eBay sellers know how satisfying it can be to receive a notification that you have completed a sale on the platform! It’s a feeling of pure joy and a sense of accomplishment.
But it’s the opposite when you see the hold status on a particular transaction on your account.
It only means one thing: eBay payment hold! The excitement can turn into disappointment real quick!
Why does eBay impose this policy, and when should you be worried about it?
New sellers, and even seasoned sellers, must understand the reasons why eBay may put a hold on funds in your account.
The more you know about its policies, the better you can understand what selling practices to avoid to ensure you can get paid quickly!
Keep reading to find out how to get your funds faster when the buyer makes a payment.
Overview of the eBay Payment Process
The new eBay Managed Payments System requires buyers to make payments directly on the platform instead of a third-party app or payment method, such as PayPal.
This new payment processing method aims to simplify the selling experience for eBay account holders by eliminating the middleman.
It is also ideal for sellers to receive their payments quickly. The ability to get faster payment processing is crucial for most sellers on the platform as they rely on their profits to reinvest in their business, such as covering expenses and replenishing inventory.
However, the eBay managed payment system also has policies about legal and compliance obligations for all sellers.
Therefore, they impose a hold on funds for the applicable transactions to ensure eBay remains a safe space for buyers and sellers alike.
Why Does eBay Hold Payments?
eBay understands that sellers want to get their payment faster after a buyer confirms an order and the seller receives the buyer’s payment. But there are instances when eBay puts a hold on funds, such as in the following scenarios.
1. Order or Payment Disputes
eBay puts a hold on your funds if there is an open case or payment dispute on a particular buyer transaction. It is a measure that eBay takes to ensure a fair resolution for that case or dispute.
Once a case is opened, eBay keeps the while they gather evidence and investigate the situation to make an informed conclusion.
Holding funds enables eBay to avoid financial loss for both parties and maintains its reputation as a safe marketplace for buyers and sellers.
eBay is one of the world’s biggest ecommerce platforms, and it wants to avoid fraudulent transactions. The decision to hold funds protects all parties until the case is resolved.
2. Restricted or Suspended Accounts
Another reason eBay may hold funds is when the seller’s account has been restricted or suspended. It is part of eBay’s commitment to honor its policies.
There are several reasons why a seller’s account could get suspended or restricted.
Therefore, putting a hold on their funds is a way to protect buyers from any transaction with that seller, especially when a previous buyer reports a seller for any issues with their items or selling practices. This action is a way for eBay to earn the trust of its buyers.
Download this eBook now and learn how to sell on eBay like a pro.3. New or Infrequent Seller (Low-Volume Seller)
Are you a casual seller on eBay? eBay may also hold funds on low-volume accounts. eBay does it because your account lacks the selling history to establish its legitimacy as a seller or credibility.
Again, it is part of eBay’s preventive measures and policies to protect sellers from fraudulent transactions.
eBay will closely monitor the seller’s selling history and performance to verify that they are legitimate and safe for buyers to trust.
As a well-reputed marketplace, eBay wants to ensure seller accountability on all transactions, so any unusual activity or sudden change to your own selling activity patterns can cause alarm.
Volume for eBay refers to the total number of items sold. Therefore, the value of the items you are selling is irrelevant.
It might even cause more suspicion for eBay if you sell high-value or high-ticket items at a low volume. eBay wants to reward seller accounts that have consistent and ongoing sales on their accounts.
Types of eBay Hold on Your Funds
Since eBay holds funds for various reasons, various types of holds depend on the cause provided.
Transaction Holds
Transaction holds are the most common type of hold that eBay places on funds. It is when there are issues involving a particular buyer transaction.
Your funds will become available to be withdrawn to your within two days after confirming the buyer’s payment. But eBay places transaction holds until the buyer has confirmed the receipt of the item.
Therefore, it is ideal to have good shipping practices in your store, such as same-day or next-day delivery, to get your funds faster. Providing tracking information to your customers with their orders also boosts their confidence in a particular transaction.
In addition, eBay can put a hold on your funds while your item is undergoing eBay’s authenticity guarantee process.
eBay Money Back Guarantee Holds
If a buyer reports an issue with an order or requests an eBay money-back guarantee, your funds could be put on hold. For example, a buyer claims that the item they received differs from what was shown or described in the listing.
They could file a payment dispute that will automatically hold funds in your account. If the buyer requests the eBay money-back guarantee, eBay puts holds on your funds so they can release them back to the buyer.
Payout Holds
Payout holds are when eBay requires you to take additional actions on your account. There could be some discrepancy in your account information upon registration, or that you failed compliance policies on eBay.
Some accounts are also put on hold due to inactivity or seller performance. For example, you have negative buyer feedback, or buyers continually complain about late deliveries. eBay will hold payments for the buyer’s security.
How Do You Know When eBay Holds Your Funds?
You will know when eBay puts a hold on your funds since they will notify you by email, informing you about the hold. Depending on the reason and the type of hold, you can request additional information from eBay.
The email will also contain instructions on how to lift the hold or steps to release your funds back to your account.
Final Thoughts
As a seller, discovering that your funds have been put on hold is annoying and a hassle.
But you can prevent that from happening by following the best-selling practices, such as shipping the items on time, maintaining a high seller performance, and providing good customer service.
While these practices won’t guarantee that eBay won’t hold funds, they can help address issues that could result in payment holds.
As long as you are honest and accountable as a seller, you won’t have to worry about holds on funds, as it is a measure to ensure the marketplace remains safe for buyers and sellers.
Stay Ahead of eBay Payment Holds
Dealing with an eBay payment hold is frustrating, but you can take steps to reduce risk. One way is by strengthening your selling strategy so your account shows consistent, trustworthy performance. With ZIK Analytics’ eBay Competitor Research Tool, you can spot trends, analyse how top sellers operate, and refine your own approach. The stronger your account history, the fewer issues you’ll face with payment delays
Frequently Asked Questions on How eBay Payment Holds
Here are some frequently asked questions on how eBay payment holds work:
How long are eBay payments on hold?
eBay may hold payments for up to 30 days, especially for new sellers or high-risk transactions. Funds are often released sooner if you provide tracking, ship promptly, and buyers confirm delivery. Successful selling history and positive feedback reduce the likelihood of extended holds.
How to get eBay payment off hold?
You can get eBay payments off hold by shipping promptly, uploading valid tracking, and ensuring the buyer confirms delivery. Funds release sooner with positive feedback and a strong selling history. Resolving disputes quickly and consistently meeting seller standards helps prevent or shorten payment holds.
How to tell if a buyer is scamming you on eBay?
Signs of a scam buyer on eBay include requests to pay outside eBay, suspiciously high offers, urgent shipping demands, or claims of non-delivery despite tracking proof. Repeated return requests or inconsistent communication are red flags. Always use eBay’s messaging and payment system for protection.
How long does it take for an eBay payment to clear?
eBay payments usually clear within one to three business days after the buyer pays. However, for new sellers or high-risk transactions, funds may be held longer, sometimes up to 30 days. Providing tracking, quick shipping, and positive feedback helps speed up payment release.
How to speed up eBay payment hold?
You can speed up eBay payment holds by uploading tracking details, shipping items promptly, and ensuring buyers confirm receipt. Maintaining a strong seller record with timely deliveries, positive feedback, and resolving disputes quickly reduces future holds, leading to faster access to your funds.
What does “funds on hold” mean?
“Funds on hold” means eBay is temporarily holding your payment instead of releasing it immediately. This usually happens with new sellers, risky transactions, or unresolved issues. The money is released once shipping is confirmed, buyers leave feedback, or the hold period ends.
How do I take my eBay account off hold?
To remove a hold from your eBay account, resolve outstanding issues such as unpaid seller fees, policy violations, or verification requests. Provide accurate personal and banking information, settle disputes promptly, and maintain good selling practices. Once requirements are met, eBay reinstates normal account activity.