PayPal withdrawls to banks to be instant by summer

By Chris Dawson May 9, 2012 - 2:19 pm

PayPal have just released their policy updates which kick into effect from the 12th July 2012. Most of the updates are house keeping and typographical corrections, but there’s one bit of news that will please all PayPal users in the UK.

PayPal are going to speed up transfers between PayPal and your bank account. Both ways!

It will mean that money movements between PayPal and bank account will be according to faster payments standards and a new policy section will be included to cover this. It will mean that when you withdraw funds from your PayPal account they’ll appear in your bank account perhaps not instantly, but definitely within a couple of hours.

It will spell the end of the £5.00 charge to withdraw money from your PayPal account within a day instead of 2-3 days as all withdrawls will be faster payments. It will also mean if you top your PayPal account up from your bank account this will also be instantaneous (again at least within a couple of hours).

PayPal will progressively roll out faster payments during summer and should be completed for all users by late summer. The update will be done gradually because of the volume of payments that go through PayPal.

Great news for selling on eBay though, list it, sell it, get paid by PayPal and five minutes later the cash could be in your bank balance and available to spend.

  • 7 years ago

    This is brilliant. It frees up a lot of working capital that is otherwise “in the ether” for us to spend on our business.

    If only they could now have an accurate register of what is “on hold”, that would be perfect…

  • 7 years ago

    “Great news for selling on eBay though, list it, sell it, get paid by PayPal and five minutes later the cash could be in your bank balance and available to spend.”

    Unless they adopt the trial they are running in Germany.

    Then I believe once it is marked as shipped Paypal will deign to release payment.

    Is my understanding correct?

    • 7 years ago

      Slightly different for the German model, the buyer pays eBay and when the seller marks the item as shipped eBay release the funds to the seller.

      To be honest I’d much prefer this to the status quo. No one quibbles on Amazon about not being able to pay the seller direct – that’s just the way it is. However eBay have the muscle to offer many more payment options (such as bank transfer and credit card payments) than small sellers can be bothered with (or have the resources to manage – for large sellers bank transfers have to be reconciled to eBay sales which can be a real pain point).

      Let eBay worry about getting the money in, let eBay worry about non-paying bidders, leave me to get on with sourcing, listing and shipping. Sounds like an easy life 🙂

    • Amazon Seller
      7 years ago

      I have to take issue with amazon. They screw you out of so much, whether it’s fees, stupid buyer feedback that you can do nothing about or keeping your sales revenue for 2-3 weeks ( unto week transfer time). I have stopped adding inventory to them, they don’t deserve it. If I could I would stop using them. They are modern day highway men.

  • St-georges-dragon
    7 years ago

    we think this is more to do with EU legislation than paypal being helpful

    • Dan Wilson
      7 years ago

      Oh certainly it’s a legal requirement. And Paypal have already missed the deadline.

  • 7 years ago

    “It will also mean if you top your PayPal account up from your bank account this will also be instantaneous (again at least within a couple of hours).”

    Great news, but leaves me wondering about echeques. Surely they should be pretty much instant now? Will PayPal be able to justify the shocking length of time it takes them to clear?

    • Mark
      7 years ago

      I think e-cheques take the money out of a bank account by direct debit.

      This still takes a few days for the transaction to be processed/verified.

      I don’t think there is much incentive for banks to speed up the process since most direct debit transactions are planned well in advance (for recurring bill payment instructions).

      The Paypal instant bank transfers use the same mechanism, but use a credit card to guarantee against failure of the direct debit.

  • cavernclub
    7 years ago

    Like many i welcome this news but also feel that Paypal really should have got its act together much earlier….as i understand it this EU regulation became law at the start of this year.

    I must be honest and say that during the last two months or so i have noticed that if you withdraw money from Paypal using the faster option and pay your obligatory £5.00 for the pleasure of this the payments have on many occasions landed in my bank account that same day,which as been great,however just recently Paypal seem to have reverted back to their usual practice of keeping the withdrawal request as “pending” for exactly 24 hours from the request been implemented on both standard and fast withdrawal requests.
    My main point on this whole issue is if it has been law since January 2012 that Banks and Money processing companies must action transfers on the same day then are Paypal acting legally in still charging £5.00 for this service.
    Paypal originally offered the fast transfer as an additional service for which they actioned a charge,however this additional service is now by law The Standard service therefore how can they now still charge for this?
    I wonder would there be a case for claiming back these charging from January 2012.

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