On 10/26/11, I transferred $200 to my Paypal account from my Wells fargo account. Paypal said the transfer should clear and the funds be available by 10/31/11. Wells Fargo showed the transaction occuring on 10/26/11 and said no more than 3 days to clear. At the end of business on 10/31/11 I called Paypal to find out the status because the Paypal site showed the funds were still processing and not available. The Paypal representative said the funds should clear by the end of the day 10/31/11, and I explained that it was 4:45PM Pacific Time, so it already was the end of the day. He said he would transfer me to his supervisor. After 5 minutes on hold, the phone was cut off. I never did get to his supervisor and the funds did not come through in time for me to make the deal that I had already committed to.
It appears Paypal is playing float games, ie, is holding funds for several days after they have cleared before making them available. If this is a common practice, Paypal should be subject to a class action for violation of proper banking practices.