Transfer delay.

xc800can
Contributor
Contributor

Last night I recieved a surprize gift from a freind in the U.S.. So, to keep things "even", I decided to do a "gift" fund transfer to him so he could buy himself something on boxing day sales. I used my bank account for the transfer, as I had the funds available already. Problem is, this morning I see the transaction is "pending", and it will not make the funds (that are in my account right now)  available to him until Jan. 9th!!!  Why so long for funds that are there? it was under the gift option, not a goods or service transaction. I have never had a delay in transfering gift money before, always used VISA though, is using a bank account causing the delay? Wanted him to have the funds tomorrow, NOT in two weeks!!!  John.  

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Whac-A-Mole
Frequent Advisor
Frequent Advisor

VISA and MC have their own network,which is faster and more efficient than bank ACH network.

They are also Global,not just USA for ACH,Canada has its own clearing house for Canadian banks .

VISA just bought VISA Europe which has 15 banks linked ,mostly in Eastern Europe,but if Paypal has to use their network it has to pay.

For Eastern European Paypal members,you will notice they can only download using their VISA card,because PAYPAL is paying a fee to VISA .

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Whac-A-Mole
Frequent Advisor
Frequent Advisor

so he is in US,where are you?

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xc800can
Contributor
Contributor

I'm in Ontario,Canada, he's in Oklahoma. I've transfered csh to him before, never a delay like this! I see now on my pay pay summary it says it was a e-check, I have never seen that before! This was the largest amount I've sent him,(not tons, just $300) maybe after a certain amount they automatically send it by e-check now?

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xc800can
Contributor
Contributor

I just sent him three payments of $100 each using my Visa, so he'll have the cash TODAY, he'll just return the original $300 when it reaches him on the 9th. It went to him within seconds, not weeks. So much for the " Use your bank account and they'll immediately get the money" claim that they state at the top of the page!!!!  Pay Pal had better change that wording for sure, NOT accurate at all!!!

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

There are two ways of paying with your bank in PayPal: eCheck or Instant Transfer.

 

With an Instant Transfer, the recipient receives the money right away. You only need to have a confirmed bank account to send an eCheck, but an Instant Transfer also requires a backup funding source such as a credit or debit card registered on your PayPal account.

 

You cannot send an eCheck if the Instant Transfer option is available.  So, there can only be a few of explanations:

 

It is probable that due to the amount, the PayPal system instead opted for the eCheck method instead of the Instant Transfer where PayPal fronts your payment so it will go instantly to the recipient and PayPal wait for the money to clear from your bank.  Or the Instant Transfer option was not available to you at the time of payment and it went eCheck, or you inadvertently chose the eCheck option or some other system mishap.  You'll have to recall what happened when you sent money.


Kudos & Solved are greatly appreciated. 🙂
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xc800can
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Contributor

That's what has me stumped. There is no "e check" option that came up on the transfer page. I did as I always do when sending a gift, chose the gift option, then it give the prompt that if I pay with a confirmed bank account, then the cash would be sent immediately. As I said, maybe because of the higher amount it automatically went to an echeck? As I said, there is no option for me to do that. Also, all cash was in my bank account, so no delay should be there. And, I have my Visa as a backup funding source, tons of room there as well. So I can't understand why it's going to take as long as if I just mailed him a physical check! ( Usually a two week journey) As I said, this morning I sent my freind three transfers of $100 each, he got them immediately. He'll refund me the $300 eCheck when he ever gets it. It's just going to cost me lots more in fees now doing it this way, as I had to pay extra to send the $300 again by Visa. I'm NEVER going to use my bank account again if it's a two week wait like this time! John.

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Whac-A-Mole
Frequent Advisor
Frequent Advisor

it could be you are in CANADA and he is in USA,getting money from your bank and sending to his bank ,we are talking two clearing systems,

Instant transfer is a myth,there is no instant transfer unless a third party is willing to front it.

why should the third party front it?

back in old days ,you go to bankl intl dept and pay wiretransfer fee,or buy a cashier check ,both have fees involved    

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xc800can
Contributor
Contributor

Yes, I'm thinking it has something to do with the Canada/U.S. bank transfers. The Visa transfer is in fact instant, as he received the three instalments of $100 within minutes of me sending them. I did the smaller amounts to ensure it didn't kick in the echeck option. Like I said, Visa only for out of county transfers anymore I guess!

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Solved

Whac-A-Mole
Frequent Advisor
Frequent Advisor

VISA and MC have their own network,which is faster and more efficient than bank ACH network.

They are also Global,not just USA for ACH,Canada has its own clearing house for Canadian banks .

VISA just bought VISA Europe which has 15 banks linked ,mostly in Eastern Europe,but if Paypal has to use their network it has to pay.

For Eastern European Paypal members,you will notice they can only download using their VISA card,because PAYPAL is paying a fee to VISA .

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xc800can
Contributor
Contributor

Yes, that's what has happened. In this new age of click on it to buy, I have forgotten the fact that Visa and MasterCard are in their own companies, not just limited to any specific bank. Good to know in the future. Perhaps Pay Pal should put a small notice to that fact, to warn that international transfers will not be instant? Thanks for the info sumiko, have a great new year! Johnny.

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