Paypal processing time

[Mehh]

First of all, I hope this is the correct place for this, this is my first post. =p Anywho, I've been using Paypal for years, and normally it takes around 3~5 days to transfer money from my checking account to my Paypal. This time isn't the case...

Date:
 May 9, 2012
Time:
18:51:02 PDT

Status:  
Processing  (Expected Clearing Date: May 29, 2012)Help
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Before it said it would complete on the 15th, but now it's saying this, any ideas?

[PayPal_Adrian]

Mehh -

Hello there!

It sounds as if the first attempt to retrieve the funds from the bank in question failed - this could be due to any number of reasons. 

When this happens, after the first, usual time period, PayPal waits a few business days and then tries one more time. 

If you started the transfer on May 9th, the end of 5 business days would be May 16th.  We add a few business days from there before the next transfer attempt starts - so probably Monday the 21st (weekends/holidays don't count).

Five business days from that date would be the 29th of May, as the 28th is a holiday this year (Memorial Day).

As for why the bank may have rejected or refused the transfer the first time around, you may want to check in with them.  Ask them to cross reference the amount of the transfer with anything they may have declined earlier in the month and they should be able to let you know why. 

Thanks!

Adrian

[Michellea55]

I have two transactions with yesterday's date as the expected date of transfer.  It's been 'escalated' by customer service 5 hours ago, and paypal has had the money for 3 days.  What I'm wondering is why isn't the transfer instant?  I have a debit card linked to the account and I read: 

If you have a debit or credit card linked to your account, we can make an Instant Transfer and you can transfer money from your bank account instantly.

Does instant not mean same day?

[PayPal_Adrian]

Michellea55 -

Welcome to the Community!

All bank transfers take three to five business days (weekends/holidays don't count). 

So, if you added money, it will take that amount of time for the funds to transfer into your account balance.

If you sent an eCheck, it will take that long to credit to your merchant.

There is also an option called an Instant Transfer, which is used only when paying a merchant (it can't be used for adding money into your balance).  It still uses a bank transfer, that takes the same amount of time, but it's different because it's backed up by a card in the event the bank fails.

What happens with an Instant Transfer is that, even though the bank transfer still takes just as long, PayPal pays your merchant in advance out of our own pocket while we wait for the transfer to arrive.

There's more great information about using your bank with PayPal here.

Thanks!

Adrian

[JohnReam]

The 5 day "Processing time" is a bad policy by paypal, simply borrowing "Floating" our funds.  This policy may actually be illegal in some states, such as NJ & NY I'm pretty certain. 

I started a recent Bank transfer to Paypal on day X, and by end of that same day X our bank showed the TRANSACTION completed funds tranferred to PayPal.  It's now day X + 6 and our paypal account is still waiting "Processing"

[PayPal_Adrian]

JohnReam -

PayPal uses a process called ACH (Automated Clearing House) to move groups of transactions to and from various financial institutions.  This process can take three to five business days (weekends and holidays don't count), even though your account may be debited immediately.  Transfer times outside of the US may vary.

Why does this happen, and why don't you get the money at PayPal right away?

When you select to take money from your institution and send it to PayPal, PayPal sends an advance notice of the debit to your bank.  Your bank, understandably, places the funds on hold and debits them immediately - they know you're expecting to pay the bill, and would rather ensure that the funds are there than bounce a check down the line.  The entire settlement process then takes up to five business days before PayPal has the funds and can place them in your account balance.

Withdrawals from PayPal work much the same way.  You tell us to send the money to your bank, so we debit it out immediately to make sure your requested withdrawal goes through.  Except now, your bank is the recipient of the money.  So while we have debited you immediately, your bank won't provide the withdrawal, understandably, because they don't yet have the cash on hand. 

Once it is, though, either party will credit you immediately.  We want you to have your money as soon as possible!

Did you know there's no need to "Add Funds" to your balance before making a payment?  If you have a credit card on file, you can use the Instant Transfer option.  This still debits your bank (and the transfer still processes in the background), but because you have elected to pay via a credit card in the even the cheque doesn't clear, PayPal pays your seller in advance.  That way, you have your item sooner because the seller is paid immediately!  We don't offer this on withdrawals or Add Funds, though, because if it fails, we would have to charge the card as a cash advance - and that could result in some nasty fees for you with your card issuer.

Hope this helps,

Adrian