You log into PayPal, and money is flowing in. But you notice something strange:
-
Every payment you get, PayPal cuts 20% or more and locks it away.
-
That locked stash is called a reserve.
And then comes the burning question: “How long will PayPal keep my reserve before I can remove it?”
Today, we’ll break it down in plain gist — what a reserve is, why it’s there, how long it lasts, and what you can do if PayPal delays the removal.
👉 See how Exswap helps free up PayPal money faster
What Exactly Is a PayPal Reserve?
Think of a reserve like a “security deposit.”
-
When you rent a house in Nigeria, landlord collects some money to be safe.
-
PayPal does the same — they keep part of your funds in case buyers start asking for refunds.
There are three main types of PayPal reserves:
-
Rolling Reserve – A percentage of every sale (like 10% or 20%) is held for 60–90 days, then released gradually.
-
Minimum Reserve – PayPal says: “Keep at least $X balance at all times.”
-
Upfront Reserve – They hold a big chunk of your balance once, then release slowly.
Why PayPal Places Reserves
PayPal usually adds reserves when they see:
-
High dispute rates – too many complaints from customers.
-
New account risk – no strong history yet.
-
High-risk business type – e.g., digital goods, dropshipping, event tickets.
-
Location factor – accounts from countries like Nigeria are treated as “riskier.”
How Long Does It Take for a Reserve to Be Removed?
Here’s the timeline in real life:
-
Rolling Reserves: Funds are held for 60–90 days, then released daily or weekly as the window passes.
-
Minimum Reserves: Stay in place until PayPal decides your business is “low risk.” This can take 6 months to a year.
-
Upfront Reserves: Released gradually after 6 months or after disputes settle.
⚠️ Important: PayPal rarely removes reserves overnight. They monitor your account for consistency first.
Example Scenarios
-
Ada the Freelancer: PayPal held 20% of every $100 she earned. After 90 days, the first 20% was released, then each batch followed in a cycle.
-
Kunle the Digital Seller: His rolling reserve lasted a full 6 months before PayPal reduced it.
-
Ify the Dropshipper: PayPal kept a minimum $2,000 reserve until 12 months passed with no major disputes.
👉 Read how Exswap helps freelancers swap PayPal funds safely
Can You Speed Up the Removal?
Yes — but it’s not magic. You need to:
-
Lower dispute rate. Keep it below 1.5%.
-
Build history. Steady, small transactions help PayPal trust you.
-
Provide proof. Upload documents, delivery confirmations, client receipts.
-
Contact support. Sometimes after 6 months of good behavior, you can request review.
The Nigerian Freelancer Problem
Even when PayPal finally removes reserves, the next issue is: withdrawal.
-
US/UK accounts can easily withdraw.
-
Nigerians often can’t link local banks.
-
Meaning, even “released” funds can still be stuck.
That’s why most freelancers here use Exswap to bridge that gap.
👉 Swap your PayPal funds to Naira today
Alternatives to Avoid Reserves Altogether
If reserves are slowing your hustle, consider:
-
Payoneer: Popular with freelancers.
-
Wise: Smooth for some international transfers.
-
Cash App & Zelle: Great for US-based clients.
-
Gift cards: Many freelancers get paid this way.
FAQs
Q: Will PayPal ever remove a reserve completely?
A: Yes, but only after consistent, safe transaction history.
Q: How long does it usually take?
A: Rolling reserves → 60–90 days per batch. Minimum reserves → 6–12 months.
Q: Can I ask PayPal to remove it earlier?
A: You can, but approval depends on your dispute rate and account history.
Q: What happens if I close my account?
A: PayPal will still hold reserves until the timer expires, then release to your bank (if supported).
Final Word
PayPal reserves feel like punishment, especially when you need cash now. But they’re part of PayPal’s “safety net” against risk.
The wait can be 90 days, 6 months, or even 12 months — depending on your account. For freelancers in Nigeria, it’s even harder because withdrawal isn’t direct.
That’s where Exswap steps in.
👉 Start swapping PayPal funds to Naira instantly
No more waiting 6 months just to enjoy the money you already earned.