Auto debit from my bank account

[iHeartDez]

This morning I checked my account to find a debit from Paypal for $25.00. I have only had one trancaction through Paypal since joining a few weeks ago and I am now worried about the fact Paypal has acccess to my bank account and can take out money when they feel so. I called and was informed that there was no amount for $25.00 posted anywhere and that I should inform my bank to place a stop payment. Why should I work with my bank over a random charge from your company? My only solution is to close this account and find another way to send money. Only used this once and now I am scared to allow Paypal into my bank account. Sorry Paypal, hopefully you dont do this to your other customers.

[skrnwriter]

I actually had PayPal linked to my bank account for several years without one incident, however, not long ago I read some financial advice as to why it was not a good idea to continue to maintain a link to PayPal in this fashion. It made sense to me, and after thinking about the advice, I closed out the link. Basically the argument for eliminating this link is that IF your PayPal account IS ever hacked, OR, you happen to somehow have allowed someone to access your PayPal account or password, they have a direct link to your bank account.  Made sense to me and given that from time to time I have very important money to me in that account I no longer cared to risk the exposure.  Simply call it insurance. Now the PayPal rules seem to require some form of payment link that is tapped by PayPal to pay for all those spontaneous Ebay transactions, so using a credit card not only is safer, it is protected by your card company.  The downside is that PayPal seems to ding you a 2% fee for use of your credit card.  Once I received my first 2% penalty for using this link it has thereafter curbed my urges to buy anything using PayPal, or on EBay for that matter.  Hmmmm.  Probably the best 2% fee I've ever paid since it has absolutely halted my shopping cruises on Ebay, PayPal, etal.  All seems worth giving serious thought don't you think? 

[sandypurins]

1) If your PayPal account has been used to send payments without your explicit authorization, you should immediately contact PayPal to file an Unauthorized Transaction claim. PayPal will cover you for the full amount of every eligible unauthorized transaction. Click on the following link for more information...

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/UserAgreement_full&...

2) PayPal doesn't charge the buyer a fee to send payments. Where are you seeing this 2% fee for sending a credit card funded PayPal payment? Is the seller charging you a fee? Is it perhaps a currency conversion fee?

[skrnwriter]

You ask me "where am I seeing this 2% fee?" ... Well, I'm seeing it charged to my Visa card.  My PayPal invoice shows the purchase price I paid for the CD I ordered was $20.95 + a $2.99 shipping charge, which totals $23.94.  Yet my credit card transaction is showing PayPal has debited my card $24.42.  The vendor shipped from Rochester, New York, which last time I checked didn't require a currency conversion.  I figured that difference is close enough to a 2% fee for using my credit card.  If you are correct then I don't have an explanation for why the difference.  Any ideas?  Who do I contact to find out what's going on.  The difference was so little I simply chose to ignore it and figure its a good reason to stay away from buying.  Saw the comment above and thought I'd throw my 2 cents in, but I certainly don't care to misrepresent PayPal policy if such doesn't exist.  Got an idea of why the discrepancy?  Who do we arrest ?  🙂

[skrnwriter]

As a PS to my above comment, I've now chosen to write a quick note (thru EBay) to the vendor in the above transaction. I do notice that while the vendor is listing Canada as his base, the package I received was sent from New York. I guess the 2% could be a currency charge but no where on any of my information is that indicated.  I also think that if currency charges are going to be applied then that information should be indicated on the seller's description, but the more I'm thinking about all of this the more it seems likely that Visa may have added that 2% since the transaction may have been originally processed in Canada.  I appreciate the information on PayPal's policy and it does seem logical that what I've had added is a currency transaction charge, not a PayPal fee (especially given your comments above).  I will still stand by my advice to others concerning the potential danger in leaving your PayPal account linked to your personal banking account, but its everyone back in the pool time once you've got your credit card linked up (just no international shopping I guess

Thanks for the informative and thought provoking reply.

[PayPal_Adrian]

skrnwriter,

I'm sorry to hear about the extra fee that was incurred, even if it was small, I can understand why that would sour your taste for purchasing.  I can assure you PayPal does not charge buyers extra fees for buyers to pay via credit card.  Just as we do not allow our sellers to charge their buyers extra for paying via PayPal, we don't do the same to our buyers.

The fee you describe though, sounds like a foreign transaction fee that is charged directly by your card issuer.  A foreign transaction fee is when the charge is run by a merchant outside of your country.  In PayPal, we normally act as the intercessionary to help prevent this fee to our buyers - we understand it's unexpected and, understandably, unwanted.  In some instances, due to a setting on the sellers account, the card has to be run in the same country as the merchant.  I would recommend checking with your card issuer to see why they charged you the additional fee.

Hope this helps to clarify,

Adrian

[skrnwriter]

Thank you for your considered reply Adrian.  In checking my issue out with my credit card company it was determined that the added charge was indeed an international transaction fee, which for whatever reason they have now rescinded.  As I mentioned above, the actual money involved here was incidental but what concerned me was my initial assumption that PayPal had charged me a fee for my credit card link.  This was not the case and I am glad to know that.  I appreciate the intelligent dialogue on this site helping me through this issue. The temporary hold on my shopping impulses can now be lifted 🙂

     ... however, I continue to suggest to all who have been following this thread to think carefully about continuing to link your personal banking account to PayPal.  This continues to seem an unnecessary risk given today's wild wild internet and the security breaches that have been increasingly common.  To enjoy all the same PayPal benefits (of which there are many) all you have to do is to first eliminate your bank account link to your PayPal account, and then replace it with the personal credit card of your choice. A much smarter and safer way to shop shop shop while using PayPal. 

I've have now written all I intend to on this thread, but thanks to all who've had interest enough to read to this point.

[PayPal_Adrian]

You're very welcome!    I'm happy to hear your card issuer has chosen to waive the fee - I think that's absolutely wonderful of them to do!

Take care,

Adrian