they do it for all new sellers, or anyone with under 100 feedbacks who is selling. i have to have 20 detailed feedback ratings before they stop witholding my money. right now i have 6 and im waiting on 13 people to leave feedback for what they bought. here is the article from paypal themselves... right now my feedback is 42 at 100 percent positive feedback and they are still holding payments. i just started the paypal thing last month and selling on ebay around the same time but still... WTF
i need money to ship this shit did they ever think of that?
...
Payment hold - a longer definition
A payment hold is an amount of money that belongs to you, set aside by PayPal, while we make sure that your customers are satisfied. The payments received are held temporarily as a pending balance in your account, and released after a given timeframe. The funds may be released early if PayPal determines that the transaction has been fulfilled and your customers are satisfied.
Please note: Although not available for use, the funds are yours and will be reflected in your pending balance and eligible for money market dividends* for eligible accounts.
Why does PayPal hold payments?
Payment holds ensure that sellers have sufficient funds in their account if, for example, a customer files a dispute. This allows PayPal to provide a fast and secure payment service to you and your customers while keeping our prices competitive.
We know this is a change in the way we do business with you and we hope you understand that, if your payment is held, you haven't done anything wrong. In deciding whether to hold payments, we review many factors including transaction activity, business type, and customer disputes.
When do payment holds apply?
Payment holds may be applied to some or all transactions in your account. Here are some common reasons for holding payments:
•You have limited history or selling activity with eBay and PayPal
•You have an eBay feedback score of less than 100 or received fewer than 20 Detailed Seller Ratings in the last 12 months, and do not have a record of good performance
•If you have low Detailed Seller Ratings or other indication of below standard performance on eBay
•You have a high rate of customer disputes, claims or chargebacks
•You're selling in a high risk category or industry such as, but not limited to, tickets, travel, gift certificates, computers, consumer electronics, or cell phones
•Your payment activity is inconsistent. For example, you have a spike in selling activity or you started selling in a new category without an established history in that category
•The account information you have provided is incomplete or inaccurate
If your payments are held, PayPal will provide you with notice specifying the terms. The terms may require that the amounts received into your account are held for a certain period of time. PayPal will re-evaluate your account periodically and contact you when we stop applying payment holds.
If your payments are held, the funds will be shown as "pending" in your PayPal balance.
When does PayPal release the payment?
Payments will be held in a pending balance for a certain time period. For example, if you receive a $100 payment (after fees), the $100 will be held in a pending balance for the specified amount of time. After the hold is released, the money will be available for withdrawal.
The money may be released sooner if:
1.We can confirm that the item was delivered and 3 days elapse**
2.Your buyer leaves positive feedback (Applies only to eBay items)
To get access to this money more quickly, please process this order right away and communicate with your customers early and often.