Paypal withholding funds

Got a question here. Since my seller rating took a big hit this past month, it looks like some of
my sales that people pay me via paypal is getting withheld or put into a "pending" section for about 21 days.

Does the buyer know that his/her money is not getting released me to until 21 days later. In other words, do they know somehow by seeing my ebay seller info/rating that all payments sent to me via paypal is getting withheld and pending for 21 days or is it never made known to them?

It seems a little risky because if the buyer knows that the money they just paid has not actually gotten to me but is being held by paypal for 21 day to wait until everything is clear, the buyer could just report a problem and paypal could probably just release that money back to the buyer since it was never in my account yet.

I don't believe it's known by them.

In all means try to stop selling until it wears off so you can get back to your process with whatever penalty lifted.

It's suggested you read whatever emails you got sent so you can avoid this in the future because they are watching limited accounts closely... I don't want to see your account getting stuck in something unnecessary so just fix whatever problem got you into that situation.

Buyers don't get notified unless they file a dispute in most cases unless you're flagged something severe or the product you sold was illegal (just to add detail.)

oatmeal said:

Does the buyer know that his/her money is not getting released me to until 21 days later. In other words, do they know somehow by seeing my ebay seller info/rating that all payments sent to me via paypal is getting withheld and pending for 21 days or is it never made known to them?

Click to expand...

no

oatmeal said:

It seems a little risky because if the buyer knows that the money they just paid has not actually gotten to me but is being held by paypal for 21 day to wait until everything is clear, the buyer could just report a problem and paypal could probably just release that money back to the buyer since it was never in my account yet.

Click to expand...

There's nothing stopping the buyer from doing this at any time and having paypal pull your funds anyways.