Why Are PayPal Payments Pending? How to Resolve It?

This article will examine the question, ‘Why are PayPal Payments Pending?' ‘How do you fix Pending Payment?' and ‘How do you cancel Pending Payment?' So, let’s start with finding and solving the issue of PayPal Pending Payment.

Why Are PayPal Payments Pending?

A PayPal Pending Payment indicates that the payment is pending and is incomplete. The money has been deducted from the buyer's account and transferred to the seller's account but has yet to be deposited into the seller's account. 

In this stage, the payment is held by PayPal for specific reasons, which can be deducted from the buyer’s account, but the seller cannot access the account. PayPal holds the payment for security purposes on both the buyer's and seller's sides. 

As PayPal money holds can disrupt your cash flow, having an efficient system for monitoring sales, fees, and refunds is essential. It not only helps in reconciliation but also in maintaining financial stability. 

Once payment is processed, you can implement effective solutions, such as linking your PayPal account with an automated bookkeeping application like PayTraQer. With PayTraQer, you can sync all your transactions from PayPal to accounting software like QuickBooks and Xero. By considering such alternatives, you can protect your financial health and ensure the smooth operation of your business.

Understanding this Payment Pending PayPal is crucial, so we’ll see in detail the reasons for PayPal Payment Pending and how to fix this issue.

Reasons for PayPal Payments Pending

Here are some reasons why PayPal Pending Payments are present

1. Technical Issues

• PayPal may hold on or keep the payment pending due to technical issues like System Maintenance or updates, Server Overload, or Software Bugs. Occasionally, PayPal may encounter this kind of situation; if it occurs, the payment might be pending. During this situation, transaction processing could be slow and kept pending payment. 

2. Disputes or Claims

• When the buyer initiates a dispute or claim, the payment will be kept on hold, and the payment will released once the issue is solved and sorted out. It could be not receiving the item at the buyer's side, receiving an entirely different item, or an unauthorized transaction. 

• In this, the buyer will file a dispute or claim against the seller and PayPal, but first, the claim will be dealt with by the seller and the buyer with direct communication. If the issue still needs to be sorted out, PayPal directly assesses and solves the problem.

3. Payment Review

• If PayPal holds the Payment for review, it takes a careful review of the transaction to ensure your account or transaction follows all the policies and regulations. 

• These can include unusual activity, large payment amounts, or a change in the selling pattern. PayPal analyzes and reviews the transaction details and checks the account history of the buyers and the sellers to process and release the transaction.

4. Seller Account Issues

• PayPal holds the transaction process if the seller violates the agreement or the policies between them. The violation might include fraud activities, selling prohibited items, and riskiness in the transaction. 

• When the seller account faces this type of suspension or limitation, PayPal holds the payment and releases it after many examinations.

5. Unclaimed Payments

• When a buyer pays using an email address or phone number in PayPal, it checks that the details are connected or linked to the existing or verified payment account. 

• The payment remains pending unless the email address or phone number is linked to the verified PayPal account. That is the amount taken from the buyer’s account but not sent to the sender's account.

• PayPal verifies the details and processes the payment if everything is in order; if not, returns the payment to the buyer's account within 30 days.

6. New Seller Account

• If the seller uses a new account or has been inactive for many days, and after that, when you make a sale, PayPal holds the payment initially to build trust in the transaction. 

• During this time, the seller will understand PayPal’s policy and agreement terms.

• It might also happen when there is a change in selling patterns, such as an unexpected increase in the sales volume. PayPal might hold Payment Pending.

How to Fix PayPal Pending Payment Issues?

You can fix the Pending PayPal Payment by knowing the issue that is addressed to it. There are several steps you can take to fix the problem. The solution primarily deals with the reason why the payment is pending. Here are the ways to fix PayPal Payment Pending.

• For UnClaimed Payments

If the payment is sent to an email address or phone number not linked to a PayPal account, it is necessary to set up or log in to a PayPal account and claim the payment using that email or phone number. This way, you can fix the Unclaimed Payments and resolve the payment pending PayPal situation.

• New Sellers

If you are a new seller or haven’t sold for a while, the payment will be pending for a security measure, and usually, the new transaction will be released within 21 days if there are no issues with the transaction. The problem will be automatically fixed as it is the initial period of the transaction. PayPal will hold on and release it when it gains trust in the seller account.

• Payments under Review

If PayPal is reviewing the transaction, it will take 3 to 4 days to process the transactions, and when the review is over, the Pending Payment will be released by PayPal.

• Resolving Disputes or Claims

If PayPal Payment is pending due to some dispute or claim, try to solve the issue as soon as possible so that the payment will be released when the dispute or claim is solved.

How to Cancel a Pending Payment on PayPal?

To cancel a Pending Payment PayPal, your payment still needs to be claimed or released for some reason. So, in this case, you should cancel the Pending Payment on PayPal. Here’s a straightforward guide on how to cancel PayPal Payment Pending.

• Log in to your PayPal account and go to the ‘Activity’ section. 

• In the PayPal app, tap on ‘Wallet’ to go to the ‘Activity’ section and follow the same procedures as the browser to cancel in the app.

• You can cancel the pending payments if you have ‘Unclaimed’ or ‘Cancel’ status next to the payment.

• In the Activity section, Click on the Payment you want to cancel.

• Click on ‘Cancel’ and follow the onscreen instructions to cancel the payment.

After Canceling, the amount will be returned to the PayPal account or the original payment method and reflected in the bank account within a few days.

Conclusion

PayPal Payments can be pending for several reasons, such as technical issues, disputes or claims, payment reviews, seller account limitations, or the payment being sent to an unclaimed account. To resolve these, you may need to wait for technical issues, address disputes, verify account details, or simply be patient while PayPal reviews the transaction. Maintaining consistency and transparency is best for new sellers or those with unusual selling patterns. If a payment is unclaimed, the recipient needs to claim it by linking their account, and the sender may have the option to cancel it. With this, we'll comprehend why PayPal Payment is Pending and how to resolve it.

If you want to know more on how to verify PayPal, Read - How to Verify a PayPal Account?

FAQs

Why Are PayPal Payments Pending?

PayPal payments can be pending due to technical issues, such as system maintenance or server overload, buyer disputes or claims, and payment reviews for unusual activity. Seller account issues, such as policy violations and unclaimed payments not linked to a verified account, can cause delays.

How can I accept a pending PayPal payment?

To accept a pending payment, ensure your email address or phone number is linked and verified with your PayPal account. If you're a new seller, you may need to wait for PayPal's standard review period (typically 21 days) unless you provide shipment tracking details to expedite the process.

How do you cancel a pending PayPal payment?

You can cancel a pending payment if it’s unclaimed. Go to your 'Activity' on PayPal, find the payment, and click 'Cancel' if available. This option is typically present for payments sent to unverified email addresses or phone numbers.

What if my PayPal payment is pending due to a dispute or claim?

Suppose there's a dispute or claim, work towards resolving the issue with the buyer. PayPal will release the funds accordingly once the dispute is resolved.

Can I cancel a PayPal payment if it's under review?

The sender cannot cancel payments under review by PayPal for policy compliance. These reviews are typically completed within 24-48 hours, after which PayPal will either release or cancel the payment based on their findings.

Why are payments to my new seller account on PayPal pending?

For new or dormant seller accounts, PayPal holds payments as a security measure to build trust. Provided the transactions have no issues, PayPal typically releases these funds within 21 days.