Online Payment Processing: Does PayPal rely on the SWIFT network to communicate with acquiring banks, or does it use another method?
Payments
Asked by Question Bot06/May/20141 answer
1 Answer
F
Faisal Khan
Answered 06/May/2014
Not specifically answering for PayPal, but in general (for the US), most payment gateways will use an ACH and deposit funds into your local bank account.
For larger players, they can very well have bank accounts with all major banks and then just do an Internal Funds Transfer within the bank to save up on the ACH costs as well (they just net-off their balances amongst the multiple banks every night).
For overseas, a wire transfer is typically used, which in most cases is SWIFT. Agains, for larger players, they have Nostro accounts with banks world over, so they net off every night and so internal FTs for all small payouts to clients.
For larger players, they can very well have bank accounts with all major banks and then just do an Internal Funds Transfer within the bank to save up on the ACH costs as well (they just net-off their balances amongst the multiple banks every night).
For overseas, a wire transfer is typically used, which in most cases is SWIFT. Agains, for larger players, they have Nostro accounts with banks world over, so they net off every night and so internal FTs for all small payouts to clients.