Forum

Paypal bank deposits
 

Why is it that PayPal can deposit the two small initial deposits to confirm your bank account on the same day but when you withdraw funds it takes three days to transfer the funds?

I just did the deposits yesterday, one account before their cut off time, one account right after their cut off time. Both accounts are at the same bank. I just wanted to see how long it would take them. Bank was Ally.

I'm guessing they want to keep the money as long as they can and have a chance to reverse the transaction. It doesn't seem right but I guess I have to live with it.

Because the longer they keep it the more interest they earn, I'm quite sure that all the money they hold for 180 days is sat in some sort of high interest account and that they are earning a fortune from this !

Sorry I posted in the wrong place. I thought that was the place for bank account talk.

Earning interest on the money is definitely a big part of it. However, it could just be that the deposits they do are like charges and then refunds to your account. A bank transfer from any company will take two or three business days though.