If you are an online merchant, you already know the pain of PayPal payment holds, disputes, lack of seller protection, and sometimes even losing money. To deal with this, many merchants end up rotating their PayPal accounts when order volume increases. Frustrated sellers often switch to alternative payment gateways such as Stripe or Authorize.net.
Top Reasons Why PayPal Puts Your Money on Hold
There are several reasons PayPal may place payments on hold. Below are some of the most common ones:
- New or unverified accounts: If your PayPal account is new or not fully verified for selling products, payments may be held. Once your account is verified and builds a history, PayPal will start releasing funds faster.
- Sudden increase in order volume: When your store receives a high number of orders, PayPal may be unable to mark all transactions as safe.
- Customer disputes: Customers may open disputes if they haven’t received their product, tracking information, or order updates.
- Poor delivery history: Past records of unsuccessful deliveries or failure to keep customers informed about order status can also result in holds.
Why Order Tracking Information Matters
In most cases, when a customer opens a dispute, PayPal puts the payment on hold because PayPal prioritizes customer protection. This often happens when the merchant does not provide order tracking information and the customer has no visibility into their order.
When you provide tracking details:
- Customers can track their shipment themselves.
- They are more likely to wait for delivery instead of opening a dispute.
- PayPal considers the transaction safer when valid tracking information is available.
Benefits of Adding Order Tracking to PayPal
By sending order tracking information to PayPal, you ensure that:
- Customers are informed about shipping and delivery.
- Transactions appear valid and legitimate.
- You qualify for PayPal Seller Protection by shipping to the PayPal address, providing tracking details, and shipping on time.
Manual Tracking vs Automation
Once merchants understand the importance of adding tracking information to PayPal, many start doing it manually. This works fine at low order volumes, but as your sales grow, it becomes time-consuming. You may even need a dedicated person to:
- Check PayPal transactions
- Match them with store orders
- Manually add tracking information
This is where automation becomes essential.
Most eCommerce platforms now offer solutions to automate this process. In this article, we’ll look at how to automatically sync order tracking information to PayPal when a shipment is created in Magento 2, Shopify, and WooCommerce.
1. Sync Order Tracking Information to PayPal in Magento 2
The Magento 2 Auto Add PayPal Tracking Info extension helps merchants automatically send order tracking information to PayPal.
Key Features:
- Sends shipping tracking details to PayPal upon shipment creation
- Automatically links PayPal transactions with Magento 2 orders
- Prevents payment holds due to missing tracking information
- Automatically activates after installation
2. Sync Order Tracking Information to PayPal in Shopify
TrackiPal PayPal for Shopify helps Shopify merchants automatically sync order tracking details with PayPal in autopilot mode.
Key Features:
- Syncs PayPal orders and helps reduce payment holds
- Builds trust and speeds up fund releases
- Allows merchants to monitor PayPal sync status through a dashboard
3. Sync Order Tracking Information to PayPal in WooCommerce
The PayPal Shipment Tracking for WooCommerce plugin allows merchants to automatically push tracking information to PayPal.
Key Features:
- Keeps WooCommerce customers informed about their orders
- Helps release PayPal payment holds faster
- Compatible with top shipping providers
Final Thoughts
Automatically syncing order tracking information to PayPal is a simple but powerful way to reduce payment holds and disputes. Instead of relying on manual updates, automation ensures PayPal and your customers stay informed at every step. No matter which eCommerce platform you use, this hands-free approach helps protect your funds and lets you focus on scaling your business.
