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Mon Sept 28 2015 13:46:52

Beware PayPal Policy on Funding Method

By: Reader

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Dear Ina,
I wonder if you know about a new policy that is in the fine print of PayPal's new guidelines. I found out about it by accident. 

When you use PayPal to buy something through a third party, they take the money out lst from your PayPal account; 2nd from your bank account; no opportunity to use a charge account. 

When this happened to me I called PayPal and they said that I had made a mistake. No, I had no PayPal balance and when I hit the PayPal logo, it came directly out of my bank account.

I had to really argue with PayPal to find out about this new program and that a PayPal customer has to "Opt Out" of this program so that you can use your charge card on items you buy through PayPal. And mind you, PayPal is doing this for your own good because it saves you an extra click or two. It could not possibly have anything with PayPal saving all those charge card fees. 

I even called PayPal back a 2nd time 5 minutes later and asked the same questions and got totally different responses. 

I think your readers should know about this change so they will be prepared when they hit that PayPal logo as a choice of how they wish to pay for an item.
Donna




Comments (14) | Permalink

Readers Comments

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

This user has validated their user name. by: iheartjacksparrow

Mon Sep 28 16:53:22 2015

@Donna - Are you sure you didn't leave the default payment method (coming from your bank account) when you paid? You have to change the source of the payment to your credit card (and then I always get a little pop-up message that it will save me finance charges if I pay through my bank account). I've never had a payment from my credit card blocked, and I'm always offered that choice when I pay through PayPal.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: Joey4711 This user has validated their user name.

Tue Sep 29 00:44:52 2015

Iheartsparrow,
I think what she is saying is she had money in her Paypal account and therefore they didn't give her the option to use her charge card.

I ran into this, and the only workaround is to transfer the money out of the account and than pay with your credit card, but you have to change it to credit card.

I called and asked Paypal a way around this and they told me that if you have money in your account that is what they use. Of course they do, they don't have to pay processing fees on that, and of course they give the customer paying cash a discount, I guess I am still waiting for my discount lol :).

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: dasw This user has validated their user name.

Tue Sep 29 01:22:45 2015

Every now and then I will get no options to use credit cards for my PayPal Payment. I back out of the payment and get off the site. I then start from fresh and eventually all the payment options are available again. (?)

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

This user has validated their user name. by: Rexford

Tue Sep 29 06:51:34 2015

They definitely make you work to use your credit card. Like the others have said, you have to first transfer all money out of your PayPal account, and then they will default to your bank account unless you change the source of Payment.

They have no business dipping into my bank account so I don't know why they make this so difficult. I'm sure it is all about lowering their risk.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: RAOTFLMAO This user has validated their user name.

Tue Sep 29 08:43:06 2015

I NEVER leave my bank account linked to paypal.  I don't accept paypal so I have no need to.  One other thing is paypal does not like you to use your credit card.....your credit card company will go to bat for you if you have trouble with a purchase.  

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: miaonorato This user has validated their user name.

Tue Sep 29 09:48:17 2015

I found a way around using my Pay Pal available cash and that is, I put every purchase through Pal Pal credit. Then I turn around and immediately pay Pay Pal credit from my credit card or bank card.  That way I can keep some cash in my account.
I need to do a transfer or withdrawal from my Pay Pal account once a month to my checking account. That counts as a direct deposit and I get my checking account free from the bank.
Sounds complicated but it's not really. I sell on Etsy not eBay.  

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: comet This user has validated their user name.

Tue Sep 29 11:28:33 2015

I am not sure if this will work for every one but---

When my local bank branch was sold they offered to transfer us to a different local bank.  We went to a different bank than they were offering but for a short while we still had a valid open account at HSBC.  

That was the acct I had "linked"  to my Paypal account.  It seems I have never remembered to change that!  Whoopsies!  My bad!

So now they have a bank account NUMBER--and no bank account that they can GET to.  

And because I am not interested in them having any more access to my bank and credit accounts than I absolutely MUST have--I used my Paypal Debit Card as the "credit card"---so they can't really grab money out of a place where there isn't any (if my PP balance is 0)

I once did want to use a different card and I had to go on and input that and then went back and removed the info after the transactions--I really did NOT like seeing the constant AD's tho to USE YOUR CREDIT CARD ON PAYPAL--and then finding that NO;  you really can't UNLESS YOU GO THRU A lot OF TROUBLE TO DO SO.  

False advertising?  From an ebay company?  No way!  

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: lessthanthreerecords This user has validated their user name.

Tue Sep 29 11:59:26 2015

I had a similar issue happen two different times a year or more ago.  In my case, the credit card option did show up when I was making my purchases (although the default option was my bank account).  I selected a credit card, but PayPal decided to charge my bank account instead.  Both cases worked exactly the same way.  I called PayPal and was told (like in your case) that I was the one who made the mistake.  But I said that if I wasn't absolutely 100% sure of the option I chose, I would not be making an issue about it.  In the end, PayPal said there was nothing they could do.  I opened a Better Business Bureau complaint (both times) which either received no response, or a response that basically said they weren't going to fix it.  Finally (after allowing at least a couple weeks for PayPal to correct it themselves), I went to my back and said I wanted the charge removed.  I told them the entire story, and the bank said that even though I authorized the purchase, if I didn't authorize the charge to come from the bank, they (the bank) consider that to be fraud.  I opened up a dispute through the bank, and both times I received a call from PayPal the same day saying that PayPal would remove the charge.  I said they could charge my credit card instead, but both times (and this was an absolute shock coming from PayPal), they did not re-charge me.  The first purchase was for several hundred dollars.  The second was a shipping label, so it was much less, but both times, PayPal reimbursed me, and the money was NOT taken from the seller (I made sure of that especially in the first case, since I am an ongoing customer, and was very happy with the purchase).

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

This user has validated their user name. by: iheartjacksparrow

Tue Sep 29 12:40:12 2015

@Joey4711 - I forgot that if you have money in your PayPal account they will take that, and then go straight to your bank. Thank you for reminding me. I haven't received any money via PayPal since November 18, 2014, when PayPal initiated that insane 180-day SNAD/INR claim process, so I never have money languishing in my PayPal account that they can grab. I almost always pay from my bank account, but there have been occasions where the amount due was large and I didn't want that deducted from my bank account right then, so I used my credit card.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: sunworshpr This user has validated their user name.

Tue Sep 29 14:00:29 2015

Donna is correct. I have had this same issue for my last several purchases. I know how PayPal works, and I'm sure Donna does too.

When I made a purchase, it was giving me 3 options for payment: PayPal, PayPal credit or Credit card. If I chose PayPal, it automatically signed me into PayPal and automatically paid for the purchase using my bank account, with NO OPTION to change to a credit card on file. If I selected Credit card, it did process my credit card, but it was processed through eBay and the purchase did NOT show in PayPal, with all my other purchases. How would I have PayPal buyer protection if the transaction never shows in PayPal? When using this option to pay using a credit card, you are asked if you want eBay to save your credit card info for future payments. Why would anyone in their right mind want eBay to save their credit card information?

After four phone calls today (3-PayPal, 1-eBay,) PayPal told me that I had been opted into eBay's Express Checkout, which I know for a fact, I have NEVER opted into. Since there was no payment option selected on my behalf, PayPal was then using the hierarchy order of PayPal balance, checking account and then credit card. There is no way to change the payment method during checkout, once you are opted into Express Checkout.

The first three calls today, I was told three completely different and non-logical stories for why this was happening. It was on the fourth call, when I finally reached a PayPal agent who knew exactly what was going on, that it was fixed for me. PayPal does have the ability to OPT OUT of this eBay program on my behalf, which they did today. I was then able to pay using my credit card through PayPal.

Thank you, Donna. It was your letter that prompted me to pursue this again. I had gotten absolutely nowhere during previous calls. It did take me four calls today, but it has been fixed and I can again use my credit card to pay for eBay purchases through PayPal.

 

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: Redlion This user has validated their user name.

Wed Sep 30 17:22:11 2015

I fund everything with my paypal mastercard and never have to use any workaround.  Works like a charm 100% of the time.  paypal mastercard... go figure.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: pace306 This user has validated their user name.

Wed Sep 30 18:09:28 2015

Its all about the Paypal fees that they pay to various institutions.

#1) money from your Paypal account - ALWAYS option 1 since it wont cost them anything (besides the %1 float they are getting on your money but claim they arent)

#2) your bank account - second cheapest way since its a few pennies on the dollar. They get charged the same amount as if you were using your bank account to pay bills (like your phone company or water bill etc). Paypal has this deal in plaec with almost every bank.

#3) Paypal issued CC. They like this one since you are taking money out on the card (via a purchase not cash). They still make a %2 vig on it so they are cool with it. Even if THEY have to pay the actual card issuer a few cents - its no big deal.

#4) your NON Paypal issued CC. They hate that the most since it costs them %1-5 to %2 depending on who the issuing bank is and how much they value Paypal business (probably not much).


This is the way its ALWAYS been and always will be - the bottom line is ALWAYS Paypals pocketbook.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: maribellr This user has validated their user name.

Thu Oct 1 10:09:03 2015

I have 2 paypal and two ebay accts.   When I sell ,the money always goes to PAYPAL A.  When I buy something, it doesn't matter which Ebay acct. I use, I always pay with PAYPAL B  which is linked to my credit card. But sometimes, if I do it too fast, it pulls the money from the bank. One time, my bank acct. changed number and Paypal still pulled  2.03 from the bank.  It was for a shipping label. thankfully, the bank paid them  and  I didn't pay a fee. I explained to the bank that I forgot to give Paypal the new bank number. Anyway, go slow and pay attention if you want to use a credit card.

Beware PayPal Policy on Funding Method   Beware PayPal Policy on Funding Method

by: maribellr This user has validated their user name.

Thu Oct 1 10:11:30 2015

I also print using my paypal B but everytime, I have to switch to credit card. The credit card used to be the default but now , Paypal insists that it's the bank and I must manually switch each time I print a label.  This is what I am doing. I can also tell you for a fact, that the majority of the time that  I click credit card, I have trouble printing the label the first time. I must re-do it inorder for the label to print  paid by a credit card. Butwhen I use bank funds, almost always ,  I am able to print a label.  Coinicidence?  No freaking way. This is done deliberately!



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