Paypal going to charge for "Instant Transfer" - What constitutes "instant transfer"?

[wifeypoo]

I received notification that early in November 2018 Paypal will start charging 1% per "instant transfer".  i would like to know what that entails.  I use Paypal to pay rent (transferring money from bank account directly to landlord's Paypal), and I use it to pay for goods, primarily using my bank account, as opposed to a card.

Do these transactions constitute "instant transfer"?  Or it is referring to transferring money out of my Paypal account to my bank?

[wifeypoo]

cool, now I'm really lost and tempted to just nix Paypal altogether.  If I get charged to use a bank account or I get charged to use a debit/credit card, what's the point?

 I'll just write a check to my landlord

[nevadasmith]

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@wifeypoo wrote:

cool, now I'm really lost and tempted to just nix Paypal altogether.  If I get charged to use a bank account or I get charged to use a debit/credit card, what's the point?

 I'll just write a check to my landlord

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if you sent payment to your landlord ,you need his Paypal email address and it should be for goods and services and Paypal will charge you a fee 30 cents plus 2.9%,so your landlord will be getting less ,if I were your landlord,I prefer you t o send me a check.

if you sent as friend and family and PAYPAL call it fee avoidance,it will notice you are sending him a fixed amount every month and you two are not friend and family,it could ask you to stop sending as F &F.HOW DOes it know,beat me!  

Yu cannot do instant transfer to your landlord,as it is done with your debit card,not his debit card

[sharpiemarker]

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@nevadasmith wrote:

No, when you pay with bank account and have a valid credit or dedit card linked to your Paypal Account, and the payment goes through instantly, that's called an Instant Transfer. PayPal basically fronts the money ahead for your purchase and wait for essentially the eCheck to clear in 3-6 business days. Of course, if the eCheck bounce, PayPal charges your card. This service used to be free but now they are charging for that.

So if you want to avoid this and still have a verified Paypal Account, 1) link bank and card and just choose to pay with card each time, 2) just link a bank and provide ss# so your bank payments go as eChecks and your order with the merchant won't ship until the eCheck clears or 3) link a card and provide ss# and just pay with a card

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Sharpie,

This is not my understanding of instant transfer.

Debit and credit card do not go thru ACH,the go thru card processing gateway,hence there is a fee and is much faster than what Paypal uses via ACH,there are 4 levels of ACH,Paypal uses the slowest but free level.

But by using a debit card,the transaction goes thru a card gateway and is completed in no more than 3o minutes,PAYPAL does not have to front the money,but there must be riskand more costs  involved,so instead of just charging 25 cents,now it wants 1% up to $10   

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I never said anything about debit card going through ACH. Cards are just back up in case PayPal don’t get their money in the event the bank account has no funds through regular card processing the way it usually do. And I know if Card in general is used PayPal do not have to front money. 

Instant transfers and eCheck are both bank payments, period. One in which PayPal fronts the money so buyer/seller do not have to wait for eCheck to clear, if it don’t clear , PayPal charges the linked card on file.

The other is standard eCheck bank payment, buyer/seller have to wait for payment to clear and if no card linked to PP account. PayPal fronting money not involved. Why so hard to understand?

Edit: Hmm, perhaps I am getting it confused with Instant Payment. My bad if I did. When I first saw this notification, I thought that it was fee to withdraw to my bank. To make it more confusing, I google instant transfer and it talks about the 25 cent transfers to bank.

Edit 2: wait a minute, if I am wrong, what is this?

https://www.paypal.com/us/smarthelp/article/how-do-i-send-an-instant-transfer-using-my-u.s.-bank-acc...

”To make an Instant Transfer, you must have a debit or credit card linked to your PayPal account to act as a backup payment method. We’ll use your backup payment method if your Instant Transfer doesn’t clear through your bank account.”

I recall looking this up because of the notification about the fee so and made my own post about it and I figure this instant transfer (not payment) thing was this.

[Markx6]

Yeah I was able to link my debit mastercard for instant trasnfer from Paypal to bank, I transferred $700 dollars and look at that, maybe a minute passed and I checked my checking accoung and the money was already in there.  1 freaken minute!  I did a regular transfer during the week and on my checking account it still shows as Pending, hopefully bu tomorrow it will be transferred.  For 7 bucks I think it was worth it for1 minutes.  WOW....

1 minute was amazing!

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@nevadasmith wrote:

instant transfer,when you use a debit card for faster transfer.

I think max is $10  

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[PaulfromTx]

PayPal has had a horrible roll out of this new charge !!! The answers here in this forum vary and are by volunteers, so who knows if they are correct.  The material I found on the PayPal website seems to say this new fee is to sellers of products, not buyers.  But, it isn't clear that it only applies to just one.  And sending an email with numerous embedded link...what first class money service business does that.  Those messages can easily be spoofing messages wanting your to click on the links.

And, you can't send PayPal - you must wait 45 minutes on hold to talk to someone.  No bank has this horrible level of service. I find myself using PayPal less and less and just using my credit card.  I've got a "maximum" $50 of liability and can talk to someone promptly or send an email.  And, I don't have to worry about my account getting drained days before a rent or car payment.  Much more secure, much greater peace of mind.

[nevadasmith]

INSTANT TRANSFER started in early 2018 when Paypal users complain IT TAKES too l ong to transfer money from their PAYPAL account to their bank account.

This is how Paypal does the bank transfer,remember Paypal is not a bank,it keeps our money in different banks under its name.

It wil instruct its bank where our money is kept to transfer our fund to our bank/bank account,no different than we do online banking to pay our electric bills etc.

It is done via ACH,automated clearance house run by the Fed Reserve bank for clearance among member banks/

There are 4 levels,the lowest level is free but slowest,thats what Paypal uses.

It could take 1 - 3 to 5 days.

Then Paypal rolls out faster transfer,called Instant transfer,you need a bank debit card which is accepted by Paypal  and pay 25 cents and Paypal will send it to the card gateway not ACH,the same gateway all retailers use to process our credit /debit cards,it is  modern fiber optic network and it can be accomplished in less than 30 minutes.

Come Novemeber,instead of charging 25 cents,Paypal wants 1% or $10 max.

It does not apply to you making payments to NFLX or Ebay sellers,these are not transfer,these are purchases,sellers pay the fee. 

This is what you see in stores when you pay with your debit card/credit card,  

[nevadasmith]

some of you are confusing instant transfer with instant payment.

When you pay a seller using bank fund,it becomes an echeck,as it takes days for PAYPAL TO GEt the money from your bank account and give it to your seller,

But if you would link a credit card to your PAPAL account,Paypal is willing to front the money for you,it wil pay your seller and then get the money from your bank next or 2-3 days.

why credit card?

Well,if you don't have enough money in your bank account,then PAYPAL will just charge your credit card to get its money back,!

Instant payment allows the seller to ship the item promptly,you get your item faster and PAYPAL is protected as It can always charge your credit card if bank transfer fails  

[wifeypoo]

nevadasmith - Do you work for Paypal?

[nevadasmith]

no,but this is nothing new,

instant payment,instant transfer.

Paypal just want more money for its efforts.

[nevadasmith]

when it was 25 cents,no one pays attention and now WOW,1%,people start to wake up .