Student Account spending limit / overdraft?

[mltsy]

I'm wondering what happens if the student tries to spend more, using their debit card, than they have in their paypal account?  Will it deny the card, or will it accept the charge, and then make me responsible fo paying it, or have an overdraft fee or something?

[Amanda411]

Hi mltsy,

You can learn more about PayPal Student Accounts here:

https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/Marketing/youth/Microsite-outside

and here:

https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=ua/StudentAccount_full&locale.x=e...

There are no overdraft fees however, the Parent is liable and responsible for all of the Child's actions, obligations, and liability related to the Student Account and the PayPal Services.

Amanda

[mltsy]

Well, I have read both of those, and they are just ambiguous about it.

I want to know that if I transfer $100 into my student's paypal account, I won't be responsible for more than $100.  What's the point of the account, if they can just go out and spend as much as they want, and I have to pay for it anyway, regardless of how much I put in their account?  I might as well just give them my credit card.

So my question is, what happens if they try to spend $120 when there is only $100 left in their account?

[BJGrolle · Accepted solution]

Hi,

I just opened a student account for my daughter and was concerned about the same thing. The OP put it plainly enough so I don't understand why an answer hasn't been posted by PayPal staff yet.

So I just got off the phone with PayPal and was told that the student is limited to spending only what is in the PayPal balance. All other purchases over the spending limit will be denied.

I was assured that the student cannot spend their entire bank balance (unless you give them unlimited access to transfer funds into their PayPal account) and the student cannot spend the parent's bank balance either.

Otherwise I would agree with the OP - might as well just give them a credit card.

[mltsy]

Perfect!  Thank you! 🙂

[htallison]

Yes, agreed on the above answer. Also, be aware that there is a $500 per day spending limit for your student. My daughter paid for college books yesterday ($493- ouch), then went to WalMart for $27 worth of other supplies and her card was declined though the balance was sufficient. I assume it will be fine today. 

[jwxyz]

"So I just got off the phone with PayPal and was told that the student is limited to spending only what is in the PayPal balance. All other purchases over the spending limit will be denied."

Has anyone verified that this is actually what happens?  Also how do you get the student card?  The permissions entry for using the student card is greyed out so it can't be clicked.

[nopo]

In spite of what's implied, or what information is available over the phone, I'd actually like to see the "no overdraft fees" in writing.  I feel I've scoured the agreements, and overdrafts are not mentioned. 

Although I have always been happy with PayPal,I see that student card is offered through Chase, and in my experience Chase tends to obfuscate and revise their terms and conditions - to their advantage, of course.  I guess I'll be passing on this for now.