Hi All, Yesterday I received an email from Paypal saying they were suspicious about a payment I received on eBay and put a temporary hold on my balance which made it negative. They said I had to respond and then they will continue their investigation. I responded that I did not ship the item yet. Will they take this negative balance right out of my checking account right now? Or will they notify me that they need to reverse the payment and then take the balance out of my checking account after the investigation. Anyone been through this before? How long will their investigation into this payment take? The fact is I was hesitant to ship to this buyer anyway with their high volume of purchases made on eBay all within 3 days. Most all of the items they bought were BIN (buy it now) as well. So even if Paypal clears the payment, I still have the right to refund it correct? I just see problems down the road if I was already suspicious before Paypal even contacted me. Don't need to get a chargeback a month from now. Of course I'll get negative feedback from the buyer though.... Thanks if you can help!
They will not take the money directly from your checking account. However, they can suspend you account again if it remains negative for too long. Investigations can take anywhere from a few days to a few weeks, but normally you're OK while they're investigating.
Thanks. I don't plan to keep it negative, just want to prepare my checking account if that's how they did it. Never had a temporary hold before. I hope it doesn't take to long because I need to get back to the buyer as to why the item is not being shipped out. I would of rather they just gave me the warning, then I would have refunded the buyers money immediately. Now it's just in limbo with Paypal. Jen
Ideally it would be this way, but unfortunately there would be a lot of businesses that wouldn't live up to their end of the bargain. You may add the funds to make the balance just to keep the account positive. Paypal has so many automated features that they can sometimes end up tripping on their own feet. But, I don't think it's anything major to worry about yet.
Tell Paypal that you agree with their assessment that the transaction may appear fradulent and you want to opt to refund the transaction and that you have not yet shipped the item. Show them that you received the money in good faith.
Just refund the amount and inform the buyer that PAYPAL had put a hold on the payment due to suspected fraudulant activity and hence you have refunded the money.
I ended up calling Paypal and was shocked to get right through to a rep. They assume this may take up to 3-5 days. It's in their process now and they will not release it until the investigation is complete. I told them I plan to immediately refund it. I think they are holding it and others that the buyer made to compare results. But in the meantime they told me I need to get the negative balance back up to be able to send money or use my debit card. I get punished because of a possible fraudulant buyer, but that's business. At least it didn't happen after I shipped. I know that happens all the time to people. I have to contact the buyer soon and let them know why their item isn't being shipped out. As soon as I tell them they are going to want an immediate refund, I would, even though it's Paypal's doing. I can't hit the refund button because there is none. It just says "held". Thanks for your advice everyone. Jen