Paypal Purchase and CLI

[WafflesPP]

Quick question, I had a CL of $500, saw the promo for 24 months @ 0.0% if the purchase was over $600, well my balance prior to the purchase was $325. Found the laptop, choose the options and checked out. 

The purchase looks to be accepted and I got all the appropriate information in my email. The only thing that concerns me is how the purchased is displayed in my balance. 

My main worry is that Paypal, instead of declining the purchase and the CLI, will bang my main funding account for the purchase price. They haven't yet but my CL has not increased and is showing a negative balance in the "Available credit line" 


 

[sharpiemarker]

@WafflesPP 

PayPal may not increase your credit limit even if they decide to let the purchase go through. On rare occasions, PayPal will resort to your another linked method if the PayPal Credit purchase don't go through even after completing payment so make sure you have enough in your linked methods.

"The only thing that concerns me is how the purchased is displayed in my balance."

Which balance?

[WafflesPP]

@sharpiemarker This purchase was 24 hours ago, also the balance that shows the negative is the Available credit line. Looks like it sucked up the rest of the limit to my previous $500 and the (negative) figure would be the balance of the purchase MINUS the remainder of the previous limit. 

Sample Figures

Previous CL: $500

Available: $155
New Purchase that would require a CLI , $689
New available line: $-534 

Hope that explains it.

[WafflesPP]

Also Received this email. 

[sharpiemarker]

@WafflesPP 

Credit limit increase and letting the charge go through over the limit are two different things. Even with credit cards, they'll let you go over the limit but do not necessarily increase your credit limit. PayPal do not charge an over the limit fee though like credit cards do since it is a open end credit line. The only penalty fees is late payment and returned check. If the charge has not been switched over to a linked funding source, then it appears the system let the charge go through without increasing your credit limit.

https://www.paypal.com/us/smarthelp/article/how-do-i-increase-my-paypal-credit-limit-faq2861

[WafflesPP]

@sharpiemarker  Ok but that is certainly not the impression I was under.  I started a Wire transfer from my main bank to the "PayPal" bank account. Just hope it clears before they hit me for it.  I was under the impression they check it and either decline the CLI or let the purchase be made. At least I think this is how this reads. 

[sharpiemarker]

@WafflesPP 

Can't see the images you posted yet as PayPal has to approve them.

There have been reports of it happening. Once a person bought airline tickets and used PayPal Credit, only to discover it went on another linked available  funding source instead after checkout. When you link a funding source you agree to let PayPal to tap into it as back up. PayPal reserves the right to restrict use of the credit line by either blocking the payment with an error message, not offering it as a funding source during checkout and on rare occasions, taping into a linked funding source. There's no telling which way they'll go with because its run by software, automated and can't be overridden.

[WafflesPP]

@sharpiemarker  Well thanks for the help, it was just a screenshot of the link below.

https://www.paypal.com/us/smarthelp/article/did-my-purchase-attempt-exceed-my-paypal-credit-limit-fa...

They do not make it seem like it would be possible to charge over you CL unless they approved the CLI. Obviously, this is all handled by computers but I wish they were more clear about the process.