Why eBay Sellers Need Money in Their PayPal Accounts

When eBay transactions are complete and the seller verifies merchandise has been received to the buyer’s home, then natural step in the transaction process is for the seller to deposit or spend money received from the buyer. This is not only is a bad idea, but can be detrimental for the seller’s personal finances.

Sellers are required to have their PayPal Accounts linked to their bank accounts. Just as buyers with insufficient PayPal balances have their funds withdrawn from their bank account to pay for an item, sellers with insufficient funding can have money withdrawn from their accounts. So why is this important? eBay sellers, especially those who accept PayPal, need to be aware of their buyer protection policies.

Even if clearly started on a seller’s listing as “no refunds”, “all items sold as-is”, or “all sales final”, with PayPal these statements are void. Buyers do have the right to return a purchase if filing a claim with PayPal. The buyer is instructed to return the item and show proof of tracking number on the buyer’s claim form. After processing, if PayPal sees that the item has been successfully delivered to the seller’s address the refund process begins. PayPal will refund the buyer for that transaction.

So, what does this mean to you as a seller? This means that all sellers should leave a balance in their PayPal accounts at all times. Not every buyer is going to return his/her purchase, but having some available money in a seller’s PayPal account will eliminate the need for personal banking errors. Remember, all seller PayPal accounts must be linked to bank accounts. If a seller has no money in his /her PayPal account as an available balance, the money will be taken out of the seller’s bank account.

As previously stated, money from all sales do not need to be left sitting in a PayPal account, but there is a good way to determine how much money should remain. Sellers should average all buyer transactions during a 30-day period. Since most sellers display similar items, the item’s prices should be consistent and fairly close. This average amount is a good amount of money to keep in the PayPal account. However, if a seller is seeking extra protection, double that amount. For example, if the average purchase per buyer is in the $10 range, some sellers may wish to keep $20 in their accounts.

Monitor all transactions and daily balances carefully. To ensure accurate personal banking, always maintain the designated PayPal account balance chosen and should a return ever occur, replace the balance when necessary. This will not only help the seller be prepared for the unexpected but can also help sellers keep their checking and/or savings accounts from facing unexpected withdrawals.

If accepting PayPal be aware of all buyer protection policies and if their is a disagreement with the return policies; file an appeal. PayPal does allow for sellers to appeal, but before proceeding, make sure the item’s description and photographs were 100% accurate so there will be no room for any flaws or inaccuracies.