The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Avoiding losing out to PayPal

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
2,469
9,903
2,203
World citizen
My son in law has read many reports of PayPal emptying bank accounts and it has made him nervous, so I searched the forum and found
Bank account tied to PayPal? Beware.

As a result I suggested that he remove his CC details from his PayPal account, and transfer the bulk of his bank account to his credit card account. Interest rates are pathetically low, so he will only lose peanuts, but if I am correct, he will save almost all of his money should PayPal decide as they have done to hundreds of merchants, to take from his bank account every cent they can.

It should also protect him from hackers who get into his PayPal account.

He could achieve the same result by opening another bank account, but the red tape with his bank is a real pain.

If anyone can see a flaw in my idea, please post a correction.

Walter
 

Don't like ads? Remove them while supporting the forum. Subscribe.

socaldude

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
Jan 10, 2012
1,395
3,151
786
Mexico
I try to keep my paypal use to a minimum because of their aggressive unfair policies.

But buyers love them because of their almost unconditional favorability towards buyers. As if only sellers are the scammers.

Never would i give paypal my banking information. If im the victim of somekind of aggressive "policy" what am i gonna do sue them? Yea no thanks.
 

Xeon

All Cars Kneel Before Pagani.
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Sep 3, 2017
1,264
2,691
666
Singapore
Sorry, but why would Paypal empty people's bank accounts for no reason?
 

Black_Dragon43

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Apr 28, 2017
181
495
223
Eastern Europe
My son in law has read many reports of PayPal emptying bank accounts and it has made him nervous, so I searched the forum and found
Bank account tied to PayPal? Beware.

As a result I suggested that he remove his CC details from his PayPal account, and transfer the bulk of his bank account to his credit card account. Interest rates are pathetically low, so he will only lose peanuts, but if I am correct, he will save almost all of his money should PayPal decide as they have done to hundreds of merchants, to take from his bank account every cent they can.

It should also protect him from hackers who get into his PayPal account.

He could achieve the same result by opening another bank account, but the red tape with his bank is a real pain.

If anyone can see a flaw in my idea, please post a correction.

Walter
As far as I know, PayPal could take hold of funds that you have IN your PayPal account. However, they cannot use the CC or bank account you have attached to pull money into your PayPal account without your approval. Doing so would be the equivalent of theft. PayPal does not have the authorization required to submit orders on your behalf to your bank. In any case, if this happened you should be able to go to your bank, dispute the transaction, and get it reversed.

So you should be safe so long as you don't hold money in your PayPal account, and instead pull them back to your bank account.
 
OP
OP
Walter Hay

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
2,469
9,903
2,203
World citizen
You can't operate a business PayPal account unless you link either your bank account or credit card.

One of the conditions for having a PayPal Business account is that you allow them the right to withdraw funds from your linked CC or linked bank account.

This is to cover any shortfall if say, a customer claims a refund and Pay Pal pay that refund, but your PayPal account doesn't have sufficient funds to cover the amount.

All sorts of scams take place and the amount involved can be substantial, and PP always side with the customer. As a result they can withdraw the total amount they are refunding. That could exceed your bank balance, with the result that you are hit with an overdrawn fee.

PayPal will then process a second withdrawal within a week, and you will be hit with another overdrawn fee.

Search online and you will find a huge number of stories about PayPal's draconian policies and because they are not registered as a bank your only redress is to sue. I don't know of any cases. Surprise surprise.

They can and do at their whim freeze your account, so never leave money in your PayPal account.

Walter
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Thanks for sharing. I want a course to optimize for other than Google engines.
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Welcome to 2020, I wanted to add in a quick note about gratitude for the new year...


Don't like ads? Remove them while supporting the forum. Subscribe to become an INSIDER.

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom
AdBlock Detected - Please Disable

Yes, ads can be annoying. But please...

...to support the Unscripted/Fastlane mission (and to respect the immense amount of time needed to manage this forum) please DISABLE your ad-block. Thank you.

I've Disabled AdBlock