Bank Insufficient Funds Fees Caused by PayPal-Do I have any recourse?

[jmj0908]

When paying for an eBay item through PayPal, I checked the box opting to have funds transferred from my bank account to PayPal account so the merchant could be paid. Beneath the box it states, If there are insufficient funds in your checking account, funds will automatically be charged to your Visa...xxxx xxxx xxxx. Now....I knew there was not enough money in the checking account to cover the cost of the item. I assumed that the item would be charged to my Visa, as stated. As you can probably guess.....the bank sent $ to PayPal that I did not have in the account, then charged me not only for the amount they forwarded, but added insufficient fund fees. What to do? Advice will be appreciated.

[lizgrisham1990]

You're card should be linked to your bank account should'nt it? Funds should be the same.

If you have a seperate credit card provider than your bank account, call PayPal and let them know you had that option selected, they should be able to look into it and see what happened and hopefully help you.

[profdata]

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@jmj0908 wrote:

When paying for an eBay item through PayPal, I checked the box opting to have funds transferred from my bank account to PayPal account so the merchant could be paid. Beneath the box it states, If there are insufficient funds in your checking account, funds will automatically be charged to your Visa...xxxx xxxx xxxx. Now....I knew there was not enough money in the checking account to cover the cost of the item. I assumed that the item would be charged to my Visa, as stated. As you can probably guess.....the bank sent $ to PayPal that I did not have in the account, then charged me not only for the amount they forwarded, but added insufficient fund fees. What to do? Advice will be appreciated.

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The credit card is a backup funding source when the bank account bounces twice.

To bypass the bank account your Paypal balance will have to have a zero balance.

Then you will need to click on the "more funding sources" link and choose the funding source (credit card) you want paypal to charge.

This was not paypal fault, the user agreement spells out which funds are used  

[jmj0908]

I did have a zero balance in both Paypal and the checking account. 😞  Because of the statement below the paypal option, telling me the payment would automatically go onto my listed credit card if there were insufficient funds,  I assumed that the credit card would be billed. I didn't think the bank would magically forward funds I didn't have, and then CHARGE ME for the favor (not). I guess it's time to change some options in both banking and Paypal.   Thanks for your reply anyway.

[redpower]

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@jmj0908 wrote:

I did have a zero balance in both Paypal and the checking account. 😞  Because of the statement below the paypal option, telling me the payment would automatically go onto my listed credit card if there were insufficient funds,  I assumed that the credit card would be billed. I didn't think the bank would magically forward funds I didn't have, and then CHARGE ME for the favor (not). I guess it's time to change some options in both banking and Paypal.   Thanks for your reply anyway.

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Yep that's how most bank accounts work, just like if you had wrote a check out and not had the funds as well, and if your backup funding source would be bad for some reason, PayPal would be attempting to withdraw the funds 1-2 times per month. My best advice is: don't buy something if you don't have the money to pay for it.

[profdata]

"I  did have a zero balance in both Paypal and the checking account."

And how was paypal to know you bank account didn't have enough funds.....How they try the account, if no funds after the 2nd try they try the credit card on file.

Paypal did nothing wrong, your bank did nothing wrong.

Next time choose the "more funding option" link