13 March, 2012 | 11:35
To our customers,
Recently we've received some questions from sellers about when and why eBay or PayPal may require sellers to keep money in their accounts-commonly called a "hold." So I wanted to take a minute to explain and hopefully clear up any confusion. You can also get more information about this in a related blog post from my PayPal colleague Ed Eger.
Trust is absolutely critical in a marketplace, and eBay and PayPal strive to provide buyers and sellers a consistent experience they can count on. Programs like eBay Buyer Protection, eBay's Top-Rated Seller program and policies like holds are intended to do just that-ensure a trusted experience that buyers expect, which encourages them to shop more with the sellers who use our services.
We take protection and security very seriously around here, which is why like other companies in our industry we have a standard holds policy in place. PayPal may require that sellers hold money in their accounts temporarily if we believe there is a higher risk that there will be issues with their transactions-things like buyer claims, complaints, chargebacks, or even fraudulent access to the seller's account.
We're very proud of the improvements we've made in delivering more trusted experiences to our customers. Raising standards to increase trust, consistency and reliability are driving strong performance. We'll continue to refine our filters and our approach to supporting good sellers and delivering good buyer experiences.
We've also heard some speculation that eBay and PayPal are requiring sellers to hold money in their accounts so that we can earn interest on the funds. This couldn't be farther from the truth.
PayPal has always stored balances (including held balances) in FDIC-insured bank accounts, which earn a modest interest rate. To eliminate any confusion with our customers over the intent of our policy, we have decided to move the equivalent amount of money of our total "held balances" to a non-interest bearing account. We hope that this clarifies the intent of our policies, which we believe have always been transparent: to ensure a trusted experience that buyers expect and to encourage increased sales for our merchants and sellers.
We want every customer on eBay to have a great experience. For buyers, this means quality merchandise and selection, great customer service, and fast shipping. For sellers, it's increased sales and better buyer experiences. I want you to know that we are working hard to keep pace with consumer expectations and making eBay a more attractive shopping destination-and that benefits all eBay buyers and sellers.