PayPal froze my payout 3 days before supplier payment, what now?

I chose PayPal over Stripe for its easier checkout integration, but then 14k in sales got locked for a 'routine review' that took 9 days to clear. Has anyone else had to juggle a frozen payout with a dropshipping order deadline?

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the_elizabeth1mo ago

Wait, have you thought about what happens if this happens again next month when you dont have time to wait 9 days? Thats the real trap with PayPal for dropshipping. The first freeze is a warning shot, they flag accounts with sudden sales spikes, and once you get flagged once, its way easier to get flagged again. You got lucky this time but your whole business is now sitting on a platform that can pull your money whenever they feel like it, with zero notice. I would set up a backup payment method right now, even if you keep PayPal as the main checkout. That way if they freeze you again, you can at least tell customers theres a delay instead of having to eat the supplier cost yourself. Also, look into moving some of your sales volume to a separate PayPal account or a different processor altogether, just to spread the risk around. The 14k cleared but you basically gambled your supplier relationship on a review process you have no control over. Thats not a sustainable way to run things, especially when margins on dropshipping are already thin. One more freeze could wipe you out.

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