Do Merchant Accounts Nullify Funding Holds?

[odinnite]

In my (admittedly limited) experience, I've seen the ebay fund holding policy applied inconsistently to paypal but I've never had funds held on my merchant gateway (auth.net/evo payments) transactions. Is using the merchant gateway a way around the holds all together? It seems to good to be true but thats what I gathered from my chat with auth.net (pasted below). I'm going to speak with EVO tomorrow because its Sunday.

Has anyone had holds applied to direct credit card payments?


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You have been connected to ('Omar') 17:40
Omar: 17:40
Hello, thank you for contacting us via Chat today! My name is Omar, I'll be happy to help with that funding question, Mr. Giorgianni
PhilipG: 17:40
Thank you!
PhilipG: 17:41
It seems as though only paypal payments are held on ebay and credit cards never are
Omar: 17:41
Well, looking in to your account, it looks like your Merchant Account, where funds would be held, is managed by one of our partners, let me pull of those details and see who that is
PhilipG: 17:41
evo?
Omar: 17:42
That is correct!
Omar: 17:42
So let me explain how those two different payment options work for you and the customer
Omar: 17:43
If a customer pays you via PayPal, they are signing in to their paypal account and authorizing a purchase. The deposits will then usually go to your PayPal account. But should a customer pay using their credit or debit card, the payment is funded by Evo
PhilipG: 17:43
Right...I understand that.
PhilipG: 17:43
But ebay specifically has a hold policy where they hold funds from new sellers (less then 90 days old) until the merchandise is delivered
PhilipG: 17:44
Oh sorry youre still typing
Omar: 17:44
Thats a bit of a strange policy
Omar: 17:44
Since we are processing the funds for you as well, I do not believe they would be able to process such a hold
Omar: 17:45
Since authorizations can only be honored between 30 days, and funding happens through Evo.
PhilipG: 17:46
Well its to prevent fraud I understand why they do it; but are you saying once you guys capture the authorization, its already on its way to funding and its already passed the stage where ebay could put a hold
Omar: 17:47
You may want to contact Evo and ask if they would ever facilitate in such a hold, since they would know your funding agreement. But yes, once we capture funds and they settle that day, youre well on your way to being funded
PhilipG: 17:47
ok thats very interesting thank you
Omar: 17:47
Perfect, well as always, thank you for Choosing Authorize.net, Have a Great rest of your day!
PhilipG: 17:48
you too
'Omar' has left the session. 17:48
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[phaz0rz]

eBay doesn't have control over Auth.net like they do with PP, so there are no payment holds initiated by eBay when you're using a merchant account. The drawback is, unless you have stellar credit, you aren't going to get same or even next day payouts from your merchant account provider. All of our deposits hit our bank account 2 days after settlement.

Additionally most buyers will refuse to buy from you if you don't accept PP.

[rsot]

Originally Posted by odinnite

Is using the merchant gateway a way around the holds all together? It seems to good to be true but thats what I gathered from my chat with auth.net (pasted below). I'm going to speak with EVO tomorrow because its Sunday.

Why so worried about the hold period?