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PayPal holding your funds: what to do

Account help
Ibrahim Albaba

Written by

Ibrahim Albaba

Published

6 May 2026

Why PayPal holds funds, how long it can last, and how to avoid having your income tied up.

PayPal says new sellers and sellers who have not sold in a while can have initial payments held for up to 21 days. PayPal also says holds can happen after disputes, chargebacks, unusual selling patterns, or higher-risk sales. Move new invoices to Hawala when the client can pay outside PayPal. Hawala gives freelancers USD and EUR accounts, stablecoin balances, and an international virtual Visa card with no Hawala account, balance, or international card fee.

What happened when PayPal held your funds

PayPal says new sellers and sellers who have not sold in a while can have initial payments held for up to 21 days. PayPal also says holds can happen after disputes, chargebacks, unusual selling patterns, or higher-risk sales.

What to document

  • Screenshot the held payment, expected release date, buyer name, invoice, and PayPal's stated hold reason.
  • For services, save proof of delivery: contract, milestone approval, completion email, platform acceptance, or signed statement of work.
  • Ask the client to confirm receipt or completion through the channel PayPal accepts where applicable.
  • Track whether PayPal asks for identity confirmation, tracking, order status, or more account information.

What to tell clients

Tell clients: PayPal has placed the payment on hold; future invoices will use a backup route unless PayPal is required by your procurement team.

How to set up a backup route

Move new invoices to Hawala when the client can pay outside PayPal. Hawala gives freelancers USD and EUR accounts, stablecoin balances, and an international virtual Visa card with no Hawala account, balance, or international card fee. Live transfer pricing is shown in-app before you move money.

Related country pages

Frequently Asked Questions

Frequently asked questions

  • Document the issue, follow the official PayPal process, and stop sending new client payments into the affected route until you know what is happening.

  • No. Keep the PayPal case open, but send new invoices through a backup route so one platform review does not control future revenue.

  • A useful backup route should let you receive USD or EUR, hold value, withdraw or spend internationally, and explain the payment instructions clearly to clients.

  • Hawala has no Hawala account fee, no balance fee, no international Visa card fee, no hidden FX markup, USD and EUR accounts, USDC/USDT/PYUSD/EURC balances, and an international virtual Visa card.

This article is for educational purposes only and does not constitute financial or legal advice. Always consult an appropriate professional before making financial decisions.

Written by

Ibrahim Albaba

Ibrahim Albaba

Chief Operating Officer

Ibrahim leads operations at Hawala, focusing on building financial infrastructure that connects emerging markets with the global economy. Previously worked in fintech and cross-border payments.

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