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PayPal deliberately delaying withdrawals?

acb_andrew
Posts: 5 Forumite
In our mail order business we include PayPal as an accepted form of payment for online transactions. Over the last few years we have been accustomed to withdrawals from the PayPal account taking 4-5 working days to reach our LlloydsTSB current account. We noticed last week (after Lloyds had recently made improvements to the speed of their online transactions) that PayPal receipts had also speeded up, with the most recent three withdrawals taking only two woking days, e.g. withdrawal on 26th October showing up on 28th October. On Friday, we noticed a new option on the PayPal 'Withdraw Funds' screen, namely 'Faster Withdrawals' for a fee of £5. Naturally, we declined this option and associated fee because our recent withdrawals had been very fast anyway. Imagine our surprise, when now three days later the Friday withdrawal has not shown up in our current account.
So, are PayPal taking advantage of recent improvements in the banking system to extract withdrawal fees from their customers by artificially delaying the withdrawal of funds unless a £5 fee is paid, or were they previously 'trialling' a new faster withdrawal service pending its introduction?
So, are PayPal taking advantage of recent improvements in the banking system to extract withdrawal fees from their customers by artificially delaying the withdrawal of funds unless a £5 fee is paid, or were they previously 'trialling' a new faster withdrawal service pending its introduction?
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Comments
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I doubt they are doing it on purpose but its PayPal so could be anything.
Why are you not using google checkout?
http://checkout.google.co.uk/0 -
Thanks for the tip there on Google Checkout Lokolo, but we accept PayPal as an option for those customers who choose to pay by PayPal. I don't think that customers wanting to use PayPal funds to make a payment can do so via Google Checkout, isn't it a competitor? Where possible, we prefer our customers to use their debit/credit cards in the 'normal way' because the transaction fees are lower.
We don't like PayPal, but it's a fact of life online and you have to put up with it. This latest development looks like sheer profiteering from recent changes in the banking system.0 -
hi since last week since the£5 fee my free withdrawals have slowed do wn and arre now pending to 3-4 days the week before completed in 24hours and in bankk in 2-3 days without paying fee. Has anyone else had this happen??? I have phoned paypal 6 f times each time i feel i am being told a pack of lies. i think it is because of the new fee way of withdrawing money. any help to what i can do would be great i dont feel that paypal should be holding my money for so long. a total of £1897 many thanks0
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I notice that PayPal have now removed the £5 speedy withdrawal option and reverted to describing the period for funds to reach a bank account as 2-3 days. Perhaps they got too many complaints from customers feeling fleeced and decided to just hang on to all funds for an extra day or two before transfering them? Either way, PlayPal's behaviour in this matter looks pretty poor.
The Faster Payments system was set up to improve banking efficiency and PayPal appear to be deliberately slowing down transactions to maintain the status quo. Perhaps they feel threatened in some way by a faster online banking system?0 -
hi i just checked and the £5 option is still thee and all my withdrawals from the 6th are still pending. I dont know if they know how much they affect the cashflow of a small business like myself when they do this. it really isnt fair.0
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Ah, I can see it again now. If you hit the top level option 'Withdraw' then the option is there. If you hover on 'Withdraw' and then click 'Transfer to Bank Account' it isn't there.
I'm sure they do know how much this costs businesses, which is why they have started to charge. It compensates for their loss of interest created by the Faster Payments system. Heads they win, tails we loose. At the end of the day, users transferring PayPal funds are in the same situation they were before Faster Paymenets kicked in. It's a shame that PayPal don't seem to want to 'get on board' with the grown up Banks and provide the kind of service we deserve.0
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