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Money was borrowed without permission by PayPal

I have credit card and checking account on my PayPal account and my credit card marked as “Use this card as your preferred payment method for purchases”.
Then I needed to pay for my new motorcycle via PayPal and I asked the seller to send me an invoice. When I received the invoice I clicked pay and clicked submit on a next page. One second later I realized that I didn’t check what funding source was selected by PayPal (sometimes It selects credit card and sometimes checking account – bug?). So I asked seller to reject my payment and he did it 1 minute later. Then he sent me another invoice and this time I verified that my credit card was selected by default as funding source.

Looks good, isn’t it?

I saw transaction on my credit card account same day. Two days later PayPal charged my checking account for the full amount. This account didn’t have enough funds available, so bank charged me overdraft fee on top of it (bank removed fee after I called them).

So, I called PayPal and asked – “why did you charge me twice?”. Explanation was really lame – something like – “We transferred funds to seller bank and now we getting them back. We will deposit them on you PayPal account in 3-5 business days and then you can withdraw them and wait another 3-5 business days. And we can’t refund it because we don’t have agreement with banks”. No adequate explanation why they used checking account as default funding source and why they charged me two days after purchase given the fact that transaction was rejected 1 minute after I completed it”

At the end of they day they are going to keep money for appr. 10 business days, maybe more. I’m seriously considering to close my PayPal account.

Posted: September 26, 2013 at 4:53 pm

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