Clarity and an Update on Our Holds Policies
July 24, 2012
Hi there, my name is Katherine Hutchison and I’m the head of Risk Management for the Americas here at PayPal. I have some great news to share with our customers on an update to one of the topics that we hear from Customer Service that sometimes causes some confusion – one of our processes commonly known as holds, or “Funds Availability.”
When we get this type of feedback directly from our customers, we take it seriously. So we’re thrilled to announce that we’ve started testing an updated policy that will immediately impact our new sellers – those who give us the most consistent feedback on the lack of clarity of our policies, simply because they are new to us or new to selling and haven’t yet had the chance to experience our services.
First, let me explain a bit what Funds Availability means. Some new sellers to PayPal are not able to immediately spend or withdraw the proceeds of their sales. As soon as the buyer provides positive feedback, the seller provides shipment tracking to us, or after 21 days – whichever comes first – the money becomes available.
It’s important to note that Funds Availability allows PayPal to keep the environment safe for buyers, keep our pricing low for sellers and simply allows us to run our business without incurring tremendous loss. We take action to address a small fraction of the highest risk merchants in our portfolio—sellers who we believe may struggle to meet their commitments to their customers. These targeted actions not only protect consumers from poor experiences but ultimately benefit our merchants by allowing PayPal to keep pricing competitive and give sellers access to our 113 million customers.
We understand that it’s frustrating as a seller or small business to have delayed access to your money and feel like you don’t understand why. We work to communicate this effectively through various channels (emails, customer support, web site and policy terms) but we understand that sometimes you’re looking for more from us. And this policy is a direct result of that sincere intent to always serve the needs of the customer first.
The testing of this updated policy and process started in early July and so far we’re very pleased by the results. With some updated language on our web site, clearer policies and adding an identity verification process, we’ve been able to give sellers access to their money faster. We’ve also made it more clear to sellers how many sales are needed to establish a pattern of successful selling. Once that pattern is established, sellers typically “graduate” out of delayed funds availability.
PayPal truly believes in connecting consumers and merchants all around the world, creating opportunities for people in their personal and professional lives. We realize this updated process is just a start, but you will see more from us as we work even harder to give our customers more clarity into our policies.
If you’re a part of the test – or aren’t – we’d love to get your thoughts and feedback. Please let our Customer Service team know, or just comment to this post.
–Katherine Hutchison, Head of Risk Management for the Americas
NY Times ran a story on PP holding funds. Intersting read.
http://www.nytimes.com …business&pagewanted=print
