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?!

[nadia]

I hear you sister.  I have the same problem. 

[essiecab]

I am having this same problem! I ordered something from a company, and they sent me a Paypal invoice. Well I only have the choice to pay for it with my default funding source, not the source I want. Why did you take away the choice, Paypal? I need more control over this, it's completely unacceptable to me.

[telemonster]

SAME HERE!

Paypal makes more money with EFT (Bank account) transfer I believe.

Also, credit cards give cheated buyers recourse, where as bank account transfers leave dispute resolution up to the worthless dispute services of paypal. When a buyer initiates a chargeback, it may create more headaches for paypal.

Basically, they want money and they want it easy with little to no recourse of loosing it.

American greed.

I want to remove access so paypal cannot access my bank account because I don't trust them if there is an issue, but their system won't let me go credit card only, as I've put so much money through their service. So I'm going to setup a separate savings account, but I'm worried about them automatically (without ever letting me change it) pulling money from it and sending me into overdraft fee land.

We need some good paypal competitors. And a eBay competitor too. Monopolies are bad.

[telemonster]

You can remove your bank account, but your account instantly goes to unverified (what's unverified Paypal? I've been spending money through you since you were born).

Then if you've spent more than $10,000 through them (I have, over all the years) it reverts to say you've hit a limit, and need a bank account.

It causes all sorts of issues. They really want your bank account, which is pretty scary. Much of their customer service is offshored, and I'm not sure how quick they would be to resolve things if there is a security incident. Their buyer protection was non-existant whan a seller misrepresented an item to me, so it makes me wonder.

[telemonster]

Duh, a friend pointed it out.

If there is a fee for overdraft, then it's likely that paypal did the auto-bank-account thing to try to push customers into overdraft.

In America, haivng people owe you money is the best. So if Paypal can push tons of customers into using a bank account unexpectantly, and overdrafting it, and earning overdraft fees for paypal from customers that don't complain or are beholden to the almighty fico score, then it's a win for them. More profits, more happy rich shareholders, and more over the top lifestyles for it's execs.

Credit companies make their money from fee'ing people to death. People who pay only net them a small percentage (4% perhaps), which isn't enough for greedy people.

[twistedquilter]

I am going through this very issue right now.  I have a Business Account with Paypal and I've had it for around 7-8 years.  Thursday evening I was trying to pay for a $4.59 ebay purchase and I was simply going to pay it from money in my Paypal account.  I clicked on the "Pay Now" button and when it took me to Paypal a page saying the $10,000.00 thing is what came up.  I actually had my bank account linked to my Paypal account.  I finally found out that my bank account had been removed from my account (have no idea how that happened), so Paypal's automatic instruction says to fax their cover sheet provided along with a copy of my bank statement showing the two Paypal deposits made way back when I opened my Paypal account.

I did that.  Here we are two days later and after emailing twice and calling once I am no closer than I was Thursday evening to being able to pay $4.59 for my ebay purchase - and paying it from Paypal balance in my account.

This has gone beyond stupid.  I'm am just about sick of ebay and Paypal.  There are so many hoops to jump through it takes more of time than the profit I make.  Major frustration...

[Sally-Shopper]

I agree!  GIVE US BACK OUR OPTIONS - IT'S OUR MONEY!  Not surprised there is no phone number to call them so, instead, we only have this silent well-hidden comment area to vent our frustrations. PayPal was certainly more responsice back when they were smaller ...

[mr21guy]

I have always had this problem too, and I always went through the hassle to change to my credit card. I knew one day I would forget and it would go to my bank account. Well, the day finally came, when I tried to buy a car for over $6k! Ouch!

Then, I tried calling paypal help right away, to see if they could cancel the charge for me. And guess what - they were absolutely no help at all.

Paypal, if you are reading this, we demand you give us the option to change our default funding option, and we demand you improve your customer support. These days, a business' foundation is customer support, so shape up.

[homemn]

I'm sick of this policy too. I want to use my credit card for all paypal payments, NOT MY CHECKING ACCOUNT.  

I've been purchasing on Ebay and using Paypal for years. I'm over $10,000 in purchases.  I don't give Paypal access to my primary checking account - where I have all my money, why should I?  That is too dangerous to my money!  Who knows what can happen, who has access, how good is the security?.  So I set up a second checking account specifically for Paypal so I can stay verified.  But, of course Paypal won't let me set my credit card as my preferred payment method.  I've had many conversations with them over the phone - there is no way.

A couple of times a transaction passed through my checking account by error.  I don't keep enough money in that account, and I get a $35 overdraft charge each time it happens!  I decided to contact my bank and  block all outbound payments from my checking account to prevent this from happening again.  Guess what?  Paypal shut down my account when they discovered it!  I had to go through the verification process again and resubmit my checking account to fix my account.

Why is it I'm "verified" only when you have access to my checking account, Paypal??  You know who I am.  I've spent over $10,000 over the years and purchase at least 4-5 items each month for my business, so you know who I am.  I AM ALREADY VERIFIED!!  My credit card has never failed for payment.

Another $35 overdraft fee today from my bank, when it should have been through my credit card.  I'm sick of this.  LET ME CHANGE MY DEFAULT PAYMENT METHOD TO CREDIT CARD, PLEASE!  Stop this strong arming of your customers.  If we purchase on Ebay we have to use Paypal, and you know it.  I'm surprised this is even legal.  Certainly not in your customers best interest.

Listen to your customers, Paypal.  Stop this nonsense.