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Is paypal / synchrony bank committing fruad?

Lilcrazy
Member

Is paypal / synchrony bank committing fruad?

Based on my issue and others I read in this forum, this company is sitting on peoples payments to get extra interest money!!! I am very disappointed in this new Mc from paypal. I use the card for both business and personal, which i pay in full every month. The first month I paid the full balance of 3500, (2 days before the due date ) and received notice that my payment was on hold because of the size of the payment. The payment was on hold for about 2 weeks before it posted even though it was taken from my bank the next day. The following month i broke the payments into 3 smaller payments ( all before the due date). 2 of the payments processed, 1 is still saying pending. I called customer service and they said because there were multiple payments made, the put the largest payment on hold. It cleared my bank on 6/30 and is still showing pending on 7/8!!!! Ridiculous! I'm convinced thar These folks are sitting on all this interest while holding payments. If i have a 5000 credit line, of course ill be making a large payment every month. I asked them to flag my account so this wont keep happening but they cant. None of my other cc cards even remotely practice this nonsesnse and fraud. I'll be cancelling this card and going with another more honest merchant.

14 REPLIES 14
PayPal_Drew
Moderator

Re: Is paypal / synchrony bank committing fruad?

Hi @Lilcrazy

 

Sorry if making payments to PayPal Credit has caused frustration. Bank transfers normally take 3-5 business days to process. When you make a payment to a credit product, the credit company will usually post the payment in a couple of days hoping that the payment will clear. If there are transactions larger than normal, the system will make sure the payments clear before they're added to your balance. For either of these processes, we wouldn't earn interest on your money as bank transfers are handled by the government. I hope this helps clear up some confusion on making payments to PayPal Credit. 

 

Thanks, 

Drew

ScottyM520
Contributor

Re: Is paypal / synchrony bank committing fruad?

The same thing is happening to me right now.  I made a $750 payment on 8/7/20.  The payment shows in the recent transactions on my account.  However, my available balance still has not updated as of today, 8/17/20.  When I called customer service, I was told the same thing; that large payments could take awhile to post.  I told her that it didn't make sense since the payment was debited from my bank account a week ago.  She insisted that when I signed up, I should have read this in payment terms??  I still can't find it...  When I asked her when could I expect to see it on my available credit, she said "seven days from today".  When I asked her to please explain why a payment on 8/7 would take 17 days to clear, she rudely told me again that I should have payed attention to the terms when I signed up.  

I was trying to "up" my available credit before 8/14 in time for a large payment was automatically going to be deducted from my account.  Because it still didn't go through, the vendor automatically took it from my bank account which caused it to be overdrawn.  I called my bank to reverse the $750 payment to them and plan NOT TO USE this form of credit again!!!  Who knows, maybe they are making interest money off of these larger payments?

 

rolinster
Contributor

Re: Is paypal / synchrony bank committing fruad?

I had this same nonsense happen to me.  I called the card Customer Service and was told that the payment had to be put on hold to ensure it is not fraudulent. Supposedly, my bank can recall the payment if it deems my account was compromised.  This happens on every payment.  I thought it was because I was making a large payment online thru their website.  So, I set up a BillPay thru my Bank of America account. On the bill pay date, the money was withdrawn from my account and electronically deposited into my Synchrony account. However, the same hold and 2 weeks delay to actually credit my account occurred.  This is definitely not acceptable.  I began using this card due to the 2% cashback.  This delay is not worth it.  I am going back to a card that actually credits my account when I make a payment.

Stb5
Member

Re: Is paypal / synchrony bank committing fruad?

I am having the same issue.  Usually a transfer of cash from a bank account processes the same day.  The response of the moderator was very vague and did not satisfy at all.  I called Synchrony and was told my payment of $2k may be on hold for about 6 more days (8 total).  That is outrageous and does not happen to me with my other credit cards when I pay them.  It also means that my money has fallen into a black hole.  Synchrony not allowing the credit of the payment on my card, and so I cannot charge a new charge, but it has gone from my bank account.  This is unacceptable and should be against the law!

Re: Is paypal / synchrony bank committing fruad?

This is happening to me for the second month in a row. The customer service rep who took my call last month tried to tell me my PP Credit balance hadn’t updated because it took 5 to 7 business days for the funds to be cleared by my bank. Only problem with that is that the funds I used to make my PP Credit payment came from my regular PayPal account! They took the money out of my regular PP account and I could clearly see the payment reflected in my PP Credit account but tried to claim that they payment needed time to process despite the fact that they were the entity that processed both ends of the payment!!! The customer service rep I talked to talked to someone else in a different department and they corrected the issue while I was on the phone with her but I DEFINITELY didn’t expect it to happen a second month in a row!
sweeper5150
Contributor

Re: Is paypal / synchrony bank committing fruad?

Drew,

I will assume you have the best of intentions but your information is wrong.  Synchrony Bank is sitting on the funds and earning interest.  You are correct that the transfer process can take up to 5 days.  But that does not account for the other 10 days after they have received the funds in their accounts.

 

To the original poster.  Don't close the account.  just don't use it.  also do not get electronic statements get paper.  As there is no annual fee.  keeping it open does no harm to you credit report and costs them money to maintain.  If this costs them $1 a month and a lot of people do it that is the best way to get back at them.

RosieDearest
Contributor

Re: Is paypal / synchrony bank committing fruad?

I made a full balance payment of $247.00 on Sept 23th. It's cleared my bank. PayPal credit recieved the payment but still says I have no credit available. When I called they said I "have to wait another 6 days for the federal reserve to say the money is good. " Well it was good enough to leave my bank and go into theirs 2 weeks ago. But they can't see that it's good or not?!?! They said my "payment was out of character" which is not true. Also, I never saw any rules stating that I must make payments only the way they want. Which how is money from my bank account even possible for being no good? This doesnt make any sense to me at all. I dont use it often enough to really have a "usual behavior" anyway. I do pay off my balance each month or close to it anyway. It is not a large line of credit but it would have been nice to be able to use it like I had planned for my son's birthday tomorrow. But PayPal credit wants to sit on my payment another week. (Making it a total of 3 weeks before giving me any credit) This is very frustrating.
AxiomNutrifit
Contributor

Re: Is paypal / synchrony bank committing fruad?

I have the same problem. There must be a way to report this to Better Business Bureau and write to the DA's office where Synchrony bank is registered.

AxiomNutrifit
Contributor

Re: Is paypal / synchrony bank committing fruad?

This is a class action lawsuit waiting to happen. Imagine the free interest they collect on all the money they collect but dont release it for spending? I am reporting to consumer protection agency, BBB, and to the DA's office to investigate this practice.