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Old 10-13-2017
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Default Please Help PayPal taking money from bank!

Hi PayPal limited me and I had 4K dollars in my account. I decided that since people were not going to get their products i would instead refund them. Now PayPal has taken over 1500$ out of my bank account even though I have nearly 1k dollars still in the PayPal account. What do I do in this situation??

Should I cancel the account immediately so they don't take more? Should I contest it with the bank? I'm just afraid if I say, hey this account does not belong to me - they will refund every PayPal payment ever received- which is quite a lot over the last 9 months.

Please anyone been through this?
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  #2  
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Default Re: Please Help PayPal taking money from bank!

Why in the world would you let 4k set in paypal on a stealth account?
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Default Re: Please Help PayPal taking money from bank!

Because I was already withdrawing a large amount and have gotten purchases since I've been limited. Has anyone experienced this or have any advice? I think I will tell the bank those withdrawals were not authorized. And cancel the account.
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Default Re: Please Help PayPal taking money from bank!

Ok well I wanna give an update in case this happens to anyone else.

I went to the bank and told them that Paypal was withdrawing money without permission from my bank account and causing it to go negative. As soon as the banker heard the word 'Paypal' that was all they really needed. He said paypal had screwed him over in the past too!

So after a bit of discussion he said what they did was try out small increments $30 or so for the first few transactions, they then moved on to a bunch which were about 100 or more each. He said that was them seeing if they could withdraw the money first. They were each done as an E-Check, which has to be signed for by me, on each one. (Obviously I did not sign for them) There was no check numbers assigned to any of the dozens which were withdrawn - he said that's a big no no. Also, this account did NOT have overdraft protection on it, which means both the bank and paypal should not have been able to withdraw it period.

He then called fraud protection on speaker and when he said paypal, they actually said "oh another one". They were not impressed with what paypal had done at all. He issued me a provisional credit for all the money, which will be permanent in 10 days and said that as soon as that time period for the fraud investigation is complete it will be permanent and they will close the account.

So all in all a good result but an absolute headache and makes me hate paypal even more. Just make sure none of your accounts have overdraft protection on them so if paypal ever tries to dip in they will be refused, or if not you will have that additional layer of protection as they are not authorized.
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Default Re: Please Help PayPal taking money from bank!

That's interesting!
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Default Re: Please Help PayPal taking money from bank!

What I found is this.

Suppose you have $1500 balance in your PayPal and need to refund someone for $1600.
You would assume that PayPal would simply use the existing $1500 ballance then dip into your bank acct (or other default funding source) for the remaining $100, right??

Nope. That's not the way it works.

PayPal will instead process an "eCheck" for the full $1600 to your bank. If the eCheck comes back as NSF, then and only then will PayPal come back and take remove the $1500 and your acct with go into the negative by $100.

This is why it's imperative never to assume and CHECK your balance with PayPal BEFORE you refund anybody. If there is not enough in there to cover that refund in full 100%, then you can expect them to take it from your bank.
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Default Re: Please Help PayPal taking money from bank!

I didn't know that was their method - thank you for that. However, I have over 1,000 still in my paypal account even after processing all the refunds. This was something they did maliciously because they are not losing any money at all from this.
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Default Re: Please Help PayPal taking money from bank!

Yea, it's very annoying and angers many people.

In your case you still have over $1000 in your PP. You are miffed as to why they don't just use that money and want MORE funds from your bank account?

PayPal is setup to work like this by design. That's another reason they are so fustrating to deal with esp. if you are new to using them.
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Default Re: Please Help PayPal taking money from bank!

Also the fraud department had some interesting things to say about a lot of "illegal" things they do. Apparently even with a bank they can NOT do what paypal does and some regulations limit them to only being able to put your account in the negative and then perhaps they can pursue you with a credit collection agency just like a bank would.

But since they are not a bank, they get away with things that are blatantly against the law until enough people sue them for enough money that it hurts them or they are broken up into smaller companies.

^^^ This is what the fraud lady said.
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Default Re: Please Help PayPal taking money from bank!

Sadly, the PayPal User Agreement gives them the "right" to dip into your bank account for money. They will cite that document which allows them the "authorization" to do that.

Yes, the PayPal "User Agreement". You will hear references to that over and over again.

BTW, it's only "against the law" if a court says so. PayPal can get away with a lot.
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Default Re: Please Help PayPal taking money from bank!

Well unfortunately for paypal just because they make people sign something does NOT give them the "right". Just like you cannot willingly sign away your civil rights or constitutional rights etc. Many judges strike down unfair contracts everyday.

The fortunate thing is - and this is just from my experience today with my bank (Wells Fargo) - that so many banks now are getting fed up with paypal and their shenanigans. I'm sure it's very annoying for them to have to process fraud investigations into paypal doing illegal practices all day long.

I think when we are doing stealth it makes it seem as there is no recourse from paypal but at the end of the day it's YOUR bank account so if they are doing things illegally (issuing echeck withdrawals which have to have a signature from you on each one, also making you go into overdraft if you have no overdraft protection, and also not issuing check numbers for each withdrawal etc) you CAN go to the bank and say "Look they are taking money out of my account without my permission and I want it reversed and my account closed"
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Default Re: Please Help PayPal taking money from bank!

And also the banker told me it's not against their (Wells fargo) policies to accept wires from mismatched names - as long as it's with my permission I can receive money from anyone technically. But it IS ILLEGAL and against their policies for paypal to do what they did.
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Default Re: Please Help PayPal taking money from bank!

Paypal will rob you if you let them...
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Default Re: Please Help PayPal taking money from bank!

After what they did to me I was gonna die and burn in hell before I didn't at least TRY to challenge them.

And I'm really the least aggressive/confrontational person around!
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Default Re: Please Help PayPal taking money from bank!

Quote:
Originally Posted by southrnprincess View Post
Hi PayPal limited me and I had 4K dollars in my account.
I didnt have to read anything past your first sentence. This was your first mistake. Paypal probably couldn't wait to Limit you so they can steal your money. Never let your balance get that high...and don't continue selling once it gets that high. PP is not a bank, you get no interest on that money. you get the interests from your bank account.

Why sell all these items and make all this money and not even have direct access to your money. All your products and profits gone.

You need to let the account "cool down" and stop selling for awhile and slowing drain the paypal account. Meanwhile, move on to another account until the money is out. This would be my approach.

If you put all your eggs in one basket, PP will burn you.

I personally don't send out too many items until my money hits my bank account. We have to protect ourselves as sellers too.
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Last edited by aking; 10-13-2017 at 12:12 PM.
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Default Re: Please Help PayPal taking money from bank!

PayPal gets a way with a LOT.

This forum exists for a reason. A simple Google search on PayPal will yield countless issues with upset customers.

People get pissed because it involves their money, and rightfully so.
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Default Re: Please Help PayPal taking money from bank!

Well the way it worked with me was I had a presale on an item that I really had no idea it would sell like it did. SO many orders and I withdrew as fast as I could - this all happened within 5 days. So I had no idea if the best method was to withdraw as fast as possible in a lump sum or do it in other amounts daily. I decided to do the smaller amounts daily and the 4k was probably only 1800 or so before I was limited and then had a bunch of sales and some was from a pending amount also that I couldn't have withdrawn anyways.

I had a feeling this would happen of course, so I wasn't actually totally shocked. It's a gut punch sure when you get that email but I did the best I could which was refunding all the presale orders and shipping out items which were bought and paid for which were in stock. I'll probably refund even more people just so paypal will go neg and then the bank will tell them to jog on.
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Default Re: Please Help PayPal taking money from bank!

Quote:
Originally Posted by southrnprincess View Post
Well the way it worked with me was I had a presale on an item that I really had no idea it would sell like it did. SO many orders and I withdrew as fast as I could - this all happened within 5 days. So I had no idea if the best method was to withdraw as fast as possible in a lump sum or do it in other amounts daily. I decided to do the smaller amounts daily and the 4k was probably only 1800 or so before I was limited and then had a bunch of sales and some was from a pending amount also that I couldn't have withdrawn anyways.

I had a feeling this would happen of course, so I wasn't actually totally shocked. It's a gut punch sure when you get that email but I did the best I could which was refunding all the presale orders and shipping out items which were bought and paid for which were in stock. I'll probably refund even more people just so paypal will go neg and then the bank will tell them to jog on.
Yea, you got too many sales in a small amount of time. That's a red flag for Paypal. You kind of have to turn it on, then turn it off for awhile. Let things die down, then list again.

What was your transaction process once the buyer paid? Were you just withdrawing the money and not shipping anything out?
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Default Re: Please Help PayPal taking money from bank!

Not all of it was the presale. The presale buyers knew the shipping date was in 15 days - had not a single complaint about it, everyone happy. Yes obviously I shipped out the purchases which were from what I had in stock, but the presale money I was not going to let it sit in paypal as it was likely they could take it. So I refunded the presale orders and now I have some pissed off customers but it's better than them having to do a chargeback through paypal months down the line in my opinion.
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Default Re: Please Help PayPal taking money from bank!

Quote:
Originally Posted by southrnprincess View Post
Not all of it was the presale. The presale buyers knew the shipping date was in 15 days - had not a single complaint about it, everyone happy. Yes obviously I shipped out the purchases which were from what I had in stock, but the presale money I was not going to let it sit in paypal as it was likely they could take it. So I refunded the presale orders and now I have some pissed off customers but it's better than them having to do a chargeback through paypal months down the line in my opinion.
But my question is, once the customer paid for the presale item, and they have to wait the 15 days, you were withdrawing the money before you shipped anything, correct?
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Default Re: Please Help PayPal taking money from bank!

I second aking's advise.

Let this account sit for awhile; stop selling and slowly get your money out. Let the account cool off a bit before using it again.
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Default Re: Please Help PayPal taking money from bank!

Yeah the account is limited so there's no letting it cool off it's dead. I'm chucking the eBay too.

Yes I had withdrawn money but obviously not all as there was 4K in there.
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