Best Practices For Shopify Merchants to STOP PayPal Hold – 2022 GUIDELINES

Best Practices For Shopify Merchants to STOP PayPal Hold

The lack of PayPal trust is one big factor why PayPal users encounter funds on hold. The majority of new sellers experience PayPal Holding Money for 21 days and this happens when there are problems with regard to their PayPal Orders.

We know that Payment holds are challenging to new sellers especially those operating within their margins simply because their money has been locked up by PayPal and whenever PayPal needs more details about your store activity, order transaction, or your business, it automatically puts your payments on hold.

Now, let’s learn the Best practices for Shopify Merchants to STOP PayPal Hold

Let’s Begin…
Shopify Merchants Must Do

#1 Submit Tracking Information to PayPal.

Merchants are required to submit tracking numbers on every order to PayPal. The presence of tracking numbers gives your customers an impression that the order transaction is valid and adding tracking information to your PayPal gives them an opportunity to access the status of their order shipment.

Manually adding tracking information is very crucial, time-consuming, and prone to human error. Like any thousand Shopify merchants that use an automated solution to facilitate back-end business operations. Paltrack is one of the trusted brands in automating the process of adding tracking information from the Shopify store to Paypal. Our Paltrack has been tested by thousands of Shopify users in meeting PayPal standards and helping them release their funds faster.

And, is it beneficial to understand what tracking information is and what it is used for?

Tracking details are unique numbers or letters assigned to your parcel purchased online, which help you and your customers keep track of the order shipment.

Further, the majority of customers mistreat Transaction ID as Tracking ID. To be clear, transaction IDs are also special digits that may include letters assigned to every transaction made by customers. Transaction ID helps business personnel identify what particular item they purchase or the type of service they avail of.

# 2  Print USPS or UPS Shipping Label.

You can access and be able to print a USPS or UPS shipping label directly to your PayPal account, by doing this PayPal will automatically update the order tracking information as well as the delivery confirmations.

As a rule of thumb, PayPal’s turn-around time in releasing your payment is one (1) day after confirmation of delivery.

#3 Never forget to update the status of Intangible items or services.

If you are selling intangible items or services, these are items that do not need tracking information like digital services/products ( Selling E-book for instance). It is important that you mark these transactions as processed in order for buyers to confirm.  PayPal will verify the transaction and your funds may be released sooner by 7 days after the buyer or the sender verifies the receipt of the transaction.

How Shopify Merchants can prevent future Paypal holds.

By establishing a good seller history, you can avoid further payment holds. Be sure to work with your customer resolution team to address any order concerns and avoid refunds, disputes, and chargeback. Also, use the customer service message to tell customers how to contact you or to notify them about shipping delays. You can provide your customer service phone number, email address, or support website in the message. Customers will see this information before they submit their dispute or claim.

As a Shopify merchant, how can you prevent delays on the pending PayPal Funds?

  1. Pay attention to email notifications from PayPal.
  2. Identify the reason why your funds were put on hold.
  3. Submit the required documents requested by PayPal ( Proof of Shipment, Tracking Number)
  4. Make sure to prevent possible customer refund requests, Disputes,s or even chargeback requests. By consistently doing the following.
  • Post Actual Photo of the Products you are selling.
  • Have a detailed Product Description.
  • Clear about your shipment and order handling time.
  • Process the orders promptly.
  • Pack the orders carefully with quality packing materials
  • Upload tracking number from PayPal-supported Carrier.
  • Clear about your Store Refund Policy.

How Paltrack Helps Shopify Merchants activate PayPal Seller’s Protection.

Adding an extra layer of protection to your store is very much beneficial in scaling your business and Paltrack offers you more than that, Paltrack helps Shopify Merchants unlock PayPal Seller Protection for each order resulting in freeing them from worrying about PayPal Hold Money.

For merchants that constantly provide proper documentation / Proof of Shipment, you will automatically be eligible for PayPal Seller Protection Program.

Reiterating some general terms, to refresh you on how to prevent PayPal Funds from Hold.

What is Proof of Shipment?

Online or physical documentation from a shipping company that includes all of the following:

  1. Date of Package Shipment.
  2. Customers’ or Recipients’ addresses include the Suburb, City and state, country, and Zip Code. The information on your shipping receipt must match the address on the Transaction Details page.
  3. Valid Transaction details that can track the status of Shipment

What is Proof of Delivery?

A physical record provided by a shipping company proving the recipients received the packages that include all of the following:

  1. Status of package delivery and date of delivery.
  2. The recipient’s name and address must match based on the specified Transaction Details page (including name, address, city, state, zip code, etc.)
  3. Signed confirmation on the package delivery.

After providing PayPal with correct tracking information and updating order transactions per order which allows your customers to track their shipment.

By keeping your customers informed most likely they will note file for disputes which means no room for any mistake for PayPal holding funds

Why does PayPal Hold funds?

  1. Your New to Selling  PayPal always checks the credibility and consistency of your business transactions.  Make sure to establish PayPal trust by keeping all your order transaction records updated and ready.
  2. Unusual Spike of your Business Selling Activities or store not made any sales. PayPal is cautious about its selling patterns.
  3. Your items are pre-selling or you are selling items and services in advance – PayPal flags those accounts that demand or collect funds before the availability of the items. This would be a credibility caution to merchants and affects the grading performance of our PayPal account.
  4. Many of your customers are filing for chargebacks, disputes, and refunds. Be sure to provide service satisfactory to every order of your customers as this will cause PayPal to hold your funds more often.
  5. Selling Risky Products and breaching the PayPal Users Agreement. Selling items such as Tickets, electronics, gift cards, and travel packages. These are common products that tag as High-risk products and are susceptible to being fake, damaged, or fraudulent. In case your account is tagged as violating the PayPal acceptable use policy. PayPal may not only hold your account temporarily, but can permanently limit your account, and a payment hold will be in place to protect users from fines, penalties, chargebacks, and any other liability associated with violating the user’s agreement


Applying these guidelines guarantees you’ll have access to your funds quickly.

Keep in mind that the Submission of Tracking information is a prerequisite of a Paypal in order that your orders will be covered by PayPal Seller Protection which allows you to operate your business confidently and frees you from worrying about PayPal payments on hold.

Share your thoughts? In your experience how long does PayPal hold your funds?

Reference: PayPal


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