High riskBank & Payment In-depth guide 7 min read

PayPal Payment Pending Scam

This scam shows a fake 'payment on hold' message claiming funds will be released once you ship an item or confirm details, but no real payment exists.

Quick verdict

Risk level
High risk
Scam type
Payment service impersonation scam
Main red flag
A 'pending' PayPal payment that asks you to ship goods or confirm details before money actually arrives.
What to do first
Log in to PayPal directly to check your real balance. Do not act on the email alone.

How this scam works

When you are selling something online, an email saying "the buyer has paid, funds are pending and will be released once you ship and send the tracking number" feels like good news. That is the trap. The PayPal payment-pending scam fakes the one thing a seller most wants to see: confirmation of payment. In reality no money has moved, and the emails are forgeries built to make you ship goods for free.

The scam targets the gap between a real payment and a convincing fake one. Genuine payment platforms do not hold your money hostage until you upload a tracking number to an email link, and they do not release funds because you emailed proof of postage. The "pending" story exists only to manufacture a reason for you to act before you check your actual account balance.

It is a specific case of a much larger problem, imposter scams, where criminals pose as a trusted brand or institution. The defence is the same across all of them: ignore what the email claims and log in to the real service independently to see whether the money is genuinely there.

Related tricks worth knowing: the Fake E-Transfer Scam and the Fake Invoice Email Scam. For the wider picture, browse the Bank & Payment Scams guides or run the message through our scam checker.

By the numbers

$2.7B
reported lost to imposter scams in the US in 2023, one of the most common fraud categories
Source: US Federal Trade Commission
$12.5B
total reported losses to internet crime in the US in 2023, including payment and e-commerce fraud
Source: FBI Internet Crime Complaint Center

Tell-tale red flags

  • A 'pending' or 'on hold' payment you cannot see in your real PayPal balance
  • A request to ship an item before the money has actually cleared
  • Emails from an address that is not an official PayPal domain
  • Pressure to act quickly to 'release' the funds
  • A request to send a shipping or release fee first

Staying safe

  • Open PayPal directly in your browser or app and check your real balance
  • Treat money as received only when it appears in your actual account
  • Do not ship anything based on an email alone
  • Report suspicious emails to PayPal and delete them

How to verify safely

  • Never ship based on an email. Log in to the payment platform directly and confirm the money is actually in your balance.
  • Understand that genuine platforms do not release funds because you emailed a tracking number to a link.
  • Be wary of buyers who overpay and ask for a partial refund, this is almost always a scam.
  • Keep transactions on the marketplace's official system to retain buyer and seller protections.
  • Check the sender's real email address, not just the display name, and treat mismatches as a warning.

How it usually reads

Example pattern, not a real report
Example pattern: 'The buyer's payment of $480.00 is pending and will be released to your account once you provide the shipment tracking number. Reply to confirm.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

What to notice: A 'pending' PayPal payment that asks you to ship goods or confirm details before money actually arrives.

Step by step: how the scam unfolds

  1. An eager buyerSomeone offers to buy your item quickly, often for the full price with no haggling, and pushes to close the deal fast.
  2. A fake payment emailYou receive a forged "payment received, funds pending" email styled to look like it comes from the payment platform.
  3. A shipping conditionThe email claims the money will only be released once you post the item and reply with a tracking number.
  4. You ship for nothingBelieving you have been paid, you send the goods; no funds ever arrive in your real account.
  5. Sometimes an overpayment twistA variant "overpays" and asks you to refund the difference, so you lose both the goods and real money.

A real-world scenario

Anonymised, illustrative scenario

An illustrative example

Dana listed a phone for sale and quickly found a buyer willing to pay full price. Soon an email arrived confirming the payment was "pending" and would be released to her as soon as she shipped the phone and replied with the tracking number. The formatting looked right and the buyer was friendly and reassuring.

Before posting anything, Dana opened her payment app directly rather than trusting the email. Her balance was unchanged and there was no pending payment at all. The email was a fake designed to make her hand over the phone for free. She stopped, reported the buyer, and kept her item. This is a fictional illustration of a widespread pattern.

Variations to watch for

Overpayment refund

The "buyer" claims to have paid too much and asks you to send back the difference before the fake payment is exposed.

"Business/premium account" upgrade

You are told the funds are held because your account must be upgraded, and a fee or details are required to release them.

Off-platform pressure

The buyer pushes to communicate and pay outside the marketplace, removing its protections and dispute tools.

Courier collusion

Some ask you to use a specific "shipping partner" whose link is a phishing site or an added cost.

Steps if you already acted

  • Do not enter your login on any linked page
  • If you logged in, change your PayPal password immediately
  • Turn on two-factor authentication for your account
  • Review recent activity and contact PayPal if anything looks wrong

Common mistakes

  • Do not ship goods before funds clear in your real account
  • Do not send a 'release' or shipping fee
  • Do not share your password or verification codes

Scams like this one

High risk Bank & Payment

Fake E-Transfer Scam

This scam sends a fake e-transfer notification linking to a phishing page that imitates your bank's login to steal your online banking details.

Created by Scam or Safe Editorial Team
Medium risk Email

Fake Invoice Email Scam

This scam emails an invoice or receipt for something you did not buy, hoping you call a fake 'support' number or click a link to dispute it.

Created by Scam or Safe Editorial Team
High risk Marketplace

Facebook Marketplace Buyer Email Scam

A fake buyer claims to have paid through an email service and asks you to confirm a fee or send the 'difference' before any real money arrives.

Created by Scam or Safe Editorial Team

Your questions answered

Does PayPal hold funds until I add tracking?
PayPal may place genuine holds on some payments, but you will always see this inside your real account. A request that exists only in an email and asks you to ship first is a scam pattern.
Why does the email look so real?
Scammers copy logos, wording, and layout. The reliable check is to ignore the email and log in to PayPal directly to confirm your actual balance and any holds.
A buyer says they paid but I see nothing. What now?
Do not ship. If the money is not in your real PayPal balance, treat it as unpaid, and be cautious if the buyer pressures you to send the item.
How do I report a fake PayPal email?
Forward it to PayPal's official phishing reporting address and then delete it. Do not click any links inside it.

Sources & further reading

The figures and guidance above draw on publicly available data and advice from fraud-prevention authorities. Always confirm current reporting details through official government sites.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.