Some disturbing facts have come to light about PayPal and their policies with your money and release of funds. Most states have a law in place that works like this: “Every licensee or its agent shall forward all money received for transmission or give instructions committing equivalent money to the person designated by the customer within 10 days after receiving that money, unless otherwise ordered by his or her customer.” http://bit.ly/GNVwqE According to Allen Golden, the wording of the law is to protect the consumer against fraudulent activity by companies, that are to release money to consumers for their wares or sales. Allen is the public information officer at the California Department of Financial Institutions, the state that PayPal is based.
PayPal’s Policy reads quite another way to avoid this law. It’s confusing at best, why and how, a company this large is getting away with not complying with laws in the state they live in. Section 10.4 of PayPal’s policy reads this way. “If PayPal places a hold on any or all of the payments you receive PayPal will provide you with notice of our actions. PayPal will release the hold on any payment after 21 Days from the date the payment was received into your Account unless you receive a Dispute, Claim, Chargeback, or Reversal or PayPal has taken another action permitted under this Section 10. PayPal, in its sole discretion, may release the hold earlier under certain circumstances, for example PayPal may release the hold earlier if you have uploaded tracking information. If you receive a Dispute, Claim, Chargeback, or Reversal, PayPal may continue holding the payment in your Account until the matter is resolved pursuant to this Agreement.” http://bit.ly/GNVwqE
At twenty one days the seller is ready to strangle PayPal and if they ever get their cash, they won’t go back. It is entirely an option to go to other merchant account servicers and get a merchant account with no reserve placed on it. Customer service is usually great at all the of the merchant services businesses. Find that one that will work with you and will answer your cries for help.
Don’t be afraid
With PayPal having this issue, don’t be afraid to research and venture elsewhere. The market is flooded with wonderful merchant account servicers that have immaculate customer service. You shouldn’t have to wait for the money you earned. It’s just that simple.