Does Paypal dip into Bank Account to recover funds, if Bank Account has 0 money?

[mercurial333]

I have this EB account that is slowly dying.

If the bank account has 0 funds in it, will Paypal try to take it out? I mean, would they actually send the bank account into negative or would it simply bounce back ( as insufficient funds ).

[MM78]

It will bounce back depending if you have overdraft protection. I opt out on my bank accounts that I use for stealth...so if there is $0 in the bank account it can't go negative.

[mercurial333]

It's BoA for example. I have Overdraft protection activated on the checking, which says it would take money from Savings to cover. It's enabled ( overdraft protection ).

However one of the savings is actually tied to this particular Paypal. So not sure how that would work..

[MM78]

I opt out of Overdraft because I don't want Paypal dipping into my accounts.

[jeffweico]

When PayPal or anyone else sends a funds request to your bank, they have no idea how much the account has (or does not have) in it. If you have overdraft protection, then the bank will most likely honor the request and come after you for the money. If there is no money in your attached savings account, then they may or may not honor the request (you would have to ask the bank what their policy is).

The best way to handle it is to opt out of overdraft protection on stealth accounts. However, I would caution you about leaving eBay holding the bag for fees. It can easily come back to burn you later, even if the account is stealth. Yes, we all love to hate eBay, and you can argue that their fees are too high, but you knew going in what it would cost you to make the sales. It is what you agreed to and eBay deserves to be paid.

[rsot]

If you arent using the bank account, could also consider closing it out, no?

[mercurial333]

Originally Posted by rsot

If you arent using the bank account, could also consider closing it out, no?

Well can be used for AZ for example and other things. I can close it, but prefer not to.

[mercurial333]

Originally Posted by jeffweico

When PayPal or anyone else sends a funds request to your bank, they have no idea how much the account has (or does not have) in it. If you have overdraft protection, then the bank will most likely honor the request and come after you for the money. If there is no money in your attached savings account, then they may or may not honor the request (you would have to ask the bank what their policy is).

The best way to handle it is to opt out of overdraft protection on stealth accounts. However, I would caution you about leaving eBay holding the bag for fees. It can easily come back to burn you later, even if the account is stealth. Yes, we all love to hate eBay, and you can argue that their fees are too high, but you knew going in what it would cost you to make the sales. It is what you agreed to and eBay deserves to be paid.

Gotcha. So it depends on the bank, I take it. I know I've heard stories about Amazon dipping into 0 balance bank accounts before, but no clue about Paypal.

This is not about fees tho.