PayPal is a convenient platform for small business owners to collect payment for their goods and services in a secure manner.
Sometimes, PayPal will put funds on hold for up to 21 days to ensure there is enough money in your account should any issues arise with the order. There are several reasons why a payment may be on hold, and ways for sellers to expedite the release of funds.
Here's everything you need to know.Why does PayPal put payments on hold?
PayPal notes that the company puts payments on hold to help ensure that the platform is safe and secure for both buyers and sellers. Although the money belongs to you, PayPal will temporarily keep you from accessing it to make sure there's enough money in your account to resolve issues like chargebacks or disputes. Funds are released when the buyer confirms that they received the item they ordered in the condition that was advertised.
Some specific reasons why your payment might be on hold include:
There are a number of reasons for why funds could be placed on hold, including:
As long as there aren't any issues with your transaction or account (like an undelivered package or a customer filing a dispute), PayPal will release your funds within 21 days.How can I access my money faster?
There are some steps sellers can take to help release PayPal funds faster. These include: