Debit card constantly declined, won't utlize back up funding - is this happening to anyone else?

[coach1]

Over the past several weeks I've only been able to use my PayPal debit card a few times, it gets declined more than it gets approved even though I have plenty of back up funding available. I haven't been able to use it at all for the past four days, all my prior transactions (all 10 of them) from the past week have completed so there is 100% of my back up funding available, yet I can't use the card. It is declined no matter where or what the amount, I've tried from $10 to $75 but its always declined. At first when I called PayPal I got the typical "security measure flag" answer, but finally yesterday I was told that there is a glitch and the debit card is "not recognizing back up funding".  Is this happening to anyone else, or am I the only lucky one? This is my only debit card, and while I do occasionally keep money in my Paypal account, I also count on the back up funding being available, especially when I'm out of gas and have no cash on me.

[Steele]

Yes, this issue has been going on since mid-February.  We've had PP debit cards for nearly three years, and suddenly they began declining on every transaction.  Was initially told that we had too many transactions and had to wait for them to clear.  

Then was told our bank wasn't sending them the money in a timely fashion [back up funding].  

Then was told it was an issue with everyone who had the same bank as us.

What is interesting is that nearly ever transaction that is declined states "debit not available".

It's a problem on their end with back up funding.  

After 2 1/2 months of the cards not working, cancelled them.

I think what PayPal has done is changed their program so that if you do not have funds in your PP account, then you can't use the card.  I think they have shut off the backup funding on the debit card, but no on the online PP side, and isn't announcing it.

[coach1]

Thank you for responding, I am at least relieved that its not just happening to me. I've had the Paypal debit card for over two years and never had this problem before. In the past two weeks I've only been able to use the card for transactions that I already had scheduled to come out every month, small bills that are the same each month. It has only authorized up to two transactions at a time, and only if the amounts are small. Once there are two transactions pending, everything else is declined, even pre-authorized payments. Anything I try to purchase either at a store or online is declined, not matter what the amount.

I don't care if they change their policy regarding backup funding, but since that was the main advantage of this card and since I've primarily used backup funding for years, I would like to know if they've changed the amount of backup funding you're allowed to use. I'm not going to keep a card if the terms aren't made public, and it sounds like you got the same type of vague, nonsensical answers that I've been getting.

Thanks again.

[Steele]

You are lucky to be able to have two transactions outstanding at a time and that it works for pre-authorized payments... 

We cancelled the two cards, and ordered one new one.  Just activated it tonight.  The first transaction approved, the second one (20 minutes later) declined.

The typical reason on the receipt for declined was "debit not available".

Obviously PP is clueless about why their cards are not working, and would rather blame banks.  Very poor business ethics and terribly unprofessional.

Time to call the Federal Reserve and see if they have any influence on this issue. 

[photojojo]

I've talked to them a couple times on the phone. The latest story is that's it's a known issue with their system thinking there are too many outstanding transactions and that technicians are working on it. The technicians have been working on it for nearly two monmths though so I think they need some new technicians. 

[Inkbleed1964]

I've spoken to them twice and got the same answer.  I really wish they would fix it because it is my primary way I purchase.