Stop the unscrupulous holding of Paypal funds for eBay sales
  • Petitioned Scott Thomson, PayPal President

This petition was delivered to:

PayPal, Inc.
Scott Thomson, PayPal President
eBay, Inc.
John Donahoe, eBay CEO

Stop the unscrupulous holding of Paypal funds for eBay sales

    1. Shannyn Snyder
    2. Petition by

      Shannyn Snyder

      Manassas, VA

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.

Recent signatures

    News

    1. Reached 500 signatures
    2. In the News!

      Shannyn Snyder
      Petition Organizer

      Thanks, supporter Lisa H., for sending this news link: http://tech.fortune.cnn.com/2012/02/24/ebays-got-a-paypal-problem/

    3. eBay's CEO makes almost $2M per year

      Shannyn Snyder
      Petition Organizer

      Between compensation and bonus, John Donahue makes nearly $2M per year, so why is his company holding funds (mostly small, repetitive amounts or one-time sales figures) from small, mom-and-pop sellers? Please sign this petition and recruit others to ask why others should go without their paychecks when he has his.

    4. Reached 250 signatures
    5. Attorney Contact

      Shannyn Snyder
      Petition Organizer

      If interested in participating in the class action suit, please email attorney Vincent Francone for details vincent@freedweiss.com

    6. Class Action Suit Started

      Shannyn Snyder
      Petition Organizer

      One of our petition participants shared with me that a Class Action suit has been started http://www.auctionbytes.com/cab/abn/y10/m06/i08/s02 Stay tuned!

    7. Reached 100 signatures
    8. 97 Signatures Reached!

      Shannyn Snyder
      Petition Organizer

      Thank you for sharing my concern over this bad merchant practice!

    9. Reached 50 signatures

    Supporters

    Reasons for signing

    • Ben Mcnully HILLSBORO, OR
      • almost 2 years ago

      I need my money, or I'll lose my home.

      REPORT THIS COMMENT:
    • Alex Brooker CROPTHORNE, UNITED KINGDOM
      • almost 2 years ago

      Because they unfairly hold money when it's needed to pay rent, bills and most importantly to pay the actual postage of items sold!

      REPORT THIS COMMENT:
    • Marino Ozkaya SARASOTA, FL
      • almost 2 years ago

      Paypal continues to hold my funds simply because buyers refuse to leave feedback. I am tired of them illegally holding hundreds of dollars of my money for weeks on end.

      REPORT THIS COMMENT:
    • Keith Moore THORFARE, NJ
      • almost 2 years ago

      I sell items from time to time and when I need the money is usually when i do so. Having to wait almost a month to get the money after selling the item is ridiculous to me.

      REPORT THIS COMMENT:
    • miles benton CLAXTON, GA
      • almost 2 years ago

      This is totally against the law

      REPORT THIS COMMENT:

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