Holding money from eBay sales is a new policy. Apparently, it applies to the first 25 transactions in a 12 month period. This has definitely put me off selling on eBay. What right do they have to hold money that rightfully belongs to me?
Also, they don't even release funds to cover shipping via CanadaPost so I have to print labels online and pay with my credit card then 24 hours later Paypal will refund me most of what I paid for shipping. Thing is, when I sell something on eBay, I get paid in US Funds (shipping is in Canadian dollars) so when they do refund me for shipping, it's done in USD and of course, they rip me off on the currency conversion).
Last transaction I did was within Canada so they were supposed to release my funds three days after the item was confirmed delivered. Of course they didn't, I had to e-mail them in order to get my money.
I really wish there was some other money transfer service I could use for online transactions. Paypal doesn't have any competition so that's why they feel like they can do whatever they want and get away with it.
Holding funds may not even be legal. I read somewhere that Paypal gets interest on all the funds they hold and we never get any portion of that.