Does paypal automatically withdraw from bank if insufficient funds available?

Discussion in 'Payment Processing' started by kra7os, Dec 4, 2011.

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  1. #1
    I've searched but haven't been able to find a thread asking this exact question..

    Say I've got a paypal balance of $100 and I make a purchase of $120, does paypal automatically access my bank account for the extra $20?

    If not then do I get charged a dishonor fee?

    Cheers,
    Kratos.
     
    kra7os, Dec 4, 2011 IP
  2. akram1

    akram1 Peon

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    #2
    i guess Yes.But If the bank acc is attached.it will ask u u are in sufficient of funds.PP will give u option to pay the insufficient money from u bank.

    Thanks You
     
    akram1, Dec 5, 2011 IP
  3. kra7os

    kra7os Peon

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    #3
    Oh ok are you sure you get asked by paypal before they access your bank/cc account?. The reason I'm asking is because I had a problem where Yahoo charged me $35 to renew a domain I had transferred away from them. Now I want to get a similar deal so I was wondering if using Paypal would prevent this sort of unauthorized charge if that makes sense.
     
    kra7os, Dec 5, 2011 IP
  4. jestep

    jestep Prominent Member

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    #4
    If you are making a payment, Paypal will either use your backup funding methods for the excess amount, or the transaction will decline. If your account is negative due to a dispute or return or something else not payment related, they will not draw from backup sources. The only time they pull from backup sources are a payment initiated transaction.
     
    jestep, Dec 5, 2011 IP
  5. kra7os

    kra7os Peon

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    #5
    Thanks jestep that answers my question perfectly!

    Also thanks to everyone who took the time to reply.
     
    kra7os, Dec 7, 2011 IP
  6. dsiqonley

    dsiqonley Greenhorn

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    #6
    If you have linked your bank account or a credit card to your paypal account then yes, Paypal will automatically extract the payment amount, or the difference required to complete a payment from the card or bank account you've connected to you paypal account.
     
    dsiqonley, Dec 7, 2011 IP
  7. passiveinterconnect

    passiveinterconnect Peon

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    #7
    No, it would not prevent the charge if you have backup sources.

    Dunno if anyone thought of this or if it would work, but one could potentially have a first PayPal account that is linked to a backup payment source like a bank account and/or credit card. You could then have a second Paypal account that is NOT linked to a backup source, say a "corporate" paypal with a TIN/EIN. Upload funds from your bank account or credit card to the first PayPal account. Then transfer the money from the first account after it clears, to the second account.

    Now, PayPal may still allow the transaction to go through and "stick" you with a negative balance, but it would be very straight-forward to dispute the charge if you had not authorized it.

    Kinda pie in the sky idea, dunno if it would all work out that way though.
     
    passiveinterconnect, Dec 11, 2011 IP