Backup funding source to pay balance not a backup funding source to pay balance?

[edsager]

I am unsure of what to do here.

My bank account is the primary with PayPal. 

I initiated a transaction and received notice from PayPal that if my bank account did not have sufficient funds to cover the transactions, it would use the backup credit card to pay the balance.  As a result of this assurance, I chose to not add $15 to my bank account, which would have made the bank account balance sufficient to cover the entire transaction.

Unfortunately, PayPal tried charging the entire amount to my bank account, and when it found insufficient funds, PayPal did not use the monies there and then go to my credit card to fund the balance, as the notice to me said it would.  This caused my bank balance to be overdrawn and I received an overdrawn account fee.  PayPal tried the bank account again and I received another overdrawn account fee.

The entire transaction was $41 and I have bank fees in the amount of $40.  PayPal said the only thing it can do is draft a letter to my bank asking that the fees be reversed.  PayPal also said that because the system is automatic, it could not stop the attempt to get funds from my bank account and also it did not have the tech sophistication to figure out the amount I had in my bank account and then use the backup credit card for the balance...even though that was what the notice from PayPal said it would do.

PayPal refused to refund the overdrawn amounts (the bank fees) and put me on hold for several minutes after I asked for a supervisor.  Also, when speaking with Pele, the first person with whom I spoke at PayPal, no matter what my question was, his response was to not answer my question, but to repeat himself over and over and over and over.

Has anyone else had this experience?

Has anyone ever resolved this type of dispute, or one substantially similar, with PayPal?

Any ideas as to with whom I need to speak regarding this?

Anyone have their legal counsel contact information?

Any other ideas?

I am extremely frustrated that PayPal stated it would do one thing and yet it did not do what it said it was going to do.

Thanks,

edsager

[Amanda411]

Hi All,

I think there has been a misunderstanding about how a back up funding source works.

If you choose your bank account as a funding source then PayPal will always attempt to withdraw the transaction amount (minus any funds already in your PayPal account balance). PayPal has no way of knowing what your bank account balance is. It is the same as if you had written a check.

The back up funding source comes into play if the bank rejects the transaction. That may be for insufficient funds, closed account or some type of processing error. If it is rejected for insufficient funds, PayPal will attempt the transaction once more.

If the transaction is rejected by the bank, then PayPal will charge the backup funding source for the transaction.

Your bank may charge fees if there are insufficient funds.

Amanda

[jcraig9218]

Thanks, Amanda, for that explanation. It might help others in the future if the PayPal advisory is reworded. The way it reads now lead me to believe that I would not have an overdraft issue at my bank, but I understand now that PayPal couldn't know unless the bank rejects it.

[Robin1981]

but see that was where I had a problem, cuz my bank account did say insufficient funds and they still withdrew my money, they didn't even have time to deny it, since it was INSTANT transfer, trust me I was on the phone for 3 hours between paypal and my bank...and paypal told me, they can see if it says sufficient or insufficent funds just don't know how much...they started withdrawing on the 23rd all the way up to now, and it was insufficient since the 23rd...and of course we never were able to get a real explanation just a repeat...I agree maybe things ought to be re worded.

[Robin1981]

Hello

[Robin1981]

Hello there, I had the same problem today...the bank said it wasn't there fault paypal said it wasn't their fault but both agreed wasn't my fault but neither of them want to pay back my money..we are over drafted 146 bucks...if you or anyone else knows what to do to solve it please let me know too...it's ridiculous..but I feel a lil better knowing it's not just happening to me either.  Paypal did the exact same thing with just repeating themselves over and over...they couldn't answer anything I really had asked...which shows me that they know they are wrong and won't do anything about it.   good luck to you all with this problem.