No option to change default funding source?

[TigerNightmare]

PayPal has long been a thorn in my side and now it's become a sword run through.  When I was a teenager, before the proliferation of the online marketplace and credit cards everywhere (including McDonald's!), PayPal was an easy and convenient way to directly pay for eBay auctions without the hassle of waiting for a check or money order to get through the mail and be cleared after several business days.

Since that time, I've graduated to a much beloved American Express Blue Cash credit card.  I earn an annual cash reward based on a percentage of my spending, I get excellent protection and a free warranty extension, to name just a few of the many benefits.  And yet, PayPal will always default to my checking account as payment.  For every single payment I've made, I've had to change the funding source from checking to credit with at least five extra clicks and a minute's worth of loading and the ever-present, "Are you sure you want us to do what you just asked us to do?" message.

As if that wasn't bad enough, now PayPal isn't even giving me the option to change funding sources.  I just bought something on eBay and they asked me to log into my PayPal account.  I entered my password and ... that was it.  The transaction was finished.  While that makes it easy and more simplified, my lack of control is outrageous.  I combed through my account options and there just isn't a way to change default funding options, as if there ever was.

Despite receiving an item-shipped message from the seller already, with the transaction listed as complete, I'm not allowed to remove my checking account because the transaction that's listed as complete is somehow still pending and will be for 3-5 days.

I'm wondering, once the transaction is complete complete, will I really be allowed to remove my checking account or is this required for PayPal?  And if so, is there any way to restore the option of changing your funding source or even changing your default funding source?

Why does PayPal prefer checking over credit cards?  I can't think of anything other than cravenly weak legal power against a consumer's ability to reverse a bad charge with a credit card.  But checking accounts can have insufficient funds and credit cards pretty much have an optional layaway program built-in.  There's a better chance for someone to follow through with credit card than a checking account.  So why why why WHY with these terrible policies?!

[tmcnewyork]

I don't think you're understanding the problem! Unfortunately, for each transaction you are incurring overdraft fees...usually $35 a shot. I have my credit card as back up funding, but change my funding source from bank account to my back up credit card every time I use paypal. Still, three transactions went through to my bank account that I have assigned to paypal, which didn't have sufficient funds. I incurred a total of $105 in overdraft fees! More than frustrating considering that my credit card was selected as the funding source in the first place, not my bank account.

[Lavona]

I ONLY want to use my cash back credit card when purchasing ... it is a pain to have to manually change the funding source, and on top of that, get their page about why bank is better. I also end up having to cancel all my subscriptions before they are due so that they do not automatically renew at the "default" which PayPal sets to my checking account.

Anyone else find a good alternative? I'm already using some other options ... and at this point, I'm starting to give vendors my cc info just to avoid this pain.

[Sally-Shopper]

I agree with you ONE THOUSAND PERCENT!!!  I actually spoke with one of their reps about this, of course to no avail.  This obviously must gain them a higher profit than to allow us the credit card default option or why else would they refuse us the choice?  Paypal - another instance of CORPORATE GREED at the expense of their customers - they gain wealth and we lose it - how original.

P.S.  Just ran a spell check and "Paypal" is not even in their dictionary -- they are a joke.

[Lavona]

I used to go out of my way to use PayPal, but have stopped using eBay since it forces into checking account on PayPal, and as of today found that even if you select to change the funding source to credit card for a "subscription" that even the first payment goes to the checking. SO no more subscriptions will be process in PayPal.

Guess it is time to give up on it. SO sad, it's a great idea but NOT from my checking account.

[Illinoisan]

I'm with you 100% on this!!! I just spent an hour on the phone with a rep who knew less than I did about the order of options. Now I'm supposed to educate one of the reps who is supposed to help solve my issues?  This is ridiculous!  And now I have a new wrinkle to add to the story...  i purchased an item through woot.com and for the first time in all my many transactions involving paypal over several years (included a couple of previous transactions with woot.com) I had to set up a PayList.  If you don't know what that is, it basically sets up a permission for a vendor to go to PayPal and request money for a transaction you have made that PayPal has no record of at the time payment is requested.,,,, and without any verification from you that a purchase has actually been made.  It works well for recurring, monthly charges, for example. But I was making a one time purchase from woot.com. In fairness, woot.com did tell me (once, in small print) that I could cancel the agreement after the transaction was completed.  In fact, I did just that. I went into PayPay, found the PayList agreement with woot.com and cancelled it.  I noticed in the process that there was a limit placed on how much woot.com could request from PayPal for transactions woot.com said I owed for.... it was in the many thousands of dollars per month!  Imagine giving over that kind of authority. At least if my payment default was by credit card I would have some buffer of protection. But of course, there's NO WAY to change the payment option (even though they suggest there is - which is why I was on the phone with PayPal's customer support rep).  This is the last straw for me.  PayPal has stepped out of bounds, and I"m not going to follow it there.

[Oldnbroke]

Oh, now I understand why I couldn't find an answer to my question. I haven't been using my PayPal much for a while and wasn't aware of this underhanded policy. I just bid on an item and wouldn't have done so had I known that I could not have switched to my PayPal buyer's credit as my default form of payment. Darn, I just bought something on E-bay and they had me use some other method. I'll have to look into that. I've been telling people for years how much I loved PayPal. I guess I'll have to rethink that. I kinda think "My money, My choice). Also, after paying religiously for years, when I hit hard times and still paid PayPal (I might have missed a $15.00 payment when I spent a month out of state at my brothers deathbed), they were sure in a hurry to slash my credit limit. Not too user friendly, methinks

[Wolfette13]

If you go into your Profile in your paypal account you can add or edit any of the funding sources there. Whatever you currently have listed is where the funds will be withdrawn and if you have a PayPal Debit card with a balance on it, funds will be drawn from that first then revert to the other funding sources listed.

Go to PayPal, my account, profile and you will find everything there.

[Lavona]

the point is that even if you want your credit card to be the default funding source, if you have a bank account, PayPal uses it as default .. AND will not let you change it on ebay purchases or "subscriptions." The select default only lets you prioritize between banks, or between credit cards, it does NOT allow you to make credit card default if you have a checking account.

[JulieLynn]

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@Wolfette13 wrote:

If you go into your Profile in your paypal account you can add or edit any of the funding sources there. Whatever you currently have listed is where the funds will be withdrawn and if you have a PayPal Debit card with a balance on it, funds will be drawn from that first then revert to the other funding sources listed.

Go to PayPal, my account, profile and you will find everything there.

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I am also a ebay shopper and when I tried to pay with my credit card through PayPal it would not let me because it was higher than my "spending limit" ($159) so I was forced to add my checking account to PayPal.  I can't see any situation where I would rather pay with my bank account than my credit card.. because it is NOT instant and the echeck takes days to clear.   I am also very annoyed we can't change this default and have to go in manually and change every single time we purchase anything with Paypal.  Really wish they would change this!! I paid for a few ebay purchases with the default bank account not knowing it would take MUCH longer for the sellers to get their payment, thus taking much longer for me to get my items!   Have to agree this is a big pain in the butt and PayPal should have changed this forever ago, cause this is not user friendly! Boo.

[homemn]

Paypay has taken our "choice" away for default funding option, but the bigger issue is that they DEMAND access to our bank account!  Too many accounts are hacked and we have no way to protect our bank account.  At least our credit cards are protected, my bank account is not!

Paypal claims we should use Paypal for all of our online purchases (not just ebay). OK, I understand using Paypal is safer  than punching my credit card in every website I want to puchase something.  But Paypal loses it security benefit when they force access to our bank account.  Again, my bank account is not protected against Paypal hackers!

Why isn't this illegal?  Why are we forced to give them access to our bank acocunt when there has been so many hacked Paypal accounts?  Where is our consumer protection?  We all know Paypal has a monopoly on all Ebay purchases - we have no other choice.  Are they waiting for a class action lawsuit before their policy changes?