30 May 2023
PayPal has revolutionized the world of online payments, making it easier than ever for merchants to receive money from customers. However, like any payment platform, it has its share of challenges.
One significant pain point for merchants is having their funds held by PayPal. This post will discuss why PayPal holds your funds, how to turn up Seller Protection, minimize the chances of fraudulent orders and chargebacks and the importance of syncing tracking information of shipped orders to your PayPal account.
One of the most frustrating experiences for a merchant is when their hard-earned money gets held by PayPal. Money holds occur when PayPal temporarily restricts access to funds in a merchant's account to ensure that there are enough funds to cover potential financial risks such as chargebacks, claims, or disputes. These holds can last up to 21 days, depending on various factors such as the merchant's history with PayPal, nature of items being sold, selling pattern etc.
While PayPal implements these holds to protect both buyers and sellers, they can cause significant cash flow issues for merchants, especially small businesses that rely on a steady stream of income to maintain their operations.
To better manage and potentially avoid PayPal holds, it's essential to understand the reasons behind them. Some common factors that can trigger a hold include:
To alleviate some of the issues associated with money holds, PayPal offers Seller Protection, a program designed to protect merchants from chargebacks, claims, and reversals. By meeting certain requirements, such as shipping to the address on the transaction details page and providing proof of delivery, merchants can qualify for Seller Protection. This protection can be particularly helpful in cases where a buyer claims they did not receive the item or that the item was significantly different than described.
Additionally, merchants should take the following steps to reduce the risk of chargebacks and fraud:
One of the most critical aspects of ensuring successful transactions and reducing disputes is syncing the tracking information for shipped orders with PayPal. By providing tracking information, merchants can prove that the item was shipped and delivered to the buyer, thereby reducing the likelihood of disputes and chargebacks. To sync tracking information, merchants should follow these steps:
While manually syncing tracking information can be time-consuming and prone to human error, you can eliminate all those factors and concentrate on growing your business with peace of mind.
PaySync, an app available on Shopify app store, automatically syncs tracking numbers of shipped orders to PayPal in real-time. It is easy to set up and user-friendly. With PaySync, you can get your funds released within 24 hours of delivery. By adding tracking information to PayPal, you can turn up Seller Protection, Chargeback Protection, and get your funds released 10x faster.
In addition to the strategies mentioned above, merchants can follow these best practices to maintain a healthy PayPal account and minimize the risk of holds:
While money holds can be a significant pain point for merchants using PayPal, there are ways to mitigate their impact. By automating the process of syncing tracking information to PayPal account, merchants can enable Seller Protection, Chargeback Protection, reduce fraud, minimize risk of disputes and ensure smoother transactions. By following these best practices, merchants can make the most of PayPal's platform while safeguarding their businesses and maintaining a positive cash flow.
PaySync is designed to sync tracking numbers to your PayPal & Stripe accounts in real time. Our aim is to accelerate fund release, bypass holds/disputes, and build PayPal trust. Enjoy the simplicity of one-click syncing, enhancing your merchant reputation effortlessly.