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Paypal withholds funds to improve its bottom line

New information has come to light about the dodgy business practices of online payment platform Paypal, suggesting that it deliberately delays payments to banks in order to gain interest from the money deposited by its users.

According to documents shown to Wirenews, one user found that any balance withdrawal requests over £10 were delayed for up to 72 hours for no apparent reason. Apparently these payments could be made almost instantaneously, but Paypal deliberately delays the withdrawal thereby garnering two to three days interest on the money. This even occurs with the two hour delay for standard payments, as again, the transfer should be near instant thanks to a new banking practice introduced in January 2012.

Book burning
Do you want some soy sauce with that?

The proof of the delay comes from the user’s bank itself, which confirmed that payments made within two hours and “within 72 hours” were both made using the faster payment service.

KitGuru Says: This is an interesting one as I would have agreed with this sentiment a couple of years ago when you had to pay a fiver to get the faster deposit – something I annoyingly had to do quite a lot when cutting it a bit fine for rental payments and the like, but every single request I make these days is near instant.

How about you guys? Do you often get delayed withdrawals to your bank accounts?

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