In the past month, I've had "Holds" put on funds that customers have sent on three different occasions. Eventually, these holds turn into "Reversed", and the money is permenatly taken out of my account. Things like this hurt me, because I'm in the hole on ordering the customer's domain, setting up their hosting accounts, etc.
Anyone know why these funds are put on hold and eventually reversed? If so, how are these customers doing it? I'm pretty new to PayPal as a seller, and am loosing out .
I'm not entirely sure, but I can think of a couple of possibilities:
1. Buyer Complaints: If a customer files a Buyer Complaint against you, the disputed amount may be placed on hold while the complaint is investigated. You would receive an email notification of the Buyer Complaint, and would see a notice at the top of your Account Overview page instructing you to visit the Resolution Center for more information. If you did not respond to a Buyer Complaint within the timeframe allowed (usually 10 days, I think) then the dispute would automatically be decided in favor of the buyer and the payment would be reversed.
2. Fraudulent activity: PayPal might detect fraudulent activity on an account, or have a buyer that reported unauthorized purchases directly to PayPal via phone or email instead of filing a Buyer Complaint. In that case, you should still receive an email notification, but it might not appear in your Resolution Center.
You should contact PayPal's customer service via phone if you need more information about the specific transactions that were reversed, or if you need to dispute those reversals.