posted on March 14, 2007 02:41:16 PM
Does PayPal have the authority to take money from your bank account if you have already transferred the money to your bank...say if a buyer claims something wasn't as you described and wants PayPal to refund their money? And if they can, what if you've already withdrawn that money from your local bank account? No, I am not anticipating this, just wondering if PayPal has that authority to give money and then taketh away.
posted on March 14, 2007 03:25:19 PM
Many here will say "yes."
However, it is my belief that if you state in your item description that you will refund "after" the item has been returned to you, PayPal must honor the statement, when the following also appears in the item description - "The placement of an order, will indicate your acceptance of these terms."
posted on March 14, 2007 03:25:26 PM
Not anymore,Paypal can no longer dip into your bank account.
WHat happens is that Paypal will debit your account so it becomes a negative balance.
If you continue to use your account to receive payment,this payment would be used to offset your debit balance.
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Lets all stop whining !
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posted on March 14, 2007 04:24:50 PM
If you are a Antique Dealer selling old and broken items you have to be out of your mind to have and use Paypal. The bad buyers can control your transaction and you can't do anything about it. I no to many ebayers that have gotten screwed by the buyers. Take your money and keep the Item.
posted on March 14, 2007 06:05:06 PM
PayPal no longer can withdraw funds from bank accounts in the USA unless authorised by the account holder. However PayPal does frequently reverse a transfer from PayPal to a bank account after it has reached a bank account. This is permitted under US banking law (though the intent of the law was something quite different - to refund incorrectly routed funds). YMMV
posted on March 14, 2007 06:10:06 PM
They can't take money from your bank account but if you have no funds you will go to a negative paypal balance. As you collect more money - it will go to the balance. You won't be able to pay and print shipping labels.
I think if you close your account they will come take your first born.
posted on March 14, 2007 06:54:16 PM"However PayPal does frequently reverse a transfer from PayPal to a bank account after it has reached a bank account. This is permitted under US banking law (though the intent..."
1) Please define "frequently" and please cite the studies performed that back up that statement...
2) WHICH US banking law?
PAYPAL has MANY problems, but if you identify a problem, please back it up...
posted on March 14, 2007 07:09:15 PMThey can't take money from your bank account but if you have no funds you will go to a negative paypal balance. As you collect more money - it will go to the balance.
This is a popularly-held belief but my experience is quite the opposite.
I had several recurring charges hit my PayPal account simultaneously and as a result, drained it. It stood at minus $1.00. PayPal imposed an account restriction, which meant (and please read this carefully) NO FUNDS COULD BE TRANSFERRED INTO MY PAYPAL ACCOUNT FROM ANOTHER PAYPAL ACCOUNT, NOT EVEN MY *PERSONAL* PAYPAL ACCOUNT.
The only remedy available to me, the PayPal rep explained, was to transfer money to my PP account from a bank account. This took five days, and during that time all payments from customers (any one of which would have remedied the shortfall) were rejected. Customers were told that the sale was cancelled. Some took this to mean that they were no longer obligated to pay for their item.
You might think that's bad. It gets worse.
I could not list auctions. This made no sense to me, until Neglus (I think it was) said that as long as PayPal was a payment option, eBay would not allow the listing. The error message one gets in this circumstance is so completely unhelpful as to be maddening. eBay certainly never let me know that was the problem and I asked them several times.
Conclusion: If your PayPal account goes into the red for any reason whatsoever, you can count on eBay and PayPal colluding to stop you dead in your tracks. Do not count on receiving payments to cover the shortfall.
fLufF
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[ edited by fluffythewondercat on Mar 14, 2007 07:11 PM ]
posted on March 14, 2007 07:24:55 PM
Fluffy - How long ago was that? I had a charge back last year (early in the year) and was still "allowed" to sale and take paypal payment. These finally got me to a positive balance and was able to use the shipping again. I wonder what was the difference?
posted on March 15, 2007 06:50:03 AM
Fluffy said-
had several recurring charges hit my PayPal account simultaneously and as a result, drained it. It stood at minus $1.00. PayPal imposed an account restriction, which meant (and please read this carefully) NO FUNDS COULD BE TRANSFERRED INTO MY PAYPAL ACCOUNT FROM ANOTHER PAYPAL ACCOUNT, NOT EVEN MY *PERSONAL* PAYPAL ACCOUNT.
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More likely these recurring charges triggered Paypal security alarm.
Paypal has some security measures in place when (quoting their founder-they were fighting a Tsunami of crimes coming from all over the world'),these security measures are still in place altho the tsunami has been brought under control.
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Lets all stop whining !
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[ edited by hwahwa on Mar 15, 2007 06:50 AM ]
[ edited by hwahwa on Mar 15, 2007 07:07 AM ]
posted on March 15, 2007 06:55:00 AM
agitprop said-
However PayPal does frequently reverse a transfer from PayPal to a bank account after it has reached a bank account. This is permitted under US banking law (though the intent..."
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I think Paypal is able to reverse the transfer while it is in transit,not after it has reached the bank account.
Which brings back this question-what is Paypal?IT IS NOT A BANK,it has accounts with multiple banks,if it wants to reverse fund,it has to go thru its banks.
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Lets all stop whining !
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posted on March 15, 2007 05:54:33 PM
Federal Reserve System Official Staff Commentary (12 CFR part 205 (Supplement. I)) to the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.). NACHA rules permit reversal of payments made in error in limited circumstances...
2(m) Unauthorized Electronic Fund Transfer
5. Reversal of direct deposits. The reversal of a direct deposit made in error is not an unauthorized EFT when it involves:
i. A credit made to the wrong consumer's account;
ii. A duplicate credit made to a consumer's account; or
iii. A credit in the wrong amount (for example, when the amount credited to the consumer's account differs from the amount in the transmittal instructions).
