PAYMENT TO PAYPAL-INST XFER

[banksterstojail]

When Paypal deducts money from my checking account, bank online statement immediately appears as:

PAYMENT TO PAYPAL-INST XFER

However, when there is a cleared balance in my PayPal account and I try to transfer it to my checking, why do I have to wait upwards of six days?

[banksterstojail]

I spoke to rep at call centre who said funds leave PayPal and go to Federal Reserve where they're held for a few days as part of ACH process, so PayPal are not making money in the interim.

If that's the case, then I'd still like to understand how PayPal can instantly access my money when they're acquiring funds, but cannot apply same process when it comes to handing it back?

[PayPal_Andy]

banksterstojail- That's actually a very good question, I'm glad you asked!

We actually don't get money right away; in an instant transfer PayPal essentially "loans" you the money and instantly completes the payment. Then we wait the 3-4 business days for the funds to clear from your bank, thereby "repaying" ourselves.

The agent you spoke with is absolutely correct as to the timeframes involved; the ACH process is where the processing holdup occurs.

Hope this answers your question

Andy