Send Money Instantly: Avoid PayPal Payment Delays - A Complete Guide

PayPal, founded in 1998, became a subsidiary of eBay in 2002.

Image Credit: Sean Gallup/Getty Images News/Getty Images

PayPal offers the ability to instantly send money to merchants, suppliers and contractors, but without setting up your account correctly, your payments will require several days to process instead of transferring immediately. In order to avoid delays on your end, make sure to always have enough money in your PayPal account, or tie a backup payment method to your account. Other situations, including open disputes, may also cause PayPal to hold funds outside of your control.

Funding Sources

PayPal lets you fund your payments from multiple sources, including bank accounts, credit cards, debit cards and your PayPal balance. If you only have a bank account tied to your account, your payments require three to five days to clear. To avoid this pending period, add a credit or debit card as backup. With a backup source, you can send instant transfers from your bank, with the card acting as security.

Adding Money

If you want to send instant payments without linking a credit or debit card, you can move money from your bank into your PayPal balance in advance. Though the transfer from the bank still takes three to five days, later payments from your account balance will process immediately. To load money into your account, click "Add Money," then "Add money from a U.S. bank account" and enter the amount to transfer.

Instant Transfers

To send an instant transfer, click "Send Money" on PayPal. Enter the recipient and amount of the payment, and press "Continue." Before sending the payment, click "Change" under Payment Method and pick "Instant Transfer." This method requires a credit or debit card tied to your PayPal account. If you have enough money in your account to cover the payment, select "PayPal Balance" to deduct the money directly from your PayPal account.

Payment Holds

Even if you send your payment correctly, PayPal may hold your payment for up to 21 days. This can happen for a number of reasons unrelated to your own account, such as if the merchant you're paying has open disputes, poor feedback on eBay or a high rate of refunds. PayPal will release the money after verifying the transfer, without requiring any action on your part except in the case of a dispute.