Why does it take 5 business days to transfer?

[mikewinburn]

Okay, pretty simple and logical question...only paypal admin will likely have verifiable answer. A: Used credit card to send money to recipient. Card authorized immediately; transaction shows COMPLETED... Good B: recipient sends to deposit funds to his bank account ... Replied it will take a week... Not good. Q: if recents account was already verified previously, and credit card paid instantly, what reason would it take 5 business days for the money to transfer from paypal to recipient's bank account? (Remember, the account is already verified...) Thanks!

[kernowlass]

http://www.ehow.com/info_8537474_difference-wire-t​ransfer-electronic-transfer.html

Speed •

Because processing electronic fund transfers involves a third party in the automated clearing house -- which processes the transactions overnight -- the time it takes to complete this type of transfer is generally between one and four business days.

Since one bank completes a wire transfer by dealing with another bank directly, wire transfers occur faster than electronic fund transfers. Often, banks complete wire transfers in real time, making funds available to a receiver within minutes or hours of a person beginning the transaction.

PAYPAl USES ELECTRONIC TRANSFERS as they are not a bank.

I paid a paper cheque into my very own branch of my very own bank the other day and was told it would take 5 business days to clear so its not just paypal.

[mikewinburn]

Thanks kernolass...this answer is regarding wire vs electronic is very helpful. It might still be left to answer on the electronic end why does it take so long....it's only 1s and 0s....and unlike a check, it doesn't have to take time to clear.... The credit card company already did that when they approved the transaction. When checks come from private / new sources, the bank holds them until the funds are verified.. Understandable. Very helpful answer though.... But it sounds like those few days are still unaccounted for. Maybe someone from the banking industry knows? I can only imagine it's become a part of some manual process sitting in a cue for some reason? I appreciate the quick reply