72 hours from withdrawals .....again!!!

[DLJ65]

After carrying out the minimal research it looks as though this practice by Paypal of holding on to peoples money they are trying to withdraw for more than 72 hours has been happening for years. Paypal cs are consistantly using the same excuses, system glitch, system upgrade, security checks blah blah. If these are indeed genuine security checks why take 72 hours, I've worked with some pretty crap software over the years but a system that takes 72 hours to check and complete a request is taking the mick. As they are so coy at giving a realistic answer you can understand why everyone who has had to put up with this 72 hour nonsense believes that it's a scam to gain a few extra pennies in interest on your money

[kernowlass]

@DLJ65

Paypal payments are never instant, that is why when you buy something paypal credit the seller (you) and paypal take the wait for the funds to transfer to pay them back again, this is so there is no delay in the buyer receiving the item.

That is why we have confused buyers on here saying their item is on the way but the funds have not left their funding source yet.

If you withdraw the funds straight away then Paypal often does delay the withdrawal for a bit, to allow the funds transfering from the buyers funding source to play catch up as if its going to 'fail' then it does so within a few days.

So why would Paypal pay interest on their OWN money that they credited you ahead of time?

[DLJ65]

The buyer of my item sent me a screenshot of the money being debited from his account four days ago, the same day it appeared as available balance in my Paypal account. Yesterday I tried to withdraw only a part of this payment to be met with the common practice of the 72 hour hold. A quick search provides many instances of this happening, including a report by the BBC programme Watchdog. Paypal customer services have given various excuses as to why this happens, but yours is a new one to add to the list. My buyers account was debited 4 days ago, its showing as an available balance in my account..... It's not paypals money, it's mine, i want it now and every minute they hold on to it they're racking up interest on the balance.

[kernowlass]

@DLJ65

Yes the funds can often 'leave' the buyers funding source from a few hours 'up to' a few days later post payment.

However that does not mean Paypal has the money yet as they use the slowest (cheapest) transfer options to keep down business costs to them, that is why they credit you in advance, so you don't have the long wait for the payment to clear.

So again the credited funds are Paypals and they sometimes slow it down to allow the buyers transfer to complete.

I bought something 2 days ago and this morning had a 'despatch' notice from the seller, I have just gone out of curiosity to my online credit card site and the payment is still 'pending' in there.

[DLJ65]

The reason you're giving still doesn't apply in this case, the payment had been made 4 days previous and was showing as an available balance. I do understand the structure of cleared and non cleared payments, its standard practise on current accounts which is why you will get a balance and an available balance, with the difference being the uncleared payments. You say paypal are crediting accounts with their money ahead of receiving funds from the buyer and they slow down the transaction for the actual payment to catch up. So in effect paypal are not actually using their own money because you cant withdraw until the actual funds have cleared. All they are doing is manipulating the balance amount. All beside the point, the fact of the matter is that ive had to wait 7 days in total to receive a payment that my buyer paid for immediately on completion. Also, if your reasoning for this 72 hour hold is a statement of fact why isnt this explained in the automated email they send out after a withdrawal request they only mention this is due to "checks" being made, and their own customer services put it down to system issues, ongoing system upgrades, etc. no mention of uncleared funds. Its a very poor service, and even poorer excuses.

[MeliC]

I don’t think it’s a scam to gain extra pennies, but agree there are other ways to verify security concerns and processing with in house verification should be completed immediately after verification. I am currently experiencing one of these transaction security holds and it’s been 60 hours so far for a debit transfer on a verified account with ID and all KYC in the system for some time. My best guess (and this is just speculation) is that an quick security check does take place, but the holds are triggered purposely and as needed during times of high transfer volume.. where they may have possible liquidity problems with their nostro vostro accounts. Every time they transfer for you, PayPal’s account at the bank u are transferring to is debited to cover ur transfer. Basically PayPal loans the money till the actual funds arrive. Why should PayPal have extra assets tied up in these accounts if a program can create random holds as needed, and never allowing volume to create a divergence from the mean.