Why is PayPal so slow to do everything?

[Buzz412]

Why does it take PayPal so much longer than every other financial institution to send/receive money? How can it be justified that a buyer has my item for weeks before PayPal puts the money in my account then another week+ to send it to my bank account? Are they driving all over the country to hand deliver the cash to the banks? What is the purpose of PayPal anyway? Why can't we just use our bank card on eBay like normal people in the 21st century. What a Mickey Mouse outfit.

[DPCreations]

Well, actually if you are making a purchase you can use your credit card for online purchases and avoid PayPal.

For sales, you can use other online services such as Square or even your own merchant account with a company such as FirstData.  You don't have to use PayPal if the service doesn't fit your needs.

[Buzz412]

Replace my rock with a stone eh?

[Whac-A-Mole]

First Paypal is not a bank,it keeps our money with its bank(s).

When you transfer fund from your PAYPAL account to your local bank,its bank will send all our transactions into a network called ACH automated clearance house where bank to bank clearance takes place.

There are 4 levels of ACH,the slowest one is also the cheapest one,it is free and this is what Paypal opts for.

It usually takes 3-4 days,dont forget your bank will take some time to allocate the transactions to its customer accounts,so give it another day.

Years ago when I have a shop on Yahoo Shopping and have my own merchan account to accept credit cards,Yahoo gave me a tip- ACH is slow,antiquated and its networks is made of copper wiring.

While the credit card transfer system is modern,fast and fiber optic,so if I want my money faster,sign up not with my bank account to receive fund,but sign up with a VISA or MC card,and I will get my money faster.

But this feature is not offered by  Paypal for USA members.

Probably not available in CANADA .

But it is the only way to transfer fund from Paypal to local bank in some Eastern European countries by using the VISA Europe network,Paypal members when they wish to transfer fund from PAYPAL to his local bank,he would ask his bank to issue him a VISA card and he wil link his Visa card with his Paypal account.

Also,I understand the major banks of USA has set up a company to perform clearance among themselves,take the major banks like Bank of America,Citibank,Chase,Wells Fargo,they set up and fund a clearing company just to clear their checks,it is cheaper than going thru the Fed Reserve.

This has been in place for many years,if it is still around,this could be the reason why sometimes we see clearance completed in a shorter period,if you bank with a major bank and your buyer also bank with a major bank and the checks are cleared outside ACH.  

I wish someone from Paypal can explain better how it processes our payments,do we have bankers on this forum?

[JohnnyBoy1]

So then why the **bleep** does their page say "1 business day" yet it NEVER has the money sent to the bank in 1 business day. I'm in the process of filing a better business bureau complaint because of the statement of "1 business day" during the money transfer process. 

[Whac-A-Mole]

@Buzz412

you can set up your own merchant account to accept credit card payments on Ebay,some sellers do.

But most ebay buyers do not want to be bothered turning over cc data to a seller,they may never buy from you again,and what are you going to do with the cc data?

it is your choice,paypal or your own merchant account.

or dont sell on Ebay,sell elsewhere.

Amazon one click transfer your fund once a month,how do you like that? 

[promontorium]

It's rather condescending and completely pointless for your answer to effectively be "It's your choice to use PayPal". That's not the question, and it's the answer of a failing business.

A succeeding business doesn't want its go-to answer to be "Well then don't use us."

A succeeding business will come up with a better way.

You people point out it takes time to transfer, sure, but it doesn't take time to put a hold. Put a hold on an account and then give money to the other party. Pay Pal could then wait for the transfer itself with NO risk. Creating an instant safe payment.