Paypal hold the money of a transaction for investigation

[handmadefun]

Hi, One of my item (260258863082) was purchased by a buyer 2 days ago, he paid instantly. Yesterday I received an email from Paypal saids they need to investigate this transaction.
Therefore, the money is on hold now. I haven't ship it yet.

Did anyone has this happen before? What do I need to do and how long will it usually takes for the investigation? Do I need to contact the buyer? I asked both ebay and paypal about this but they replied me with some formal answers... didn't help me to understand what is happening at all...

Thanks a lot for your help!

[recped]

Yes it happens.

The "investigation" will take an uknown length of time.

Yes, contact your buyer and let them know why you are not shipping, in most cases they will have no idea why PayPal have placed a hold, good idea to give them the impression that you are sure it's not because of anything they did (even if it is).

Wait for a few days and if you hear nothing from PayPal get on the phone with them (PayPal) and demand a resolution (ask for a supervisor if need be).

This situation seems to happen randomly, you're somewhat lucky because often sellers have long since shipped when they get this notice.

[handmadefun]

Thanks Recped!
I've contacted the buyer and he told me his account is limited.
Paypal ask me to response to the case. When I logged on my paypal and clicked "response", the only option for me is "Resolve Claim Now" button with the following options:

"How would you like to resolve this issue?

PayPal will review the information and determine whether the claim can be closed.

Thank you for your cooperation.

-I have not shipped the item and I would like to refund the payment.
-I can provide proof that the item was shipped through an approved shipper to the address on the Transaction Details page.

What information can you provide?
-I can provide online tracking information.
-I can upload or fax proof that the item was shipped.
-I have refunded the payment for this transaction.
-None of these apply to me."


I'm kind of lost now, is Paypal forcing me to cancel the transaction and refund the item? Or do I missed other options?

Thanks a lot!

[recped]

There are not "forcing" you but in your own best interest (since you haven't shipped) refund the payment and ask the buyer to pay you via a different method.