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Mon May 22 2017 22:45:01

PayPal Withdrawal Backfires, What Went Wrong?

By: Reader

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Dear Ina,
Recent glitch on PayPal? On 5-3-17 I drained my PayPal account because I was leaving the next day to go to Ireland - my balance was only $89 but I figured it was enough for a good dinner in Dublin. 

To my surprise when I returned home my bank charged me $35 fee for an overdraft. I was really puzzled but finally figured out PayPal never transferred my money to my account they tried to draft it OUT of my account causing the overdraft. 

In the 17 years that I have utilized PayPal I have NEVER transferred money into PayPal. When I made the transfer to my bank I even saw the now -0- PayPal balance. 

I have contacted PayPal but they refuse to reimburse me for their glitch. 

Has anyone else ever had this experience? I got nowhere with PayPal. I have removed them from a payment processor in my B&M and my website until they fess up. Square works just fine for me.
B.




Comments (27) | Permalink

Readers Comments

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Marie

Tue May 23 02:56:16 2017

If PP has worked for you successfully for a long period of time, why would you cut them off after one possible error?  

I'm not sure what you mean by "they tried to DRAFT it out of my account"?  Do you mean they tried to transfer money from your checking to your PP account?

This could be a simple error when filling out the transfer information.  If you don't watch your screen carefully and put your checking account in first and then select the PP account, you are transferring money FROM your checking to PP.  I'm not trying to insult you, I'm merely suggesting that you may have made a mistake in how you filled out the form.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: FeelingFroggy This user has validated their user name.

Tue May 23 09:52:02 2017

In all of the years we have used Paypal we have never had that problem.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Rexford

Tue May 23 12:34:33 2017

Marie says "If PP has worked for you successfully for a long period of time, why would you cut them off after one possible error?"

I'll bite. Because they cost her $35.00 and didn't transfer her money to her account, even though on her end PayPal showed $0.00 after she transferred the money. (thus one would infer that the transfer was successful).

Of course on the flip side, always a good idea to keep a lot more money in your bank account than you think that you need, or have overdraft protection in place.  Things happen, especially when you are dealing with glitchy payment processors.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Marie

Tue May 23 13:31:24 2017

@rexford

IF the OP is a seller on Ebay, they will lose far more than $35 if they decide to stop accepting PP.  Certainly they have the right to make that decision.  And if you and/or the OP feels that this is the right route to take, you both have every right to make that decision.  For me, my opinion is that it isn't.

Some peoples finances just don't give them the luxury of keeping extra money in their accounts.  Certainly a good idea as you state, just not always possible.  But if you can afford a big trip to Ireland and you are running so tight on cash, that it curious too.

You are assuming that PP is the one at fault for the issue when in fact it may not have been.  It is more likely that the OP filled the form out incorrectly.  But then again, I certainly don't know that for sure, it just seems to me more likely that it was human error.  The OP can go into their PP account and see how the transfer happened.  The details are there.  They may have simply filled out the transfer request in the wrong order.  If they put their account first & PP balance second, then they are asking PP to transfer money out of their bank account.  

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: FeelingFroggy This user has validated their user name.

Tue May 23 13:40:26 2017

@marie

OP said they were eliminating paypal from their BM and Website. NOT EBAY

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Marie

Tue May 23 13:45:53 2017

Thank you Froggy, I knew that but for some reason it completely left my thoughts as I was typing.  My BAD!!  I appreciate the clarity.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Scotty This user has validated their user name.

Tue May 23 15:36:30 2017

Your bigger problem is having less than $89 in your account and going to Ireland...

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: iheartjacksparrow

Tue May 23 18:52:06 2017

Marie writes: "If they put their account first & PP balance second, then they are asking PP to transfer money out of their bank account."

But that wouldn't explain why their PayPal account is showing a zero balance. If the OP transferred $89 out of their bank account, where's that $89?

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Marie

Tue May 23 19:25:06 2017

@Jack

Certainly a valid point, however the OP said they remembered seeing the Zero balance when they did the transfer.  They didn't say that it was still that way when they returned from Ireland.  This could be just a simple mistake by the OP or it very well could be a PP mistake.  I simply offered a possible explanation, it doesn't mean that its right.  Just an alternative to what might have happened.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: maxmad This user has validated their user name.

Tue May 23 22:24:02 2017

This happened  to us about the same time

We did a withdrawn, and there was some sort of error, the transaction did not go thru, we called paypal, and they confirmed there was a glitch, with their system, and said to try again, so we did, and the second time the withdraw went thru, but about a day later we noticed missing funds, and that the first withdraw was also taken out, in our case there was enough funds for both, otherwise we would have been overdrawn, just like the OP, but it left the account at almost zero, which we never do as we pay some fees and subscriptions with paypal

yes we were very upset, We called paypal to complain,  about what had occurred,  

We called our bank to confirm Both withdrawals did go into our bank, and they both did .



We rarely have any issues with paypal,

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Marie

Wed May 24 00:23:01 2017

@maxmad

The OP is saying their BANK account got overdrawn, not their PP account.  So while your situation is certainly disturbing, the OP's experience is a bit different.  The OP experienced overdraft fees with their bank because of it.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: maxmad This user has validated their user name.

Wed May 24 03:18:15 2017

@Marie

the first rep we spoke to admitted there were many issues on their end, with transfers, on or around this exact date.

Most likely Paypal did a Double transfer, just like what they did to us, no question about it,

The OP made the first transfer, Paypal thought it did or actually did a double transfer with the same amount, exactly like what they did to us,  Paypal then wanted ''their'' $89 back unfortunately his paypal and bank account was empty,

Paypal made some errors, whatever the cause, they started the process of events the OP is going thru, with the overdraft fee, the first step is to get documentation from his bank, then go back to paypal,

IMO paypal probably actually did transfer another $89 which He might have to pay back to paypal, might be better to pay the $35 overdraft fee and call it a day.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

This user has validated their user name. by: Bill

Thu May 25 00:14:13 2017

Maxmad,

You are correct. When you withdraw from PayPal it takes 2 to 4 days for it to show up in your account at the bank. Why that is I have no idea because it should be an ACH and it should be done overnight but PayPal hangs on to you money for a few days to get that interest,
When PayPal realized that they had doubled the transaction they should and could have canceled the second one and everything would have been fine. But no to make things simple for them they just went and withdrew the money from the OP's account which does take overnight so the OP was effectively overdrawn at their bank.
Now depending on there relationship with their bank they can get the overdraft fee waved but if it is a big mega bank probably not.
I myself when ever I might need some extra cash out of PayPal I just go to Walmart and buy something for $1.00, pay by my PayPal debit card and get up to $100 back with no fees. I figured that out years ago.

As usual Marie is putting her 2 cents in and making a mountain out of a mole hill.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Lightning This user has validated their user name.

Thu May 25 00:39:11 2017

I have complained to PayPal about the way the withdrawal is set up, to no avail.  I have both a personal and business account.  The personal account has a link that says ''withdraw to my bank''.  Super simple.  You click it, and your bank is already showing, just need to type in how much.  Can't screw it up.  

THAT's how the business side should be set up, too.  Instead, it's ''Transfer Funds'', pick a source, pick a destination, type in how much. Each time the screen is in motion, moving from topic to topic, resetting. The windows fly by, you might hit ''withdraw it as a debit card'', it's a mess.  I tell them that sooner or later I, or someone else, is going to hit the wrong button by accident, causing something similar to the OP's situation.  It all falls on deaf ears.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Interesting Antiques This user has validated their user name.

Thu May 25 00:44:34 2017

Paypal had a major technical issue with withdraws, ours was April 23rd all the way to May 1st.
The 3  withdrawls were 'reversed' due to a technical problem on pp's side.
So, no problem I withdrew again. Couple of days later I had double deposits!
Then paypal  overdrafted our paypal account for BOTH sets of withdrawls, at the same time  transferring 424.00 out of our business checking account!
When I spoke to a supervisor at pp, they stated a revolving payment (bidnapper) sparked the withdrawl from our checking account, okay that I understand, but in addition to getting paid for their error, they were STILL snapping up all payments coming into our paypal account, to  get the pp in the positive. But they were paid via their transfer from my checking account!
In other words pp was DOUBLE DIPPING!
So to be clear pp got paid TWICE for the ONE double set of withdrawls.
After an exhaustive  4 conversations over a few days, I couldn't get anywhere with the supervisor. He denies we over paid paypal, its a mess and his come back was his screen shows differently from my screen and everything is fine!
Still upset over the whole situation, we printed out all the info we have and will have our accountant  review it next time we see him.
Very frustrating!

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: lostliz This user has validated their user name.

Thu May 25 00:52:08 2017

Not a problem with a bank withdrawal, but PayPal screwed up big in May by not completing a sceduled transfer to PayPal Extras Master Card.  I scheduled my May payment in April as I have for the last many years. Normally PayPal transfers the money, but did not in May.  This resulted in late fees and finance charges.  PayPal cannot figure out why. Fortunately  MasterCard could see that the payment was scheduled but not paid.  

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Lois This user has validated their user name.

Thu May 25 00:54:26 2017

Regrding the comment made above:

''IMO paypal probably actually did transfer another $89 which He might have to pay back to paypal, might be better to pay the $35 overdraft fee and call it a day.''

I don't agree. It's a matter of principle. Why on earth would one expect to pay a penalty when he or she did nothing wrong.

That's unacceptable. The snarky comment about going to Ireland if one has only $89 in a Paypal account has absolutely no relevance to the problem at all.

That's my opinion and I'm sticking to it.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Moonwishes This user has validated their user name.
Web Site

Thu May 25 02:20:13 2017

I never use a penny of my PP money until I check with my bank's website and see that it has been successfully deposited. This goes for my Stripe payments, my Amazon payments, My SS check, A small monthly pension, everything! Too much can go wrong with these transactions to not take this simple precaution. I also would hope to have a whole lot more money in my account before going to a foreign country for dinner.

Not saying that PP shouldn't admit their fault in this, they should. But we have all been given brains for a reason and this is one of them. Never assume that transferred money got transferred.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: Moonwishes This user has validated their user name.
Web Site

Thu May 25 02:20:14 2017

I never use a penny of my PP money until I check with my bank's website and see that it has been successfully deposited. This goes for my Stripe payments, my Amazon payments, My SS check, A small monthly pension, everything! Too much can go wrong with these transactions to not take this simple precaution. I also would hope to have a whole lot more money in my account before going to a foreign country for dinner.

Not saying that PP shouldn't admit their fault in this, they should. But we have all been given brains for a reason and this is one of them. Never assume that transferred money got transferred.

PayPal Withdrawal Backfires, What Went Wrong?   PayPal Withdrawal Backfires, What Went Wrong?

by: maxmad This user has validated their user name.

Thu May 25 05:12:51 2017

@Lois
       

Regrding your comment made below:


''I don't agree. It's a matter of principle. Why on earth would one expect to pay a penalty when he or she did nothing wrong''

I fully agree with  principle ,  but sometimes it's not worth the time and effort, it's better to move on and spend the energy on more positive things,  I have personally witnessed people get completely destroyed over ''principle'', and in the end, far worst off, and all for nothing,

and in this case $35 is nothing,  

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