another reason to hate PayPal

Ever since PayPal double dipped me I sent up a shell bank account solely for PayPal. I keep $1 in it to keep the account open. Otherwise, I transfer money into it when I need to put money in my PayPal account to pay for cards. I just noticed tonight that when you transfer funds from your bank account to PayPal, they are taken out of your bank account the next day, but PayPal waits 3-5 days before putting it into your account. Nice little scam. They get your money interest free for a few day.

Jay

Not defending paypal here, but this is a common issue with most online banks...

At a time of uncertainty in nearly every market, I'm a big fan of online savings accounts, many of which are paying 3% to 4% interest right now. But they have a frustrating quirk: Transferring money between a savings account at one bank and a checking account at another easily takes two days -- and sometimes as many as four

http://finance.yahoo.com/banking-budgeting/article/106018/The-Holdup-at-Online-Banks

There is absolutely no reason for a delay other than a bank verifying that funds are available to be withdrawn. At that point, the transfer should be almost instantaneous. I use my debit card and money is instantly taken from my account, so why should this type of transaction be any different?

Jay