When Paypal takes your money, it’s immediate, but when it’s refunded, it takes days

I had an unauthorized payment charged to my PayPal account, which in turn deducts funds from my checking account that’s linked to Paypal. I discovered the unauthorized payment the same day it occurred and filed a complaint with PayPal and also contacted the vendor, who did refund the charge back to PayPal the same day. However, it’s now been 3 days and my money is still not back into my checking account. Funny, when they take the money, it’s immediate, but when it’s refunded, it takes days. Why would I ever use PayPal again. Please don’t give me mumbo-jumbo about PayPal not being a bank. BS. Like I said, they figured out a way to deduct it immediately…then put it back just as quickly.

Submitted By:: Brandon L

Location-: Los Angeles, California

Posted: May 2, 2012 at 3:39 pm


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31 Responses to When Paypal takes your money, it’s immediate, but when it’s refunded, it takes days

  1. Yong Park says:

    Paypal always take money right away from seller but make buyer wait long time to get money. Not fair. Also paypal delay me getting my refund I waited so long but seller did not have money either so then who has the money? Paypal? I thing paypal is not allowed to do so but no one stops them.

  2. Bedtime Bear says:

    yeah they never put it in as quick as they take it out. I can’t stand them. I sold something using paypal and like a dumbass I shipped it overseas. Needless to say it turned out to be a nightmere. I was out $345 and countless hours running around only to get nothing but a headache in return :(

  3. Scottie K says:

    They keep your money so they can make more money, thats how they operate! eventually, hopefully you will get your money back!

  4. Kenny says:

    You got that right. Paypal will take the money immediately and wait days to deposit where it belongs…often times 21 days which makes no sense at all! Just don’t ever let them freeze your funds that could take months and reading posts up to years to get back. I’m thinking I may want to jump this Paypal ship that floats in my money.

  5. Stacy Winter says:

    PayPal sucks!!!!!!! I was processing with them for a little a while but I realized that it was taking a while for me to get my money deposited in my account. I would always call them up, and they told me because of suspicious transactions? I sell paintings for a living!!!!! The costs of my paintings are $50 to $250 a piece. What is so suspicious about that? But meantime, my clients already got their money deducted out of there account right away!!!! It is beyond me why they proceeded in working in that format… I got tired of there games and decide to go to a real merchant account. I don’t have to wait for my money no more than two days!!!! Plus, it goes right into my account. It is great and business is booming. No more PayPal problems for me =)

  6. Teddy says:

    You couldn’t be more right. They are so quick to take you money and take forever to give you your money. sometimes taking up to 180 days. I had my money held for over 6 months. In the process I opened a real merchant account. I can’t wait that long for my money

  7. Gellin 355 says:

    The main idea here is that paypal sucks! The true reason behind the processing time of your refund is it’s not a priority to them. The credit cards are automatically charged so that’s why it seems instant but on the back end when there is a refund to be issued then a person must manually log in and process that request. My best guess is they take their sweet ass time in doing that.

  8. Chris R. says:

    Yeah, I’ve had an Ebay account for about 3 years, and have only sold two items directly because of Paypal’s games. As a seller, you take most of the risk. Paypal can refund a person’s money for any fraudulent nonsense a buyer can invent. All I know is I’m tired of waiting weeks to receive payment while they sort everything out. Even a bank doesn’t screw around with people’s money the way Paypay does. Amazon has high seller fees, but it’s gotta be better than waiting a couple of weeks to get paid by people who obviously couldn’t care less about how they do business.

  9. kathy says:

    Big scam they have going on we need a class action suit against them — $200 in limbo for 8 days- with bookig Hilton in MKE REFUNDED IMMEDIATELY then next day sucked out …money was there in my acct the whole time..next day sucked out electronicly. Called and got the generic answer it takes 4-5 days why does it get refunded same time I make hotwire res ..then refunded- money is taken out next dayt? Then I cant get money back 9days later. Someone is making money on us fools – lets take action

  10. martin says:

    HI,

    I’ve paid money to scumbag, he refunded but Paypal says “transaction not authorized” and I have to wait 16 business days. I’m afraid seller to whom I paid withrawn money from his account.
    What will be next? If Paypal not clear money from seller’s account will refund me ?

    Thanks.

  11. LISA says:

    PAYPAL IS SHIT. I AM LEAVING THEM!!!!THEY SUCK!

  12. Coby says:

    Hey guys,
    I was just about to buy a curl bar on ebay with my o2 money card which had sufficient funds on it. I don’t even use fucking Paypal but they charged my account 1.00 euro which then made it impossible for me to buy the curl bar. I only put the money needed on the card to cover the item, post&packaging costs. I understand that when you pay with Paypal they take a certain amount or whatever, but they took it and then left me without enough to pay for the bar. How the fuck is that okay like? They take my money to make the purchase “safe” or whatever the fuck they BS on about, leave me without enough to purchase the product, then ebay tells me the card declined the purchase due to insufficient funds. So now what? I put more money on my card and do it again, giving another euro to Paypal. So they took the first fucking euro for no fucking reason those stupid fucking cunts. Sorry, I’m aware its only one euro, but its the fact that I have to go out of my way to top up my card again and go through all this bullshit and they get a free euro for no fucking reason. HELP

  13. miranda says:

    a transaction got cancelled so i had to pay again using paypal. only thing is paypal said my 1st payment was refunded so i paid again as it was cancelled out. now paypal have taken money out of my bank twice leaving me overdrawn. just another “business” getting money out of people, caused me all sorts of arguments in the house! UNBELIEVABLE AND CRAP.I’m disabled and rely a lot on my computer for shopping.

  14. Amy says:

    I will never use paypal again. As soon as I am refunded my money, I plan to close the account. They truly DO suck. On Black Friday, I did most of my Christmas shopping and used paypal. The money was removed from my bank THAT day. Two days later, Walmart backordered one of my big gifts so I cancelled the order. It is now 6 days later and I still have not received my refund as they put it on “temporary hold” saying they are waiting for the bank to process it still. BS – since I can see on my bank website that you removed the money from my bank THE DAY I placed the order (8 days ago). What a scam!!!

  15. ned says:

    Seller gave me refund for defective product immediately and Pay Pal likewise sent me e-mail stating they credited my account with the refund directly to my credit card.
    PayPal now states that my “credit card company may take up to 30 days to credit the refund to my account.” How can Pay Pal speak to what my credit card does? Pay Pal lies to justify holding my money they can to maximize their holdings at customer’s expense.

  16. Robi says:

    I am having to wait 7 days for a refund to be available to use, when the refund has come out of the other persons account on the same day ?

    This is very wrong and frustrating.

  17. William says:

    PayPal customers anticipating refunds are essentially providing short-term interest free loans PayPal every day in the millions. As I was sitting here in my living room checking my bank account balance after 4 business days of being approved for a refund from PayPal, it finally occurred to me why PayPal takes so long to “process” refunds as they call it. in the world of banking, an 8 hour business day can mean all the difference in the world if you’re a huge business corporation like PayPal. Coming directly from PayPal’s website today February 23, 2015, payPal’s net total of payment volume for 2014 was 64.3 billion dollars. Not million, but billion. So, conservatively we can assume, over the course of 12 months PayPal processes at the minimum 1.5% (1 billion) of that payment volume in refunds. So even if PayPal holds customers refunds for one business day that is huge for PayPal because they do not have to pay interest on money being refunded. They can simply call it processing time when in reality they are just granting themselves short-term but very large loans at the customers expense.

  18. Patrick Murphy says:

    I have been an ebay member since 1999, I recently sold an item on ebay, and my money was withheld by paypal for 21 days. The funds were finally made available and I tried to access my money and I’m now told it will take up to 5 working days for my money to be processed!

  19. Debbie says:

    I just want to find out if anyone else has received a partial refund after waiting for days to get the refund back. I bought a phone, returned it, and the seller had to call paypal to get them to release the funds back to me. Then, they shorted me about $10 on the refund. It’s not a LOT of money or anything, but I can’t be the only person they’ve done this to. Has anyone else had this issue?

  20. DP says:

    LEAVING Useless Paypal. They keep a refund 45 days for their greedy interest-making and ignore correct protocals and customer desires.

  21. Dan says:

    Paypal takes your money instantly, but waits to give it to the seller for a few days.
    Same way otherwise.
    They take the money from the serller instantly, but wait several days to return it to you.
    Why?
    Interest.
    This is how the “Free service” Makes its money. Lets say, in a day they have 3 million dollars in transactions.
    thats 3 million dollars held for 2 days.
    now, if that money made 4% interest per year (not much).
    But in just those two days, it collected over 600 dollars in interest.
    300 dollars from someone elses money. This is how paypal, banks, and many other services similar to these two make money.

  22. Kaycee says:

    I purchased and cancelled an order the same day and they still have yet to refund my account even though the place I bought the merchandise from says they never took the money! This was 3 weeks ago and I am still out $499! I am so livid there has to be some legality issues here!

  23. luis says:

    i fucking hate paypal and ebay.
    STUPID ASS PEOPLE FROM EBAY APPROVED A CLAIM FROM SOME ASSHOLE WHO NEVER PAID FOR THE ITEM
    BUT HE WAS ISSUED A REFUND? WTF SINCE I DIDNT HAVE IT ON MY ACCOUNT EBAY TOOK 68 DOLLARS AND GAVE THEM TO SOMEONE
    SIMPLY BECAUSE I NEVER SENT THE ITEM BUT PROVIDED A TRACKING NUMBER
    NEVER SENTT THE ITEM CAUSE IT WAS NEVER PAID!! BUT WAS FUCKING ISSUED A REFUND TO THE BUYER WTF? AND NOW I GOTTA WAIT FUCKING WEEKS MONNTHS WITH MY LUCK TO GET MONEY BACK TO MY PAYPAL!??? NOT EVEN MY CARD WHERE IT WAS TEKEN FROM
    KEEP IN MIND THIS WAS MY RENT MONEY AND NOW I CAN PAY FOR CAUSE I DONT HAVE THE MONEY.
    SHOULD HAVE NEVER BEEN TOUCHED. I WISH I COULD REACH THE OWNERS OF PAYPAL AND EBAY AND GIVE THEM A BIG’OL FUCK YOU AND YOUR RIP OFF SCAMMING THIEF ASS COMPANIES IM DONE WITH THESE ASSHOLES SOON AS MY MONEYS BACK IF EVER. TAKE YOUR SWEET ASS TIME ASSHOLE YOU ALWAYS DO.

  24. w uk says:

    Yeh paypal does suck on refunds,

    seems to me they hold that money for set amount of time, in an account of thre choosing and why that refund sits there it is making them money the longer it sits there , so given the amount of users, it does,nt take a rocket scientist to see that say 20,000 refunds in process and taking each a long time to refund, making money in that lengh of time it sits there as they make interest of it with the banks, its obvious to me. The longer the money sits in that particular account the more money its making the holding account party in interest. The secrets of the human being screwing over the other human being MMMMMMMMMM BANKS ANYONE, oh thats right banks can do that and get away with it, as soon as you do it, your a crimminal go figure.

    simple you kill a life your a murderer.

    you kill thousand your a god or hero

    go figure the conrrupted human brain an how dangerous it as it mixes truth with lies that is the true human brain.

  25. S says:

    I don’t know if anyone has sued them yet. I do believe we need to do so and change the situation. I guess I’d contribute my case here. We should all sue them together. I am not a seller but people send me money through PayPal here and there to refund me money for rent, trip, dinner and such. I already knew that it takes long time to transfer money to my account. I don’t use it often so I didn’t have time to care about it and usually it is couple of hundred dollars and I am not that short in money. But this time, it really gets my nerve. My roommate sent his rent through PayPal cause he will be home till after the break. Well like you know, this was almost a month ago. I cannot take the money out do I have to pay the rent with my money which is 3500. Till now, I still cannot take 1000 out and this causes me a big problem now. I need to pay a bill every 16th for 800. Who knows PayPal will still freez my money a month till now? I have to transfer my money from my other account to the account I set monthly payment for. Becsuse the money is cash in advance, I need to pay the high interest rate till I get money to pay off. Here, I am. Why I should let PayPal to hold my money when it is my money. More when I actually do count on money for my bill, but instead PayPal hold my money and makes greedy interest from my own money and I need to get money somewhere else and paying the high interest to pay my bill.What a hell?

  26. Paul hates Paypal says:

    They’re still at it!!!! Bought something on ebay, paid cash to seller, and then on checking out of ebay paid by Paypal by mistake as well. Contacted seller who refunded me straight away (within 2 hours) but Paypal still took the money from my account and overdrew it the next day anyway! WTF After 4 days the refund still hasn’t been paid and shows as pending in my Paypal account! They should never have taken it from my account in the first place. These guys are just running a business making huge sums based on withholding legitimate payments to their customers. They suck and I’m done using their “service” as soon as I get my money back!

  27. Jimmy says:

    This is what socialized crony capitalism looks like (Socialism). It once took ppal 30 days to pay me. I can’t do business on pp/ebay because I need immediate funds in order to pay a drop shipper.

    Dealing with government sponsored corporatism (e.g. gov. allowing corporate monopoly) is like trying to run a business with your high school teachers telling you how to do it. Its an infuriating experience and the game of the adult children in power (politicians and the Fed etc) is coming to an end.

    The elite[leftists, and establishment types in both parties] power structure is breaking up; with a steadily approaching dollar collapse right over the horizon.

    This is going to free up the market. So buckle your seat Dorothy cause Kansas is goin bye bye.

  28. I called PayPal out on their BS today after realizing what kind of scam they’re running withholding customer refunds as “IN PROCESS” for an unreasonable amount of time in order to capitalize on the interim interest. I agree with all posters here that if a class action lawsuit is possible it should definitely be initiated because it’s not the dollar amount of any given transaction it is the deceitful intent to make a few pennies of interest by taking advantage of banking regulations. If a consumer were to do this type of thing it would be called kiting which is a crime but if a bank or PayPal does it then don’t worry, it’s not really stealing. I will now take my business elsewhere. Thanks PayPal!

  29. Kenneth says:

    Retailer give me full refund .A week later it said it was there but an hour later dissapeared as from nowi most likely will wait for who knows how long for it to return to my credit card.
    I tried to phone Paypal,I waited on the phone with my speaker on for over an hour before i gave up on anyone ever answering.
    All this crap about protecting your information ,is what gets people in thats it.Once you know that there is no customer service and find out the hidden traps,its a wonder anyone would ever be back .I know i wont be.

  30. Merchant sent me two refund transactions via paypal. Paypal received them immediately, and “sent them to my card” where the funds came from. However, as many people know, the money is out there in the “ether” and we are told 30 days.

    Using paypay to pay for things was convenient on the internet, but now I will just pay for things using my card directly. Future problems solved!

  31. Pat Antews says:

    This “holding funds” has got to stop! Talk about legalised robbery!!!

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