Most businesses will experience a time when their funds become unavailable, also known as a payment hold. It can be frustrating and confusing, especially if you need that money to pay for something urgently.
Understanding why your funds are inaccessible or on hold is an essential part of managing your business effectively. So, let's explore what a payment hold is and why it happens, plus how to resolve it to prevent further delays in accessing your money.
PayPal may place a hold or restrict your account activity if we need a little more information from you about a transaction, your business, or your account activity. Some of the reasons why we may need this information include:
Learn more about what account limitations are and why they may be placed on your account.
Your funds are usually held for up to 21 days. However, there are several things you can do to expedite this timeline. (You can also read our User Agreement for more information on other holds and reserves we may place on your account.)
Account holds and reserves are measures that financial institutions may use to manage risk. They’re often put in place to protect against fraud, chargebacks, and other potential financial losses.
Common types of PayPal account reserves include the following:
It’s not always possible to prevent reserves — and depending on your industry and credit history, you may never be able to fully remove a reserve from your account. The good news is you can reduce the chance of having a reserve put on your account by following these best practices:
Get more information on PayPal account limitations.
Assuming there are no issues with the order, you may be able to expedite the release of temporarily unavailable funds sooner than the scheduled 21 days by taking any of these actions below.
There are four steps you can take to help prevent a delay of available funds in the future:
For more helpful information on running your business, check out our Operations articles, tools and tips.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.