Why does it take 3-4 business days to withdraw funds from paypal to my bank account?

[mrbart518]

I curious as to whay it takes 3-4 business days to withdraw funds from my paypal account to put into my bank account that has already been verified?

I'm new to paypal and thought being as a friend can send funds to me from his paypal account instantly, that I'd be able to withdraw those funds from my paypal account and put into my bank account just as quickly.

[PayPal_Adrian · Accepted solution]

Welcome to the boards!

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 four business days, even though your account is debited immediately.  This is for any US bank transfer, even if the seller is paid instantly.

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

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 four 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 in hand yet. 

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

[mrbart518]

ok well that does help me understand much better thank you... doesn't mean i like it though, I now know to expect the 3-4 day period before the money is actually available for me to spend if I want to make a purchase that doesn't accept Paypal.

[PayPal_Adrian]

mrbart518 -

Are you adding funds to your account balance to use the PayPal debit card?  If so, check out our Back-up Funding feature for the debit card (it can be turned on in your Profile).  This would allow you to make purchases and debit your bank account or Smart Connect account directly without the need to add funds; however, back-up funding for the PayPal debit card is not available for PIN-based transactions.

If you're sending regular payments, there's no need to add funds first - just complete check out, and we'll debit your funding source directly.

Thanks!

Adrian

[Vancedean]

I spoke to several different Bank of America customer service agents, three different PayPal agents, and one Bank of America financial transaction specialist about the issue of 3-4 day wait for availability of funds. Answers ranged from total lack of knowledge from both B of A and PayPal to 'there is no reason an ACH transaction shouldn't be IMMEDIATE,' which I got from the B of A transaction specialist. This last answer seems to ring true in my mind! What is this, Pony Express!? I suspect there is probably some other reason related to profit, somehow, and I won't rest until I get a straight answer to a simple question - Why does it take 3-4 business days to transfer funds from PayPal to my bank account?

[ladybugsakuya04]

because it is for free. right ? 🙂 if you use a wire transfer there's charge . and i believe paypal wants the transaction to cheaper so that you don't need to pay for extra in transferring money . from your paypal to your bank . and it is very secure .

[music1952]

BeSo they can collect the interest from YOUR money before they give it to you.  The rest of any other answers is BS!  I don't care what their response is.  The Truth is after thousands like you have their money in these HOLD accounts the pennies add up to a BIG lump sum INTEREST payment for them.  They are all greedy.  You can stop this by not using EBAY or Paypal.  That is what I am going to do.  Go to Craigslist.  They are free and you get local responses and paid directly from the buyer and they pick up their item.  There is simply no reason for us to use Ebay or Paypal and pay their unfair fees.  But the time you get YOUR money for YOUR item that YOU sold, there is nothing left.  So why bother? I am sick of being ripped off by these greedy company giants.

Re: LETS FILE A CLASS ACTION SUIT AGAINST BOTH OF THEM!!!!

Dec-06-2011 07:39 AM

WE NEED YOUR SIGNATURES ..... The link and letter below......other petitions are also there do look around easy to find them...

PLEASE VISIT< SIGN< SPREAD THE WORD ~ Copy and paste the web addy and send to all people you possibly can

WE CAN PUT A STOP TO THIS IF WE WORK AND BAND TOGETHER !

http://www.change.org/petitions/ftcs-bureau-of-consumer-protection-investigate-paypal-ebay-business-...

Spoiler

[music1952]

WE NEED YOUR SIGNATURES ..... The link and letter below......other petitions are also there do look around easy to find them...

PLEASE VISIT< SIGN< SPREAD THE WORD ~ Copy and paste the web addy and send to all people you possibly can

WE CAN PUT A STOP TO THIS IF WE WORK AND BAND TOGETHER !

http://www.change.org/petitions/ftcs-bureau-of-consumer-protection-investigate-paypal-ebay-business-...

[ComeOnMan]

Adrian,

Do you mean to tell me that Paypal in no way benefits from the lag time [of sometimes over a week] between the money disappearing from our accounts and appearing in our bank accounts?  The millions of transactions (and dollars) that are floating in Paypal's coiffers from verified users and their bank accounts earn Paypal no money or benefits?  Is that what you are telling us, Adrian?

-COM

[Woogie]

PayPal wants you to use their credit card. Its a way for them to force your hand into using a credit card.

Debit transfers are instantaneuos these days. If I go to McDonalds aand buy a cheese burger, my checking account is hit almost immediatly. Paypal wants your interest from their credit card. Thats why the banner and redirect page show up when you log in.

[Justin23]

PayPal should add the option to immediately transfer funds from your checking account into your PayPal account for a small fee, just for those of us who don't want to wait 3-5 business days in order to make online purchases. Most people that do not online shop a ton don't keep money in their PayPal accounts (so it seems). Because of the 3-5 business day wait, i've never actually used my PayPal account to make a purchase. I have only been on PayPal at a time of quick buying decisions only to be disapointed at the reminder that I would have to wait 3-5 business days for funds to be transferred. Those few times I decided not to buy the product using my PayPal account. Huge inconveinece for many it seems.