Chargebacks and Payment holds are the commonest problems associated with financial transactions over eBay. In most cases, it brings confusion between those who are selling on eBay, PayPal as a payment processor, and eBay. A Chargeback problem occur when there is a reversal in credit card payments made by a buyer. It occurs when there is a complaint filed by the credit card company which in turn reverses all payments that were made during the transaction. Payment holds problems arises when PayPal freezes a part of your account balance and prevents you from having access to the payment you received in your account.
You should expect a chargeback or payment hold problem while selling on eBay especially if you are a new comer, or just opening a PayPal account. In this case you have no track record for PayPal or eBay and this means you will need more time in clearing payment transactions. This problem naturally eases off when you start to build a successful trading history on eBay.
Buyers who pay through PayPal qualify for their buyer protection policy. An unsatisfied buyer can contact PayPal to hold payments if he or she does not like the item bought. In some rare cases, the problems of payment holds and chargebacks may occur when PayPal temporary freezes an account on the suspicion of illegal payment transactions.
The most successful way to handle payment hold or chargeback problems due to unsatisfied buyer is to respond immediately. You need to log in to your PayPal account immediately after you receive the dispute message and make sure that you provide details like the item condition and terms of sale, the shipment date and method, and your assertion that the transaction was entered into and carried out in good faith. You also need to stay alert for further communication from PayPal as regards the problem, and report to PayPal any contact information from the buyer. Ensure that you notify PayPal as regard any comment or actions which the buyer makes. This may help you in resolving the issue. It is very ideal to ensure that you are making a deal with a real person while selling on eBay, this will protect you from future payment problems such as Payment Holds and Chargebacks.
Another reason for temporary holding of your PayPal account is protection of your account from suspected fraud. If for example, you have a PayPal debit card which debits funds directly from your PayPal account and there is suspicion of fraud for your debit card, PayPal will deactivate your card temporarily. You have to contact PayPal debit card department immediately to correct this issue and to regain access to your funds.
The bottom line, Payment holds can happen to every one who is selling on eBay and using PayPal, but they can be reversed immediately if the correct action is taken immediately. Before starting on eBay, you need to learn Selling on eBay safely, effectively and professionally.