New information has been brought forward that seems to suggest that online payment provider Paypal, has for a long time been deliberately stalling the withdrawal of user’s funds in order to make money off of the interest.
While Paypal has yet to comment on these claims, one user has come forward with some of his own research that seems rather fishy if you consider the implications. Paypal currently offers a fast withdrawal system, in line with British banks which require by law that users are able to transfer money between accounts within a couple of hours. In reality, transactions should be near instantaneous and for the majority of them that seems the case. However, one anonymous user that spoke with WireNews is now claiming that when he attempted to withdraw any amount that was over £10 ($16) from his Paypal account, he was told it would take as much as 72 hours.
It would make sense in this instance if for whatever reason Paypal’s procedures took a long time to make the transfer, due to internal checks or similar. However, after communicating with his bank, this user found that the same quick payment process had been used and that Paypal had simply taken nearly three days to begin the transaction.
Whether it’s intentional or not, Paypal is accruing interesting during the time it holds onto these funds. I’m not going to begin pointing fingers, but it certainly seems like at the very least, Paypal should be giving its users a couple of extra pence with every withdrawal.
Admittedly, not every user has had this problem in the UK, with many claiming all of their transactions with the service are near instantaneous. However this has gone on so long for this one user and with varying amounts of money – as long as they’re over the £10 threshold – that he has lodged a complaint with the Financial Services Ombudsman in the UK.
So readers, what about you? We’re all heard horror stories of Paypal in the past, but have you fallen foul of this latest problem? Let us know below, or tweet me @jonwhoopty.