I never thought that I would have to write about this, but here I am. Last week I bought something online and I paid with a credit card through PayPal. At least, that’s what I thought, until the credit union told me that I had an overdraft in my account that is connected to PayPal.
What happened was that PayPal had taken the funds from my bank account instead of the credit card. This situation has happened to others too, who have both a credit card and bank account connected to a PayPal account.See this
link to a discussion on eBay's PayPal forum.
.
I emailed PayPal support and told them about the problem,but no relief was offered. Then I decided to look at eBay's PayPal forum to see if anyone else was having the same problem. They were.Someone posted PayPal's telephone numbers, and I called a representative.
1-888-221-1161 (Toll Free for Premier/Business Accounts)
1-888-204-4481 (Toll Free for Premier/Business Accounts)
1-402-935-7733 (Personal Accounts)
1-402-935-2050 (Personal Accounts)
The customer representative admitted no wrongdoing on the part of PayPal, but gave me a one-time customer courtesy payment of $25 to repay the insufficient funds charge that the credit union had charged me.
Charging a bank account instead of a credit card appears to me to be violating PayPal's 2006 agreement.
In September, 2006, the Texas State Attorney along with 27 other states reached an agreement with PayPal to improve customer service."Among users’ chief grievances addressed by the attorneys general is PayPal’s failure to clearly disclose the consumer’s funding source for a given transaction. Consumers complained that the company did not clearly disclose the funding source for each purchase, and thereby withdrew money from a consumer’s bank account, even if users submitted their credit card information when signing up. As a result, many consumers learned that money had been withdrawn from their bank accounts only when they received their monthly bank statements, even though their intention had been to use a credit card."
At present,the only solutions to prevent a similar scenario is for a buyer to open an account that just links to a credit card and not to both a credit card and bank account. The PayPal representative also suggested that I could also remove my bank information from my existing account before I paid, and then add it back later when I wanted to receive payments. Still, inconvenient.I think I prefer the first solution of separate accounts.