READ THIS if you use PayPal

[Johnny Kleso]

I just had a HUGE issue with PayPal emptying my bank account..

I was checking prices on expensive cameras and had one in a shopping cart..
It had an instant rebate that would be applied during checkout it said..
Kind of even a higher lever than SEE PRICE in Shopping Cart thing...

I checked one camera at PP and when I click Checkout the next time it said Thank You for making payment.. I was like what payment.. Some thing PP has called Return Shopper and I was upset as it did not even give me the instant rebate let alone I was not ready to make purchase... I only wanted to check price at PP but it just made payment without even being able to OK or Approve it at the PP site.. Now they say they where unable to stop this unauthorized payment for me..

What I learned:
When you mmake any payments at PayPal you can change source of funds from defalt Checking? Bank Account which you have little protection to cancel payments to Debit Card which you have much more protection..

During Checkout next to amount is the word CHANGE thats not change amount but change source of funds..

Always choose Debit over Direct Bank

[Dan Hintz]

Always choose Debit over Direct Bank
I always choose credit card, that way if there's an issue the CC company fights for me.

[Michael Weber]

I always choose credit card, that way if there's an issue the CC company fights for me.
+1 Never felt good about giving PP direct account access.

[mickey cassiba]

'xactly the reason I refused to link my PP to an account. I don't link my personal banking to anything on the interweb.
Burn me once shame on you, burn me twice, shame on me.

[Jim O'Dell]

I quit using PP several years ago because they decided I could not use my credit card any more and wanted me to give my checking account routing number. I basically said thank you, but no thanks...I'm not going to play that game. Only thing I've purchased from Ebay since, I wrote the selling company, not an individual, explained why I refused to use PP, and could they use a credit card. They did. But the whole thing just turned me off of Ebay and I haven't been back again. Jim.

[Brian Ashton]

Years ago I did but I knew enough to set up a new account that wasn't attached to any of my other banking and the moment even a penny went in to it I withdrew it manually - no transfers. Now I wont' give paypal an account number for any reason. I don't care how convenient they say it is, cause it's only convenient for them to take what ever they want and screw you over. I've heard way to many stories of people having accounts frozen for no other reason than them saying there was suspicious activity but never giving details... I will only deal with a CC. Even Debit cards are hard to get back the money.

[Johnny Kleso]

The main thing is I have to pay PP the money and I already have a refund for the money but it takes three days to get to my bank again..
With debit card refunds are made to source not PP account..

But I am shutting down this account after this..

[Leigh Betsch]

Thanks Jonny, good to know that a CC is a safer option.

[John Fabre]

I always choose credit card, that way if there's an issue the CC company fights for me.
+ 1 same here.

[Jim Becker]

Always choose Debit over Direct Bank

I would NEVER use a debit card in this manner--there is little difference between using a debit card and direct account access, although many debit cards do have some additional protections. But because they are tied to the bank account, if there is an issue or fraud, that money is not available to you if and until it's either restored by the bank or recovered. I fund the vast majority of my PayPal purchases with my AMEX. I have extra protections that way and also get my points.

[Johnny Kleso]

OH NOOOOO
I was almost unable to block them from emptying my back account for three expensive Nikon DSRLs
Was a glitch in the stores software..
I login to PP to check if an instant rebate that said it would be added during check out and did not pay when I checked first time..
When I when to check prices on three other camera that they said IR would be taken off during checkout and checkout said first time you will have option to approve prices at PP first before paying.. Second time checking prices it seems PP has this thing called Return Shopper and I clicked Checkout and then seen Thank You For Making Payment.. My eyes almost bugged out of my head..

Anyway my sister is a VP for Bank of America and with debit card you can cancel most any charge especially an unauthorized transaction.. Direct Bank is like writing a check but was luck and still was just able to do it but was up to bank.. Nothing to do with sister..

Oh I'm poor and dont use credit cards if I had one I would use that for sure first..
I might get one if I start using PP again..

[Jim Becker]

Yes, many debit cards do have protections that will help you recover funds that are improperly taken out of your accounts. But unlike the same situation on a credit card...you're out the money until they (the bank) actually put it back. That's not always a real quick process!

[Phil Thien]

Yes, many debit cards do have protections that will help you recover funds that are improperly taken out of your accounts. But unlike the same situation on a credit card...you're out the money until they (the bank) actually put it back. That's not always a real quick process!

That may be changing real soon, I think.

I had heard that some new banking regulations would limit the fees CC companies could charge on debit card transactions? And that the limited fees would result in debit card companies not offering many of the protections that they had previously offered?

I may be completely wrong on this. Someone here chime in if you know the full story. It was a busy month at work and I didn't have much time to follow-up on the story after hearing a blip on the radio.

[Jim Becker]

Phil, the fee issue could very well change the game for debit cards, but the article I read the other day didn't mention changes to any protections...just shifting the fee revenue point to somewhere else if they can't collect it from the retailer. But we should all keep careful watch on this relative to our own bank's policies as a regular habit. Banks are absolutely not trustworthy when it comes to their greed these days. While I don't prefer to use my Debit/ATM card for purchases...I'm an AMEX guy...I occasionally do when AMEX isn't accepted and I don't want to use the Visa card I have with the bank I'm trying hard to leave behind. With PayPal, I generally fund with my AMEX, too. I'd gladly enjoy the opportunity to completely disconnect a bank account from PayPal, but that would make it difficult to move funds OUT of PayPal from stuff I happened to sell.

[Russ Filtz]

I don't think you can even HAVE a PP account without it being tied to a checking account? You have to do that for verification when you first sign up. As suggested, just set up a "dummy" bank account with your normal bank. YOU can then transfer money between accounts, but PP can't. they only have access to the dummy account.

Once you set up the account you can then change your default payment option to your CC card. It doesn't HAVE to come out of checking at that point. That way you don't need to remember hitting the change funds button.

[Myk Rian]

Paypal knows nothing of my checking account. I keep getting reminders to link them, but have no intention of doing so.
It is only tied to my credit card.

[Brian Elfert]

If you have a checking account tied to Paypal you cannot setup credit card as a default payment method. I get sick of changing the payment method to credit card every time.

I searched all over the Internet and Paypal's own site. Lot of people asking how to make credit card the default and the answer was always it can't be done. If you know how please let me know. I expect they make banking the default payment because they still charge the merchant the same the way I understand it.

[Johnny Kleso]

Brian,
I asked you have to change it at time of payment..
Click the word Change right next to the amount
$5.00 Change

Its not change amount but change source..