You finish a job. Client pays. You check PayPal and the balance is there. But when you try to withdraw, “Funds on hold.”
If you’re a freelancer in Nigeria, this feels like somebody put padlock on your wallet. You did the work, yet your money is trapped in a digital prison.
Don’t panic. Let’s break down:
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Why PayPal holds freelancer money
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How long it lasts
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What you can do to reduce holds
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And most important — how to avoid this wahala with Exswap.
👉 Check out Exswap’s PayPal cashout service
Why PayPal Holds Freelancer Funds
PayPal doesn’t hate freelancers. But their system is built on fear of risk. They worry that:
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You’re new. First-time sellers/freelancers are always on the watchlist.
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Digital work has no tracking. Unlike shoes or phones, there’s no courier receipt to prove delivery.
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Refund culture. Some clients can be tricky and they claim they didn’t get the work or weren’t satisfied.
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High-risk regions. Freelancers in Nigeria, Kenya, Ghana, etc. often face extra suspicion.
So, PayPal plays it safe: they freeze the money until they “trust” you.
Typical Hold Timelines for Freelancers
When you deliver digital work, these are the usual wait times:
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New accounts: 21 days hold on almost every payment.
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After some history: Funds might clear in 7 days if the buyer marks “delivered.”
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Accounts with disputes: Expect longer, up to 180 days in extreme cases.
For a freelancer trying to pay bills, this is torture.
What Happens During the Hold
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The money shows in your balance, but under “Pending.”
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You can’t withdraw, send, or use it.
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PayPal uses it as insurance in case of dispute/chargeback.
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Sometimes, PayPal asks for documents: ID, proof of work, client communication.
Real Freelance Examples
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Tolu, a graphic designer in Lagos: Every $50 gig stayed on hold for 21 days until he built a “track record.”
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Amaka, a copywriter: A client marked “order completed,” and PayPal released the money in 48 hours.
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Chidi, a web dev: Dispute dragged on and PayPal froze the funds for 180 days before release.
👉 Read how Exswap helps Nigerian freelancers get paid without PayPal delays
How to Reduce PayPal Holds as a Freelancer
Here are some practical hacks:
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Request client to confirm delivery. Politely ask them to click “Confirm receipt.”
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Use PayPal’s “services” option. Don’t disguise payments as “goods” or “friends & family.”
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Upload proof of work. Screenshots, emails, even project files attached inside PayPal.
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Build history. Small transactions over time reduce suspicion.
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Keep disputes low. Too many complaints = red flag.
The Nigerian Freelancer Problem
Even if you follow all the rules, there’s still the Nigeria block:
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You can’t link a local bank directly.
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PayPal limits features in Nigeria.
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So even when funds are “released,” you’re stuck on how to withdraw.
This is where freelancers usually run to exchangers or unsafe deals. But scams are everywhere.
That’s why we built Exswap.
👉 See how Exswap converts PayPal to Naira safely
Alternatives to Avoid PayPal Stress
If PayPal keeps holding your money, try:
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Payoneer: Popular with freelancers, but has higher fees. 👉 Exswap handles Payoneer too
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Wise: Smooth for some countries, not fully in Nigeria.
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Cash App & Zelle: If your clients are in the US. 👉 CashApp swaps available here
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Gift cards: Some clients pay this way. 👉 Cash out gift cards instantly
FAQs
Q: Why does PayPal hold freelancer money longer than physical goods sellers?
A: Because there’s no shipping proof. Services are riskier in their eyes.
Q: Can I avoid PayPal holds completely?
A: Only after you build long trust history. Otherwise, use alternatives like Exswap.
Q: Is it safe to use friends & family option?
A: Not really. It violates PayPal’s terms and can get you banned.
Q: What happens after 180 days if they hold my freelance payment?
A: PayPal usually releases it, but only to supported countries/banks.
Final Word
Freelancers deserve better than waiting weeks or months to touch their money. PayPal holds are frustrating, especially for Nigerians who already face limited access.
But you don’t have to keep suffering.
👉 Start cashing out PayPal funds instantly with Exswap
Work today, get paid today and not 180 days later.