Short Simple Hypothetical Question About Overdrafting

[ReguIarPP]

If I had $100.00 USD in my PayPal balance, and $100.00 USD in my Wells Fargo Checking account and my Uber ride fee comes up to $50.00 USD but the driver pretends to get lost so he can charge me $100.01 instead of $50 (with PayPal as my payment source), what would happen?

A. $100.00 is deducted from my PayPal balance then $.01 is deducted from my WF Checking

or

B. I overdraft on Paypal sending my balance into -$100.01 (negative) USD then my WF Checking overdrafts putting my WF Checking balance at -$135.01 (-$35 = Overdraft fee)

[DPCreations]

There is no clear-cut answer as PayPal will evaluate each transaaction to reduce the risk for PayPal.

If you had back-up credit card account, the results could be different.

In this case it's best to make sure you always have sufficient funds in your bank account to cover potential PayPal drafts.

When PayPal makes a bank request and it fails for insufficient funds, you bank will change the fee and no money will be transferred to PayPal.  Then, in a couple days PayPal will make a second attempt with likely a second NSF fee to your bank.

So, don't take chances; make sure you bank account is adequately funded.

[ReguIarPP]

That makes sense, not surprising they make it as vague as possible.

[DPCreations]

@ReguIarPP

I think it was just a few days ago I read the explanation from PayPal Admin but I haven't been able to find it.  My explanation was what I remembered.  I've seen multiple times from PayPal Admin that each transaction is evaluated according their internal security model to process for the least risk to PayPal.  It also makes it more diffiuclt for someone to circumver security.

For me, I wouldn't want to take the calculated risk of overdraft unless I found a writting policy.

[ShiraYuki]

everytime you use bank as funding source it will use the all funds from your paypal balance first then the rest from your bank account if the balance is not enough.

[ReguIarPP]

Doesn't seem likely but I will take your word for it.