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?

[nevadasmith]

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

I think max is $10  

[wifeypoo]

so it is only for debit CARD payments?

[sharpiemarker]

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@wifeypoo wrote:

so it is only for debit CARD payments?

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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.

[wifeypoo]

Forgive me, but I'm still not following.  What exactly is Paypal going to start charging for? 

They say they will charge for an "instant transfer" and you say and "instant transfer" consists of using your bank account to pay for something. Therefore, they are going to charge simply to USE my bank account for a transaction because it is an "instant transfer"?

You alco give confusing information when you say, "if the eCheck bounce, PayPal charges your card. This service used to be free but now they are charging for that."  So they will also charge to use your card if your echeck bounces?  I guess that makes sense if using the bank account is the payment source you selected, but it was declined.  

Please just list the transaction types that paypal is going to start charging for.  Bank account?  Debit/Credit card?  Transferring funds from paypal to your bank and vice versa?

[sharpiemarker]

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@wifeypoo wrote:

Forgive me, but I'm still not following.  What exactly is Paypal going to start charging for? 

They say they will charge for an "instant transfer" and you say and "instant transfer" consists of using your bank account to pay for something. Therefore, they are going to charge simply to USE my bank account for a transaction because it is an "instant transfer"?

You alco give confusing information when you say, "if the eCheck bounce, PayPal charges your card. This service used to be free but now they are charging for that."  So they will also charge to use your card if your echeck bounces?  I guess that makes sense if using the bank account is the payment source you selected, but it was declined.  

Please just list the transaction types that paypal is going to start charging for.  Bank account?  Debit/Credit card?  Transferring funds from paypal to your bank and vice versa?

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You totally skipped over what I said about PayPal fronting the money for you ahead of waiting for your bank payment to clear.

Again Instant Transfers is where you pay with a bank account and if have a card linked as back up, PayPal fronts you the money for your purchase instantly so you do not have to wait for the 3-6 days it takes for the bank to process it but it is still an eCheck technically.  It’s about who waits for it, you or PayPal. If PayPal waits, aka Instant transfer, you pay the 1% for them to wait and front you the money for your purchase without the wait. If you wait, then the bank payment is an eCheck (no fee).

In other words, whether it’s an eCheck or Instant Transfer, it both a bank payment and eCheck, the difference is that with instant transfer, PayPal pays for your order instantly without you and the seller having to way for payment to clear.

So to remedy this, and to have still a verified PayPal account, you either just link a card and provide a ss# or link a bank and provide a ss#. Because if you have both a bank and card liked to you PayPal account, PayPal will make Instant Transfers if you paid by bank and have a card linked as back up.

[wifeypoo]

So, to simplify:

they will charge if I have a BANK ACCOUNT and a CARD.  

But they will NOT charge if I only have one or the other.

Correct?

[sharpiemarker]

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@wifeypoo wrote:

So, to simplify:

they will charge if I have a BANK ACCOUNT and a CARD.  

But they will NOT charge if I only have one or the other.

Correct?

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Yep! Sorry for the long explanation but I wanted you to know what it entails. 🙂

[sunsync]

Ignoring the eCheck scenario completely, what is the bottom line for NON-INSTANT transfers from PayPal account to wherever, i.e., another bank account, a payment to landlord, etc?

[nevadasmith]

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@sharpiemarker wrote:

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@wifeypoo wrote:

so it is only for debit CARD payments?

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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