Not upheld: held funds / payment processing / risk-based account restrictions complaint against eBay Commerce UK Ltd

Decision detail

Summary

Mr H sold items on eBay marketplace and Commerce blocked his payouts for 190 days, citing increased risk. Mr H had positive selling history and feedback, and could prove delivery, but could not provide invoices as proof of ownership for private sales. Commerce requested proof of ownership and offered an appeal process. Mr H complained that the hold was disproportionate, caused significant financial hardship, and constituted bad faith tactics, particularly after a family member's account was also blocked. The ombudsman found the 190-day hold reasonable compared to industry chargeback standards and that Commerce was entitled to request proof of ownership, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr H agreed to Commerce's terms which permit holds when there is increased risk. Commerce was entitled to request proof of ownership, and a bank statement alone is insufficient to prove what was purchased or whether items were Mr H's to sell. A 190-day hold is not disproportionate compared to industry standard chargeback windows of 120-180 days, as it protects both Commerce and Mr H against potential future claims. Delivery and positive feedback do not eliminate the risk of future claims being raised. While the hold caused Mr H financial hardship, this flows from Commerce's reasonable decision rather than a mistake by Commerce.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website