What are holds and disbursements?

Important: PayPal for Marketplaces is a limited-release solution at this time. It is available to select partners for approved use cases. For more information, reach out to your PayPal account manager or contact a PayPal Partner Expert.

When they sign up for PayPal for Marketplaces, partners and merchants can choose to have PayPal retain funds on the partner's behalf. A partner can opt to either place an automatic hold on all PayPal payments made on the platform, or notify PayPal when they want to initiate holds.

Disbursement is PayPal's release of funds to a merchant's bank account. If the merchant selected instant disbursement when they were onboarded, they receive funds as soon as a sale is complete. If the merchant selected delayed disbursement, funds aren't released until the partner triggers disbursement. (For example, the partner may have set up certain business rules or criteria that must be met before merchants receive their funds.)