I have two account linked with paypal, one is checking account and the other one is credit account. When I make purchase, paypal says it can switch to credit account if my checking account has not sufficient funding. But the result is that the two purchase with paypal I made on Jan 14, 2013 charged my checking account event it didn't have sufficient funding, which makes me lost 70$ overdraft fee. The problem is, the checking account has instant transfer connection with paypal. While the bank will not decline any instant transfer even there is not sufficient funding. So the second funding resource method proposed by paypal is not working and misleading. I want my 70$ back. Unless this problem is solved, I will not use paypal forever, and tell my every friend about it.
PayPal will always take funds from your Account Balance first. If your Account Balance is insufficient, Pay will then withdraw funds from your bank account. Where most folks get confused is that your credit card is a backup funding source. During the checkout process, if you don't want funds removed from your account balance or bank account, there's an option to use your backup funding source which is your credit card. Unfortunately most folks are unaware of how the process flows. There are several FAQs that explain how things work however, most people don't do their homework. Not defending PayPal in any way but, folks don't take any responsibility for what happens to them, they just blame the corporation for anything that goes wrong. PayPal certainly is not perfect, they can be very frustrating to work with and foremost, their service is not for everyone. There are alternatives. http://www.stayonsearch.com/top-10-paypal-alternatives
Snowshoe, you are incorrect about your statement that,
"During the checkout process, if you don't want funds removed from your account balance or bank account, there's an option to use your backup funding source which is your credit card. "
There is absolutely no option for this. During checkout, it ALWAYS gives me an option to use my balance or pay by e-check.
I have to cards verified with my account and it NEVER gives me the option to use them.
