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PayPal an Escrow service now?
 

I recently sold a few old bottles of rare cognac and after seven days, all of my payments were released. However, the buyer decided to purchase a few more bottles from me and that's when my problems began. PayPal contacted the buyer to confirm that he received bottles right before the second payment cleared and since he had not yet received them, my account was limited. I completed most of the steps to have the limitation removed and I received an email that stated that I would have to provide additional information to have it removed. I then contacted a rep at the merchant department which is where my account had been turned over to and the rep told me the money would be held until the buyer called them to let them know he received the goods. MY question is, is this their usual policy? It seems as if they're acting as an Escrow service. Has anyone ever had this happen before?

Re: PayPal an Escrow service now?
 

I don't think PayPal wants to become an escrow service, I think they most likely did this because of the dollar amount involved, along with what was being sold. Bottles can break during shipment, counterfeits of vintage liquors are beginning to flood the market and since the dollar value is high, they just want to make sure they are not left holding the bag if the deal goes south.

You didn't mention the dollar amount, but I am guessing it is fairly high.

PayPal is probably just protecting themselves from a buyer protection claim. Once the goods are delivered, you will probably be able to access the funds.