How Long Does Paypal Hold Money(And Why)?

Exact Answer: Up to 21 Days

Paypal is a platform that is used by business owners, buyers, sellers to receive or collect their payments. They sell their goods and products through an online mode. As per the protocols of the company, PayPal sometimes put money on hold to avoid disputes.

These protocols are followed by the company to give business owners secure payments. Sometimes during the online sale service, temporary holding on funds take place. Apart from this, there are a couple of other reasons which put money on hold. It puts money on hold for twenty-one days.

How Long Does Paypal Hold Money

How Long Does Paypal Hold Money?

Paypal put your money on hold for 21 days by default. Sometimes, the number of days for holding money expedite due to the procedure. Holding your money does not mean that you have performed something wrong.

It is just to protect your bank account from any dispute. In the given period, settle down your issues related to the chargebacks. Apart from 21 days, sometimes PayPal holds your money for 24 hours and 180 days too.

The 24 hours holding process sort out after 30 minutes. If the authorities pass your request, it hardly takes 30 minutes to complete it. The major concern of Paypal is to secure your payments with the best security.

It is beneficial for both the consumers as well as for the consumer. It will satisfy both parties with the services. Holding on to funds happens just to ensure that there is enough money in your account to pay it.

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Usually, after 24 hours money is released into your account. If you don’t receive your money in the given period. Then you can get in touch with the customer care services regarding it.

To avoid payment holding follow the required steps. If you are about to receive large amounts then inform it before. Keep in constant touch with your buyer throughout the transaction procedure.

Don’t sell cheap and unsatisfied products to your customers. It will reduce your account’s credibility and affect your reputation. Make sure two keep these small details in your mind for better transactions.

ProcedureTime Duration
Holding of Money21 days
Released Money After 24 hours

Why Does Paypal Hold Money So Long?

There are several reasons due to which PayPal might hold your money. The main purpose to put money on hold is to make the platform more secure. Buyers and Sellers can easily trust the services of PayPal without any doubt.

Holding money does not warm to your account or harm your reputation. Risk management makes sure that the best services are given from their end to avoid mishappening. If you are not active on Paypal for a long time and then become active after a period.

There are chances that your money will be put on hold. It is just to ensure that there should not be any unwanted or suspicious activity. Have a smooth selling history. It will help in building your credibility as an established seller.

There is always a possibility of fraud which no one wants to face ever. Doing transactions from any different place or with an unusual amount. This activity might put your money on hold.

This is just to keep your money safe and aware other people of any fraud. Any unusual activity from your regular activity on Paypal will hold your payment status. If you are new to this platform and trying to sell things with extremely high values.

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This could also be one of the reasons to put your payment money on hold. Keep a balanced and constant selling pattern. All the necessary precautions are taken from the PayPal end for smooth transactions.

Thus, these are some of the causes which can put your payment on hold.


Paypal’s holding policy lasts only for 21 days for a long period. There is no need to worry about it. Don’t panic when you receive notifications regarding the holding of your money. Make sure that you have all the documents with you regarding the transaction.

But if your money gets extended holds, it may require legal action. If you are unable to resolve your issue, it is best to connect with Paypal customer service. They will lead you with the best possible solutions.



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Hi! I'm Nidhi.

Here at the EHL, it's all about delicious, easy recipes for casual entertaining. So come and join me at the beach, relax and enjoy the food.

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