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6 Reasons Why PayPal Hold Money And The Possible Solutions

Reasons why PayPal hold money

If you have been searching for the reasons why PayPal hold money for 24 hours, 7 days, or even 21 days, then we have prepared this guide just for you.

PayPal is know to be the largest payment platform that makes sending and receiving money easier for individuals, seller and buyers. A lot of people have found PayPal account as basic requirements for running their business successfully.

However, one needs to be very careful while handling payment with PayPal as they have 100% control over the transaction and might subject any of your payment to verification at any point in time.

Today, I will be revealing the full list of possible Reasons Why PayPal hold money and not the reasons alone, I will be giving you the detailed instructions on how to release the funds under 24 hours.

Why Does PayPal Hold Money

Below are the 6 genuine reason that will make PayPal hold any incoming funds to your account or put it on pending instead of the money adding to your balance.

1. You’re A New Seller

This is the reason behind the most PayPal held payment issue. I you’re new to selling, you will need to build trust and buyer-seller credibility before you can be using your PayPal account for business transaction.

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2. The Sender PayPal Is Unverified

PayPal take security as their first priority in order to protect their users from frauds and also create friendly experience for their customers.

I outlined this in our previous guide bon how to avoid PayPal account limitation, if you’re to receive payment from anyone, make sure that the account is verified by having either a bank account or credit card linked to it.

3. You Have Not Sold Anything For A While

As I have mentioned in the first reason why PayPal hold funds, it’s not only new seller that can face this issue, if you are an existing seller that have built some trust already, but due to one or two reasons, you haven’t sold anything for a while, you will have to start afresh and all payments you received from buyers will be subjected to verification.

PayPal believe that many things might have happened during the times you used offline and will have to be sure if you’re still the same person or you have really changed.

4. The Sender Transaction Is Suspicious

This happens when someone send you money immediately they received it in their own PayPal account. In this case, PayPal will want to be sure if the person surely send you the money or something happened to the Sender Account.

This is classified as security checks and PayPal will hold the money for only 24 hours, once the person confirm he or she really send the money, the payment will be released. And as well, if not action is taken for 24 hours the money will be released for you without any interaction.

5. You Have Not Verify Your PayPal Account

If you are receiving the funds with a newly created PayPal account, then their is 100% assurance that the payment will be on hold unless it’s lesser than $100.

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This reason vis very critical and might cost you your account and the funds at the same time, this is why I do strongly recommend you to verify your PayPal account before you send any amount greater than $100 to it.

6. The Sender Operates A UK Account

This reason is applicable to people from Nigeria and using the Lesotho PayPal account.

If you are to receive payment with your Lesotho PayPal account, them make sure the sender isn’t using a UK Account.

How To Avoid PayPal Holding Money

Now that you have know the reasons why PayPal hold funds, the next thing is to know how you can avoid this issue.

We have gathered some key points that will help you in avoiding PayPal from holding your money.

#Verify Your PayPal Account Before Huge Transaction

If you should receive money with your PayPal account, make sure you verify the account by linking either your bank account to it or bank card. Better still, you can make sure not to send or receive money that is greater than $100, pending the time you will verify your PayPal account.

#Always Make Sure The Sender Account Is Verified

When you verify your account, make sure you’re receiving the funds from a verify account as well and this will limit the risk if PayPal holding your money.

#Send/Received Money Using Family And Friends Option

If you want to receive money from someone, tell the person to use family and friends option while sending the money, all the payment made with this option will not be subjected to any means of verification and this completely removed the risk of seeing your funds on hold.

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#Make Sure The Sender Account Isn’t Under PayPal Watch

This happens when the sender have recently perform a suspicious transaction such as, sending money out immediately he or she received the money, he/she received the money from a suspicious source and likes, this will prompt PayPal to subject the account to internal verification and receiving money from such account at that moment is one of the main reasons why PayPal hold money.

#Build Trust As A Seller

The major reason we highlighted the beginning of this guide is being a new seller and the only way to get ride of this is to build your reputation and become a trusted seller.

This involved carrying out a successful buying and selling activities for 6 to 12 months and get positive feedback from customers.

Why Is My PayPal Money Pending

The reasons why payment is on hold is the same reasons that might let your PayPal money be pending or even unavailable.

Just read through the guide carefully to see what causes it, how to avoid it and the possible solutions if eventually you wake up one day to see your payment on hold.

How To Release Your PayPal Money If Held

Now that you have know the reasons why PayPal hold your money and the best practices to avoid the issue, the best thing is to know how you can get this issue resolved if eventually your money get held by PayPal.

You shouldn’t wait until you ran into a problem before sourcing for solution as anything can happen at any point in time.

On this note, we have prepared a detailed guide for you on how to release a PayPal funds that is on hold, click on the highlighted text to read the detailed step by step guide.

Conclusion: The reason why PayPal hold money and how to avoid it with possible solutions has been discussed in full in this guide and if your follow all the instructions provided in the guide, you shouldn’t have any issue sending and receiving money with your PayPal account.

However, if after you read this guide, you need some questions that are yet to be answered or any of the Instructions isn’t fully clear to you, simply drop a comment in the comments section below and you will get the appropriate response as soon as possible.



  1. You said we should not receive money from UK, does it mean that this PayPal account is not eligible to accept money from foreign clients?

  2. My PayPal account has been blocked because I used Nigerian address for UAE PayPal. Please how do I release my account.


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