StubHub refusing to pay sellers for playoff tickets

Despite having no written policy in place, StubHub is refusing to pay sellers of playoff tickets until the teams are confirmed.

  • StubHub requires credit card information from sellers as a way to charge back transactions that are cancelled - because the event is cancelled or because the tickets were fraudulent, etc.
  • StubHub holds money for seven days after buyer receives the tickets.  This policy is antiquated now that transactions are seamless with tickets validated and delivered instantly.  Buyers no longer can receive the wrong seats - something that was potentially problematic when FedEx was required and physical tickets were shipped.  Nonetheless, this is the policy, and it's stated on their website.  Usually, sellers are paid in 2-7 days.
  • Tickets for potential playoff games are being listed on StubHub.  Sellers have already paid for the tickets regardless of the dates/times or if the events actually take place.
  • People are buying tickets on StubHub for these games.  Payment is required before the tickets are delivered.  The tickets remain listed until the transaction is completed.  StubHub is paid in full (purchase price +10%), and the tickets are no longer property of the seller.
  • StubHub has then made a determination to hold these funds in their entirety until games are finalized.

If this was a written policy that appeared on their website, I would have no problem with this whatsoever.  Absent this policy being written and published, I expect to be paid in full pursuant to their written policies.

It's bad enough that they work off a 22.7% margin, but this pays for a great website and tons of advertising.  It's a very easy process, and their are lots of buyers and sellers.  As long as you know the rules and agree to them, you can't complain.  Not paying sellers isn't what I agreed to though.

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