Paypal in my checking account (1 Viewer)

[Henry Gale]

How did Paypal just make a withdrawal from my checking account?

I'm sure I never gave them that info, well, not knowingly.

They just cost me a bank fee.

Anyone know anything about this process?

 

[ChristopherG]

To become a confirmed member, I believe you have to provide them with your bank account information. I seem to recall them needing to debit my account for a $0.25 and then they would put it back - once completed you become "verified". So, if you then use Paypal and do not have enough in your paypal account, they will hit your bank account.

 

[Malcolm R]

When I joined, they actually made two small deposits to my account, which I then had to confirm.


Did you recently use PayPal to make a payment somewhere? As Chris said, if there is not enough balance in your PayPal account to cover the balance, they'll take it from somewhere else. I usually have them take it from a credit card, but they always make it default to the bank account so you have to manually switch it to the card.

 

[Henry Gale]

Thanks.

Yes, I had made a small purchase on Ebay, but I expected it to come from a credit card. There was no money in the checking account they hit so I got an overdraft charge.

Complained to the bank this morning and they removed the charge. More than I expected.

 

[Citizen87645]

Yes, you have to be careful because Paypal withdraws in this order:


Paypal Account

Bank Account

Credit Card


You have to select credit card each time if that is your preferred method of payment.


It can also get problematic if you have overdraft protection, as it will not tell Paypal there are insufficient funds. At least in that scenario you would be dealing with interest rather than the usually exorbitant overdraft charge.

 

[JohnRice]

You can also select to have NO instant funding with PayPal, which is what I did. The downside is, if you don't have the money in the PayPal account, you can't complete the purchase. The upside is, there are never unexpected withdrawals. I also thought you could select your credit card as the only source for instant funding, but they might have gotten rid of that, since they have to pay a transaction fee.