Any Paypal experts in here?
felix76
Posts: 330
I have looked over the Paypal site many times and still cannot find any information on my question.
My question is this: If I don't have any money in my Paypal account and a chargeback is filed, does Paypal have the right to withdraw money from my checking account or back-up source without my knowledge?
The only reason I ask is that I set it up with my regular checking acct. over 4 years ago and have not had any problems. Unfortunately
the more I read and see it seems Paypal does what they want to in some situations. I have checked all over and have yet to find any answers to this question.
Any Help is appreciated.
Philip
My question is this: If I don't have any money in my Paypal account and a chargeback is filed, does Paypal have the right to withdraw money from my checking account or back-up source without my knowledge?
The only reason I ask is that I set it up with my regular checking acct. over 4 years ago and have not had any problems. Unfortunately
the more I read and see it seems Paypal does what they want to in some situations. I have checked all over and have yet to find any answers to this question.
Any Help is appreciated.
Philip
Move along folks.......Nothing to see here.
0
Comments
<< <i>your paypal account would go into a negative balance if there was a chargeback >>
That is correct. I have a seperate checking account for Paypal. A few years ago I sold a coin, received the money and withdrew the cash from my checking. I used to take all but $10.00 dollars out. A few weeks later the guy did a chargeback and my checking account went into a negative balance.
I was pi$$ed at Paypal because I did not know that they could do that. My bank charged me $35.00 for insuffecient funds and the kicker is it was only a $20.00 coin...go figure.
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Good Question,
You would go to a negative balance. If any money came in or you tried to pay someone, they would scoop it up. They cannot attach your bank account without a judgement and garnishment order.
They were sued for that sometime back. They do however, lock up your account and you will be unable to use it until a dispute is resolved or you make up the Negative Balance. In time they could come after you with collections I hear, don't know for sure on that one.
They were sued for that sometime back. They do however, lock up your account and you will be unable to use it until a dispute is resolved or you make up the Negative Balance. In time they could come after you with collections I hear, don't know for sure on that one. "
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PP has now been specifically prohibited from hitting your checking account.
However, anecdotal stories of them doing just that continue to appear on the
EBAY boards. Additionally, there are similar stories about PP whacking the
credit-card that is on file. I DO NOT believe ANY of these reports have merit;
if PP was engaged in these practices, they would be in violation of the consent
decree and the stipulated judgment that they previously agreed to.
When your PP account goes "negative," any money from new sales is grabbed,
until such time as you get even/positive again.
The confusion on the checking-account grabs, springs, I believe, from this scenario:
Money hits your PP account. You immediately transfer the funds to your checking
account. A chargeback is filed against you with PP. PP then "reverses" the not yet
completed transfer that you instituted. This action by PP will show as a debit to
the pending transfer to your checking account, and could cause checks to bounce.
Thus, checking account holders mistakenly believe that their account has been
entered by PP, when in fact ALL THAT HAS HAPPENED is a fast reversal of a
"pending transfer" from PP.
BEST PRACTICES: When PP payment hits your PP account, immediately transfer it
to a checking account. Then, immediately transfer those funds to another account
(not connected to PP). Do NOT use the PP-connected checking-account (sweep-account)
for anything other than receiving PP transfers. This way, no checks will ever bounce if
PP interupts a transfer that has not yet been completed.
Complicated, I know.
google-checkout has a different scheme for handling charge-backs. They are acting more
like a "pure merchant-account;" CBs are between you and the buyer's CC company or bank.
google-CO is FREE for ALL of 2007. If you sell alot, you can save hundreds of dollars (maybe
thousands) by using GCO this year.
GCO is prohibitted on EBAY. BUT, you can bypass the prohibition by using a third-party
checkout and invoicing platform. Disable the auto-invoice from EBAY, and send your own
invoice; give the buyer the PP option and the GCO option --- unless you want to dump PP
entirely. It is still best to keep PP, but to be on guard constantly against their EVIL practices.
I have a separate account that I use Solely for paypal. If I receive a payment, I immediately request the money be transferred to my account. Once it's there, I immediately sweep it out.
Agree, Good Point.
No
It stayed that way for over a week..and I recieved an email from them asking me to add funds. I filed a dispute...got the police and my lawyer involved and within 3 days..my money was back in my account!!
They can't go after your checking account..or credit card....but yes, if any other money had come in through paypal...they could have taken that.
Does anyone know where this info could be found or answered?
I think my best move is to go ahead and set up a new account for PP only and just let things go the way they have.
It is a shame a company has this much power over us and yet most of us still use them. I really hope the Google-checkout takes off
and makes PP clean up some of their act.
balance, PayPal CAN and WILL tap into to the account that it is linked to. "
///////////////////////////////////////////////////////
Can you help us out with the location of the current enabling language on the PayPal site?
Prior to early 2006, there is no doubt that PP was routinely enagged in the practice.
Clearly, PayPal has since agreed not to engage in the conduct, but....................
Especially if you have a Wells Fargo account as they are owned by the same parent company.
<< <i>"You would go to a negative balance. If any money came in or you tried to pay someone, they would scoop it up. They cannot attach your bank account without a judgement and garnishment order.
They were sued for that sometime back. They do however, lock up your account and you will be unable to use it until a dispute is resolved or you make up the Negative Balance. In time they could come after you with collections I hear, don't know for sure on that one. "
//////////////////////////////////
PP has now been specifically prohibited from hitting your checking account.
However, anecdotal stories of them doing just that continue to appear on the
EBAY boards. Additionally, there are similar stories about PP whacking the
credit-card that is on file. I DO NOT believe ANY of these reports have merit;
if PP was engaged in these practices, they would be in violation of the consent
decree and the stipulated judgment that they previously agreed to.
When your PP account goes "negative," any money from new sales is grabbed,
until such time as you get even/positive again.
The confusion on the checking-account grabs, springs, I believe, from this scenario:
Money hits your PP account. You immediately transfer the funds to your checking
account. A chargeback is filed against you with PP. PP then "reverses" the not yet
completed transfer that you instituted. This action by PP will show as a debit to
the pending transfer to your checking account, and could cause checks to bounce.
Thus, checking account holders mistakenly believe that their account has been
entered by PP, when in fact ALL THAT HAS HAPPENED is a fast reversal of a
"pending transfer" from PP.
BEST PRACTICES: When PP payment hits your PP account, immediately transfer it
to a checking account. Then, immediately transfer those funds to another account
(not connected to PP). Do NOT use the PP-connected checking-account (sweep-account)
for anything other than receiving PP transfers. This way, no checks will ever bounce if
PP interupts a transfer that has not yet been completed.
Complicated, I know.
google-checkout has a different scheme for handling charge-backs. They are acting more
like a "pure merchant-account;" CBs are between you and the buyer's CC company or bank.
google-CO is FREE for ALL of 2007. If you sell alot, you can save hundreds of dollars (maybe
thousands) by using GCO this year.
GCO is prohibitted on EBAY. BUT, you can bypass the prohibition by using a third-party
checkout and invoicing platform. Disable the auto-invoice from EBAY, and send your own
invoice; give the buyer the PP option and the GCO option --- unless you want to dump PP
entirely. It is still best to keep PP, but to be on guard constantly against their EVIL practices. >>
Thanks for another *AWESOME* post.
should remove all doubt regarding the instant urban-legend; PayPal does
NOT visit your checking account - without your permission - but they certainly
can (according to other provisions of their TOS) reverse a transfer that you
have made to your checking account, IF such transfer is listed as "pending"
in YOUR CHECKING ACCOUNT when the same is viewed online by you.
///////////////////////////////////////////////////////////////////////////////////
PayPal Site Is Pretty Clear
If we grant a Claim under our Buyer Complaint Policy, PayPal will seek to collect from the seller by debiting the seller's PayPal Account up to the amount of your loss, and you will receive a recovery to the extent that the seller has funds available in the Account at the time we debit the seller's Account.
6. Seller Responsibilities. If the buyer claims that the item was not received, you must be able to prove that the item was delivered by providing PayPal with an online-tracking number that shows evidence of delivery.
If a buyer files a dispute or if a claim is filed against you PayPal will place the disputed amount on hold until the dispute is closed, or until the claim is resolved, and you will not be able to withdraw this amount. In the event that PayPal grants the buyer's claim against you, PayPal will reimburse the buyer from any balance or funds on hold in your PayPal account, and you agree to reimburse PayPal for the disputed amount from either your PayPal account or by other means. This could mean that your PayPal account balance will go negative. This applies even if PayPal requires the item to be sent to a party other than yourself or to destroy the item. In addition, your PayPal account access may be limited until PayPal has been reimbursed for the full disputed amount. If a dispute is opened against you, PayPal recommends that you should keep sufficient funds in your account to cover the disputed amount to avoid your account being limited.
///////////////////////////////////////////////////////////////////////////////////////////////
Now...................
There is another tangential issue that could be confusing to some sellers.
PP can establish a "reserve" on any Premier/Business account. This can
happen w/o "prior" notice. The amount of the reserve is taken from the account,
or from the amount of ANY pending transfer to your checking account; once
such transfer is "completed and not pending," it cannot be touched, BUT
PP will ask you to deposit funds to cover the reserve. (If you have a PP
Money Market account, the reserve amount can be pulled from that
account, AFTER notice to you; you will NOT be paid interest on the amount
taken from the MM account.
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What a crock of confusing foolishness for sellers to have to try and figure
out; google checkout is SOOOOOOOOOOOOOOO MUCH easier to navigate.
Sorry about the spelling.
Thanks for all the help people. Still thinking I'm gonna set-up a seperate account now.
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