We face issues while delivering the Orders to customers. Sometimes, it's related to transactions, invoices, tracking, shipping, or payment.
In this guide, we're going to explore different ways to withdraw the funds that are in ON HOLD or Pending status.
What does ON HOLD Payment Status mean on PayPal?
ON HOLD Payment status means Money has been released by a Buyer, but either the seller hasn't delivered or the buyer hasn't received the order.
So, the money is stuck at the PayPal's end. Paypal freezes payment for some time until the Buyer confirms the Order.
In a few cases, Paypal may keep money pending for 1, 7, 14, or at the most 21 days.
Why is PayPal holding my money after delivery?
There are several reasons why your account can be put into the grey list by PayPal.
I. New Joiner or abandoned account for a long time:
When a new joiner performs the first transaction or hasn't sold anything for a long time, Paypal blocks the payment for period of a time, due to less trust.
There will be a 21-day holding period, in case you're a new seller.
That could be for 2-3 days also. It totally depends on PayPal's decision for your account.
So, you need to provide KYC and other personal documents to PayPal for Bank account verification Or simply wait for that amount of time.
II. You have not updated the Order status properly
Maybe you have not added the tracking number and order status properly. You just skipped this process.
III. Buyer is unaware of Order acceptance or has not confirmed the order
This is a potential reason why Payment gets stuck on ON HOLD status. The buyer is not educated or aware of handling PayPal or he/she just forgot to accept the order confirmation receipt.
IV. You're accused of doing Scam or fraud activity in the past
If you've been regularly using PayPal for quite a long time and other reasons are anything from above, then PayPal will confirm with the buyer that the order has been delivered, and release the pending payment within 1 to 14 days.
If the customer denies that an item has been delivered, Paypal takes the next step and starts investigating the transactions.
Also, Contact the courier facility team to confirm whether the order has already been delivered to our customer or not.
All of these are just for security purposes, we don't need to do anything. Paypal just doesn't want to create any issues in the future.
FIX: PayPal Payment status is ON HOLD!
How to get money that is in "ON HOLD" status? There are 3 ways to get that money into our Bank account.
Method 1: Change Order status to Order Processed
If you're dealing with delivering physical goods, then it is a first step you need to take to make sure that the issue is not at your end.
For delivery of any Physical goods and products, always update the status as Shipped first, then change it to Order processed.
Keep in mind that Shipped and Order processed both are different terms.
While adding the Order status as Shipped, don't forget to enter your Tracking number and other details.
Because the Paypal team uses a shipment tracking number to collect the information from the Carrier service agency.
This helps in the investigation and payment gets released earliest.
It is good practice to go with this workflow and it always helps to get payments on time. We're also following the same for our orders.
Method 2: Ask a Buyer to Confirm the Order receipt
If you find the ON HOLD payment status on your transaction page, then you can ask your customer to confirm the order has been received at his end.
He can confirm the order has been received by selecting the Confirm shipment received option on a specific transaction.
It will send the message about confirmation of order receipt to PayPal service automatically to release funds.
You'll get transferred your money to your PayPal wallet the next day!
For more details refer to the Guide to confirm the order receipt.
Method 3: Wait to end the on-hold period
If your customer doesn't find the option in a specific transaction to confirm the order, Paypal has a freezing period of 1 to 21 days.
In my case, because I was not delivering any physical orders, I used to get my money the next day for every order.
Paypal just confirmed with the buyer about the delivery and released my money. You can refer above picture for dates.
Method 4: Raise a Dispute for ON HOLD Payment status
If you've tried everything from the above solutions and still your money is stuck in ON HOLD status, then you should consider this method to get some help from the PayPal support team.
You can create a new case from the transaction page and tap Report an Issue. It will open a new case.
Now, select any option that matches your issue like Payment is ON HOLD, Payment not released, etc.
Now, follow the instructions given by the PayPal Automated system like attaching the transaction, adding the issue description, or answering the question related to Payment and order status.
Now, the PayPal team will contact you within a few days and resolve the issue as early as possible.
E.g. there's a possibility that you may get a case notification (Just like as shown in the picture).
You've to provide the Tracking number and shipping company firm name along with other documents, slips, pictures, etc.
Paypal will check all those submitted documents and tracking details with 3rd party shipping company and also with the Customer.
Method 5: Submit your KYC documents
What precautions do you need to take before getting started with any Order on PayPal? Submitting KYC and personal documents makes you a legitimate and genuine seller in the eyes of PayPal.
This method is only applicable to new sellers. Because you're new to the PayPal business as a seller, PayPal trusts you less and considers you a Fraud or scam account.
Method 6: Add the Shipping address or Ask a Buyer to verify the Shipping address
Before initiating any PayPal order, always ask your Buyer to update the Home or alternative address and get it verified. If it is not verified, it's still acceptable in some cases.
But, if the Shipping or home address is not present in the Buyer's account, then as a Seller it is our responsibility to add the Shipping address while Creating the Invoice.
You or your customer should have added the Shipping Address properly. It will make the payment withdrawal process smooth and easy.
How do I get my PayPal money off hold without a tracking number?
If you are delivering Virtual products and services, you can get your money held off by explaining the scenario to PayPal.
Most probably it will get released early within a week for most of the cases. But still, if you're money is stuck at PayPal's end, then you should consider raising the Case.
But, if you have updated the Order status to Order processed, without updating the Shipped order status first, then You need to share the tracking number with your customer or at least ask him to confirm the order.
FAQs:
Why is my paypal payment on hold received from friends and family on PayPal?
The general reason for this issue is that your friend or family member is not your regular money sender.
So, due to the less trust and relation between your accounts, PayPal freezes the money for a few weeks.
Another reason for that is your account is completely new. So in such cases, payapl temporarily revokes the fund transfer process.
Why is Paypal payment ON HOLD until delivery?
Paypal acts as a mediator between Seller and Customer and always keeps money on hold until you deliver the order to the customer.
Just to complete the entire order smoothly.
Can PayPal hold your money for 6 months or 180 days?
In most of the cases, PayPal holds money for a maximum of 21 days to keep everything fair.
But, there could be some reason why your money is kept on Hold for 180 days.
Those reasons could be anything like your Account is not approved or in the review phase, You've done some shady work in the past, a Case is raised against you, etc.
