International orders are the fastest way to grow a Shopify or WooCommerce store, but they are also where cash flow and risk management get real. If you accept PayPal, you already know that payment holds and rolling reserves can slow access to your money. The good news is that holds are not random. They are linked to how you ship, which carriers you use, how customs is handled, and whether PayPal can automatically verify delivery with recognized tracking. This guide explains what PayPal expects, how customs and local carriers affect recognition, and how to automate the entire process so funds clear sooner and disputes go down.
Why PayPal puts money on hold and how to speed up release
According to PayPal’s own guidance, funds are usually held for up to 21 days, but merchants can speed up availability by providing tracking from supported carriers or by updating order status for non-physical items. The PayPal Business Resource Center explains that “your funds are usually held for up to 21 days,” and it recommends shipping promptly, uploading valid tracking, communicating clearly, and keeping complaint rates low to avoid reserves and delays (the overview on funds availability is on PayPal’s site) (PayPal’s funds availability guide).
PayPal also spells out how to release eligible payments: when you add tracking from an approved carrier, PayPal will typically release the hold approximately 24 hours after the courier confirms delivery to the buyer’s address (PayPal help: release payments on hold). If you sell services or digital goods and update the order status to Completed, PayPal says it releases the hold 7 days later for eligible transactions.
What does “approved carrier” mean? PayPal notes that the list is maintained inside the Add Tracking experience and is updated regularly. You can see available options in the Shipped by dropdown when adding tracking to a transaction (PayPal help: supported carriers). When your tracking and carrier are recognized, PayPal can verify delivery automatically and accelerate fund release.
What counts as recognized tracking in PayPal’s system
Recognition is less about brand names and more about proof. The Seller Protection policy defines acceptable proof of shipment and proof of delivery as online, verifiable tracking that shows shipment or delivered status and the recipient address details that match the PayPal transaction. For higher value transactions, signature confirmation is required. PayPal’s Seller Protection terms state that signature confirmation is required when the full payment amount exceeds country specific thresholds, including 750 USD in the United States (PayPal Seller Protection).
A few practical implications follow from those rules.
- If your shipment is international and the carrier hands off to a local postal operator, you still need end to end verifiable tracking that shows Delivered at the buyer’s city or postal code. PayPal’s Seller Protection warns that for international shipping, your choice of carrier and options can determine whether you can meet the proof of delivery requirement, so pick services that show a delivered scan at the correct address or locality (PayPal Seller Protection, proof of delivery).
- Signature confirmation should be enabled when your order value is above the applicable threshold. This is a common gap in cross border flows, especially for electronics or luxury items.
- Adding tracking in PayPal also triggers an email to the buyer with the carrier and tracking number, which can reduce Where is my order contacts and prevent misunderstandings (PayPal help: add tracking).
If your carrier or service is not listed in the Add Tracking dropdown, you can still enter tracking, but you may not get automated recognition. When possible, choose services that appear in PayPal’s supported list inside the tracking flow (PayPal help: supported carriers).
Customs, IOSS, de minimis, and why delays create PayPal problems
The majority of cross border merchants report that customs and documentation are the biggest sources of delay. A global survey summarized by Avalara found that 55 percent of organizations find cross border e commerce challenging, with shipments delayed in customs cited by 43 percent and HS code compliance by 41 percent. In the same analysis, 77 percent of respondents expected growth in cross border e commerce through 2024, which means complexity is rising even as the market expands (Avalara State of Global Cross Border E Commerce 2023 2024).
Delays matter because they invite Item Not Received claims. In PayPal’s dispute guidance, Item Not Received and Significantly Not as Described are common reasons customers escalate complaints. The business resource center advises merchants to ship promptly, provide tracking, and respond quickly to any dispute to avoid reserves or limitations (PayPal disputes and chargebacks guide).
You can significantly reduce delays by handling duties and taxes properly at checkout and ensuring your documentation is clean.
- For EU bound parcels up to 150 euros, the Import One Stop Shop simplifies VAT declaration and payment, helping reduce border surprises for buyers and customs operators. The European Commission explains that IOSS was created to simplify VAT on distance sales of low value goods and that the previous small consignment exemption was removed, making VAT due on all imports, typically collected via IOSS or special arrangements (European Commission, VAT One Stop Shop and IOSS).
- Shopify’s help center clarifies the practical choices. Merchants can use Delivered Duty Paid to collect duties and import taxes at checkout, then buy DDP labels for supported carriers such as DHL Express and DHL eCommerce within Shopify’s carrier accounts. Shopify also highlights the other pathway, Delivered at Place, where the buyer pays upon delivery, which often leads to surprise fees and delays. The recommendation is clear: collect duties and taxes in checkout when possible to avoid failed delivery or complaints (Shopify help on duties and import taxes).
- HS codes are not a minor detail. The Avalara survey notes that 41 percent struggle with HS classification. Incorrect or incomplete product descriptions and codes are among the top drivers of customs holds, which in turn fuel PayPal disputes and slow fund release (Avalara State of Global Cross Border E Commerce 2023 2024).
Even where de minimis thresholds exist, policy changes can shift quickly. Shopify’s guidance encourages merchants to add HS codes and country of origin to all products and to test checkout with duties and import taxes enabled so the buyer sees the full landed cost in advance (Shopify duties and import taxes).
Local carriers, last mile handoffs, and PayPal tracking recognition
International shipments often start with an express or linehaul provider and finish with a national postal carrier. PayPal does not require any one network, but it does require verifiable tracking that shows the package delivered at the right destination. To avoid gaps that prevent recognition:
- Prefer services that maintain a single tracking number with full EDI visibility from origin to delivery city or postal code. Many express and cross border e commerce networks are built for exactly this.
- If your provider hands off to a local carrier with a new tracking number, ensure you can map or update the final number in PayPal. That update is what PayPal uses to confirm delivery and release funds faster (PayPal help: release payments on hold).
- For higher value orders, enable signature at the final mile to meet Seller Protection thresholds and to avoid avoidable Item Not Received claims (PayPal Seller Protection).
Make it work on Shopify and WooCommerce
Modern platforms make cross border setup easier. Shopify allows you to collect duties and import taxes at checkout, then purchase DDP labels for supported carriers through Shopify’s carrier accounts, which can help avoid customs delays and cash on delivery surprises. The help docs advise enabling DDP when possible and clearly communicating shipping terms and taxes in your policy pages (Shopify duties and import taxes). If you are launching or replatforming, you can start or expand with Shopify and combine duties collection with recognized tracking to protect your PayPal cash flow.
WooCommerce stores can achieve similar outcomes by setting HS codes and origin in product data, using carrier plugins that support DDP or tax calculations, and choosing services with trackable delivery scans.
In both cases, the missing piece is usually PayPal tracking hygiene, which is where automation pays off.
Automate PayPal tracking so funds clear sooner and disputes go down
If you already do the hard parts right, do not lose the last inch. The moment an order is fulfilled, PayPal needs the tracking number and the correct carrier so it can recognize delivery and release funds. Uploading this by hand is slow and error prone, and it becomes unmanageable at scale or with multiple stores.
SyncPal eliminates the manual work by automatically syncing order tracking data from Shopify and WooCommerce to PayPal the instant orders are placed, updated, or delivered. That means PayPal gets the carrier, tracking number, and status as soon as you have it, which helps trigger the 24 hour release after delivery confirmation for eligible holds (PayPal help on release timing).
- Instant, truly automated syncing across all plans with unlimited order volume
- Past order syncing so older transactions also get covered
- One time setup you can finish in about a minute, then ongoing automation
- 24 by 7 support with a friendly, outcome focused team
- Strong data protection with what SyncPal describes as military grade encryption
Explore how SyncPal works and see the details on supported platforms at How it works and Features. Pricing is value focused, with 3, 6, and 12 month options and a free trial so you can test before committing. See plans at Pricing.
Merchants use SyncPal to reduce rolling reserves and chargebacks by proving delivery quickly with verified tracking data in PayPal. A recent customer story shares how syncing tracking helped cut PayPal disputes by 42 percent (SyncPal case study). If you have questions, the team is available on live chat or via Contact us. You can also read more on why syncing tracking data matters in PayPal’s risk model here: Benefits of syncing order tracking with PayPal and what to do when you have PayPal funds in reserve.
A simple playbook to ship internationally without triggering PayPal holds
1) Set the right incoterms and taxes. If the destination supports it, use DDP and collect duties and import taxes in checkout so buyers are not surprised and customs does not need to chase payment (Shopify help on DDP and DAP).
2) Classify products correctly. Add HS codes and country of origin to every SKU. In global surveys, HS code errors drive customs delays that cascade into PayPal disputes (Avalara report).
3) Choose carriers PayPal can verify. Pick services that appear in PayPal’s Add Tracking list and that show Delivered with city or postal code. Turn on signature for higher value orders to meet Seller Protection thresholds (PayPal supported carriers help), (PayPal Seller Protection).
4) Sync tracking to PayPal automatically. Use SyncPal to push tracking events instantly from your store to PayPal so holds release in about 24 hours after a carrier confirms delivery on eligible orders (PayPal help on release timing). Setup is quick and plans cover unlimited orders across Shopify and WooCommerce.
5) Communicate clearly with buyers. Share delivery windows, mention duties handling in your policy, and respond fast in the Resolution Center if issues arise. PayPal notes that prompt responses and valid proof of delivery are key to resolving claims in your favor (PayPal disputes guide).
6) Monitor risk signals. Keep complaint rates below 1 percent, avoid long refund times, and watch for unusual selling patterns that can trigger reserves (PayPal funds availability).
Common mistakes that cause avoidable holds
Using a carrier that does not report final delivery. If your international linehaul hands off to a local postal operator and the final scan is not tied back to your tracking, PayPal may not see Delivered. Choose services with end to end visibility or update PayPal with the final mile number as soon as it is available.
Skipping signature on higher value orders. Seller Protection lists signature thresholds by currency, including 750 USD. Without signature confirmation, you risk losing an Item Not Received claim even if the parcel shows delivered (PayPal Seller Protection).
Waiting days to add tracking. PayPal will only accelerate release when it can verify delivery, so the sooner you add tracking, the sooner the 24 hour timer can start after delivery confirmation. Automation prevents human bottlenecks and typos.
Relying on Delivered at Place for complex destinations. Even if buyers agree to pay duties at the door, unexpected fees create refusals, returns, and customer service headaches. Where available, switch to DDP and collect at checkout to improve delivery success and satisfaction (Shopify duties and import taxes).
Omitting HS codes and accurate descriptions. Customs officials default to higher tariffs or hold shipments when documentation is incomplete. Clean product data is the cheapest insurance against delays that seed PayPal disputes (Avalara report).
International expansion brings complexity, but it does not need to bring PayPal cash flow pain. When you choose carriers PayPal recognizes, classify goods properly, collect duties in checkout where possible, and continuously sync tracking to PayPal, you transform holds into predictable, short release windows. If you want the tracking sync solved for you so nothing slips, get started with SyncPal in about 60 seconds and let it run in the background while you focus on growth. For Shopify stores, combine duties collection and DDP label support with an automated PayPal sync to keep both customs and cash flow tidy. If you need more detail on setup, see How it works, browse our blog, or chat with us anytime.
