I run a sports card business online and made a large sale just before Thanksgiving to the tune of $29,700 through eBay. The buyer paid immediately, I shipped express and they left positive feedback the next day. Paypal came along and said sorry Sir, but we're holding the funds for 180 days because we're not sure if the buyer will do a chargeback in the future. Interest free short term loan for Paypal ... not happy. Monday marks 90 days where Paypal said I can call in and ask for the funds to be released. But over the last few weeks, I made three additional high dollar sales in the amount of $75,000. Again, the buyer (who has 11,000 feedback, 100% positive and who routinely makes big dollar purchases) left feedback the day after receiving the items. Two weeks later, today, I log into Paypal and notice the reserve has moved from $29,700 to $105,000. I pulled the $75K out from my account when the last buyer paid, so for the next six months, Paypal will be taking 100% of my sales to cover the reserve (a reserve which I likely will never fully hit). How is this legal? How can I pay them $3,000 in Paypal fees for the right to keep the money I've earned, and they hold the money for six months, interest free (and 9 months on the first $30,000!). This is straight up theft and if they spent a minute to simply ask the buyers if they're happy with the cards they received, they'd know there is 0% chance of fraud here, 0% chance the items will be chargedback. I don't get it. For the next six months, I'm supposed to pay my eBay fees, my store fees without any income from the items I'm selling, while Paypal is earning interest on my money, and taking fees from me at the same time. CROOKS.
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