How does the backup payment option work?

[mosura]

I just made a small purchase using PayPal, thinking it would charge my preferred payment method for online purchases (PayPal Credit), before making this purchase I even went and made sure of my preferred payment method. I even switched it from PP Credit to my bank, back to PP Credit to make sure (don't ask, I'm paranoid and weird). I went ahead and made my purchase and the email I received said that my bank account was used as the purchase method. I'm paid monthly, so I don't have enough currently in my bank account to cover the cost of this purchase. I sent in a ticket, asking if the purchase could be switched to my PP Credit rather than my bank account hoping my bank account won't be charged.

I clicked on the purchase review/information/thing, and it listed my bank account and my regular credit card as a back up payment method. I was wondering, how does it work? Do they try to take the entire purchase from my account, causing overdraft fees, and then charge the card? Or do they take what they can, leaving the account at $0, and then charge my card?

It being Sunday night, I don't believe the purchase will go through to my bank account until Monday morning anyway, so hopefully I can manage to get the funds in before the charge is applied. If overdraft fees are caused and I'm still days out from being paid... I'm **bleep**.

[sharpiemarker · Accepted solution]

@mosura 

Hi,

"I even switched it from PP Credit to my bank, back to PP Credit to make sure (don't ask, I'm paranoid and weird)." Heheh, its all good, I know what you mean. 😉

Okay, so what happens is on some occasions, PayPal won't let the charge through on PayPal Credit and will use a linked funding source or other method instead. That's why when you finna buy something with PayPal Credit, its best to make sure your funding sources are an option in case the charge on PPC doesn't go through and on to your linked sources. It can really mess you up if you're not prepared. You can contact the merchant to cancel your order and refund but afterwards I wouldn't try to buy again. lol

Now since you have a bank account and card linked, PayPal does an Instant Transfer. The bank and card work in conjunction where PayPal fronts the money ahead to the merchant and then waits for your bank payment to clear. 

Now when you asked, "Do they try to take the entire purchase from my account, causing overdraft fees, and then charge the card?"

The answer is yes, in a nutshell. Because bank payments can't be stopped once they are initiated. It has to go through the motions to it's completion which is to get the money.

So, the goal is to add funds to your bank account asap or, you can just leave it and drum up 3xbank NSF fees and then they can charge your card.

Your PayPal balance will go into the negative upon the initial attempt if your bank payment comes back insufficient. The bank charges you an overdraft fee. You should be working on adding funds to the bank account at this point, not to the negative PayPal balance because PayPal will make up to 2 more attempts in the space of 6 or so days to get paid.

To avoid further bank fees, add money to bank account and when PayPal hits your account again the funds should be there, and will eventually zero out the PayPal balance, If you try to add money to the PayPal balance because it was negative as some have and not add to their bank account, it won't stop the attempts to the bank account and it'll be like play musical chairs try to either zero the PayPal balance or add funds to the bank. The answer is add funds to the bank.

Hope this answers your questions.

[mosura]

@sharpiemarker 

Perfect, thank you! I'll be hitting the bank in the morning to add the whopping $11 needed lol. Hopefully the payment won't be processed by then and it'll be fine. This is what I get for being too lazy to go find my physical credit card and paying that way.

Thanks again, this really helps to put my worried, anxiety riddled brain at ease.

[sharpiemarker]

@mosura 

Hahah $11 🤣✊🤜🤛

You're welcome! 😀