Paypal payments linked to bank account - purchases / timescale? 28 November 2022 at 4:07PM in Budgeting & bank accounts 6 replies 179 views

howryoo

Looking for some clarification for future ref.

My paypal account has always been linked to my debit card, but I've recently added a bank account (different to debit card bank).

If I made a purchase using the bank account option, is there a delay compared to payments made via linked debit card?

I'm sure I've read somewhere that retailers may not process your order until funds were authorised a couple of days later? Is it akin to a direct debit, so funds won't clear until two days time at the earliest?

grumbler

I sent a small amount to my friend recently and it took PP almost 2 weeks to collect it by a DD from my bank account.

born_again

Never had any delays with orders from retailer when paying via PayPal & using linked bank Acc.
PayPal pay the funds & then use DD to take from your bank account. Mine are usually within 7 working days. 

howryoo

Thanks for sharing your experiences.

@born_again - so if you placed an online order for next day delivery, there'd be no hold up?

I suspect Paypal will not authorise payment to retailer if there was a lack of funds in the linked account, despite them collecting payments a couple / few days later?

born_again

howryoo said:

Thanks for sharing your experiences.

@born_again - so if you placed an online order for next day delivery, there'd be no hold up?

I suspect Paypal will not authorise payment to retailer if there was a lack of funds in the linked account, despite them collecting payments a couple / few days later?

Never done next day, but have done click & Collect & picked up 1 hour later.

The only way PP or any retailer can check funds is via card payments, as the bank has to authorise. If they are taking a DD then they have no way of checking.

Bounced DD often incur a cost. But if you failed to pay PP, then expect to be chased for the money & your account closed.

AstonSmith

(This information might be out of date, but:)

• If you have just a Direct Debit linked to your account, the payment will be sent as an e-Cheque. The receiver won't get the money until PP have taken it from you using the Direct Debit.
• If you have just a card, the payment is instant.
• If you have a Direct Debit and card linked, and choose the bank option on the payment screen, the receiver gets the payment immediately. PP try the Direct Debit first (which will be collected in a few days / about 3 I find). If that fails, they'll try the card as a fallback.

So there'll be no hold-up if a card is on file, but it doesn't have to be used.

howryoo

Thanks born_again and AstonSmith - appreciate further clarifications on this.

I understand how it works now.