Is it legal for PayPal to Hold Money?

Sending and receiving funds via PayPal is without doubt a very easy process. But there are cases where PayPal might have to put your money on hold. At times like this, many users might want to know if it is actually legal for PayPal to keep their payment pending.

After I have made a lot of research on how people actually are bothered with this same question asked in diverse ways. I have come up with some very simple and short-short answers.

The legality of PayPal keeping your payment on hold is something that needs some bit of clear explanation as to why this might be so in some cases. However, technically speaking, PayPal has the right to delay your PayPal. But if you want to know how to how to create a PayPal account in banned countries, below is a detailed article to do that.

Read Also: How To Create A PayPal Account In Banned Countries

First Of:

Is it legal for PayPal to Hold Money?

Yes. It is legal for PayPal to actually put your payment on hold for quite a number of reasons in some very special cases. Some of these reasons have are what I have actually discussed in my previous posts.

However, someone else might want to argue with this fact, and the truth is, you might also be right. No person or firm has the right to hold on to your fund without your approval.

That being said, it is also not an unusual act if PayPal places a hold on your money. This is what other merchants can do as well. Merchants can hold onto clients’ money for a while during a period of investigation. Fortunately, if this seems illegal to you, you have the right to report such a merchant to the relevant authority.

How to report Suspected PayPal Fraud to PayPal


Phishing is a way of illegally getting clients’ data and information by sending them emails claiming that it is from a well-known organization. To report such to PayPal,

  1. Forward such email to [email protected]
  2. Don’t change the subject or forward  the message as an attachment
  3. Delete such email from your box


Phishing emails often time ask you to click some kind of link that redirects you to a fake website that looks like or similar to such a well-known organization. To report such URLs.

  1. Just copy such URL from your browser
  2. Past it on your mailbox as new mail
  3. Send it to [email protected]


You could as well repost spam messages to PayPal by simply forwarding them to  ‘7726’

How long can PayPal hold my money?

21 days. Although is not a specific time that PayPal can place a hold on your fund. But the normal duration in which a successful order should be credited into the seller’s account is 21 days.  After this money has been held for 21 days, it will then be released into your PayPal account within the next period of 24 hours.

If this doesn’t happen, then you might need to contact the customer care service immediately to make a complaint. You can read this article to guide you on how to report disputes, claims, report chargebacks, or request for back reversal.

Is it legal for PayPal to hold funds for 180 days?

Yes. Cases arise when PayPal might have to put your money on hold for a period of 180 days. This is most times because this is how long the sender of the money in your account can file a dispute. There are some cases where this time can be reduced and before it can happen, you have to contact customer care.

Is PayPal holding funds illegal?

No. PayPal holding your fund is not illegal as the case may be. The whole system is just to ensure the tight security of your fund. There are cases where Paypal may have to keep your payment pending in other to get more information about the transaction. This can arise when multiple customers file a refund, dispute, or chargeback.

Summarily, it is never illegal for PayPal to hold your fund, it is simply a process to ensure transparency and security in transactions.

Does PayPal have the right to hold my money?

Of course, PayPal has the full right to hold your money from getting into your account. This has already been stated in their fund availability manual.

Similar cases and what should be done in these cases have been well stated in this article. How to Resolve PayPal Payment on hold

Does PayPal have a right to limit my account and hold my money?

Yes. PayPal has the right to limit your account if they noticed any fraudulent activity on the account such as receiving an unusual amount bigger than what you normally receive on some regular day, the possibility of unauthorized access to your PayPal account by someone else, etc.

How long can PayPal hold my money legally

21 days, 65 days, 180 days, 1 month, 6 months, forever. There is therefore no specific legal time for Paypal to hold your fund.

Can PayPal legally keep your money forever?

There have actually been cases where PayPal might not credit you with your fund forever. If PayPal notice that the transaction done through your account cannot truly be accounted for or after they have investigated the transition, they found it to go against their user agreement

PayPal might also hold your money for a period of 180 days, 6 months, or even forever depending on what the situation warrants.

Why does PayPal hold my money for so long?

The reason for the delay in your payment for any duration of time still boils down to the fact that the account is liable to some questionable activities which prompted the action of a Paypal security alert that automatically places a hold on the money.

How to get pending money from PayPal faster

Here is a video guide on how to manually get your pending PayPal money faster.


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