Paypal echeck recourse

[ihopeyousuffer]

I've been using Paypal for over 16 years. Hundreds of thousands in transactions. These days I use Venmo most of the time because paypal is so unfortunately complicated and fee-driven. But a friend asked me to help him make his rent payment and buy his family groceries this month, and his default payment app was paypal. So, I loaded up paypal and did what I always do - I sent money to friends/family using bank transfer. 

I've done this so many times I can't count. At least once a month. You click on bank transfer as your sending account, and boom - it transfers. In this case, however, PayPal executed the payment as an "ECHECK". This little maneuver was undetectable until the confirmation appeared saying it was pending, and wouldn't credit until Friday. I instantly went to cancel the payment and couldnt. Paypal support told me the recipient would have to cancel it, but neither of us had those options. This is immediately following the payment. I called and tried everything I could but the phone system wouldn't give me to a human. They even called me with a robot suggesting the transaction was fraud, but didnt give a human or a way for me to stop or reverse the transaction.

Of course, its friday and the echeck hasnt cleared. My bank is BOA - one of the largest, and the recipient bank is United - in the top 10. Paypal has not only failed us miserably by openly instructing support options (canceling) that dont exist to both users, then by refusing to enable human contact to use discretionary abilities to solve problems, then by basically shutting us down and telling us we have no choice to wait. 

But I didn't authorize an echeck, and I've just filed my first BBB complaint against Paypal because, so far, I have not been granted any actual human attention and I can't get through to a human by any telephone means. And to remedy the situation I am driving hours across country to bring this poor couple enough cash to get groceries for their babies. He'll be penalized for paying his rent late, and they've been eating out of cans, but does paypal have any care at all? Does paypal take any responsibility? No. And the first thing you need to take responsibility for is the thousands of complaints you get daily from others who are hurt - materially - by your hold-and-profit game. If it isnt a hold-and-profit, I am baffled as to why you would offer such a terrible service.

I'D LOVE TO HEAR IF ANYONE HAS FOUND A SOLUTION TO THIS NIGHTMARE THAT PAYPAL ILLEGALLY IMPOSES ON ONCE-LOYAL CUSTOMERS.

[kernowlass]

@ihopeyousuffer 

Transfers from bank accounts are never instant as Paypal use electronic transfers ie echeques (cheaper but slower).

Funds normally leave your bank account from a few hours > few days later but they take several working days to clear through to the seller/Paypal as they go via ACH in batches.

Its called instant because normally Paypal credit the seller upfront and then Paypal take the wait for the funds to transfer, this is so you get your item without delay.

However there are times however when its you and the seller / recipient that take the wait for the echeque to clear and here are some of the reasons...

1. Back up card has expired or needs updating.
2. You have had a recent negative balance or failed bank transfer (so paypal are not going to credit the seller in advance in case it happens again).
3. For some high cost riskier payments / transactions.
4. Friends / family payments *funded from a bank account* as this option is free then its you that takes the wait this time.
5. Clearing a negative balance.

[ihopeyousuffer]

Several incorrect statements. I have 7 people I pay regularly. All are instant bank transfer. Instant means seconds. When I go to pay this guy who apparently is poor and doesn't have strong linked accounts, I fall into this situation. You seem to not care - you should go work for paypal. In the mean time we're running three external complaints and doing everything we can to, sadly, get enough attention to a human will call. 

Thank you for helping, but you are posting flat wrong information. 

[kernowlass]

@ihopeyousuffer 

Nope, information is correct, bank transfers are NEVER instant because paypal uses electronic transfers.

They only appear instant because paypal CREDIT sellers or recipients upfront, that is why we have posters on here stating why has the seller received their payment when the funds haven't left their bank account yet.

BUT there are exceptions as per my list.

And yes I care that is why I took the time from watching my film to post in reply to your post to try and help you.

And why I give up my time to save folks from being scammed everyday.

So you're welcome, I can only give you the facts, not the understanding to comprehend them.

[ihopeyousuffer]

I've been using paypal regularly in this way for years. I always send the same way. I took the usual route which was labeled "bank transfer" and instead of it going through, it was called an echeck and within minutes, neither of us could cancel it. It created and continues to create real suffering that affects children. I am not imagining or making anything up. And the fact is, paypal customer support gave both sides incorrect information and instructions to remedy, then provided no human who could help. This is not an okay or ordinary issue. I've learned that the reason this happened is because paypal has profiled my recipient in some kind of risk category related to his linked accounts. Because of this I am through with paypal entirely. But the issue remains, and frankly, we have no idea when these funds will credit. I find countless cases of people still waiting beyond the timeframe. This is not good business, this is not good disclosure, and while it may somehow be legal, I am doing everything I can to get a real response from the company that addresses it. Because overall, if you read the heavy BBB complaint history, PayPal just hides behind policies and carries out this problematic process every day. And poor people get hit hardest, just as they are push marketing to poor people.