Welcome Changes Coming to PayPal Hold Process

Good News from PayPal

PayPal is very active in watching for and preventing fraud on its site. Once while out shopping my card stopped working (!) and when I stepped outside and called PayPal they explained that when they saw all this unusual activity on my debit card they were concerned I was a victim of theft.  I was happy to see that they were on the ball. If my FIL’s credit card company had been so alert he wouldn’t be facing the issues he is now with identity theft!

The other side of the PayPal fraud watch is money coming into their system. Accounts with possible fraudulent activity are frozen, typically for 21 days to allow an investigation, although the holds can be extended if PayPal finds a problem. This allows protection from many of the popular fraud techniques of tricking honest folks into being used as a laundry for bad money or worse.

The down side of these aggressive fraud filters is that they sometimes catch the good guys. PayPal has noticed this and recently announced some major changes coming to their fraud protection and account hold procedures. While they are not stating exactly what the new procedures will be (because if they did the fraudsters would more easily find ways around them!) the PayPal senior director of communication, Anuj Nayar, states, “These are not minor – these are aggressive changes. This is a fundamental shift in our business operations.” Nayar said he can’t go into specifics about what will change, but transparency is a major focus. “We want to be clear about how people can get out of the [frozen funds] situation,” he said. “We need to get better about helping people, or explaining why actions are being taken.”

Great news for PayPal merchants. While PayPal will continue to do their best to fight fraud and protect their users, they are committed to finding ways to do this without causing undue hardship to the good guys.

About our Guest Blogger
This guest post is by Kat Simpson. Kat is a trusted eCommerce author, speaker, educator, and entrepreneur. Kat Simpson has been a successful eCommerce merchant for over 10 years; is an eBay Education Specialist and Gold Level PowerSeller, as well as a successful Amazon merchant. Currently Kat is the hosts the popular weekly eCommerce Podcast That Kat Radio.

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