As Tim found out, and posted recently regarding the SOR dues, when you open a new PayPal Account they want to see a history of successful transactions before they will release payments - as opposed to the usual immediate access for existing accounts.

They don't specify (or I haven't found) info on how many transactions or the length of time from account opening before it is "business as usual". But in the meantime it is a magnificent PITA. As you can see below, for what we do here on SOR a "new seller" would have to either:
(1) get a tracking number (not feasible unless the buyer is willing to pay 2-3 times more for registered mail rather than regular post; or
(2) Print a shipping label and wait for the buyer to confirm delivery (not feasible for the seller to have to wait possibly 3-4 weeks these days and rely on the buyer remembering to acknowledge receipt to PayPal).

An alternative (I've done this successfully once) is to tell PayPal this is a "Service/Virtual Product" not requiring shipping. I'm not sure, but I imagine PayPal will ask the buyer to confirm this. This is what I'm planning to do as I'm dropping the long-standing - and trustworthy - "lemaven" brand and will do all transactions under "HolocaustStamps" going forward. I'd appreciate my recent buyers helping out with this until this account gets "regular" status.

I don't think the new policy is uncalled for if the seller is actually new to SOR and PayPal. But for any of us old-timers (and mine may be a unique circumstance) using the "alternative" is something you might want to consider if you are planning to reposition yourself under the "SOR New World Order".

Stay Safe! David.

Login to Like
this post

cdj1122

re: IMPORTANT: New PayPal Rules For New Accounts (And What I Will Be Doing For Recent Buyers)

Off hand, it seems to me that this is primarily a scheme
to increase the "Float" so they can earn interest on
delayed payments.

 
1 Member
likes this post.
Login to Like.

cdj1122

re: IMPORTANT: New PayPal Rules For New Accounts (And What I Will Be Doing For Recent Buyers)

?I wonder just how much cash/funds passes through their hands per day.
If it is a billion dollars, every day's delay at 1% generates about $30,000 per day.

If memory serves me right when a real Estate Agent in Florida holds escrow money in an interest bearing account, he is only allowed to keep 1/5th for doing so. The balance goes back to the buyer or seller at closing or when the deal falls through. It can involve a complicated situation at times so most RE agents place escrow money in interest free accounts.
Perhaps there is a similar law for companies like Paypal, and if not, why not ?.

Login to Like
this post

re: IMPORTANT: New PayPal Rules For New Accounts (And What I Will Be Doing For Recent Buyers)

Instructions (as per Tim's request)
...Go to the person whose payment is on hold and click the "On Hold" button. You'll see the page with all the details of the buyer and transaction.
...Click the "Get your money sooner" button. Et voila!
...Choose between "Product" or "Service or virtual product" (you will want to choose the latter) and you will see the instructions.

I'm sure their MBAs have figured out the revenue-optimization strategy, but I suspect that is simply a by-product of avoiding scams being run by people who open an account, "sell" something non-existent, pull the money out, then disappear until next time.

I think that's a reasonable policy, and am only pissed because they also apply this to a "new" account opened by an old customer who has already proven their honesty. It is also a pain that I will now have to go through the ritual (pretending this is a virtual purchase) for every buyer after I send the purchases out, and have them (presumably) confirm this.

Good luck, Dave.

Login to Like
this post