I am drop shipping and a customer of mine made a payment through PayPal a couple days ago. My problem is that PayPal still will not release the funds to me.

PayPal’s policy is that you must accumulate at least 20 sellers’ feedbacks in order for the funds to be released. You must also have a rating of at least four and a half stars. PayPal will hold payments above 50 pounds until these stipulations are met.

Unless you can do both these things, you cannot use PayPal to dropship.

PayPal told me that they were holding my funds to see if the transaction ran smoothly, but I do not have enough money to keep dropshipping. What can I do?

If you’re still facing problems, call PayPal. That is the simplest and most straightforward solution. Ask PayPal why your money is being held and how they assess that the transaction is running smoothly. Then, do everything in your power to meet those standards.

You can also choose to make payments from your bank account or credit card. These methods are not as secure as PayPal, but much less of a hassle when dropshipping.

I am a brand new dropshipper and the same thing is happening to me: my PayPal funds are being held. Where could they be getting their bias from?

PayPal usually only holds money when it concerns new accounts, so that is probably the first reason you are having problems. PayPal wants to make sure that you have the money to back up your business. By not releasing your money for 20 days, PayPal wants to push you to your financial limits.

PayPal also looks at reviews customers have left about you. If you, like a lot of dropshippers, sell your products on eBay, then PayPal will look at reviews you have received on eBay. Even one negative review could result in your money being held.

Is this literally stated somewhere by PayPal or generally known information?