Temporary Hold?!

[margybear]

Okay, before I start, I have attempted to contact Paypal by phone. No matter how many times I said "agent", it didn't seem to work. I'm also aware of what a temporary hold is.

The first issue was with an item I purchased on eBay. From the page on eBay, it appeared that the item was in stock. However, minutes after I purchased the item, I was contacted by the seller who told me the item wasn't in stock. The sale has been cancelled through eBay (and I have emails to confirm this!) and I was immediately issued a refund. However it's been put on hold by Paypal as of the 2nd of August. Is it likely that I'll get it back at all? I know Paypal have said 21 days, but I'd appreciate it sooner.

The other issue I have is that I sent money to a friend through Paypal (not a particularly large amount either, £60), but she supplied me with an incorrect email address. I was able to cancel the transaction in time, but again, the money has been put on a temporary hold. I imagine it looks suspicious, and that's why Paypal has put the hold on the money, but I can't actually send it to her if the money isn't in my account. It isn't even in my Paypal balance.

As I have tried to speak to paypal directly to resolve the issue (no replies as of yet!), can anyone explain the temporary holds in a way which is a bit more precise than Paypal's FAQ? I honestly have no idea what's happening, as this has never happened to my account before, and it's really irritating.

[kernowlass · Accepted solution]

1. Don't understand what you mean by 21 days, that should not apply to you unless the seller refunded incorrectly.

NORMALLY this would apply in your first scenario.

 When you pay a seller it is never instant, paypal pays the seller for you and then starts the process of uploading your funds from your funding source.
If the seller refunds before that payment has completed then you have to wait till it clears through to paypal then the refund is credited to you.

2. No it has nothing to do with being suspicious, this is what happened in scenario 2.

If you were able to cancel the payment then odds are that the seller made a mistake wiht the email address on their auction and could not accept your payment.

When you paid that seller or any seller it is never instant > paypal pay for you then start the process of uploading your funds to paypal from your funding source.

So when you cancel that payment (as the seller can't accept it), those funds can't do a u-turn > they have to process through to paypal who will then either return them to your funding source (if you paid with a debit or credit card), or credit your paypal balance (if it was funded frm your balance or instant bank transfer), but that takes a few days and sometimes up to a week.

[imsaramarie]

How long is the "temporary hold under review" supposed to take?   I won and paid for an eBay auction, but the seller decided he wanted more money instead so I spoke to eBay and then asked the seller to return my money.  After he did, PayPal put a temporary hold on the money so I am waiting.-- how long will it take?

Thank you.

[kellymucker123]

hi, i won an item on ebay and payed right away,as always,then the seller contacted me to say he'd sold the item privately and forgotten to cancel the auction. he sent a refund but paypal have put a temp hold on it,i don't understand why? i have limited resources as i am disabled and housebound and have to shop online. i have now missed my daughters birthday gift as my funds are still held by paypal. i believe the seller did not get the amount he wanted for his item so he then said he'd sold it privately,he gets to re-list and loses nothing whereas i am left out of pocket, with an upset daughter,this is not the first time i've had sellers do this,but i've never had this temp hold before,no help from paypal, if you can,please help.

[PayPal_Dian]

Hi kellymucker123,

Welcome to our community :).

From the information that I have I think that the refund is on a hold because we are still processing the direct debit from your bank. If you send a Payment we will pay the seller direct and we will deduct the money from your bank account after that. It takes up to 6 days until the direct debit is processed. If yo receive a refund before the 6 days have passed the refund will be placed on a hold. As soon as the 6 days are over the money will be added back into your PayPal balance.

I'm really sorry if this caused your daughter to be upset :(. 

I hope this information explains what happened.

Dian.

[Nict20]

I've been waiting for a refund since the start of December than I looked and on the 19th it says temporary hold and status removed when will I get the refund

[kernowlass]

That sounds as if the sellers funding source failed and the refund did not progress.

Contact your seller again.

[Miketango1]

Im having exactly same problem with Paypal, bought item on Ebay , seller immediately cancelled and refunded, and Paypal placed a tem hold on-even though it was funded from bank account. Ive complained twice to Paypal through their bad customer service complaint system, as its still not been released eight days later, best bit Paypal havent even the decency to acknowledge the complaint, they are awful, pity there isnt an alternative.

[kernowlass]

This arises because your seller has refunded you before your initial payment to them has cleared from your bank to PayPal.

When you sent your payment, the money is not instantly transferred from your bank account to the recipient’s PayPal account. Instead paypal instantly credit the recipient's PayPal account on your behalf and simultaneously request the same amount from your bank account to reimburse themselves.

It takes 5-7 business days for the money to arrive from your bank to PayPal (same timeframe and method as an eCheque in fact). If your Instant Bank Transfer is refunded, this refund cannot be completed until paypal receive the money from your bank to cover the original payment paypal made.

A ‘Temporary Hold’ is ‘Placed’ on your refund while your bank processes your initial transfer request. When paypal receive the money from your bank, it will be credited to your PayPal balance.

[beautye]

Temporary holds are placed in order for Pay Pal to accumulate interest on those funds while they are on hold.  Think of the hundreds of thousands, possibly millions of dollars sitting on "hold" for even a few days - and the interest (free money) paypal makes on your transactions. Then the transaction fees, etc.  Paypal is in business of using your money for profit...duh!