PayPal wrongly took money out of my checking account & now i’m overdraw

Xulybetes
Contributor
Contributor
I bought cosmetics using PayPal. The money was supposed to come out of my checking account, with my credit card as a backup. They took the money from checking even though there wasn’t enough, and now I have $35 in overdraft fees. Was this my fault? Weren’t they supposed to use my credit card if there wasn’t enough money in my account, and do I have any recourse? Thanks so much!!!
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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@Xulybetes 

 

No, the process is correct and worked as it should. If the money is supposed to come out of the checking account, what PayPal did is correct and according to their user agreement and account function documentation.

 

It charges your bank account and if there is insufficient funds on the initial attempt, your bank will ding your account for overdraft and PayPal may make up to 2 attempts in a space of 6 days. If there is still insufficient funds this time, you will get dinged again for overdraft until you add some funds (which you should do the first time you get dinged for the overdraft fees) to your bank account then PayPal will eventually use your back up credit card if you don't.

 

PayPal already fronted the money to the seller at this point, its just taking out the money you owe PayPal out of your checking account as indicated as the main preferred funding source. 

 

The process does not work the way you think it does. It's doesn't put the charge on your credit card and avoid your bank drafts just because you have no money in your bank account. It works the way outlined above. 

 

You must ensure you have funds in your bank account when paying with bank. PayPal says this in their documentation because your bank may charge overdrafts.


Kudos & Solved are greatly appreciated. 🙂

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@Xulybetes 

 

No, the process is correct and worked as it should. If the money is supposed to come out of the checking account, what PayPal did is correct and according to their user agreement and account function documentation.

 

It charges your bank account and if there is insufficient funds on the initial attempt, your bank will ding your account for overdraft and PayPal may make up to 2 attempts in a space of 6 days. If there is still insufficient funds this time, you will get dinged again for overdraft until you add some funds (which you should do the first time you get dinged for the overdraft fees) to your bank account then PayPal will eventually use your back up credit card if you don't.

 

PayPal already fronted the money to the seller at this point, its just taking out the money you owe PayPal out of your checking account as indicated as the main preferred funding source. 

 

The process does not work the way you think it does. It's doesn't put the charge on your credit card and avoid your bank drafts just because you have no money in your bank account. It works the way outlined above. 

 

You must ensure you have funds in your bank account when paying with bank. PayPal says this in their documentation because your bank may charge overdrafts.


Kudos & Solved are greatly appreciated. 🙂
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