Hi,
When withdrawing money from Paypal they claim 3-5 days processing time, to make the transaction happen. Can someone please explain this ammount of time to me? Here is a post I found on the subject:
HERE
The claim is that each bank, clearing house etc can add delays, which seems logical, but lets compare it against some other options:
Payroll: in this case when we submit payroll, our payroll processing provided will, and I quote: "If your payroll is received BEFORE 5 p.m. Pacific time, your Direct Deposit employees will be paid two (2) banking days from the date received or on your paycheck date, whichever is later."
So basically before 5PM and funds are available 2 days later in the receiving bank
We also have direct access to ACH batch using our own bank. We actually have it so if we sumbit our batch in before 3:30PM PST funds will post that very next day. Now we haven't verified with a huge volume of banks that it actually works, but we have tested with pretty much all the major ones, and many small ones as well.
So just to wrap up:
1.) Payroll processing company 2 days max.
2.) Our small little regional banks ACH system posts typically the very next day.
Can someone from paypal give some insight and transperancy as to why their system is so (relatively) slow. I can't come up with a good reason that if our bank can post next day why paypal couldn't do the same thing with at least some banks.
Here are some specific questions:
1.) What is the typical cutoff time for your transfers for a given day?
2.) Do you hold/stall/pad the transfers at all so they aren't moving as fast as they possibly could?
3.) Do you have direct access to the ACH system or do you use a 3rd party? If so is this a limitation imposed by them?
4.) With the main function of your company being to move funds, can you explain why other companies can seem to move them quicker than you can? AKA why are they performing some functions of your business better than you do?
The conspiricy theory of all this would be, the longer you can hang onto funds the more they earn in interest for you, so a few added days could mean a solid revenue stream. I'm not convinced this is actually the case, maybe it is just an antiquated system that is bulwarked in place....
Hopefully someone adds some light.
