paypal transfer to bank... wheres my money?!

hello POTN,

I've always heard of horror stories about paypal, but I never thought something like this would happen to me.

I had some funds sitting in my paypal that I decided to transfer back to my bank account. After I initiated the transfer (9/26), I was told that I would have to wait 3-4 days before everything was cleared.

Today, I log into my paypal, and I see that the funds have been "cleared" to my bank, as the transaction details indicate that the transfer is complete. So to double check, I log into my bank account to check the statement.

Low and behold, the money I transfered is nowhere to be seen. It is the weekend, and I have no means of contacting my bank to see what is going on. If these funds are gone, I think I might just crawl into a little ball and cry.

Anybody experience something similar? What should I do?

Thanks

Eric

I'd wait until monday. Banks love to keep your money for as long as possible (and earn interest on it), so it won't be available until the next working day. If it doesn't turn up by the end of Monday, then you should start phoning...

I believe that is 3-4 business days, if that is the case, you won't see it in your bank account for another two days...

Sometimes it may clear their system but not transfer to the new..

take a deep breath, don't panic yet.

My bank is notoriously slow at posting transactions, including payments I make from the account. I've paid credit card payments and had the amount credited on the card's web page while I waited until the following Monday for the bank to register the transaction on their web page. It's quite the opposite of my old credit union.

This can be nerve-wracking when you pay bills very close to their due date.

e r y k wrote in post #4032943
What should I do?
Eric

Have patience, come Tuesday if nothing, then start making calls.

Paypal usually shows that they have transferred the funds almost instantly most of the time; it generally does take a few more days for the bank to catch up with it. I'd give the bank a couple of days still, especially since it's the weekend, to update your account.

It has been my experience that it takes the bank another day to process it. No need to panic.

It's not so much the bank, per se, it's the Fed.

When you transfer money into an account, it does NOT go to the bank, it goes to the Federal Reserve clearing house (in Tennessee), then it goes from the Fed to the receiving bank. All funds are accounted daily at the end of the banking day (3:00 pm). This means the Fed may receive your money one day and not send it on until the next.

There are ways for virtually instantaneous transfers, but the Fed charges extra for this. Therefore, it is never done unless specifically requested, and paid for.

Even then, there is usually a delay of one-two hours (Hollywood notwithstanding).

Also, the Fed does no work on Saturday, Sunday, or any Federally recognized holidays. Your money just sits.

With companies like Paypal, there are often additional delays internal to the company. For example, it is very popular for such companies to give the transfer order to their bank after 3:00 pm on Friday. Their bank is still open to receive it, but the day's transfers have closed. The Fed will not accept the money until Monday, and not send it out until Tuesday. Companies do this because, while they can honestly say they have sent the transfer (order), the money stays in the company's account until the Fed will accept the transfer. This gives them two extra days to play with your money.

Chances are, your money will be there Tuesday or Wednesday. If you complain, Paypal will produce the transfer order dated Friday and blame their bank, their bank will blame the Fed, and the Fed will ignore you completely.

You can blame me, if it'll make you feel any better. Of course, it won't do you any good...

When I worked for Mellon Bank, in the Backroom (those familiar with banking will understand), we wrote the program the Fed uses (to this day) to transfer funds between U.S. banks. My part was the human interface.

20droger wrote in post #4034084
It's not so much the bank, per se, it's the Fed.

...

When I worked for Mellon Bank, in the Backroom (those familiar with banking will understand), we wrote the program the Fed uses (to this day) to transfer funds between U.S. banks. My part was the human interface.

^ Very interesting! Good post!

Also, if it comes in in the afternoon on Friday, let's say, the bank may not update until Monday afternoon so even if it is there it might not show until then.

Direct from PayPal:

All members can withdraw funds from their PayPal account by requesting an electronic funds transfer to a U.S. bank account. When you withdraw to your U.S. bank account, your money should become available within 3-4 business days, but may take more time, depending on your bank's policies.

The money should be deposited by Tuesday.

Yeah, situation normal. I find that the money usually clears my Paypal account quite some time before it appears in my bank account. It typically takes up to a week to show in my account, I suspect part of this is the fact that Paypal is a US company and I am in the UK, which may add a day or two to the process.

Don't worry, your money is almost certainly safe and will show up in your bank shortly. I have been using Paypal for several years and must have had well over a couple of thousand transactions into and out of my paypal account, and done many transfers to my bank account. I have never had any sort of a problem with them in all that time. Yes, there are a people who have had problems but with millions of people using the service on a regular basis there are always going to be some problems. Bricks and mortar banks are no different in that respect and I have had several problems with my regular UK bank (not in connection with Paypal).

Despite the horror stories occasionally heard, Paypal is a pretty good service.