Cancelled PayPal Transaction Has Shown Up On My Bank Statement

[ukusa]

I paid for a item on eBay with my PayPal account and a few mins later discovered that my preffered method of payment (PayPal Credit) had not been used and that the funds had been taken straight from my bank account.  I cancelled the order immedately, and received a message from PayPal that the cancellation was successful.  However, 5 days later I see the full amount has been taken out of my bank account, and there is no actual refund in my PayPal account, even though PayPal clearly states that it was processed as a refund.  Has anyone experienced this before?  

[kernowlass]

@ukusa

When you pay a seller it is never instant > paypal credit the seller for you and then start the process of uploading your funds to paypal from your funding source. This is done so you get your item more quickly.

So when you cancel that payment  those funds can't do a u-turn > they have to process through to paypal who will then either return them to your funding source (if you paid with a debit or credit card), or credit your paypal balance (if it was funded from your balance or instant bank transfer), but that takes a few days and sometimes up to a week.

[ukusa]

What concerns me, is the fact that it took 8 days to credit me.  With todays technology, and instant payment abilities, this way of doing business is totally unacceptable.  PayPal is not being fair and equitable to it's customers.  Even a bank or credit card company won't keep your money on hold for that amount of time.  I have also noticed that the electronic payments I use to pay my PayPal bill straight from my personal bank account isn't credited until 8 days later either, even when it is taken out of my bank account immediately.  There is something very wrong with their system, and I refuse to use them from now on.

[kernowlass]

@ukusa

Paypal use the 'slowest' transfer methods possible as it reduces costs to them (and hopefully keep our fees down).

Thats why when you pay someone paypal credit the seller and then paypal take the wait for the funds to transfer.

However they don't refund in advance so with refunds 'we' take the wait this time.

It may 'leave' your bank account instantly (although its nearly always a few hours up to a few days before it leaves mine) but that does not mean Paypal have the money as again they use the slowest transfer option and it has to go via ACH (Automated clearing).

[ukusa]

ACH Banking rules were changed to Same Day clearing and settlement in September 2016.  PayPal has no choice in the matter, and therefore is unable to choose a slower method even if they wanted to.  “[Same Day ACH] will build upon existing, next-day ACH Network capabilities and establish a new option for same-day clearing and settlement via ACH. Under the Rule, two new same-day settlement windows will be added to the ACH Network, increasing the movement of funds between financial institutions from once each day to three times each day. The Rule also requires that all Receiving Depository Financial Institutions (RDFIs) receive same-day transactions and provide faster funds availability to customers, creating value for end uses through its reach to all bank accounts and ability to give consumers and businesses a new option to quickly pay bills and receive funds faster.”  PayPal is just not posting the transfers in a timely manner, and holding customer's money for up to 8 days for their own use.

Moving towards same day ACH is scheduled to start in September 2016.

[kernowlass]

@ukusa

bility from banks	Widely available	Most banks should support ACH  bank debit as it's the same method most companies use to pay their employees. If you're unsure, please check with your bank
Time for your money to be cleared to TransferWise	1-4 working days	It's almost always on the lower end of the scale, but please keep in mind that it can take up to 4 days in addition to the regular conversion time for your money to be cleared to our system when sending money via ACH bank debit. Sometimes for the transfers that will take the full 4 days to clear to us, a speed code can be used to make your transfer happen a little faster.

[ukusa]

I wouldn't have minded 4 days, but 8 days... Now that's just insulting my intelligence.

[kernowlass]

@ukusa

4 working days not calender days.

[ukusa]

Your still missing the two extra days...lol.  Hey, and I have no idea where you got that info from that you sent me, nowhere does it state it pertains to PayPal, so your point is?