Warriorisabouttodie Posted December 29, 2009 Share Posted December 29, 2009 Today I received a bank statement telling me I owed the bank a couple hundred dollars and I would be fined for each day I didnt bring my account back up to 0. I ordered a bunch of small items totaling around 40 or 50 dollars just before Christmas. Paypal usually just takes whatever out of my checking account which I have just for paypal and charges the rest to my credit card. Instead every single charge was made to my bank account (which had like 50 cents in it) and on top of that my bank charged 35 dollars for each charge and a daily fee (that started on the 21st). What the hell is this? Why all of a sudden is this happening? So now whenever I pay for something with Paypal I have to have the cash in this checking account? I was quite shocked and I really didnt need a surprise bill today especially since I had to go to the bank and give them money I dont really have for basically nothing! Is it me? Quote Link to comment Share on other sites More sharing options...
ATARIPITBULL Posted December 29, 2009 Share Posted December 29, 2009 Well I don't know how you have your paypal account but with mine if you tell Paypal to use your bank account to pay for items won, then thats where it comes from, paypal would not turn around and charge my credit card if I did not have the money in my checking account. if I want paypal to charge my credit card then thats what they would do untill my credit card said no more then paypal would ask me if I wanted to try and charge my checking account. It sounds like your bank has it like mine where even if you don't have enough money to pay for something, they will let you over charge up to $300 or $500 dollars but your going to pay an overcharge fee. :!: Quote Link to comment Share on other sites More sharing options...
+thanatos Posted December 29, 2009 Share Posted December 29, 2009 I'm guessing your bank may have opted you into their 'overdraft protection' racket. Where they give you the convenience of allowing the charge even though you didn't have the money available, then they charge you an extra $35 for that wonderful convenience, each time it happens. I'd check with the bank and raise hell. Quote Link to comment Share on other sites More sharing options...
SoundGammon Posted December 29, 2009 Share Posted December 29, 2009 ...I use a Green dot VISA debit card for PayPal. If the money isn't there, no payment and NO OVERDRAFT FEES. Sorry banks, you no longer get FREE money from me-YEAH!!! Quote Link to comment Share on other sites More sharing options...
Ransom Posted December 29, 2009 Share Posted December 29, 2009 I'm guessing your bank may have opted you into their 'overdraft protection' racket. Where they give you the convenience of allowing the charge even though you didn't have the money available, then they charge you an extra $35 for that wonderful convenience, each time it happens. I'd check with the bank and raise hell. Agreed. If your back used to return "NSF" to Paypal, but now lets the withdrawal go, then there's no way Paypal would know to charge your chard. So it's not their fault. Quote Link to comment Share on other sites More sharing options...
Warriorisabouttodie Posted December 29, 2009 Author Share Posted December 29, 2009 (edited) I'm guessing your bank may have opted you into their 'overdraft protection' racket. Where they give you the convenience of allowing the charge even though you didn't have the money available, then they charge you an extra $35 for that wonderful convenience, each time it happens. I'd check with the bank and raise hell. Agreed. If your back used to return "NSF" to Paypal, but now lets the withdrawal go, then there's no way Paypal would know to charge your chard. So it's not their fault. I could see charging me once, but they kept letting charges go thru all week happily taking their 35 dollar cut each time!!! I really feel like these people hit me when I am down. Money is tight for me right now and I really planned had to plan out my purchases this year. Now I feel like I might as well of gone on a spending spree since I ended up paying a mint (alot of money to me now) in fees. It's really not fair. I know there is nothing I can do now, but I will never forget this. Edited December 29, 2009 by Warriorisabouttodie Quote Link to comment Share on other sites More sharing options...
nashnooga Posted December 29, 2009 Share Posted December 29, 2009 I'm guessing your bank may have opted you into their 'overdraft protection' racket. Where they give you the convenience of allowing the charge even though you didn't have the money available, then they charge you an extra $35 for that wonderful convenience, each time it happens. I'd check with the bank and raise hell. Something similar happened to me. My bank decided (i swear i never got an agreement or notice about this!) to give me a $700 overdraft protection, so every time i checked my checking account I was +$700, +whatever was in my savings account... I was dumb enough to believe it was all in my checking. Totally ended up cleaning out my savings. SUCKED! Quote Link to comment Share on other sites More sharing options...
+batari Posted December 29, 2009 Share Posted December 29, 2009 I'm guessing your bank may have opted you into their 'overdraft protection' racket. Where they give you the convenience of allowing the charge even though you didn't have the money available, then they charge you an extra $35 for that wonderful convenience, each time it happens. I'd check with the bank and raise hell. Agreed. If your back used to return "NSF" to Paypal, but now lets the withdrawal go, then there's no way Paypal would know to charge your chard. So it's not their fault. I could see charging me once, but they kept letting charges go thru all week happily taking their 35 dollar cut each time!!! I really feel like these people hit me when I am down. Money is tight for me right now and I really planned had to plan out my purchases this year. Now I feel like I might as well of gone on a spending spree since I ended up paying a mint (alot of money to me now) in fees. It's really not fair. I know there is nothing I can do now, but I will never forget this. There is something you can do - call your bank, or better yet, go into your branch and talk to someone in person. Especially if this is the first time this has happened, they might reverse the overdraft fees or reduce them. I personally would never link a Paypal account to checking. I'd close your checking account at this point, open a new checking and savings account, and link Paypal to savings (or not at all.) Quote Link to comment Share on other sites More sharing options...
taxman Posted December 30, 2009 Share Posted December 30, 2009 For me Paypal always defaults to my checking account, but then I have the option to change payment each time to my credit card. Wish there was a way to set default payment to credit card. Quote Link to comment Share on other sites More sharing options...
hailrazer Posted December 30, 2009 Share Posted December 30, 2009 And all you have to do is talk to a Branch Manager and they will take you off their "overdraft" program. Then you will just get a "Payment declined" if you try to overdraw. Quote Link to comment Share on other sites More sharing options...
Crazy Climber Posted December 30, 2009 Share Posted December 30, 2009 Wish there was a way to set default payment to credit card. Ditto, it is a pain in the ass to change it to the credit card option every time, especially on a slower computer. I heard paypal does not really like people usung there credit cards though. Quote Link to comment Share on other sites More sharing options...
Cebus Capucinis Posted December 30, 2009 Share Posted December 30, 2009 I heard paypal does not really like people usung there credit cards though. They certainly don't, seeing as how VISA and MasterCard charge 1.5% as a usage fee, depending on who you've contracted out to do your credit card processing. AmEx and Discover are 2.5%! Businesses generally like cash on the barrel head because there's no usage fees associated with it. Using a checking account for EFT has no overhead for transaction processing. Quote Link to comment Share on other sites More sharing options...
Almost Rice Posted December 30, 2009 Share Posted December 30, 2009 Actually if you have a bank account attached, they charge the bank account first. They list the credit card on the payment page as the backup payment method. This is to trick you into thinking you are paying with your credit card when you are really using your bank account. This is why I refuse to give paypal my bank account info for anything. You have to read the payment page backwards and forwards in order not to be tricked like this. You can not default to a credit card as payment when a bank account is attached to the paypal account. Well I don't know how you have your paypal account but with mine if you tell Paypal to use your bank account to pay for items won, then thats where it comes from, paypal would not turn around and charge my credit card if I did not have the money in my checking account. Warrior, Sorry this has happened to you, but they did the same to me 3 years ago and I refuse to give my bank info ever since. This also happened on my sales account. Quote Link to comment Share on other sites More sharing options...
+wood_jl Posted December 30, 2009 Share Posted December 30, 2009 Actually if you have a bank account attached, they charge the bank account first. They list the credit card on the payment page as the backup payment method. This is to trick you into thinking you are paying with your credit card when you are really using your bank account. This is why I refuse to give paypal my bank account info for anything. You have to read the payment page backwards and forwards in order not to be tricked like this. You can not default to a credit card as payment when a bank account is attached to the paypal account. When you're logged into paypal, preparing for the transaction, you can click on (small type) "change funding source" (or something like that) - then select the credit card. That's what I always do. When I last moved, I started with another bank (in this area) and kept $50-$150 in my "old" bank which I use for Paypal transactions. I'll never link Paypal to my main stash of money again. I had done this in the past, and had no problems, but heard of others problems to the point of getting a little scared. One time I was ordering about $250 of cool stuff and forgot to change the funding source....and had about $50 in that checking account at that (remote to me now) bank. I nearly shit a brick, wondering what the hell was going to happen. Fortunately, the [electronic] wheels don't turn as instantly as you think they would. I logged into my bank account, and did a "transfer" from Visa to checking for $250. I had never done this before. It showed up on my statement as a "cash advance" and had some bullshit charges and an **outrageous** (memory says 40%???) interest rate; I paid it off immediately, and my bacon was saved, minus fees and charges, of course. ....Such as this case. Man, that sucks. Sorry to hear about it. Paypal is kind of a necessary evil, the emphasis on evil, I guess. Now I'm a little more nervous about using it..... Quote Link to comment Share on other sites More sharing options...
Zwackery Posted December 30, 2009 Share Posted December 30, 2009 You can not default to a credit card as payment when a bank account is attached to the paypal account. This is simply untrue. As wood points out, you can set whatever default option you want with your account. My default option is to use my PayPal MC as my source. And yes, my PP account is linked to a bank account. Quote Link to comment Share on other sites More sharing options...
Albert Posted December 30, 2009 Share Posted December 30, 2009 And all you have to do is talk to a Branch Manager and they will take you off their "overdraft" program. Then you will just get a "Payment declined" if you try to overdraw. Years ago there was a mistake on my Bank of America account (I don't remember exactly what happened) and I ended up overdrawing it with my debit card. I quickly accrued six $35 (or so) overdraft fees for charges worth significantly less (maybe $50). I was pretty pissed off, as at the time I expected my debit card would have been declined and I thought I had sufficient funds in the account to cover what I was buying. I went into the bank, argued with them a bit, and they removed all the charges. I then asked them to remove this idiotic "protection" racket from my account and they said they couldn't do it! Needless to say, I no longer have a Bank of America account. Banks make a TON of money from these fees. PayPal wants to use your bank account as the default funding source because it is cheaper for them to pull money out of your account than to hit a credit card. In this situation I'd really blame the bank, since they are the ones allowing the transaction to go through even when your account goes in the red. Go find another bank that doesn't play those stupid games (perhaps a credit union). ..Al Quote Link to comment Share on other sites More sharing options...
Kurisu Posted December 30, 2009 Share Posted December 30, 2009 Due to my mother "borrowing" money from me on several occasions, I have been hit with $35 OD charges for, get this, 1.09 charges at Mcdonalds and the like. In fact, I have actually acquired over 100 dollars in OD's because of my normal lunch, after all her random "oh help me out with this" all cleared. Yes, it was errors on my own accounting part, but until such money is taken, I am always fine and breaking even by the end of the day. :/ I feel for you, and hope this can get taken care of. Maybe I should call Regions and get that OD protection crap taken off... its not protection, its strate up BS. declining a charge should be the DEFAULT, not the hard-to-get side option. Quote Link to comment Share on other sites More sharing options...
Warriorisabouttodie Posted December 30, 2009 Author Share Posted December 30, 2009 And all you have to do is talk to a Branch Manager and they will take you off their "overdraft" program. Then you will just get a "Payment declined" if you try to overdraw. No at my bank TD Bank north, it's an automatic thing there is no option to not have overdraft protection. It sounds to me like a form of forced credit. Like I said before if they did it once and then refused future payments then I would say okay my bad, but to keep accepting payments and charging 35 dollars over and over again seems criminal. They did take off one surcharge and 20 dollars in daily late fees, boy they are sports. I found out that when my bank merged or changed hands a few months ago they changed their policies. The irony is, I opened a special account just for Paypal because I was scammed by a woman from the Philipines on eBay and Paypal raped my savings for 6 months until it was resolved. Now I am getting it at both ends. What annoys me is I am very careful with money right now. I am not working and most likely won't be until the Spring (if I am lucky), so here I am racking my brain to save money and I end up spending almost 5 times as much just in fee's. I'm a big boy and I know life isn't always fair, but it doesn't mean I have to like it!!!! Quote Link to comment Share on other sites More sharing options...
Cebus Capucinis Posted December 31, 2009 Share Posted December 31, 2009 I know this is off-topic, but every time I see your name I stupidly read it off as 'Wario is about to die'. Curse you Nintendo marketing department! That's what I do. I have a separate bank account for PayPal transactions only. I do a lot of selling so it's nice to see that when my normal account is cleaned out I have roughly $500 in there. Quote Link to comment Share on other sites More sharing options...
pinball22 Posted December 31, 2009 Share Posted December 31, 2009 You can definitely make a credit card your default payment source even with a bank account linked if you have a PayPal card -- that's the way mine's set up. Since I have one, though, I can't tell if it's possible to have the same thing happen if you have a non-PayPal card. Quote Link to comment Share on other sites More sharing options...
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