Please allow 3-5 business days for your transaction to process. -- WTF

Question

Does anybody else have a problem with this?   Why does it still take 3-5 business days to process a transfer?  Paypal's system is all computerized, the banks' systems are all computerized, and you know that these transactions never require human input in order to proceed. So, why the wait? Do the computers go to sleep at night? Do they spend time with their family and friends over the weekend? NO!Meanwhile, I am left broke and unable to buy food and gas while the money I earned is stuck in the ether for absolutely no reason. I realize that the wait time is more the bank's fault than Paypal, but the bank doesn't have a community forum for me to rant in.If anybody has a legitimate explanation as to the why this wait time still exists in this era of digitally controlled everything, please share.The money is instantaneously removed from my Paypal account, so it should instantaneously appear in my bank account... that is, unless, some entity is using my money during those several days to earn interest for itself. That is common practice for financial institutions... i.e.  your mortgage payment is due at the end of the month, but like most people, you send the payment when you receive the bill. If the payment is received on the 20th, that bank will add your money to an interest earning account along with everybody else's early payments until the actual due date, during which time the bank earns itself a hefty profit. It is only 10 days, but with millions of dollars from all that bank's mortgage accounts. That's alright because you have the choice to send your payment such that it will be received on the due date. But this 3-5 day wait time does not come with a choice, or an explanation as to where your money actually is. I have a problem with that.IF YOU AGREE, WE NEED TO DEMAND PUTING A STOP TO THIS PRACTICE!

Answer 1

I think you got the two methods mixed up:  A wire transfer requires account verification by a real person on each end, which causes the transaction to take 3-5 business days to complete. Banks charge a fee for wire transfers, so they make money. Electronic transfers (which you said Paypal uses) are handled completely by computers, and are usually completed within seconds. However, electronic transfers do not incur a fee and the bank makes no money on them. It is absolutely necessary for electronic withdrawals to be processed instantly or else E-commerce would not work. Too many of these transactions occur daily for any bank to have enough employees to approve all the transactions. Not to mention that the bank fee for making such transactions would seriously deter most people from buying anything online.If Paypal does in fact make bank transfers using the electronic method, the money should never disappear for several days. Methinks the bank receives that money within seconds, but uses it to make themselves money for a few days since they otherwise won't make anything off the transaction.My wife used to be a bank teller, and she says that banks find ways to make money off every transaction. If there wasn't a way for them to profit, that type of transaction wouldn't be offered. Makes sense, right?Well damnit, this is my paycheck we are talking about here. I would rather pay a fee and have my money available immediately. Better yet, I would rather NOT pay a fee, and be paid with good 'ol cash which is always instantly usable. But that is not an option in most people's case. Employers pay their employees with checks. Paycheck funds are usually made available instantly so long as you have an equal or greater amount of money already in your account to act as insurance should the check bounce. But if you have that much money in your account, you probably don't need the money from that paycheck right away. You have enough to buy food and gas already.You know what? I hate banks.... plain and simple. They have created a system of profiteering that people cannot avoid. If you live in a home and have bills, it is pretty much impossible to pay those bills without a stupid bank account. Really, the only way to pay without a bank in some circumstances would be to mail cash, which everybody knows is a bad idea. Also, many utilities do not allow you to pay with cash unless you pay at their office in person. I used to live in Colorado, but my gas bill went to an address in Texas. They did not allow payment by cash through the mail. What am I gonna do, drive my payment to Texas every month!? Not possible.Thats enough. I'm done ranting. Its just making me more **bleep** off.