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What is Jump Start in the PayPal money section?



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What is Jump Start in the PayPal money section?

I just noticed a new item in the money section on the new PayPal (the new PayPal being the new design) called Jump Start. You can get to this by clicking on the Money tab in PayPal. It doesn't have any description and I can't find much on Google. Any one know what it is?

What is Jump Start in the PayPal money section?

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Beverly
Not sure if this is related, but it looks like some kind of Paypal anti fraud measure, at least according to one UK article.
http://www.ibtimes.co.uk/paypal-withholding-large-sums-money-uk-startups-without-explanation-1541328

They're withholding large sums of money from business users, kind of like a minimum which would likely cover chargebacks.



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robertman11
Seems like an odd name for a reserve. It was the first time I've ever noticed it.



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MasterA
I don’t seem to have that option on my PayPal. Is that something only available in the US? As Beverly has said, Jump start is one of PayPal’s anti-fraud measures. The idea is that you have a jump start which is a reserve which ensures you are able to pay your liabilities in the case of chargeback or other issues. In the article Beverly posted, it said that the guy had a jump back reserve of $20,000 which I believe means that the $20,000 is held by PayPal and cannot be withdrew so he can pay any types of liabilities that may occur in the future.



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hitmeasap
I don't have that option either and I live in Sweden. However, I found at least three different countries having this option. US, UK and AU. Here's some information about it.
PayPal uses two types of reserves:
  • A rolling reserve is a reserve where a percentage of each transaction received each day is held and then released later on a scheduled basis. For example, your reserve could be set at 10% and held for a 90-day rolling period – meaning 10% of the money you receive on day 1 is held and then released on day 91, 10% of the money you receive on day 2 is held until day 92, etc. Rolling reserves are the most common type of reserve.

  • A minimum reserve is a specific minimum amount of money that you’re required to keep available in your PayPal account balance at all times. The minimum reserve is either taken as an upfront amount deposited all at once or is built up and maintained on a rolling basis from percentages of sales, much like a rolling reserve. An account can have both a minimum and a rolling reserve at the same time.



You can read all the information I found here:
https://www.paypal.com/uk/webapps/mpp/holds-reserves


Best Regards,
hitmeasap



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