August 19, 2022
PayPal Money On Hold

PayPal Money On Hold – What To Do To Resolve It

PayPal Money On Hold, that dreaded message no one wants to see yet it keeps happening every now and then.

PayPal stands out as the world’s biggest processor of online payment. Making a payment online or sending money from one part of the world to another is PayPal’s specialty.

It is regarded as one of the safest and quickest ways to send or receive money. For most owners of small businesses and online shop owners, PayPal represents a very convenient method by which they can receive payment from customers. This is because the customers release the funds to PayPal who acts as a sort of Escrow in the buy-sell process.

The fear of an anonymous seller making away with customers’ funds is eliminated just as the seller receives payment for products sold. This secure way of transaction is what makes PayPal stand out for online payments.PayPal Money On Hold

Why They Put Your PayPal Money On Hold

Truly, certain situations may occur that would warrant PayPal to withhold your money for up to 21 days. Those who have used PayPal consistently can attest to that rush of negative feeling when you see that email stating PayPal Money On Hold.

The main reason PayPal places your money on hold is to ensure the security of the seller as well as the buyer. But other reasons could be at play. This could include situations where the buyer receives a product but it does not appear as advertised. In such cases, the buyer stands protected from a dubious transaction and can ask for a refund. In this article we shall look at this and other reasons as well as how to remediate the situation.

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Could There Be Other Reasons?

Certainly there could be more reasons your PayPal Money was put on hold. According to PayPal they can decide to place a hold on your payment so as to ensure safety and security. This benefits everyone involved.

Issues like chargebacks and disputes could also arise and PayPal would want to make sure to keep enough money in your account for easy resolution of these issues. They would usually restrict you from being able to access the funds in your account until issues have reached a resolution.

What Reasons?

Let us detail some really specific reasons below:

  • You are a newbie who has just started selling. There is such a thing as seller history and buyer-seller credibility. As a new seller you barely have any history. You also barely have any relationship with buyers for long enough to establish credibility. But do not worry because your status quickly changes once you have done some successful transactions.
  • Your account has not been active and have not sold any product for a long period. This can be the reason your money as been put on hold by PayPal. The system works in a way to decrease your credibility if you stay inactive for a long time. You would therefore need to rebuild your credibility.
  • Your customers may have expressed dissatisfaction and have asked to be refunded. Act with caution when multiple customers flag you as a seller for whatever reason or issues. This could lead to your money being put on hold by PayPal. It would serve your interest and that of your buyer if you are able to reach quick and amicable resolution with your buyers directly without having to involve PayPal. Be proactive when it comes to any extra cost that may arise as a result of shipping, customs duty, condition of the item and so on. In the case of unforeseen circumstances causing delays in shipping, it would be best if you reached the buyer on time to avoid a dispute of any sort. 

More Reasons

  • Your selling pattern, products or price suddenly changed and looks suspicious: PayPal has your selling history including your pattern, prices and the type of products for which you normally receive payment. Any change to this established pattern will most likely result in flagging of an account. This could be the reason you see PayPal money on hold.
  • You could just be selling items that are of high risk: Certain items like consumer electronics, computers, gift cards and tickets fall within the category of high risk items. These could also lead to PayPal money on hold.PayPal Money On Hold

How to Resolve PayPal Money On Hold

1. Print a shipping label using PayPal (USPS, UPS or Royal Mail depending on your location)

Hasten the release of your money by printing a shipping label for whatever package you are selling directly via PayPal. You can do this for USPS, UPS and Royal Mail and PayPal will release your payment under 24 hours after the courier confirms delivery.  

2. Ensure You Always Provide Tracking Information

As stated above, certain couriers have approval by PayPal. With the tracking number they provide for your package you can hasten the release of your funds. Simply do this by uploading the tracking number. As soon as the courier confirms delivery you will have your money released under 24 hours.

3. Inform Your Buyer to Confirm Delivery

It could be that you offer a service or sell an intangible item. Just inform your customer to confirm that they have received the item. Once they do, PayPal releases your money shortly after.

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Tips to Remember Regarding PayPal Money On Hold

Your money will never be lost so long as your customer receives their product.

The delay will only last a few days or weeks at the most.

You can speed things up by following our guide above.


We have extensively explored PayPal money on hold and what to do to resolve it. Let me know your thoughts, feedbacks, comments and observations in the comment box below. We would love to hear from you.

TFB Manager

Enthusiastic blogger bringing you interesting scoops from tech, money, crypto, personal finance, upskilling, migration, jobs, careers, health etc. Join me and don't forget to subscribe to my newsletter to avoid missing any new posts.

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