marketplaces

Manage Risk with Holds

Important: PayPal for Marketplaces is a limited-release solution at this time. It is available to select partners for approved use cases. For more information, reach out to your PayPal account manager.

Marketplaces are closed loop networks held together by mutual trust. As the partner and/or marketplace operator, you have the responsibility to ensure the best customer experience for both customers and sellers. Holds provide a unique way of managing trust and safety because they allow you to hold and disburse funds on terms you set on a transaction-by-transaction basis.

Connected Path

Here’s how it works:

  • Decide whether to delay the disbursement of funds between your customers and sellers and set those specifications. For example, you might want a certain set of rules for new users to your platform and another set of rules for long-time customers and sellers.

  • When the conditions you specify are met, disburse the funds. We complete a final round of risk and compliance checks before settling funds to the seller.

With flexible holds and disbursements, you have the opportunity to manage your reputation on your platform, while PayPal’s overall risk management protects you from loss liability.

Managed Path

Here’s how it works:

  • Decide, on a transaction basis, if you’d like to delay the movement of funds between your customers and sellers. This could give you time to conduct additional vetting or enforce other marketplace-specific business logic.

  • Specify that you want to delay the disbursement of funds.

  • When conditions to release funds are met, disburse the funds.

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