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Avoiding losing out to PayPal

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Walter Hay

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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
 

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socaldude

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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

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Sorry, but why would Paypal empty people's bank accounts for no reason?
 

Timmy C

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All my payments for my cooking classes on skillshare and udemy get processed through PayPal....

Something to think about that's for sure, gotta look into this.

Thanks for the information Walter!
 

Black_Dragon43

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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.
 
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Walter Hay

Walter Hay

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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
 

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