I found this on another forum, it's not something I was aware of but apparently PP/eBay have impletmented some new rules which mean payments can be witheld until the buyer leaves +ve feedback.

https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/securitycenter/sell/SaferPayments-outside&

What is a payment hold for an eBay item?

It’s when PayPal temporarily holds a payment you receive for an item you sold on eBay. The amounts held will appear as Pending in your PayPal account until we release the funds. You still have access to all other funds in your PayPal account.

When will PayPal release the payment hold for an eBay item?

Your funds will be released after 21 days. We may release funds earlier when one of the following occurs:

* The buyer leaves you positive feedback on eBay

* 3 days pass after we confirm the item was delivered*

If you receive a dispute, claim, chargeback, or reversal on the transaction subject to the eBay item hold, we may hold the payment until the problem is resolved, even if the claim, chargeback, or reversal occurs after the hold is released.

Why would PayPal hold one of my payments?

To increase marketplace safety, we may hold payments that seem risky. Here are some common reasons for holding payments:

* You have been an eBay member for less than 6 months, and you sell an item for more than $100, or

* You have an eBay feedback score of less than 100, and you sell an item for more than $100, or

* You have a Buyer dissatisfaction percentage** 5% or greater than 5%, or

* You have an average Detailed Seller Rating (DSR) of less than 4.5, or

* You have received fewer than 20 Detailed Seller Ratings in the last 12 months, or

* You are listing your item in a high-risk category such as gift certificates, video games, cell phones, computers or consumer electronics.

PayPal doesn’t hold payments for eBay items if you meet the following:

* You have been an eBay member for 6-months or more, and

* Your total Feedback score is 100 or greater, and

* Your Buyer dissatisfaction percentage** is less than 5%.

Or

* Your average DSR is 4.5 or greater and

* Your have received 20 or more DSRs in the last 12-months

* Your buyer dissatisfaction percentage is less than 5%

How can I avoid receiving an eBay item hold?

Here are some things you can do:

* Improve your DSR feedback rating

* Follow the PayPal best practices to reduce buyer disputes, claims and chargebacks

* Resolve all disputes, claims, and chargebacks quickly

I’m a new seller. Will payments I receive be held?

If you are a seller with an eBay feedback score lower than 100, but you have a record of good performance, you’ll receive payments instantly in most cases.

SIMPLE WAY TO GET AROUND PAYMENT HOLDING AND HOW RELEASE YOUR FUNDS INSTANTLY.

Over the last few months, paypal has started holding payments until a positive feedback has been left, or you wait 21 days, which ever arrives 1st. Now this is completely detremental to small sellers who rely on buyers payments to purchase in more stock and ship items. The smaller sellers rely on the payments to clear fast to be able to get more stock to sell, which is near impossible now these restrictions have come in.

Well there is a way around that, if you dont want to wait. And why should you have to? it is your money after all!

HERES HOW TO RELEASE HELD PAYMENTS.

Log in to your PayPal account.

Log in to your paypal account through the proper paypal url, always type in the url yourself.

Click the History sub-tab.

This will take you to all payments recieved within the last 30 days.

Find the payment on hold you want to release.

Thisn will be in your payments history, locate the payment on hold you want to release.

Click Details to open the Transaction Details page.

Ok, so you have found the transaction on hold you want to release and be able to withdraw

Click the Refund Payment link.

Don't panic, your not refunding them the item cost, though you will need to make a small nominal payment, something around £0.10 - £0.25p. Include a short message to the buyer saying its a gesture of good will for their custom. (This also encourages the buyer to use you again in the future)

Enter the refund amount and click Submit.

As stated just above, it only needs to be a tiny amount.

Confirm the refund amount and click Submit

Hey Presto. When you return to the Account summary page your payment that was on hold has now been released and you can use it to pay for items or withdraw as normal.

I hope that this has been of help, this worked perfectly for me without any problem and it was added to my account there and then and I transfered it to my bank account but many others are now learning how to take control of THEIR money again.

Sometimes, these big know nothing companies think they can play god with peoples money, well enough is enough

Hope this helps,

Very interesting as i had payment 'onhold' couple of weeks ago until buyer left feedback.

Can't see it working for long tho.

Yep , this will get closed fairly quickly , but if it works now it could come in handy.

They did it to me a few weeks back when i sold a playstation 2, its frustrating because while the money is in paypal it isn't technically yours. So youre relying on someone leaving you feedback so you can get to your own money. Really really bad idea.

It's a good idea to release a significant sum of money, but I never like the idea of having to pay someone else to get hold of what is actually mine.

Good tip thanks, but thankfully I've not been in this scenario yet.