Bank Account First with Credit Card Back Up?

[hono333]

It has always been my understanding that funds are taken from my banking account, and if there are insufficient funds, my credit card on file would be charged.  I had four transactions through PayPal that created an overdraft situation in my account for less than $50.  My bank charged me $35 for EACH of those transactions for a total of $140.  Why didn't Paypal automatically put those charges on my credit card?

[wtastinger]

This just happened to me as well.  What happened?  

[sararae7]

That is what i just complained about as well,, extremly frustated  with this problem. i had even put pay with credit card and it took it right out of my bank account instead of my debt card( which is two separate checking accounts) and now i have two over draft fee's because pay pal doesnt do what is supposed to

[Timot]

You can make a complaint directly to the Federal Deposit Insurance Corporation (the regulatory agency in charge of PayPal) either via their web http://www.fdic.gov or by calling 1-877-275-3342.  I complained about both PayPal and my bank via the web site.  If enough people complain something might be done to enforce compliance with the new rules.

debit card fees credit card rules

[doublemint]

This just happened to me as well, (sorry but I started a new post b/c I didn't see this one).

AND PAYPAL WONDERS WHY NO-ONE WANTS TO TAKE THEIR "PAY WITH BANK ACCOUNT" SUGGESTION?!?!?!!!!

[bobnbee]

Same thing happened to me today.

I called and it turns out that on the SECOND try (for EACH transaction!) if there is not enough money, then they take it out of your CC.

Let's see, I bought something for $80, $40 shipping and $70 for stupidity fees.  This item wasn't such a good deal after all.

I immediately removed the checking option.  

Morons!

[hono333]

I'm not surprised I'm not the only one who has been burned by Paypal not doing their diligence in shifting payment to the Credit Card when no funds are available.   It states right on the payment page that "if there aren't enough funds in checking acount XXX-XXX-XXX, we will charge your credit card", etc.  I don't use my Paypal checking account for my main account.  Frankly, I opened it simply to use for Paypal and don't really monitor it's balance.  My $7.98 paypal purchase for nail polish on Ebay effectively cost me $77.98 because I didn't have it in my account and got hit with two $35 service charges from Wells Fargo.   Worse?  I hated the color and gave it to my daughter.  I'm still fuming about all of it.......

[ieee488]

Yeah, that statement on their websites is a blantant lie.

My linked checking account is also used exclusively to receive transfer of money from items that I had sold on eBay. Now I'd rather pay the $1.50 for a paper check than lose $22+ with each overdraft fee. I don't see much.

Because of Paypal's blantant greed they've lost me as a customer. Not that they care. And this isn't news to others who have been burned by Paypal.

[hono333]

Ok. I'm going to have to eat my words on this one.  And I hope my response can help others.  I just spoke with a really helpful guy from Paypal.  He told me that yes, funds are charged to the credit card in the event that there are not funds in my checking, only when the bank denies payment.  When I make a payment using Paypal, they send an authorization to the bank, the bank doesn't want to embarrass me by denying the transfer or holding up the funds, so they authorize the payment.  Then my bank gives me a slap on the wrist because I haven't the funds and charges me a service/overdraft fee.  I have no clue I've overdrawn my account, because Paypal gave me the funds and/or paid for my transaction based on getting the nod from the bank.  Basically, unless you tell your bank to deny transfer in the event there are no funds, Paypal has no way of knowing your account is overdrawn.  IMO this is an issue that I need to take up with my bank and is my responsibility to monitor my account to avoid the overdraft charges.  Make sense?

[ieee488]

Same thing happened to me as well today.

I realized a second too late that I hadn't changed the funding option. Won't catch me paying with Paypal when I can pay right off the bat with my credit card.

Wachovia charged me $22 overdraft fee.

I also found no way to make the default option of payment to be the credit card instead of the linked bank account. Easy enough to do with software to offer us this option, but they don't.

Paypal really are morons.

Deleting my linked bank account as well.