Question for Storm Regarding Paypal and Propay...
grote15
Posts: 29,848 ✭✭✭✭✭
Storm,
I was just wondering what would happen if a claim is filed against a seller with a zero balance in his paypal account? Does Paypal have the ability or the legal right to debit your bank account directly? My understanding is that they do not, but my wife has a Propay merchant account and Propay was able to debit her account directly after a buyer disputed a charge before verifying what it wasa for. Does this mean Paypal can do the same, as my understanding is that both paypal and propay are owned by the same parent company.
Thanks in advance..
I was just wondering what would happen if a claim is filed against a seller with a zero balance in his paypal account? Does Paypal have the ability or the legal right to debit your bank account directly? My understanding is that they do not, but my wife has a Propay merchant account and Propay was able to debit her account directly after a buyer disputed a charge before verifying what it wasa for. Does this mean Paypal can do the same, as my understanding is that both paypal and propay are owned by the same parent company.
Thanks in advance..
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
0
Comments
<< <i>Storm,
I was just wondering what would happen if a claim is filed against a seller with a zero balance in his paypal account? Does Paypal have the ability or the legal right to debit your bank account directly? My understanding is that they do not, but my wife has a Propay merchant account and Propay was able to debit her account directly after a buyer disputed a charge before verifying what it wasa for. Does this mean Paypal can do the same, as my understanding is that both paypal and propay are owned by the same parent company.
Thanks in advance.. >>
/////////////////////////////////////
A broke seller under EBAY "Buyer Protection," is covered by
PayPal, if he loses a SNAD/INR claim. PayPal will pay the buyer,
even if the seller's PP account is empty. (PayPal then uses a
collection agency to attempt to get their money back from the
broke seller.)
The "Buyer Protection Policy" does NOT apply on non-EBAY
transactions processed via PayPal. Non-EBAY deals are
covered by PayPal's "Buyer Complaint Process."
....
PayPal cannot hit your bank account without your permission.
That "pernission" is not in your acceptance of their TOS, the UA.
Such permission can be given via email or via phone call.
The exception to that is the practice of "piggy-backing." If you
have told the gang at EBAY to use PP to pay for your EBAY fees,
PP can/does add any debit balance they allege that you have
to that transaction.
........
The ProPay user agreement is substantially different than the
PP UA. (I do not have it in front of me, but it does grant ProPay
the right to grab funds from extraneous/pledged sources.)
EBAY does not own ProPay.
EBAY does own PayPal.
ProPay is a privately held company, headquartered in Lehi, Utah.
ProPay Inc. is a registered agent of Wells Fargo Bank, Walnut Creek, CA, and MetaBank.
WFC is a primary clearing agent of PayPal consumer debit/credit transactions.
That is why/how ProPay became an "accepted" alternative to PayPal on EBAY.
(NOT coincidentally, the main EBAY call center is in Draper, UT. Lehi
is adjacent to Draper.)
ohmy
Since that probably won't happen, let me say thanks, I learn a lot from your posts.
One other question: suppose your ebay fees are paid by direct debit from your bank account...is that the same as having them paid from your paypal account as described above in terms of them having the right to directly debit your checking account?
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
have told the gang at EBAY to use PP to pay for your EBAY fees,
PP can/does add any debit balance they allege that you have
to that transaction.
I think this answers your last question?
Steve
have told the gang at EBAY to use PP to pay for your EBAY fees,
PP can/does add any debit balance they allege that you have
to that transaction.
I think this answers your last question?
Steve
I read that, but I know the rules and regulations can vary for direct debit as opposed to credit card charges.
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
<< <i>Thanks again for the info, Storm...
One other question: suppose your ebay fees are paid by direct debit from your bank account...is that the same as having them paid from your paypal account as described above in terms of them having the right to directly debit your checking account? >>
/////////////////////////
IF PayPal is serving as the payment platform to clear the ACH transfer,
"yes," it is the same. IF PayPal is NOT in the picture, it is not the same.
IF you have some arrangement where you make a direct payment -
European style - from your bank account to EBAY, then PayPal would
have no opportunity to engage in "piggy backing."
........
ANY transaction that involves PayPal, bears some risk for the seller.
JUST LIKE any transaction with a credit-card payment presents risks
for the seller. PayPal is the "least safe" of ALL payment methods, for
the EBAY seller; the safest for the buyer.
PayPal is VERY safe for sellers in non-EBAY transactions. The safest
method for sellers is a BANK ISSUED merchant account; the seller is
the "merchant of record," and most buyers will not file dishonest
chargebacks with their own cc-company. Few crooked buyers are
reluctant to file bogus claims with PayPal.
.......
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.