PayPal, where's my money?

L[Deactivated] on 24/10/2014 - 00:41
Last edited 24/10/2014 - 00:47

I'm a newbie to the whole eBay/PayPal ecosystem (although I have been buying online for 10 years), so I would really appreciate help from fellow OzBargainers.

The background: After seeing on this site the multitude of bargains to be had by buying during eBay "special deals", I wanted to get in on the act. So I joined eBay. Then to make payments "easier", I joined PayPal. Since I don't own a Visa/MC (only amex), I chose bank transfer as my payment method. At that stage I understood that at the time of payment I would need to wait a few days for the money to be transferred to PayPal. If I wanted something in a hurry, I could choose a seller with bank deposit, I would run to the bank, and instantly they would have my money. Everything cool? Right.

The issue: Last week on the 18th October I bought some car stuff, not much about $49 worth. Chose PayPal as payment method. Sat back and waited, and waited, and waited… I got email from seller he would ship when he gets my payment. Cool.

On the 20th, my bank ac was debited. I thought, great, I'll get my stuff in a couple of days. But, alas, seller still says no payment. On 21st & 22nd still no payment. I send email to PayPal, but no answer until today (23rd) about 9 pm. They say payment was made to seller today. But seller still has no payment!

You can see where I am going with this? Money sent to eBay on 20th. But seller still has no money, even though PayPal confirmed receipt. So was not lost in bankng system.

My (naive) conclusion: PayPal holds onto my money for 3 full days, invests it on the short-term money market, and by doing the same to millions of users, makes a nice packet which they are not entitled to.

Please help.

  • Am I expecting too much from today's banking system, where payments are made instantly electronically, but the bank still pretends that a guy has to get on a horse and take your cheque to Ballarat, and thus makes you wait 5 days to clear your cheque (or in the case, an "eCheck")?

  • How do I get PayPal to pay seller sooner so I can get my stuff?

  • How do I prevent this from happening again.

  • Am I wrong to threaten to close my PayPal account, choose only eBay sellers who accept bank deposit, or just buy outside of the eBay/PayPal ecosystem, as I have been doing for the past 10 years?

  • And most importantly: WILL PAYPAL SUSPEND/BAN ME FOR BAD-MOUTHING THEM?

I would be grateful for any advice.

(Sorry if I rambled on, but I felt quite emotional)

Just as I pressed submit, my email went DING! PayPal sent me an email to the effect of "we have just paid the seller so he can send you the stuff now".

THAT WOULD BE A FULL 3 1/2 DAYS AFTER MY BANK ACCOUNT WAS DEBITED! GO FIGURE.

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Comments

  • Agarwal on 24/10/2014 - 00:48
    +3

    Why don't you get a Visa Debit card for paypal to use?

  • scrimshaw on 24/10/2014 - 00:49
    +1

    eCheque transfers typically take 3-5 days to fully clear. Your money is still being processed by the payee's bank — he will not see the money in his account instantly.

    That said eCheque payment methods are crappy, you definitely will want to link your Debit card to your paypal account if you want a faster transaction.

    For an extra layer of security I highly recommend activating two factor authentication for your Paypal account. It may be a real pain in the to have to wait to receive an SMS to your number every time you use Paypal, but it makes your account much harder to break into.

    • [Deactivated] on 24/10/2014 - 00:57

      OK thanks, but am I missing something. PayPal just said "we have just paid the seller now", meaning today they sent it from paypals account to the sellers account. they did not say 2 days ago "we sent the money to the seller's bank we have to wait for them to process it" (i dont mean to come across as rude, i genuinely dont know). To me that means that paypal had it in their possession until today

    • [Deactivated] on 24/10/2014 - 00:59

      Btw scrimshaw, thanks for tip on two factor authentication, will look into it

  • Cheeper on 24/10/2014 - 03:16

    What bank does the seller use? Some can be very slow in processing payments.
    Has it been this slow in paying with other purchases?
    As much as I despise ebay and paypal I have never had a problem with them being slow to pay the seller… ever.
    Threatening to close your paypal account?? I'm sure you will have them quivering in their boots… yours is the one account they rely on… ??

  • Ughhh on 24/10/2014 - 06:20

    choose only eBay sellers who accept bank deposit

    So you get no buyer protection?

  • Geewhizz on 24/10/2014 - 07:03

    What type of bank account do you have OP? If it's visa debit, you can enter the card number as a credit card in the paypal system. This has a few significant benefits over doing a bank transfer from the account.

    Firstly, the seller receives their money straight away. Secondly, you have the added protection of visa back-up if for some reason you need to make a claim against a seller and paypal doesn't do the right thing by you; and thirdly, if you are refunded through Paypal, the funds will be returned to you via the means with which you funded the transaction. If this was via bank transfer, it can take Paypal up to 7 days to do this (ie they hold onto your money for a few days on the way back to you.) If you've used 'credit card' to fund the payment, the refund is credited back to the card almost straight away.

  • retiredfeline on 24/10/2014 - 07:53
    +1

    I could choose a seller with bank deposit

    I'm not sure why you need this condition. What I do is link Paypal to a transaction account with very little money in it. When I want to buy something, from ANY seller accepting Paypal, not just one that offers bank deposit, I electronically move enough money into it from a linked account, pay the seller, Paypal instantly debits my transaction account, money goes into seller's Paypal's account, he is notified of that and can ship.

    I suspect the delays are because you are getting the traditional banking system involved rather then allow it to be all internal settlements inside the Paypal system, the default procedure. Paypal is in fact trying to bypass the banking system so your procedure is not the norm.

    • [Deactivated] on 24/10/2014 - 18:50

      Thanks greenpossum. Actually you reminded me of a scheme some overseas banks have, which would be good here:

      Namely, when you open a transaction account, they give you two cards, one for eftpos and atms, and the other for internet purchases. The second has a different number, and no magnetic strip, only printed information you enter on websites. It also has no direct access to your primary account.

      When you make a purchase, the funds are transferred into a temporary "holding account". You do not have to transfer funds yourself from account to another. You are then sent an sms or email to confirm. If you don't respond within a certain period, the funds are put back into the primary account. If you do, the seller is paid immediately. A bit similar to paypal's two tier authentication.

      Thought I would share this really nifty and secure scheme.

  • PissLUR on 24/10/2014 - 10:17
    +1

    You can add amex card to PayPal.

  • airzone on 24/10/2014 - 10:21
    +1

    Unfortunately it takes a few days for the bank to release funds to paypal (but note that the deduction from your account is immediate), then it takes a few days for the receiving bank to clear it.

    Paypal take Amex. Otherwise get a debit master / visa card from your bank, and it behaves like a credit card.

  • minniethemoocher on 24/10/2014 - 12:56
    +1

    My understanding is you can add your Amex but pay by bank deposit. Payment from your bank account will be instant then because you have a back up source - your Amex. The delay was because they had to wait for the money to come out of your bank account & this can only occur during business hours so a payment made late Friday/weekend wont be proccessed until the following week. You just need backup source.

    • [Deactivated] on 24/10/2014 - 18:34

      Aha! Now I got it. If I add a card (amex) but choose bank transfer when buying, the payment is immediate, but no transaction shows up on your card. Is this correct? The reason I avoid adding the card is that I use it for business sometimes, and did not want every purchase to show when I give the statement to the accountant (not that I have anything to hide). I dont have Visa/MC as I cant afford all the fees, this way I only pay the one fee.

      Thank you to everyone for the advice. Will try and avoid bank transfer after this experience.

      BTW I have bought plenty of things from eBay on a one-off basis generally with the wife's card, and have generally been happy. If I pay by direct deposit it would be to buyers I have bought from before and could trust. But I wanted to take advantage of ebay/paypal specials which require you to be a current member of ebay AND paypal.

      Looks like I will be getting myself a debit visa card to make this work.

      • airzone on 25/10/2014 - 18:06

        Some banks will give you a visa / mc debit card to replace your eftpos card, free of charge.

      • Geewhizz on 26/10/2014 - 11:22

        If I add a card (amex) but choose bank transfer when buying, the payment is immediate, but no transaction shows up on your card. Is this correct?

        No, not correct. The transaction will show up on your card.

        There are plenty of fee-free bank accounts available that give you a visa debit or mastercard debit card as standard.

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