How to stop a PayPal payment hold

Written by monika weise
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How to stop a PayPal payment hold
Avoid PayPal payment holds in order to be compensated on time. (payment image by Valentin Mosichev from

PayPal is an online monetary transaction service that started in 1998 and currently serves more than 87 million people, according to its website. In order to protect customers, PayPal put procedures in place to prevent fraud and to resolve disputes. One of the tools that PayPal uses to ensure that transactions proceed smoothly is the payment hold. Waiting to deposit funds into a seller's account allows PayPal to confirm that the buyer received the purchased products. PayPal uses several criteria to determine when to hold a payment. Pay attention to these criteria to stop PayPal payment holds.

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  1. 1

    PayPal holds payments for new sellers or accounts that don't sell items often, so it is important to make transactions often. According to PayPal's Help Center, having a PayPal membership for more than six months can help stop payment holds. Build up a satisfactory track record with PayPal to avoid payment holds.

  2. 2

    Provide buyers with great service. Disputes with your buyers cause PayPal to hold payments. Practice good customer communication and deliver your products promptly. A complaint filed with PayPal automatically results in a hold on your payment that will remain until the dispute is resolved. If a dispute is filed, respond immediately with all information requested by PayPal.

  3. 3

    Offer low-risk products. According to PayPal's Help Center, sales of certain products labelled as high-risk trigger a hold on payment. PayPal defines high-risk transactions as transactions likely to result in a dispute, such as ticket or electronic sales. Even without disputes, PayPal can hold your payment for these items for as many as 21 days.

  4. 4

    Encourage your buyers to leave positive feedback for eBay sales involving PayPal. Positive feedback or confirmation of delivery stops a PayPal payment hold on that transaction. PayPal release payments within 24 hours for positive feedback and within three days after delivery confirmation.

  5. 5

    Contact PayPal to stop a payment hold that you feel should not be there. Contact information for PayPal is available on

Tips and warnings

  • Be prepared to have payments held until you have been a PayPal member for six months and plan accordingly.
  • Review all the information in PayPal's Help Center relevant to your account.
  • According to PayPal, a buyer cannot ask for a PayPal payment hold to be stopped.
  • Never provide fraudulent information to stop a PayPal payment hold. Doing so could result in termination of your PayPal account and possible legal repercussions.

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