Why does electronic banking happen instantly everywhere across the planet except with PAYPAL?!?!?!?!

[Jimmy7291]

I just used paypal for the first time to purchase about $1,200 worth of glass blowing tools. The "ELECTRONIC CHECK TYRANSFER"  (note the word ELECTRINIC) took 5 FULL DAYS to be received by my vendor... WHO IS NOT EVEN AMISH OR ANYTHING!!!! Understand I do a lot of online shopping, and I do almost all of my online transactions exclusively using Echeck/ ACH (bank account ELECTRONIC transfers) transactions, only occasionally using a debit card when a vendor does not offer electronic banking solutions. When this transaction didn't take place within 24 hours (which is the norm in my experience) I checked with my bank. PayPal had MY funds since March 4th (which is when I would normally expect you to have received them). The morning of March 9th I got on the phone with PayPal and spent all morning trying to find out where the money I sent was. Ironically or coincidentally... or more likely, nefariously, my vendor received the funds WHILE I was on hold, waiting for a supervisor, which tells me, paypal had the funds all along, they knew they had the funds, and they could have released them on the 4th when you took the funds from me, but only did release them when I called them out and they absolutely had to.

I was told on the phone that because of "transaction patterns" PayPal needed to clear the funds through a "Clearing House". As this was my very first paypal transaction, I asked them to explain what "patterns" they could have possibly seen, and they could not answer that question... so, patterns from nothing... interesting. I know PayPal has a huge international business reputation, and I do not. But someone other than my vendor or I was earning interest off OUR $1,200 which is a tiny amount to my vendor and me... but, I suspect they are doing this to millions of customers... it adds up to a lot. Which equals profits for paypal. Profits which only PAYPAL gets benefit from and has a cost of time to my vendor and me, a cost we are FORCED to pay, but receive no benefit from. As this lag in our transaction has cost me several days that I was not expecting to lose, I will not be using Paypal any longer.

We live in the 21st century. A time where electronic banking happens instantly all over the world 24hrs a day 7 days a week 52 weeks a year, the only reason a company, like PayPal could possibly have for slowing things down by THAT much is because it is profitable for them to do so. If paypal is willing to earn profits at the cost of their customer's time, for a capital gain that the customers will never see... well, I consider that paramount to theft... of our time at least. And to me, my time has more value than money.

[kernowlass]

@Jimmy7291 

Transfers from bank accounts are never instant as Paypal use electronic transfers ie echeques.

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 as echeque transfers are the cheapest (but slowest) transfer option and go via ACH in batches.

Paypals instant transfer isn't really instant, its called that because normally when you buy something 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.

WIRE transfers and are instant but as per above ELECTRONIC transfers are cheaper and why paypal use them.

As i said they credit a seller normally in advance BUT there are times when you have to take the wait when.......

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.

https://pocketsense.com/difference-wire-transfer-electronic-transfer-8537474.html