View Full Version : PayPal reserve
4little1s
1st August 2008, 21:37
Hi,
Has anyone tried to negotiate with PayPal about the reserve they hold back at all ? Would be intersted to know and if it was based on any predictive transaction volume or something...
M
sysops
1st August 2008, 22:47
PayPal hold a reserve?
Christiane
1st August 2008, 22:51
Never heard of it either? Is this because you have never had a Paypal account?
4little1s
2nd August 2008, 07:12
Hi all,
PayPal Web Payments Pro conditions were that they would hold 5% of my total sale price in a reserve for 90 days.
i-Deal Web Marketing
2nd August 2008, 08:06
Yes i was told the same for Pay Pal web pro, they hold back 5%. This is just to cover yourself for any charge backs, which is a good idea really because you will always have the money there and will never fall short. I think they just keep 5% for everyone, i presume based on an average for chargebacks on internet transactions? I dont think it is based on predicted turnover as everyone i know has been told 5% and they have very differenet predicted turnovers. Nochex told me they hold back either 2 average transaction amounts ( predicted ) or 10%, whatever is higher and the balance has to reach the 2 ATA before you can withdraw anything. Not sure if this is just for the merhant account but i was more impressed with Pay Pal as you just have to keep in 5% and can withdraw when you want. Have you started using the Pay Pal Web Pro yet?
deniser
2nd August 2008, 09:01
That's a bit of a worrying figure isn't it? 5% seems very high. How many chargebacks are they expecting?
Christiane
2nd August 2008, 13:34
I tried website payment pro last year and was never asked for 5%. Maybe it depends on the type of business. I only used it for a couple of months and swiftly moved to protx/streamline.
OldWelshGuy
2nd August 2008, 14:33
That's a bit of a worrying figure isn't it? 5% seems very high. How many chargebacks are they expecting?
At a rough guess I would say 1:20 :D (sorry i couldn't resist LOL)
4little1s
2nd August 2008, 14:45
Yeah not sure how long I will stick with PayPal and have been looking around for other providers. Protex and WorldPay seem pretty good from what I have read....any thoughts anyone ?
Mark
www.4little1s.com (http://www.4little1s.com)