thanks, Zazu! I had set up my landlady to receive rent payments through PayPal, as she is not local. I have to be glad that Paypal held my $2 eBay refund so arbitrarily, because that's why I started reading these comments. I think I'll be limiting my use of PayPal these days to eBay payments. Again, thanks for the red flag.

[amandanyu]

All of the BS excuses Paypal keeps trying to spoon feed us is exactly that BS. I cancelled my eharmony subscription last month but for some reason a payment was processed this month. I called them up and they reversed the charge on the same day which was the 11th. I noticed on my Paypal account that although the refund was completed there was another transaction that said I made a transfer from Paypal to Paypal and that those funds were being temporarily held. Paypal had used funds from my bank to process the transaction. I spoke to a Paypal rep on Monday and was told that once the funds were cleared from my bank they would be released and available for use and could then be returned to my bank. I've used Paypal for years, banking transactions always seem to run smoothly, people I've paid have never complained about any delays in receiving their payments and monies have always been deducted from my bank account within 24 hours after the transaction has taken place. On the 12th as usual my bank showed the funds had cleared to Paypal. Yet they showed as still not available on the Paypal system. I went to my bank on the 13th and asked them for a delivery of funds verification, which my bank was very happy to give me. As of today the 14th of April my funds are still not available in the Paypal system, despite having been cleared and verified by their bank on April 12th. So as Paypal holds my funds in escrow banking on the interest I will be the one racking up fees on the transaction error. And to top it off, once they do finally release my funds into my account, it's going to take another how many ever days they feel like to process it back into my bank account. Now how's that for BS?