Will PayPal Begin Using Same-Day ACH Bank Transfers?

[taukeivala]

As of September, 2016, same-day Automated Clearing House (ACH) transfers will be available according to NACHA. Many users' (including myself) main problem with PayPal is the extremely slow transfer time to banks. Naturally, the introduction of same-day bank transfers is enough to make many users salivate.

The question is, will PayPal utilize same-day ACH bank transfers? If not, why? Will an increased risk of fraud stop them? What other factors could come to play? Please don't spew any of the usual unsubstantiated dogmatic claims. I'd love to hear your thoughts (Response from PayPal staff would also be nice)! 

[lancelotme]

Thanks for posting,very interesting.

But there will be a fee,how much ?

If this is made available by Paypal,I wonder if there will be a fee we have to pay?

[WipedOut · Accepted solution]

The thing to consider here is that next day ACH has been available for years yet payments to banks through PP still take 2-4 days depending on when the request was put in.  If they aren't willing to do next day ACH I can pretty much assure you they have no interest in doing a same day ACH.  

The only stipulation to the above statement might be different if a rolling reserve was put in place on the account since having that back up funding source might make the risk considerably lower.  PP does rolling reserves on a case by case basis where deemed necessary.  But to not receive 20% of each payment until you have say 50K in a rolling reserve account wouldn't temp many people to find same day ACH beneficial enough to do that.  

Good info on the same day ACH though.  

[lancelotme]

right now ,Paypal ACH is 3-4 days as Paypal admits,it is cheapest .

Probably safer too for Paypal and the sender.

If anything goes wrong,PAYPAL will be able to cancel the transfer,

[WipedOut]

The 3-4 day window provides zero cost savings to PP but as you stated it does allow PP more time for fraud detection.  Back in the day all PP funds held were automatically put into PP's money market so they could earn off it which is why they always wanted to hang onto money for even a few more days.  They don't mention that anymore but always have been curious if they still use the same practice.

[lancelotme]

Paypal does not operate any money market mutual fund anymore.

May be it can play the float game to pay its bills,AMZN does that,it collects from the customers and pay their vendors 30 or 45 days later.

[lancelotme]

BTW,banks are offering bonus if you open accounts with them with DIRECT DEPOSIT.

JP Morgan will give you $500 if you open a checking account with DA and keep it around for x number of months.

It was $300,and I took it,then I got another offer for $500,too late  

[ShiraYuki]

This is really interesting but I doubt PayPal will ever use this.

[sharpiemarker]

PayPal UK has that same day withdraw to bank. I hear the money moves to the bank as quick as two hours.

[WipedOut]

That has to do with banking regulations being much stricter in the UK than in the US where paypal only has to follow money transmitter guidelines which are very slack and protect the business over the client.  When you read about someone want to take PP to court you will pretty much alwys hear an out of court settlement accompany it.  Money transmitters do not want to be in the court room as some of their common business tactics have not held up well in the past.