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Confused about checking and paypal
 

If I open an online checking account so I can deposit funds from paypal to it, wont paypal have the bank routing info to take funds out of they wanted to?

If that is the case that would scare me to pieces knowing they could limit your account, refund customers and then take the money right out of your account without your knowing of it happening.

Thanks

That is indeed the case. You just have to be on the ball! When trouble hits you need to cancel the direct debit instruction and remove their access to your account.

CaptainJack

Yes but in my experience they do not try to access funds straight away. If they try it will be a matter of months, so you generally have time to cancel the DD instruction and even the account if need be.

But as Jack says, its best to be on the ball and do ASAP.

Thank you Jack, now for a stupid question.

How do you stop the direct deposit instruction from happening once they have it.

Thank you.

My online bank provides check/debit card with checking accounts. When in trouble, call bank and report card lost/stolen and it kills card immediately, then close account.

Have done this once with ebay/paypal and worked quite easily

If you can't cancel the instruction online then a quick phone call to your bank will do it.

CaptainJack

Gotcha!

Thank you.

Told you it was a stupid question. :eek:

No it wasnt a supid question at all.

BUT if you cancel the direct debit instruction, Paypal will know within 24 hours and they will email you saying that the DD instruction has been cancelled and that they have removed the Bank account from your Paypal account.

I would only remove the DD instruction with your bank once you are either

1) No longer using that PP account

2) You have a new bank account in that Paypal account

3) You have a negative balance and you are worried PP with withdraw funds from your bank.

Dont cancel the DD instrution while the PP account is up and running well, its counter productive and you will have to add another bank account to withdraw funds.

The credit card is different. If you have a credit card on file with PP and you cancel it it will remain on your PP account. Only if you try to use and will it fail and I believe be removed.

Yes any problems with a card you can cancel it and say its lost. Thats no problem.

Did that once with ebay when they froze my account for a ridiculous reason, I thought "well they can sing for the fees now"

Then they realise the credit card has been cancelled and THEY remove it from your ebay account. No problem.

if your worried about that happening, or simply dont want to worry about paypal withdrawing the funds from your bank account, pm and i can tell you an alternative. and also to confirm what was already said, it only takes a quick call to your bank, as well as removing the bank account from your paypal account. you can always cancel the card as well. also, can always tranfer the funds from the bank account to another bank account, or simply withdraw the money from them. if its a simple checking account paypal is not authorized generally with most accounts to withdraw the funds from an account if the funds are not available. but pm me if you want to know more.

Closing the account will also make the debit card useless. I open all of my accounts in person, I give a vague description of what I actually do, and explain to the person at the bank I may need to close the account at any time. With the account closed, it's impossible for them to get money out. I've heard of people canceling the direct debit agreement and still have the funds withdrawn. The only way to positively make sure they won't do this is to close the bank account.

I would be leery of reporting a credit card lost/stolen. This is reported on your credit report each time this happens. It doesn't affect the beacon, however if you do this often, it doesn't look good.


Furthermore, there are no such things as stupid questions, just stupid answers.

Thanks everyone for your help. I do appreciate it.

what the above person listed as well works very well also. open up various business accounts with your bank, give them a vague but believable description of what you do. explain to them you may need to close the account at any time. i have had hundreds of accounts open at a time and hundreds of cards. it was alot to keep track of, but for a while it was a very good system. closing the account only takes 1 simple call. and banks usually want your business and are perfectly ok with you opening up various accounts, because then they usually get to charge you some fees for having all the accounts. as far as reporting a card lost or stolen going on your credit report i dont know how accurate that is. sounds a bit odd to me. never heard of such a thing. i know i have reported a handful and its no where on my report. so not sure what hes talking about.

hey thats what we are here for, and we might need to pick your brain at some stage!