Highly suspect refund process

[antproofcase]

It is amazing that the first time I needed to do a decent sized refund ($280), when the PayPal process is an instant transfer from my bank account to the payee, that in the event of a mistake, it should take fully a week for the money to return to me.  It's like I got the FTL drive in one direction (from my bank) and a clunky pneumatic tube with lots of inexplicably 90-degree bends coming back (to my bank)...I called in and had my "expectations set" that this can take up to a week, and they could offer no good answer.  The refund by the payee was made the same day (3/1), and here it is 3/7 and I cannot see it...so, "expecting" it tomorrow.  To add to that confusion, the PayPal app shows it in process, with nothing to clarify the "why."   I had to call the 1-8xx number to get clarification, and have my expectations redirected to a week long wait, and that it will be deposited to my PayPal account where I will then manually have to move it to my checking...WTF???

Still have that nagging "why" unanswered though.  (Holding onto money for interest, as a rule, though it seems unlikely?)  Who else has seen this?

There are LOTS of ways to send and receive money, and this has REALLY cooled me on PayPal...

[kernowlass · Accepted solution]

@antproofcase

When you make a payment its never instant, normally paypal credit the seller for you and then paypal take the wait for the funds to transfer from your funding source ie bank account. Thats why we get confused buyers on here saying their item is on the way but funds not left their funding source yet !!!

Transfers from bank accounts take 3-4 business days. It may leave your bank account after a few hours but that does not mean Paypal have received it as Paypal uses the slowest (as its the cheapest) transfer option. 

HOWEVER with refunds they don't 'refund' in advance, so this time its you and the buyer that take the wait for the funds to go from your bank account > Paypal > buyer.

[antproofcase]

I have used PayPal to get paid before, and it's odd, but it never has taken me 3-4 business days to get paid, so I guess that answers the why.  Wish the CSR they had on the phone knew as much when I called in, but thank you.  I guess that's why they set the expectation at a "week" which is to say 5 business days.  The few times I have used PayPal to get paid (we use it around Christmas between siblings), I know I had it 2 days later..and that was around the holidays, so I think that was my expectation.

Thanks for your answer!  

[antproofcase]

That also explains the FTL/pneumatic tube analogy in terms of your "cheapest" explanation for refunds.  Again, thanks.