How does PayPal know when an item is delivered in 2024?

How does PayPal Verify an Item Delivery? Short answer - Through the shipping company and buyer's feedback.

But, there will be different scenarios that you need to check.

So, according to your Order type and current situation, PayPal will investigate whether the order is delivered or not!

So, read each and every point carefully like how that investigation works and what kind of proof you need to provide.

How does PayPal know when an item is delivered?

The first thing PayPal will check is the Payment status for that specific order is Completed not Pending or Hold.

Now, there are two different conditions for an item to get delivered - Either Physically or Virtually.

Physical Goods -

If your product is getting delivered physically through Shipping Transport services, then PayPal will confirm the order with that 3rd party Shipping company & later with your customer.

Virtual products - 

But, if your Product or Service is delivered virtually, then PayPal will investigate the Order with a Customer whether he/she has confirmed the Order receipt.

Still, if the Customer is claiming that he has not received his order, then Paypal will ask them to raise the case or will raise the case on behalf of stakeholders.

PayPal will ask Seller to provide the Proof of delivery. But, what things can be considered Proof of delivery?

What is proof of delivery on PayPal?

If the product is physical, then confirmation from Goods Carrier service will be considered as Proof of delivery for our PayPal Order.

For Intangible and Virtual orders, PayPal will confirm the Order receipt with the Customer.

The buyer's acceptance of the 'Confirm Receipt' will be considered as Proof of delivery.

In some cases, Seller needs to submit Proof of delivery. It can be anything like the Shipping Receipt that the Shipping company shared with him.

If the Order type is an Online service, then the seller can share the Reports, Excel sheets, or any Other documents which are explaining that the Order has been delivered.

Will PayPal release funds when the item is delivered?

There are two conditions - 

  • The buyer has to confirm the Order has been received
  • PayPal has confirmed the order has been delivered from the Goods Carrier service

One of them should be met to receive payment. Otherwise, there will be a holding period of 21 days. You'll get the money after 21 days. 

If the Seller and Buyer both are verified, then funds will get released much earlier. In my case, mostly I've received payment within 1 day.

Read more about PayPal Payment status is ON HOLD or Pending here.


How does PayPal know your item shipped?

Even if you've updated your Order status as Shipped, PayPal doesn't get to know about your Item shipment status until they actually start to investigate with the shipment company.

If the Item is an intangible or digital product, PayPal will never know until the Buyer confirms the order or the Seller provides proof of delivery.

If I’m paying someone for an item to be shipped out to me, is there a way to put the payment on hold until I receive the item on PayPal?

As a buyer/customer, You don't need to do anything. PayPal will take care of that. 

PayPal will take the money from you and will keep it on hold until the Seller delivers the Order to the Buyer and the Buyer confirms it has been delivered.

How do you know if someone received money sent through PayPal?

Payment Status in Order transaction will get changed to Completed from Pending/Held/unclaimed.

Does the buyer have to Confirm delivery on PayPal?

Yes, the Buyer needs to confirm the delivery by accepting the Confirm order receipt button. You can find that option on the Transaction details page.

Do we need to provide PayPal proof of payment?

As a Buyer or Seller, you don't need to provide any Proof of Payment. Once the buyer sends the money to the Seller/receiver, then PayPal holds that money for some time.

So, that means PayPal is aware of the payments that are happening within both the stakeholders.

Payment status is on Hold or Completed is one proof of Payment in PayPal.

If you're using Invoicing/Estimate for payments, then buyers can share the Paid invoice with PayPal.

When someone pays you through paypal how do you get the money?

When someone pays us using Paypal, that person will send money to my paypal account.

It will be on hold for some days for new customers. For regular users, you'll get your money within 1 day.

Does PayPal hold money sent to me for a product until I provide proof of the shipment of the product?

Mostly, you don't need to provide any proof of delivery. PayPal will confirm the order through the Customer.

But, if the Customer claims that the Order is not delivered, then most probably you'll need to provide the proof of Delivery.