posted on October 25, 2001 07:19:02 PM new
Hi Damon, hope you can explain this and see if there's a way to change the procedure:
When I pay for something with PayPal (in this case using the default Instant Transfer), the payment is debited from my account, but remains "memo posted" for an additional 2 days!
Like so:
October 23rd, the debit from my account actually posts -- the money is gone from my account.
October 24th and 25th, there is still a "Memo Post" of exactly the same amount. This "Memo Post" is scheduled (by PayPal) to drop off at 9:04 am on October 26th! This has caused me problems twice in the last several months, since the bank's computer is reserving that duplicate (in the memo post), when I go to use my debit card, I get declined. Why does PayPal set this up this way???????? It is definitely PayPal -- it is not the bank. I have talked to them.
I've never had this problem with any other payment service. Is it only with "Instant Transfer"? Please find us an explanation.
Thanks!!!!
[ edited by Islander on Oct 25, 2001 07:20 PM ]
The incoming bank transaction takes 2-5 business days to clear into the PayPal account. This is because the item can still be rejected, even after it appears to leave your bank. The ach process is a little slower than a traditional wire.
posted on October 27, 2001 08:45:35 PM new
Hi Damon,
'ach' ?? Don't know what this is, but I would like to know if the time involved is shorter for a debit card vs. an "instant transfer". Can you provide info on that?
posted on November 13, 2001 10:15:34 PM new
Think about this --
1,000,000 Members each transfer $100 from their checking account to PayPal on the same day.
That's $100,000,000
My bank lists my "Instant" transfers to PayPal immediately, in real-time and according to my bank (who I've talked to about this), PayPal has the money in the clear, since my bank has released the money 100% -- they're not going to reverse it, the money's good -- the check has been cashed... PayPal has the money.
So, back to the $100,000,000 -- PayPal holds on to it for two days. Why? INTEREST! Two days interest isn't much, but on $100,000,000 a day, every day of the year --- WOW! Money!
Of course, my numbrs are hypothetical. PayPal has over TEN MILLION users. Not all transfer funds, but it's a good bet that many of them do. That "hold fund" always has money going in and out of it, gaining interest every day.
Transactions coming in from a bank account (via ACH) take several days to clear because they can still be rejected during that timeframe (by the issuing bank). The clearing time is in place to make sure that there are no rejections.
I'm not always for paypal but i'll back up Damon on this issue. When you do a "bank transfer" it's like writing a check ..the money might be their but it isn't cleared yet ..takews 3-5 days, just like doing a bank wire transfer. They want to make sure it clears before they let you spend it ...they dont' need anymore fraud than they already have =)
