Are paypal doing faster payments now?

rich_shot2003

becki_2012 wrote: »

21hrs is for security review before they will release it via faster payments
according to the email i got...

Seems to be 100,s of people who have got the 21 hour email from paypal who have been waiting days for there money.

Not good at all from Paypal.

nonnatus

Paypal are awful at the moment.

Payments INTO my paypal account from customers keep being "held" for the mysterious 24hr security review. Payments as small as £20. This obviously delays me posting stuff out to the customers, who remain unaware of the problem because at their end it seems the payment has been marked as gone through without problems. So they don't understand why I delay despatch.

Then when I transfer £2k from paypal to my bank account, expecting it to take the usual 5 working days (WHY??) it is there within 5 minutes. And I've received no message from Paypal to tell me they've gone to a faster payment system...

Bonkers.

I also use Sagepay and don't have much better service with them either.

RFW

becki_2012 wrote: »

Well seeing as its a "faster payment" technically, there is no reason for them to "hold" it for 21hrs and then send emails saying its now been released via faster payment..

Something to do with earning interest on the money before they release it maybe???

They aren't legally allowed to earn interest on it. They have always done security holds that most people don't know about, the difference is they are more transparent now, a 21 hour hold that makes a 4 day transfer into a 5 day is not noticeable, one that makes an instant one into a day one is.

The instant transfer system is probably generating more revenue for Paypal as it works both ways, so the money people are paying in is released quicker.

Perhaps I'm naive but I do think that instant transfer can cause security issues so a hold is possibly necessary in some cases, deciding which case is going to be a minefield.

It seems that instant transfer for users of Paypal and Ebay will lead to a short term rise in conmen as they realise they can withdraw the funds to their accounts before anyone has worked out the con.

patman99

I would imagine Paypal have a segregated account with a major holding bank as they are not licensed as a bank themselves.
Paypal may not be able to earn interest on the cash, but they probably use an amount to 'play the market for financial gain' as this is not interest, hence the fact that it used to take 5-9 days to transfer the money to your Bank account.

As the extortianate 3.9% + 29p fee charged on receiving money from buyers on ebay earns them a massive profit (consider the fact that the system is fully automatic and requires about 20% of the staff it probably did 10 years back), and that Bank fees for handling Credit/Debit card and bank transfers are only 2% tops in the UK, and you can now see why they now do faster payments and no longer charge fees (even for amounts under £50).

They may not be able to earn interest on YOUR money, but the fees are a separate entity, so they can earn interest on those.

RFW

patman99 wrote: »

I would imagine Paypal have a segregated account with a major holding bank as they are not licensed as a bank themselves.
Paypal may not be able to earn interest on the cash, but they probably use an amount to 'play the market for financial gain' as this is not interest, hence the fact that it used to take 5-9 days to transfer the money to your Bank account.

As the extortianate 3.9% + 29p fee charged on receiving money from buyers on ebay earns them a massive profit (consider the fact that the system is fully automatic and requires about 20% of the staff it probably did 10 years back), and that Bank fees for handling Credit/Debit card and bank transfers are only 2% tops in the UK, and you can now see why they now do faster payments and no longer charge fees (even for amounts under £50).

They may not be able to earn interest on YOUR money, but the fees are a separate entity, so they can earn interest on those.

I don't doubt they earn money, if I remember rightly they are the most profitable part of the Ebay companies.

From what I knew of the old delays it was as much to do with problems on the whole banking system rather than just Paypal.

Given their charges, I'm not sure why people get fixated on interest and them playing the money markets, they don't really need to and given the problems in that area recently it's more likely they'd lose money than gain it.

Whilst they are profitable, they are more at risk of fraud than most financial institutions, just by the nature of the way they operate, so they probably write off substantially more than most.

I'm loathe to defend them, I have had my own problems that they seemed incapable of sorting, at the time I was changing companies so I just closed the account and it didn't matter. For handling credit card transactions and ease of use on and off Ebay I think their charges are relatively competitive, I have a micro account at 5% and a standard account which is 2.4% plus 20p. Customers like to use it and generally feel safer doing so.

All_eBayed_Out

As long as its there the next day I dont mind. Years ago we use to have to wait 5 days but today I notice my transfered money from Paypal last night is in there this morning. At least I can use that money to send parcels promptly.

GregtheHammer

All_eBayed_Out wrote: »

As long as its there the next day I dont mind. Years ago we use to have to wait 5 days but today I notice my transfered money from Paypal last night is in there this morning. At least I can use that money to send parcels promptly.

Thats the way I have started looking at it, rather 24 hours then the old 4-5 days.

If it does clear straight away then thats a bonus.

janb5

hiccup123 wrote: »

That is fast. I haven't transfered money in a year because I have the paypal access card and use that for direct payments in stores and online

Hi havent come across the access card.- Have you been happy with it and are there any disadvantages please? Thanks

RFW

janb5 wrote: »

Hi havent come across the access card.- Have you been happy with it and are there any disadvantages please? Thanks

I use it, can't think of any disadvantages, it only costs to withdraw, otherwise no charge.

There was a problem with some transactions not going through and the money being taken but they seem to be ironed out now. It is invitation only though, so not open to everyone who has a Paypal account.

chemical.galaxy

janb5 wrote: »

Hi havent come across the access card.- Have you been happy with it and are there any disadvantages please? Thanks

I use my access card all the time and it has been really handy for direct access to my money rather than wait for it to reach my account. Applied for it about a year ago...
Have had it declined a couple of times though and one of those payment had actually gone through which was a bit of a pain.
CS is very helpful.

I have just looked at this discussion as I have had the following twice today and was wondering why!
'For security reasons, we've had to delay your withdrawal request while we review it.

Your withdrawal request will be under review for up to 21 hours. After our review is complete, PayPal will release your funds. It can take an additional 2 hours for those funds to be deposited into your bank account'