Recently PayPal started adding reserves to some sellers PayPal accounts.  The reserve is set up to minimize risks that are associated with selling online and the possibility of charge backs. 

Although I have not heard an actual percentage of PayPal account holders who are affected by the PayPal Reserve program, I would say from the impressions I am getting it is a small percentage.

PayPal's Bill Clark addressed the reasons and explained this policy change on the PayPal Blog in a post entitled: Seller Reserves. 

Basically, regardless of if you sell on eBay and use PayPal or sell elsewhere online and use PayPal, you account may be profiled into the Seller Reserve program if it is either relatively new and/or you sell items in categories that are a deemed a high risk of chargeback (such as electronics and intangible goods).  

The reserve (which are common in the payments industry) is a rolling reserve and Clark explained it as follows:

Here’s an example to put it in perspective. If a merchant sells $2,500 per month, and has a 5%, 30-day rolling reserve, then about $125 per month will be held in reserve. This equals about $4 per day being held and released 30 days later. If the seller is enrolled in the PayPal Money Market Fund, then this money will continue to earn interest while it’s in reserve

The idea behind this change is to share some of the risks with sellers that come along with online payments.

Currently if a buyer is issued a chargeback and the seller does not have any funds in his or her account. PayPal covers that chargeback for the buyer and then spends time and resources to recover the money form the seller.   The funds used to cover chargeback's (where the seller does not have money in his account) comes from PayPal.  To offset this cost PayPal is asking (okay you could say is making) sellers accept some of the risk.

Now here is the part of my blog I am sure some readers will take issue with: I know that sellers dread the idea of chargeback's or having to refund money, but it is part of business - you are not going to make every customer happy.  I feel that every business owner should be prepared for such situations and have a reserve available.  I understand why PayPal is doing this and I feel regardless of if you are a seller on eBay (or anywhere for that matter) you should have a rolling reserve so you are prepared when a buyer wants a refund or is issued a chargeback.  It should be part of your business.

The concern some might have, and I admit I have some concerns as well, is that the PayPal Reserve and the Payment Holds for eBay Items could overlap on an eBay sellers account.  I can see both sides of the coin on this one.