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What are PayPal Here™ Reserves?

Certain types of PayPal Here™ transactions are considered high risk and are subject to reserves where funds are held in your PayPal account for a period of time. Specifically, if you key-in or swipe magnetic stripe cards for sales in excess of $500 over a 7-day period, any funds over $500 are subject to a 30-day reserve.

For example, if you process a total of $600 in keyed-in or magnetic stripe transactions over a 7-day period, $100 will held for 30-days. If funds are held in reserve, you will be notified by email and provided details on when funds will be released. All reserve amounts are subject to change.

Why do you place some PayPal Here funds received via key-in & magnetic stripe in reserve?
Keyed-in and magnetic stripe transactions are associated with higher incidents of fraud compared to chip and contactless transactions. Account reserves allow for a portion of money to be temporarily set aside to cover any payment reversals associated with fraudulent activity you may receive like chargebacks, claims, and disputes.

Will using a chip card reader prevent funds from being placed in reserve?
Processing chip or contactless transactions with the PayPal Chip Card Reader can minimize the likelihood of funds being placed in reserve. There are other factors that determine when funds are held in reserve. Accounts are evaluated on a case by case basis and a reserve may be placed on your account if there is a high level of risk associated with your account. Click here for more information on account reserves.

How do I know if my funds are being held in reserve?
You will be notified by email if any funds are held in reserved. Additionally, the amount being held in reserve can be found under your Pending balance. From time to time, we may need to adjust your reserve amount. If that happens, we’ll email you about the changes.
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