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Paypal Question

Discussion in 'Business & Tax Advice' started by gbmack, Nov 23, 2009.

  1. gbmack

    gbmack Power Member

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    Okay. Let's say you get payments via Paypal, and you withdraw money from your Paypal account to your bank account. Then you transfer the funds from your bank account to another bank account.

    Now, let's say a chargeback is done, and I heard that if there are insufficient funds in your Paypal account, Paypal will try to grab funds from the linked bank account.

    But remember the bank account has no funds in it. So can Paypal make my bank account go into overdraft, or will Paypal just limit my PP account and label my account with a negative balance?
     
  2. wowhaxor

    wowhaxor Executive VIP Premium Member

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    I believe they can overdraw it.

    At one point I had this happen but my bank account closed during the process so they just left me with a -$600 in my PayPal. It still operated as normal and I got payments until it reached a positive balance, they did make me add a new bank account to reverify my account.

    They tried to charge me bank account though so it would depend on your bank and if they let you overdraft by that much I'd think.
     
  3. Knoxgates

    Knoxgates Supreme Member

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    Depends on country you live in. In India they cannot grab funds from Linked Accounts.
     
  4. bradsteves

    bradsteves Registered Member

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    While they should not be able to overdraw you, your bank will likely hit you with some fees for each overdraw attempt.
     
  5. markyr17

    markyr17 Regular Member

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    I think it really depends on your bank. Some will give them the funds, and hit you with an overdraft fee, and others will deny them the funds.
     
  6. gbmack

    gbmack Power Member

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    I use bank of america
     
  7. java

    java Guest

    Unless you don't want to be overdrawn by Paypal.
     
  8. suga051982

    suga051982 Regular Member

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    Paypal can not withdraw from your bank account without your authorization. If they do, you can inform your bank and they will reverse the charges. I bank with B of A, and when I have problems with PP, I contact my bank.