
What to do if money is held on PayPal – If you use PayPal to send or receive payments, you may have experienced a situation where the funds you received are placed on hold. This can be frustrating and inconvenient, especially if you need access to the money right away.
In this note, we will explain what to do if your money is on hold on PayPal and how to resolve the issue as quickly as possible.
What Does it Mean When Money is on Hold on PayPal?
When money is on hold on PayPal, it means that the funds are not immediately available for use. PayPal may place a hold on funds for a variety of reasons, including:
- The payment is being reviewed for fraud or other suspicious activity
- The payment was made using an unverified account
- The payment was made using a new account with a low-selling history
- The payment was made for a high-risk item (such as a car or boat)
What to Do if Your Money is on Hold on PayPal
If your money is on hold on PayPal, the first thing you should do is contact the person who sent the payment to ask why the payment was made and if there are any issues that need to be resolved. If the payment was made in error, the sender might be able to cancel the payment and issue a new one.
If the payment was not made in error and there are no issues that need to be resolved, you will need to wait for the hold to be released. PayPal typically releases holds within 21 days, but the exact length of time may vary depending on the situation.
While you are waiting for the hold to be released, there are a few things you can do to help speed up the process:
1. Verify your account
If you have an unverified account, PayPal may place a hold on your funds until you verify your account. To verify your account, you will need to provide PayPal with some personal information, such as your name, date of birth, and address. You may also be asked to provide proof of identification, such as a driver’s license or passport.
2. Provide additional information
If PayPal asks for additional information to help them review your payment, be sure to provide it as soon as possible. This could include information about the item you sold or the service you provided, as well as any relevant receipts or invoices.
3. Maintain a good selling history
If you have a new account with a low selling history, PayPal may place a hold on your funds until you have established a track record of successful transactions. To build up your selling history, try to sell a few low-risk items and make sure to communicate with your buyers to resolve any issues that may arise.
What to Do if the Hold is Not Released

If the hold on your funds is not released after 21 days, you can contact PayPal to ask for an update on the status of your payment. Be sure to have your transaction ID and any relevant information handy when you contact them.
If PayPal determines that the hold was placed in error, they will release the funds, and you will be able to use them as normal. However, if the hold was placed for a valid reason (such as fraud or a violation of PayPal’s policies), the funds may be permanently withheld. In this case, you may need to seek legal remedies to recover the funds.
Conclusion
If your money is on hold on PayPal, it can be frustrating and inconvenient. However, by following the steps outlined in this article, you can resolve the issue as quickly as possible and get access to your funds.
Whether you are a buyer or a seller, it is important to familiarize yourself with PayPal’s policies and procedures to help prevent holds from occurring in the first place. Here are a few tips to keep in mind:
- Make sure your account is verified: Verifying your account can help prevent holds from being placed on your payments.
- Communicate with your buyers or sellers: If you are having an issue with a payment, make sure to communicate with the other party as soon as possible to try to resolve the issue.
- Use PayPal’s dispute resolution process: If you are unable to resolve an issue with a payment, you can use PayPal’s dispute resolution process to try to get your money back.
Understand PayPal’s policies: Familiarize yourself with PayPal’s policies, including their rules for sellers and their policies on high-risk transactions. By understanding these policies, you can help prevent holds from being placed on your payments.
Overall, if your money is on hold on PayPal, the best thing you can do is to stay patient and communicate with PayPal to try to resolve the issue. By following these steps, you can get your money released and back to business as usual.