Payment for consultation services placed on hold without explanation

[john_t_03]

We have a consultant service business and one of our clients was traveling and asked to pay remotely. We usually get paid by checks. I sent a payment request indicating in the notes section that this was for services provided. The client paid right away. PayPal decided to hold the funds with no explanation. I have talked to 2 agents with no resolution and am still on hold for over an hour now. I am frankly shocked. I tried to send a message as well, but I don't know if it went anywhere given the automated message system. I had just assumed that this would be an easy online transaction, especially with the fee paid to PayPal for that convenience. It really feels like bizarro-world, I really don't understand what is happening. Are we not supposed to use PayPal for services?

[sharpiemarker]

@john_t_03 

This hold happens if:

- sender forget to select friends and family option when they make personal payment

- sender cannot send a friends and family payment, only goods and services payment.

- your account is new at receiving goods and services payments

- haven’t received payments in a long time or unusual activity for your account

- because PayPal detects high value or highly risky transactions

- change in products/services being sold

- received numerous complaints, disputes from customers or other users

You have two methods to release money sooner depending on what you see on your screen:

Method 1:

Recipient has to change the order status or add tracking: 

1. Go to Activity. 
2. Find the transaction to update, then click Get your money. 
3. *If you sold a product, select Product to add tracking information or print shipping label directly. 
4. **For received payments that do not require shipping, selling an intangible item or service, select Service or virtual product to confirm order status. 
5. Click Submit. 

*Use one of our approved shipping carriers and we’ll release the hold 24 hours after the courier confirmed delivery to the buyer’s address.

**Recipient will get their money 7 days after confirming the order status as Completed.

Method 2:

If there are no issues with the transactions such as disputes, claims or chargebacks, the funds should typically be released within 21 days from the date of payment.

In some markets, the transaction can be marked as "shipped" or "processed" to gain earlier access to the funds. Here's how to mark your item as “shipped” or “Processed” in the Transaction details.

1. Log in to your PayPal account.
2. Go to Activity page,
3. Click the transaction to update.
4. Click “Add tracking info” button.
5. Click the Order Status menu and select “Processed”  if shipping is not required.

Then, after 48 hrs of doing either methods above, ask Sender to ‘confirm receipt’ when the option is available, here’s how:

1. Click Activity at the top of the page.
2. Find and click the original payment for the item.
3. Click Confirm receipt.
4. Click Yes to confirm that you received the order.

[john_t_03]

Thank you for the reply. Unfortunately, when I go to Transactions, I do not see an option for "get your money", nor do I see an option for "service or virtual product". I wish PayPal had a clear distinction for a payment request (product vs. service). Since most people are selling products and shipping them, it seems that service companies are getting lost in the shuffle.

[sharpiemarker]

@john_t_03 

How about method 2? Click the transaction and click “Add tracking info” and click Order Status menu, select “order processed” or “Completed”.

PayPal changes their user interface/procedures frequently to keep ahead of the scammers.

Services/virtual items are high risk, and hard to get proof of delivery, too. Might have to wait the full 21 days for release of funds.