What is "Withdrawal PAYPAL INST XFER"

[dsboy9x1995]

What is Withdrawal PAYPAL INST XFER and why it charged me $2.58, i didn't pay anything for $2.58

[DPCreations]

@Gearhog

This is a zombie thread.  It doesn't look like your problem is related.

Perhaps you could start a new thread with specific details about your own problem.

[jackielallen]

I too want to know what InST XFER is,

[sharpiemarker]

It's short-hand for "Instant Transfer". With PayPal in front of it, that means some entity either added money if there is a + sign in front of the amount, or deducted money if there is a - sign in front of the amount.

[Optek]

Just ran into two of these on my bank statement and I didn't know what I was looking at but here's what I found. 

when you have your bank account and paypal linked, and you pay for something using money in your paypal account and it's not enough, a instant transfer from your bank covers the remaining part. Thats what I found for one of my transactions. As for the other, it was an amount I recalled from an eBay purchase and I can only assume that by default eBay attempted to draw the funds from my paypal (which was 0.00 at the time), so paypal then drew an instant transfer from my bank. Being as my pp balance was 0, I was able to recognize the amount this time along with what it pertained to. 

[RachaelKotsches]

They are right. It's when paypal uses your bank to cover charges from places like ebay, Amazon ect. I had 15.00 in my paypal account(someone paid me through pay pal) and I bought something for 20 something on ebay. And it did an instant transfer for $5.00 out of my account and I was so confused weeks later. But now I understand! They just label it as paypal cause paypal pulled the remaining balance from your bank account.

[LohernMowher]

For goodness sakes - people sign up for stuff but don't understand - or read - the T&C (Terms & Conditions).   One should understand what they are accepting when they accept stuff.  Scolding complete.  Now...

Here's the deal:  When you sign up for Paypal, you also indicate a "BACKUP FUNDING SOURCE" - a bank account or credit card, to cover any PayPal or PayPal debit card purchase, in case your PayPal account does not have the necessary funds in it to cover said purchase,  It could be the ENTIRE amount of the purchase (if your PayPal balance is $0.00) or it could be the difference between the amount of the purchase, and what's in your PayPal account.  The charge will show on your bank or Cr Card statement as "PayPal Inst Xfr"

So an example.  You buy something for $18.00.  You have $4.25 in your PayPal account.  You'll see this odd PayPla Inst Xfr charge from your bank that doesn't seem to make sense.  ...WHAT DID I GET For $13.75???

Nothing.  You did not get anything for $13.75  - you had game charges, or used your PayPal Debit Card, or made an eBay purchase, or had a magazine renew that last year you told them to bang your PayPal account for $18.00 that you totally forgot about - haha but THEY DIDN't !!!  LOL

So click the DETAILS of transactions on your PayPal account from a few days before the date the Instant Transfer showed up on your bank account, up to the date the money came out of your bank (or credit card) - - it's the BACKUP FUNDING SOURCE that you told PayPal to use.  You see that charge for $18.00?  It doesn't match the $13.75 that came out of your bank - your backup funding source - does it?  No.  In fact - on your PayPal statement/activity, you won't see ANY $13.75 transaction.  BUT.... look at the details of ALL your PayPal transactions.  There....see it?  See that $18.00 transaction?  Click it.   See how it says under "FROM "how the payment breakdown was "PayPal balance - $4.25, and Third National Bank of Bumphuk $13.75 ?  That's it  - there's your $13.75 that the Third National Bank of Bumphuk paid to PayPal - that PayPal added to the balance that was in your PayPal account, to total the $18.00 purchase discussed above.  

I hope that clears up any phogg that these phunky transactions create.  I learned, so am sharing.  Oh, and BTW, I use the PayPal debit card quite often, PayPal balance or not.  You get 1% cash back for using a DEBIT card.  That's not too bad!  And if you don't have enough money in your PayPal account, they take it from your backup funding source - and you STILL get the 1% cash back.  So spending $1,000/month on your PayPal (business) debit card will get you $10.00 back a month, or $120 / year.  Not bad, for paying your GEICO bill, tyour cable bill, etc.  Instead of writing a check, or using the bank bill-payer, where I can, I use the Debit card.  No credit card worries, that you may **bleep** up your credit rating if you're late, and you still get cash back.

After a while, the authorizations get higher and higher, as Paypal trusts you - and knows your backup funding source (your bank) PROBABLY has the money in it - based on prior experience.  It helps to throw $300, $500. even $1,000 into your PayPal account from time-to-time, especially if you KNOW you will spend it, because PayPal will authorize higher purchase amounts that way.  For instance, I knew I was going to buy a snowblower.  Sure, there are rules that protect credit card purchases, but I was buying it as a gift for my kid, who doesn't take care of stuff anyway, so I didn't care about the protections!   And also I got him a SquareTrade warranty - so the doubling of the warranty with Amex or the Buyers Assurance and all that didn't matter to me.  I put the money into PayPal via bank transfer FIRST, and then used the PayPal Debit card.  It turns out the snowblower was $800 plus tax, so let's say $864.  

I put $700 into the PayPal account a few days before the purchase.  So guess what showed up on my bank statement?  A transfer to PayPal for $700, and - yep- you guessed it - another transaction that showed "PayPal Inst Xfr" in the amount of $164.  Now had I not known how this worked - I'd have said - WHERE THE HECK DID A CHARGE FOR $164 COME FROM?  

WHAT'S THIS $164....???

So now you know !  Hope this typing was worth it to those who come scratching heads.  

[sharpiemarker]

Thanks, @LohernMowher!    Teach these people somethin'.

[darcykim]

 I was wondering what the withdrawl was from my bank account as well, and then I realized I downloaded music from iTunes 

[SherrieW]

I just had 3 of these totalling $38.75 to come out of my bank account and do not remember authorizing or doing any of them.. 

[LohernMowher]

I posted a rather long explanation about using your PayPal Debit Card, and how it pulls as much as you have out of paypal, and then takes the rest out of your "backup funding source" - YOUR BANK. I'll do this one more time, since it took me a little while to figure it out. Okay: If you spend, say, $125 on an item at a store using your PayPal Mastercard Debit Card, and all you have in your PayPal account at the time of the purchase is $50, (or have outstanding "authorizations" - like at a restaurant, where the card was SWIPED, AUTHORIZED, but the charge hasn't yet been taken from your PayPal account) - so a $125 purchase with only $50 "AVAILABLE balance" in your PayPal account will make you see a charge out of your bank for $75 in this example. In other words, PayPal is giving you a temporary credit for the $75 you didn't have in PayPal, and just hitting your bank account for it. It's a simple quick loan, almost like PayPal saying here, you don't have enough, go ahead and get that purchase, we will just use your bank (backup funding) so you don't have to use two separate cards for the $125 purchase! ($50 for the money you HAD AVAILABLE in PayPal and $75 using your BANK-ISSUED card for the rest - again, a $125 purchase and you only have $50 in PayPal) *** So HERE IS THE IMPORTANT PART *** - - ! YOU ARE GOING TO SEE A CHARGE IN YOUR BANK ACCOUNT FOR $75. YOU DON'T REMEMBER BUYING SOMETHING FOR $75, RIGHT? You're right! You didn't charge $75 oh, it's only the difference that you did not have in your Paypal account. That amount is the money that was lent to you by PayPal. Easy, right? And pretty nice of PayPal to give a quick Loan like that, while you're still earning the 1% cash back. And a short, no-interest loan! And really great for online purchases, where you can always split payment on two different cards ! Yea yea !