Business Resource Center

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Account Reserves: Tickets and Reserves

Why does PayPal hold reserves for businesses that host conferences/events?

Sometimes events and conferences have to be canceled. It happens more than you would expect and is often outside of the organizer's control for reasons such as insufficient demand or bad weather. In these instances we need to ensure that the buyer of the ticket is protected and will receive a refund for the canceled event. Maintaining a balance in the PayPal account is a preventative measure for all parties and will help enable a smoother refund process, if required.

I’m selling tickets to an event or conference. Why do I need to send you this information?

We would like to understand more about the scale and size of your event.

Information requested
Why is this required?

When is the event & can you provide more details on what the event is for?

Gaining visibility to the event date will help us to understand the period where an increase in account activity is expected. Details on the event will allow us to get a deeper understanding of the event.

How many tickets are you expecting to sell and what is the average ticket price?

This will give us a sense of the volume we expect to receive in the PayPal account for the event & the number of tickets sold. The size and scale of the event is important for us.

What dates will the tickets be available for sale?

This will give us a sense of how much volume you are intending to process within a specific timeframe and allow us to manage the volume increase.

Are you processing all ticket sales through PayPal or with any other processer? If you have another processor, do you have a sense of how much will be processed through them?

This will help us to understand the total volume of sales for the event and will help us to understand the dependency on PayPal to accept payments.

Is this your first time hosting an event/conference? Can you provide details of prior events or conference?

This will help us to understand your past history in hosting events - in particular if there are recurring events and your experience in managing events.

Have you previously used PayPal to collect money for an event or conference?

This will help us to understand whether this is a new activity for you.

Do you have insurance for the event? If yes can you provide details e.g. insured against event cancelation.

Insurance coverage in the instances where the event is canceled may help to protect your buyers and yourself. Details of this will be important. If you don't have insurance, don't worry but we do need to know in advance the terms around any insurance policies you may have - especially terms around cancellation.

Do you have a venue agreement?

A venue agreement helps to confirm that the event is planned and will help us to determine that tickets issued are in accordance with the rules and regulations of the venue.

Can you provide details on the expenses that need to be made in advance of the event/conference?

Our default position like many payment processors and acquirers in the market place is to hold money until the event date. We need details of the type of expense, the date when these are due for payment, supplier details, and the invoices so that we can assess how much of the money we may release to you in advance of the event.