Why does it take 3 to 5 business days for PayPal to update my account?

[MayorGreg]

Why does it take 3 to 5 business days for PayPal to update my account after my bank shows the transfer being complete?  My bank shows the debit.  PayPal still says 3 to 5 business days.  It would almost make sense if you had to wait 24 hours but that isn't the case.  

[MayorGreg]

Wow, you do not need to be rude and insulting.  

My questions is a fair question and has yet to be answered.  Pointing to an article and then saying it doesn't say what it says is disingenuous.  

Let me give you the actual scenario.  On Monday my bank reports that they have transferred of $20 to PayPal.  This $20 is gone and no longer in my possession on Monday.  Then on Friday PayPal credits my account with my $20.  Based on what you said and the article that you provided, the money has been in PayPal's hands since at least Wednesday.  What has PayPal been doing with my $20 on Wednesday and Thursday until they finally credit my account on Friday? 

This is not an ACH issue or my bank's problem.  This is PayPal backfilling their coffers with my money and claiming that the money is in the process of being transferred which, according to the article, would be a lie.  Based on the article, the longest the money should take in my scenario is three days.  On Monday ACH receives the money from my bank.  On Tuesday ACH sends it to PayPal.  Wednesday, PayPal receives the $20 and credits my account.  

So again I must ask, what is PayPal doing with my money between the time ACH send it to PayPal and the time PayPals shows the credit?  It is a very simple question.

[kernowlass]

@MayorGreg 

I have told you why you have to wait, if you want to blame paypal when I have told you they are ACH payments and have supplied 2 articles to explain and you still can't grasp it then I certainly can't be bothered to waste anymore of my time.

The fact its left your BANK does not mean PAYPAL has it as it is processing through the AUTOMATED CLEARING HOUSE.

Bye then.

[nareiber]

You're extremely rude, kernowlass. That's not credit and debit as in payment methods. It's credit as in pushed between financial institutions and debit as in pulled between financial institutions. Greg is absolutely correct that paypal is acting as any other bank and holding funds as long as possible for financial gain. It's literally how banks make money, loaning your money out. And your own link says debits must be same day, so definitely ridiculous to insult him on that one...

[kernowlass]

@nareiber 

Sorry you are talking rubbish.

If you fund a payment via a debit or credit card then yes its instant.

If you fund it via bank transfer BUT have a back up card linked then paypal will front the payment for you and they will take the wait for the funds to transfer from that bank account.

If you fund it via bank transfer BUT DO NOT have a back up card linked then it goes as an echeque via the automated clearing house in batches and takes 3-7 days to clear through to paypal (country dependent).

Any bank will confirm that.

So paypal are not holding the funds, they would not have received them yet.

So stop accusing folks of being rude when they are trying to explain how things work to people like you that don't understand.

[nareiber]

You're absolutely being condescending and rude to Greg. And you're extremely misinformed. Just because paypal abstracts the ACH process with their name of 'echeque' doesn't change the timelines outlined in your own provided link. You're hilarious!

[kernowlass]

@nareiber 

Yet another one that can't read. Bye then. 🤣

[nareiber]

Same day ACH has been around since 2018, and as Greg mentioned in your article ACH debits are required to be same day. ACH credits can still be 2-3 days if your bank is cheap, but even before the RDFI gets involved both financial institutions are aware of whether the funds are there. Seriously, do some googling yo -- https://blog.abacus.com/where-the-hell-is-my-money-the-dirty-secrets-of-ach/