ASOS Order Canceled - Refund delay, Where's my money!

[BobbyHG]

Hi, I made 3 attempts to purchase a £125 coat from ASOS this weekend.  Following the first 2 attempts I received an email soon after telling me that the item was out of stock, however the 3rd attempt was sucessful, and I now have my coat.

However this morning I received a warning text from HSBC that my account was overdrawn.  3x £125 has been debited from my account.  As you might expect I can see that there are 2x refunds coming my way, however I'm told that they won't be in my account until January.

Is this right?  I don't understand why I have to take the hit (allbeit temporarily) for 3x my initial order, especially on Xmas Eve!  Luckily I was able to replenish my account using some savings, but surely I shouldn't have to do this?  Is someone gleaning interest from my "floating" cash??

Thanks,

[kernowlass]

This arises because your seller has refunded you before your initial payment to them has cleared from your bank to PayPal.

When you sent your payment, the money is not instantly transferred from your bank account to the recipient’s PayPal account. Instead paypal instantly credit the recipient's PayPal account on your behalf and simultaneously request the same amount from your bank account to reimburse themselves.

It takes 5-7 business days for the money to arrive from your bank to PayPal (same timeframe and method as an eCheque in fact). If your Instant Bank Transfer is refunded, this refund cannot be completed until paypal receive the money from your bank to cover the original payment paypal made.

A ‘Temporary Hold’ is ‘Placed’ on your refund while your bank processes your initial transfer request. When paypal receive the money from your bank, it will be credited to your PayPal balance.

[BobbyHG]

Thanks kernowlass, appreciate your response.

I know that what you've described is how the process works, but surely in today's world of faster payments this "clearing" time shouldn't exist.  It's like the old days of waiting for a cheque to run through a manual document scanner in the (literal) back office of a high street bank branch! 

It just makes me slightly suspicious, that's all.  I mean it's not like either myself or ASOS are unknown to PayPal, and that transactions haven't passed between us before.

Thanks,

[kernowlass]

Its because paypal use electronic and not wire transfer see the link below.

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

But it is the same with banks, i paid a cheque into my branch of my bank and was told that although it would show in my online banking it be pending for 5 days until "cleared" and not in available balance.