If you`re in the EU, a directive issued in 2012 forces Paypal to execute transfers quickly. They and one more provider did not comply with it, even if they had to. Truth is, if you execute business in a specific jurisdiction which asks for certain rules to be followed, you do not need to comply in order to be regulated b the specific norm, it is in force over you not matter whether you comply or not. They tried to go around it by registering as a provider of e-money and not a bank/clearing house but the explanation below indicates they are 100% under the imposed regulation. It works this way - you may raise a dispute with your local court, while a non-government body, such as the FCA in the UK, may step in and assist as if Paypal is selling you E-money, they do it in your jurisdiction, they fall under the regulation of the local responsible bodies, a court would be much easier and faster. Also, in some countries, like for example in Bulgaria where I live, one sided changes to the contractual agreement between the two bodies have zero value in court, that was largely explored by some banks here and the law was introduced to prevent them doing one sided changes. So you need to agree, both sides, otherwise a one sided change where they only notify you about it carries no changes to your contractual agreement, if brought to a respective decisive body. This, once again, depends largely on the jurisdiction you are based in. A quickie below:
"According to Article 2 (2) of the EMD "electronic money means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer". Furthermore, as stated in recital (8) of the EMD "the definition of electronic money should cover electronic money whether it is held on a payment device in the electronic money holder's possession or stored remotely at a server and managed by the electronic money holder through a specific account for electronic money".
As to Regulation 260/2012, Article 1(2)(f) provides that the Regulation applies to "payment transactions transferring electronic money" if such transactions "result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN". This could equally apply to situations where there is only one payment account identified by IBAN or BBAN as well as to situations where there are two accounts identified by IBAN or BBAN."
