Paypal Refund

[sb21878]

Hello,

So I purchased an item on ebay and used my bank account instead of a credit car account on paypal.  I woked it out with the seller and he was gracious enough to immediately refund me so I can use the other account which I immediately did.  My question is, since it was from my bank account but refunded immediately, will my bank account show this transaction ad will my funds be in limbo? 

[kernowlass]

When you pay a seller it is never instant > paypal credit the seller for you and then start the process of uploading your funds to paypal from your funding source.

This is done so you get your item more quickly.

So when you cancel that payment or it is refunded those funds can't do a u-turn > they have to process through to paypal who will then either return them to your funding source (if you paid with a debit or credit card), or credit your paypal balance (if it was funded from your balance or instant bank transfer), but that takes a few days and sometimes up to a week.

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I give up my time to help you so a thank you or kudos would be cool.

Marking one of my replies as a solution would be appreciated if I sorted your problem.

[redrook]

Nonsense, it is absolutely instant. Even when I transfer between my two bank accounts (with different banks) it is instant (2 hrs max).

I understand we signed the agreement to use Paypal for the sake of convenience.  And I fully accept that.

But this is not a matter of simply "A lot going on behind the scenes" as if there are legalities that Paypal has to perform.  That may be what they tell you reps, but it's actually more of a matter of business strategy. Transfers could be instantaneous.  Absolutely instanteous. The problem, is one of cost.  Paypal wouldn't be able to make any money that way.  So I understand, Paypal has to make their money.  But there is no 'legal requirement' to hold the money 3 or 4 days.  That's simply not true.

Paypal is in the business to make money.  The money that paypal has at any one time, they take a percentage of that and buy short  term paper.  Which is exactly that.  Commercial paper of the credit markets with a return for a very, very short time period for a specific return.  And I understand the 3 or 4 day time frame is not really Paypals "fault".  With prime funds where they are at, the only short term paper that Paypal can make any money from is on a longer time period.  Thus, that money is held for 3 days rather than 24, so Paypal can make more on their money; since they are dealing in very much a "volume" business. 

The only way Paypal can make ANY profit whatsoever is to buy longer term commercial paper for the return, which is going to torque off their customers in such situations that a refund takes place.  Sellers don't want to make their clients wait for refunds, so sometimes they are a little too quick to refund the money, before something can be worked out (that one has happened with me), and then there is the buyer in the middle. Paypal is just stuck with buying the paper that they can make the money with, so that they can continue to provide the service.

As someone that is waiting for my refund to clear, it's just that I resent that this is somehow framed in the context that Paypal could not (as if it was a legality or something) transfer the money sooner if they wanted to.

[redrook]

If it was simply the case of Paypal crediting the reciever of the money, then the same would be true in reverse. If that were the case Paypal would be providing credit, no matter the direction. There is therefore no other reason to hold funds "while the clear" - a largely redundant term now in the days of instant banking.

I'm afraid Paypal's replies on this matter have always been full of rhetoric designed to pull the wool over consumer's eyes, while harbouring the money for as long as possible. Just accept the responsibility for that, and stop pretending that the movement of money is a long and laborious process, because if it were, Paypal wouldn't exist.

[redrook]

The days of bank transactions taking "up to a week" are in the very distant past. A fact which is self-evident to anyone who looks at their bank balace immediately after pruchases with a debit card. 

[kernowlass]

You are wrong.

Wire transfers are instant.

Electronic transfers are NOT.

Paypal use ELECTRONIC TRANSFER for transfering funds FROM your bank account TO paypal.

http://www.ehow.com/info_8537474_difference-wire-t​ransfer-electronic-transfer.html

ELECTRONIC TRANSFER

Because processing electronic fund transfers involves a third party in the automated clearing house -- which processes the transactions overnight -- the time it takes to complete this type of transfer is generally between one and four business days.

WIRE TRANSFER

Since one bank completes a wire transfer by dealing with another bank directly, wire transfers occur faster than electronic fund transfers. Often, banks complete wire transfers in real time, making funds available to a receiver within minutes or hours of a person beginning the transaction. 

Also paypal often do not even remove your funds from your bank account until up to 3 days after you have paid the seller.

That is why you have confused buyers on here asking why there item has been despatched when the funds have not left there bank accounts yet.

[redrook]

And yet Paypal are willing to creditors in one direction but not the reverse? Forgive my scepticism.

I'm sure that you sincerely believe what you've been told to say, but the reality is that Paypal are holding their customer's money for far longer than necessary in order to maximise profits at the expense of customer service, satisfaction, and quite frankly, their livelihoods.

I also believe that you "volunteers" are merely parroting stock responses without any genuine understanding of the systems involved. Frankly it speaks volumes that, if you are indeed "volunteers", Paypal is not willing to address its customers with bona fide staff members (although they too would parrot the standard T&Cs).

My refund came through today (after 5 days and several complaints - very convenient) though one does not have to look far to find people who have had to wait much, much longer.

The payments I make through Paypal often leave my bank account within seconds. I expect the same treatment when I require a refund. Luckily I can afford to not have my refund for a few days, I imagine there are many who cannot. Paypal has enjoyed my dedicated custom for a long time, but after this fiasco I will be using my credit card at every possible opportunity instead.

[kernowlass]

Excuse me but i am not TOLD anything.

We are just ebay sellers that post on here to try and help other users.

If you post a lot and appear to help folks you become an advisor.

I have no more contact with paypal than you do.

I also am not told to say anything BUT WHAT I THINK.

I have posted for and against paypal policies but mainly just stick to the facts of how it works.

This is a "user to user" forum so of course we are volunteers as this is NOT paypal customer services.

Stick around and be helpful to a few people and you will be an advisor as well. 

And don't knock the folks that spend their time saving folks from being scammed etc.

Your payments "may" leave your account in seconds but that does not mean it arrives at paypal in seconds.

I paid the other day and my item had arrived BEFORE the funds left my bank account.

I am an ebay seller with years of experience, I give advice on here and you can take that advice or leave it but I DO NOT speak for paypal nor would i wish to. 

eg i did not agree with this one tonight and this happened >>>

https://www.paypal-community.com/t5/About-Protections/NO-REFUND-NOW/m-p/987925/highlight/false#M1267...