Very simply, instant bank transfers are Direct Debits. Unlike making a card payment where the linked bank account is checked to see whether you have sufficient funds in your account and if so is authorised Instant Bank Transfers do not. If Paypal approve them, your AVAILABLE BALANCE in your bank account will not be reduced. Therefore, you need to be aware that until the transaction(s) actually appear on your bank statement, this money needs to be reserved by you. EG. If you have £1,000 in available funds, but your Paypal purchase via Instant Bank Transfer (which is a Direct Debit which isn't instant) cost £300, you only have £700 to play with. However, until the Direct Debit reaches your bank your available balance will still be shown as £1,000. Therefore, if you forget you have made the payment and there was a delay in the Direct Debit being processed, say on the Thursday before Good Friday and spend the £1,000 your bank will either pay the direct debit causing you to overdraw or bounce the DD. Whichever you are going to pay some very steep bank charges. This is very bad, for people who have a limited budget or are bad at managing money or genuinely rely on their available balance taking into account Paypal instand bank transfers. Word of warning if your Instant Payment is not paid, Paypal will recover the money via the old method and process the transaction as a normal card payment and try everyday until you have money in your account. This is riddled with problems in my opinion. There will be some very unhappy PayPal customers and I suspect some people will simply receive the goods and either cancel their debit cards or change banks to prevent PayPal recovering their money.
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