instant bank transfers

[chestymorgan]

A response to a post on may 16th 2011 stated there were four ways that would fund a purchase made through paypal. Money would come from a paypal account, if not enough in the account then an instant bank transfer, then a registered debit/credit card, and finally an echeque. Although this is the sequence a payment would be funded, you can choose a default payment method when making a payment.

What is the difference between an instant bank transfer and having a debit/credit card registered on my paypal account ?

Is there a fee for me as a purchaser to use a debit or credit card to fund a paypal payment ?

Thank you.

[PayPal_Maria]

Hi chestymorgan,

Welcome to the UK Community Forum!

Thanks for posting your query regarding the funding sources available to you through PayPal. Firstly, you are right in saying that there are four different funding sources:

-          PayPal balance

-          Instant Bank transfer

-          Debit/Credit card

-          eCheque from bank

If you have funds in your PayPal account, this will be used firstly for any payments you wish to make. It is not possible to override the balance by paying by card, but you do have the option to pay by eCheque instead of using the balance. ECheques take 5 to 7 working days to reach your seller.

If you have no available balance, the instant bank transfer is the next default funding source. When you pay using this method, PayPal credit your seller immediately and then we wait the 5 to 7 working days for the funds to clear from your bank to reimburse us. You will normally see the funds leave your bank within 2 to 4 days after you make the payment.

If you choose to pay using a debit or credit card, we receive an immediate response from your card issuer confirming if they authorise the payment or not. Then depending on your card issuers own timeframes, the funds may be debited the same day as the transaction or up to a few days after. Usually it is debited quicker than if you used the Instant bank transfer.

There are no fees for buyers when purchasing goods or services through PayPal. If you are sending a personal payment to friends or family members and chose to fund the payment using a card, you have the option of paying the fee for the transaction or allowing the recipient to pay the fee.

Sorry about the long reply, but I hope this helps resolve your queries 

Please repost if you require any further information. Thanks,

Maria

[chestymorgan]

Thank you for the reply. So an instant bank transfer is similar to a fast payment transfer between banks or paying with a debit card, although taking 2-4 days rather than overnight or immediately as with a debit card. How do you know if your bank account accepts the instant payment method. By making a payment and seeing what happens ?

Assuming you have added a credit card, how do you pay with that card if your bank accepts instant bank transfers ?  Instant bank transfers are second in the funding sequence after the paypal account, and as you stated in your reply, you can only choose an echeque out of sequence. So the credit card would only be used if your bank declined the instant payment for some reason ( lack of funds, technical error  ). If your bank account had no problems and enough balance, you could never choose the credit card payment then ?

Thanks again.

[PayPal_Maria · Accepted solution]

Welcome back chestymorgan,

My reply seems to have caused some confusion, apologies for that! I’ll clarify the process and answer your additional questions:

So an instant bank transfer is similar to a fast payment transfer between banks or paying with a debit card, although taking 2-4 days rather than overnight or immediately as with a debit card.

The Instant Bank Transfer is requested under a direct debit instruction between PayPal and your Bank. When you initiate the payment, PayPal send a message to your bank to request the funds and your bank usually debit the funds 2 to 4 days later. PayPal only find out between day 5 and 7 if the payment clears. When it leaves your bank, it moves into an automated clearing house before being transferred to PayPal.

How do you know if your bank account accepts the instant payment method.

To pay using an instant bank transfer, you would need to have the bank account confirmed before attempting it. You can’t confirm a saving account, only a current account. When you complete the bank confirmation process, a direct debit instruction is placed between PayPal and your bank.

Assuming you have added a credit card, how do you pay with that card if your bank accepts instant bank transfers ?

If you wish to pay using your card, you can click on “More funding options” on the payment overview screen. Here you can choose from any of the bank accounts or cards you have available on your PayPal account for the payment.

If your bank account had no problems and enough balance, you could never choose the credit card payment then ?

If you have a balance in your PayPal account, you cannot choose to pay by card. However, if your balance is zero and your bank account is set up for instant bank transfers, you do have the choice to pay by card by clicking on “More funding options”.

I hope this helps!

Maria 

[chestymorgan]

That's much clearer now.

Thank you.

[PAH123]

You state "If you wish to pay using your card, you can click on “More funding options” on the payment overview screen."

I can't find this "payment overview screen" where is it please?

[kernowlass]

The payment overview screen is DURING  the payment process.

So you buy an item and log in and it takes you to the payment screen > at the top it says how much you are paying and what your funding source is > just below or above can't remember which it says "other funding sources" and you click on that and can select to pay another way.

Bank account is always the default funding source if you don't have funds in your paypal balance but you can select to pay via a card if you click on the other options link 

[DanWales]

i have a bank account accout set up and also have a debit card set up, but when  try to pay for something with instant transfer it will not let me, when i hightlight the more information button it tells me that i have not got a back up funding source, i thought having a debit card/credit card would be the back up funding, any help would be much appreciated in how to set this up?

[PayPal_Maria]

Hi DanWales,

Welcome to the Community Forum and thanks for posting!

Could you please check and update us as to when your debit card due to expire? If it is due to expire in the next month, this can cause the instant bank transfer option to be unavailable. As we can’t check the specifics of an account through the Community Forum, I’d recommend contacting our Customer Service team by phone or email if you need further assistance with this.

Thanks,

Maria 

[AlyBall]

Hi, I've got the same issue. If I try to make a payment I only have the choice of echeque or debit card. It won't allow me to do an instant transfer. My husband set up a new account and confirmed all of his details too and he doesn't even get the echeque option. I've always paid with instant transfer but had an issue which left my paypal account in a debit. I've fixed that now though. Any idea? Thanks, Alyson Ball