Yes, it is legal.
They need funds to cover any losses caused by your account.
For example, if there is a return or defect claim, they need funds to handle that.
For those who ship counterfeit product or don’t ship at all, they have to refund all the customers.
Does Amazon hold your money?
A rising trend in Amazon holding seller funds has many sellers concerned – with any issues that come up on your account, warranted or not, Amazon’s policies state that your funds can be held for up to 90 days.
Can Amazon hold funds forever?
When a seller’s account is deactivated, Amazon stops disbursing funds. The account balance just sits there while the seller tries to get back on the platform. If Amazon refuses to reactivate the account, funds are supposed to be released after 60 days.
Is PayPal allowed to hold your money?
Based on my experience with PayPal, the answer is generally yes; they can hold your funds. PayPal is subject to US anti-money laundering rules and, as such, is obligated to ensure that it screens payments for suspicious activity and can hold
How long can a company hold your money?
“How long the processor can hold the funds is determined by the card brand association (Visa, Mastercard, Discover and American Express), not state or federal law,” she said in an email. “Typically if it is related to a risk and security issue, the payment processor can hold the funds up to 180 days.”