Pending Transactions - What to Do If Your Money is Pending on PayPal

Learn the reasons why PayPal temporarily holds your funds and how to protect your Shopify Stores

Pending Transactions - What to Do If Your Money is Pending on PayPal
What to Do If Your Money is Pending on PayPal


Small and Large online stores often have their own payment-processing facilities. This simplifies their business life and ensures the necessary level to boost customers' experience. One of the most common facilities is the use of PayPal.

Have you seen the dreaded "pending" status next to your payment? If so, you're not alone. In this blog post, we'll explore what it means when payment is pending, as well as some common reasons why payments may be pending.

Lets us unleash and be armed with knowledge and discover how you can receive payment more quickly than being scheduled at 21 days. Rest assured that your payment is on its way - even if it is taking a little longer than expected.

We have been talking about PayPal in our previous articles what PayPal is all about and how it is to secure and efficient way to use in processing online payments. It is also a popular choice among customers. In addition, PayPal offers buyer and seller protection, which gives customers and merchants peace of mind when making a purchase or processing payments.

We are abreast with the information that Paypal is a great way to send and receive money online. However, many users are not aware that there is a risk of financial exposure when using Paypal. This is because Paypal holds funds in order to make sure that all transactions are safe and secure. Also, to reduce their exposure to risk, payment processors sometimes wait a short time before passing funds on to merchants. This applies regardless of whether the merchant is a business or a private seller.

If you have PayPal payment pending, it simply means that Paypal is waiting to make sure everything is fine with the transaction before releasing the funds. However, this does not mean that there is anything wrong with the transaction. It is simply a precautionary measure to protect both the buyer and the seller. Overall, using PayPal is a great way to streamline the payment process for both merchants and customers.

To reiterate…

If you're selling something on PayPal, you may occasionally have payments held on account. This means that the money is in your account, but you can't access it for up to 21 days. The funds will be released as soon as PayPal knows that the order has been completed without issue, or you've provided more information about the order. In most cases, PayPal will ask you to proceed with the order and ship or provide the item or service to the buyer right away.

Now, Why PayPal temporarily holds your funds?

You are new to selling

For a new Paypal seller, it can take so much time to develop a positive buyer-seller transaction. Right,  you need to build PayPal trust and create good account transactions this process can help to ensure that you're able to provide the best possible experience for your buyers, and can also help to build trust between buyers and sellers.

You don't have sales for a while

If your business has been inactive for a while, It’s really mandatory that you need to rebuild your history of positive buyer-seller transactions in order to access your payments again.

This is particularly true for very small businesses or for start-ups, building and rebuilding business transaction history, you'll be able to show potential buyers that you're a reliable seller and increase your chances of making a sale.

You got multiple customer refund requests or claims

When you receive a lot of refund requests claims, and customer complaints, Paypal may think that there is something wrong with your store transactions. As a result, PayPal will investigate your store and make sure everything is running smoothly

And the best way to resolve this is to work directly with your customers to prevent disputes and chargebacks. By doing so, you can avoid any potential issues and keep your business running smoothly.

Uncommon Selling Pattern

This is one of Paypal’s Red flags PayPal sees your business is booming or your business may engage in something not right a result PayPal will surely ask you (merchants) for a lot of information just to be sure.

Engage in selling high-risk items/ products

There are certain items that are more prone to chargebacks and fraud. These are selling digital items.

To avoid chargebacks and fraud, it's important to be aware of which items are more likely to lead to them. If you sell any of these items, be sure to take extra precautions to protect yourself and your business.

There are a few different reasons why your PayPal may place a hold or reserve on your account. This is basically to protect PayPal in case customers have concerned for any reason. If

Check on the next article on how to protect your business from PayPal Payment hold. We will give you more information on different situations and on how the hold or reserve will be lifted within a few days.

Check also the "21-Day Fixed PayPal Payment Hold with Paltrack" to give you wider information on how to start getting trust with PayPal