In April 2008, eBay and Paypal (which in 2002 became a wholly-owned subsidiary of eBay) began to hold buyer payments from sellers in order to implement a 21-hold policy on funds. This hold was also placed for sales where it is clearly stated in the auction listings that (especially for custom and made-to-order items) shipping is within a certain (but not immediate) time frame.
Not only are sellers, who state their selling parameters clearly within their listings, being penalized for not having "ship same day" items, but Paypal stands to profit from interest on funds that do not belong to them.
For at-home, small business owners, this unscrupulous practice by both eBay and Paypal (which are one in the same) is an economic hardship. Sellers are expected to ship items to buyers without, essentially, being paid for their items. The buyer has their items long before (up to 21 days) a seller receives payment. During this time, selling and store fees accrue by eBay and expect to be paid even when the seller's fees are tied up. If tied to a Paypal account, eBay will still initiate a withdrawal, which instead of coming from an available Paypal balance will now come from personal funds (checking account or credit card).
eBay has initiated "options" to avoid the holds, which, again for custom-work sellers, does not work. For others, it requires the purchase and printing of UPS and USPS labels and postage via the internet and personal printers to prove shipping, which is not only time consuming but expensive and environmentally wasteful.
Clearly, eBay and Paypal are preying on the small business owner to earn interest on funds that do not belong to them, in order to cover their own losses in an economic downturn.
If you are an eBay seller and have had your EARNED funds held by eBay and Paypal and did not receive them before you had to ship your merchandise to a buyer, please sign.
Because eBay and Paypal and subsidiaries, they can apparently make up their own rules that are not (and would not) be practiced between any other merchandise and banking venue.