Why You Should Always Wait 24 Hours Before Banking On Your Paypal Funds

PayPal has a large number of positive points and is a service I use regularly when dealing on the web, especially through eBay.

It makes online transactions simple, just about anybody can have an account and offers a degree of security to your money.


However, there are some instances in which PayPal funds can be vulnerable.

For instance, you sell a product through the well-known auction site eBay.

The winning bidder then makes the required payment through PayPal.

As you have received your money you duly wrap the item they have won and post it to the address associated with their account.

Unfortunately, however, the money you received through PayPal isn’t quite yours yet though.

You see, if the buyer sent you the payment from a hacked PayPal account (an account they broke into and stole from someone else), then there is a very good chance that the payment will be investigated.

Following an investigation it is also likely that the payment will then be reversed and returned to the rightful owner of that PayPal account who is, after all, entirely innocent and out of pocket.


One simple piece of advice that could help you avoid such a financial predicament revolves around having patience.

It is not a fail safe method but waiting 24 hours before banking on a payment received through PayPal should be enough in many cases to give you the piece of mind of knowing that those funds really are now yours.

This is because all payments made through PayPal are typically deemed to be either cleared or not cleared within 24 hours of being sent.

After that initial 24 hour period is up the other party can usually only reverse the payment via a dispute which is an entirely different process and one you are likely to win if you have acted in good faith.

Therefore, always wait for 24 hours before posting goods or completing services paid for via PayPal.

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.


  1. I’d never realised that is how paypal works, Thanks for the handy advice.


  1. […] they have these credentials, they then use the money that is in the accounts to buy an item online, preferably […]

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