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?!

[listener]

OK, I see now that this isn't only my problem. I never verified my bank account (thankfully, I realize now) -- but I see that when I've spent 10K I won't be able to use Paypal at all. My current problem is I can't change my default payment method to my credit card instead of Paypal Later -- which I don't want to use. Why do I want another bill for $20 when I could just use my credit card? I am going to start using Paypal only when there's no other reasonable option.

[tmcnewyork]

I opened up a new checking account at my bank specifically to register with Paypal so they wouldn't have access to my regular checking account. I keep the balance down to a few dollars, which works great until/unless Paypal switches the funding source from credit card to bank account, which has happened to me. To Paypal's credit, they refunded the overdraft charges I incurred from my bank after I reported the incident to the Better Business Bureau.

I see that Paypal has now initiated a "Bill Me Later" feature, which can be used as your default setting. I switched from my bank account as the default to that option very quickly. Then I will pay whatever balance I have once a month with my credit card. I do use PayPal across the internet, not just for ebay, so this will save me from worrying every time I use it.

 think this is PayPal's answer to our complaint. We'll see how it works. If it does, thank you PayPal for finally hearing us!

[oneidafish]

Why on earth is my Paypal balance not being used when I have one?  I am near or at my Buyer's creit limit and want to use my Paypal balance as people have paid me for auctions.  When I set my preferences it was for Buyer's Credit to be used last as the interest rate is rediculous!

[salexand652]

I believe if you RECEIVE an invoice, you can direct it whatever source of funds you want. I have done that several times.

If you SEND money, or use paypal to pay for items online (ebay, etc) it'll take it out of what THEY want as their default, like most of you have indicated it's your "verified" checking account. But I believe there's even some settings to go into paypal from the payment link and change your fund source, if I remember correctly.

But I do agree with all of you, if we choose a default, that's what it should be until WE change it. Eventually someone will get fed up enough with it to do something about it (suggestions of a competitor like google, or class action lawsuit) Until then, unfortunately, we're stuck.

[Jensen]

YES, I am so sick of having to change my funding option every time I make a payment from checking to credit card. Credit cards are so much safer and have so much more protection (not to mention I get points every time I use my card) there is no good reason to use checking, yet PayPal foists it on me every time. Really makes me want to commit not to using PayPal at all.

[tothlaw]

I thought I was going crazy.  I have been searching for the link that I was sure was here somewhere to change the default  payment source.  Apparently it's gone. Also, lately I have not been given the option to pay by instant withdrawal, only goofy e-checks which dont clear for five days. This is all very odd and will doubtless cost paypal lots of business. Are you guys reading these forums? Why dont you fix these problems and post your fix to this forum?

[Alashi]

I have used PayPal since 1999. Over the years, many issues have arisen. The things that bothers me the most is not being able to set a default funding source because I always use a credit card to protect myself and prevent accidents on my direct account. Since so many vendors REQUIRE PayPal, we have no choice in the matter. We have to use it.

So why, after all these years does PayPal not allow you to set a credit card default? They won't tell you! But, rest assured, there is always a reason. I think, in conjunction with eBay, it must have to do with profits.

Perhaps they get some sort of extra cash flow or kickback on having transactions go directly through your bank account. So many vendors tout the safety of PayPal because of its credit card capability, yet PayPal itself won’t let you default that selection.

There IS a reason. Try to find it.

[thomasrp]

I agree.  I've been complaining about this for years.  Like others, I got nowhere when I logged a call with customer service (and I use the term loosely).

You should be able to set your default funding source regardless of whether you are verified.  I never use bank transfer.  So EVERY BLOODY TIME i buy something, I have to manually change the funding source.   Occasionally I forget to or the transaction doesn't give me the option.  This costs me money because I use credit card rebates.

WAKE UP PAYPAL!  People HATE this!

[Illinoisan]

There's a very simple solution to this problem. Stop using PayPal.  (I said 'simple'; I didn't say it would necessarily be 'easy' to do).

PayPal is in business to make money.  It must do enough things right for customers to continue to shop and use PayPal.  If it goes over the line and the customer stops being a customer, then PayPal will change.... and not until then.

As it stands, most of us want an eBay item enough that we will tolerate (even with loud objections) PayPal's policy. As long as we buy, PayPal will not change.  We may hate the not-changeable-default-funding-option, but we don't hate it _enough_.

It's just that simple, folks.