Not upheld: payout hold / fund retention / account suspension complaint against eBay Commerce UK Ltd

Decision detail

Summary

Mr S, a long-standing eBay marketplace seller with 100% feedback, had his payouts suspended in August 2025 after Commerce requested proof of delivery, identity, address, and item ownership. After a delayed response process, Commerce imposed a 190-day payout hold starting December 2025, with funds to be released in June 2026. Mr S complained that this was unfair and disproportionate, particularly as some of his August 2025 sales would be held for seven to ten months. The ombudsman upheld Commerce's decision, finding the 190-day hold reasonable given industry standards for chargebacks (120 days) and other claims (up to 180 days), and noting that Commerce had identified legitimate security and regulatory risks in Mr S's selling pattern.

The Ombudsman's reasoning

The ombudsman found that Commerce's 190-day hold was reasonable because: (1) it aligns with industry standards for chargebacks (120 days) and other payment provider claims (up to 180 days); (2) Commerce identified legitimate security and regulatory risks in Mr S's selling pattern; (3) the hold protects both Commerce and Mr S by ensuring funds are available if claims arise; (4) the delay in Mr S responding to information requests and continued selling during the review contributed to the extended timeline; (5) Commerce cannot selectively release payments without creating risk exposure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website