Ugh: New Ebay "funds on hold" policy

[red92s]

Ebay has a new policy where if an item is over $100 and the buyer pays with PayPal the funds are put "on hold" until positive feedback is left. Apparently this was done "to offer protection for buyers AND sellers" but in my opinion swings the balance of power way, way in favor of buyers.

I just sold a very nice used mountain bike on Ebay. The auction closed for several hundred dollars. A local buyer bought won the auction, came to pick it up in person, and agreed it was exactly as described. I URGED him to leave positive feedback but he has not done so. I suspect he is out there using and enjoying the bike. He could very easily say "nah, I don't want it any more" at this point and I'd be forced to take it back and return the funds (even though he agreed it was as described at pick-up and no warranty was offered).

Essentially, I'm financing the item for Ebay/Paypal, collecting zero interest, and paying their fees. I still don't have the money, and the buyer has my item, and can keep it for up to 21 days without leaving the feedback necessary to release my funds.

This is incredibly frustrating. It would be much different if both parties were REQUIRED to leave feedback, but they are not. A buyer can simply force a seller to languish for 21 days waiting for the hold to clear even though they already have the item in hand, have inspected it, and didn't say a peep about condition when they received it.

[creditcardfree]

Oh, that is disappointing!

Do you have contact info for the buyer? Can you ask again for him to leave feedback? Maybe he didn't know about the held funds...maybe.

[disneysteve]

Are you saying that you have to release the item before you receive payment and then you don't get the payment until the buyer leaves feedback? What if they never leave feedback? Is that what the 21 days is for? Will you get the money after 21 days even if feedback is never left?

I certainly would not ship (or allow to be picked up) an item until the money was in my account.

[poundwise]

Step nine in eBay's master plan to phase itself out completely.

[disneysteve]

Step nine in eBay's master plan to phase itself out completely.

I agree. Really, how many sellers are going to ship an item before being paid for it? I'm not willing to wait 3 weeks to get paid.

[creditcardfree]

Of course, how can a buyer leave feedback for an item they have not received?

I've never sold an individual item over $100, so I have no experience with this.

[southerndoc]

There's an alternative: you could've made him pay cash when he picked up the bike.

[red92s]

Are you saying that you have to release the item before you receive payment and then you don't get the payment until the buyer leaves feedback? What if they never leave feedback? Is that what the 21 days is for? Will you get the money after 21 days even if feedback is never left?

I certainly would not ship (or allow to be picked up) an item until the money was in my account.

You receive an email from PayPal stating the funds are "on hold" and that you should ship the item. It's essentially like forced escrow. Once the buyer leaves positive feedback, tracking info indicates the item has been delivered, or 21 days pass, the funds are released.

When I politely asked the buyer to leave positive feedback upon getting home he asked "how do I do that?" so I have little faith in him doing it. There is no tracking info to confirm delivery, since it was local pick up.

I'd have much less issue with this if leaving feedback within a certain amount of time was required, but it's not. Ebay states "some buyers choose not to leave feedback", in which case the seller is essentially providing free financing for PayPal for 21 days.

Apparently once you have 100 positive feedback this system is waived. I have 55 positive feedback (100%) and I still have to jump through these hoops.

[creditcardfree]

I would email the buyer and explain the 'hold' issue and explain with detailed instructions on how to leave feedback. Saying it once isn't always enough...especially if he doesn't seem to know how. Good luck.

[disneysteve]

yer leaves positive feedback, tracking info indicates the item has been delivered, or 21 days pass, the funds are released.

Apparently once you have 100 positive feedback this system is waived.

Ok. That's a lot different. If delivery confirmation releases the funds, that's reasonable. That will prevent sellers from getting paid and then taking 2 weeks to ship the item.

Having it only apply to new sellers isn't so terrible either, but of course I'm speaking with the perspective of someone who has been selling on ebay for 12 years. From a buyer's standpoint, it will probably make folks more likely to buy from low feedback sellers, which in turn helps the sellers. Lots of potential buyers won't buy from a relatively new seller, especially when it is an expensive item.

[red92s]

Ok. That's a lot different. If delivery confirmation releases the funds, that's reasonable. That will prevent sellers from getting paid and then taking 2 weeks to ship the item.

Having it only apply to new sellers isn't so terrible either, but of course I'm speaking with the perspective of someone who has been selling on ebay for 12 years. From a buyer's standpoint, it will probably make folks more likely to buy from low feedback sellers, which in turn helps the sellers. Lots of potential buyers won't buy from a relatively new seller, especially when it is an expensive item.

Yeah the deliver confirmation thing is reasonable, but zero help in this situation since there is not a tracking number on a local pickup that their system can monitor.

I don't see how it will affect buying habits at all. It's essentially business as usual for a buyer.

[disneysteve]

I don't see how it will affect buying habits at all. It's essentially business as usual for a buyer.

Let's say I'm shopping for a used laptop. Someone has just the one I want listed, but they have a low feedback rating, just started selling recently. I'm not bidding on that item. I'm not taking a chance of getting ripped off. Enter the new system where I know that the seller won't receive the money until I receive the item and I'd be much more likely to consider bidding.

[red92s]

Let's say I'm shopping for a used laptop. Someone has just the one I want listed, but they have a low feedback rating, just started selling recently. I'm not bidding on that item. I'm not taking a chance of getting ripped off. Enter the new system where I know that the seller won't receive the money until I receive the item and I'd be much more likely to consider bidding.

If PayPal had any faith or confidence in their existing "buyer protection process", then they wouldn't need to hold funds. To me, implementing this means PayPal is essentially admitting that buyers have (or had) no efficient means of recourse through them if a transaction goes awry. If the protection and resolution aspects that PayPal has claimed make it a safe choice for buyers actually worked, then this would be totally unnecessary.

[Goldy1]

From the past, it was my undestanding e bay held money only in certain seller's situations. This would be seller's e bay doesn't trust for whatever reason even if unfair. I have never had my funds held yet, but I stopped keeping track of e bay and paypal's rules expect for some general ones a long time ago b/c they change more than my underwear.

[jeffmem]

When they heck did they make this cruddy policy? I have many items over $100 I sell, but recently have not been auctioning as I have too busy with other stuff. I am not willing to wait 30 days for payment just because some stupid buyer doesn't leave positive feedback. I have a 100%, that is very risky!