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Withdrawing micro deposits is an authorized transaction for two reasons

1) Paypal states that by allowing this test procedure you will be debited for the amounts that are deposited thereby providing your consent.

2) You are agreeing to a test procedure that involves a one time credit and a debit in an equal amount. You are in no way rendering goods or services for a financial gain so no monies are to be furnished to you. The deposits are simply a test and not a payment and the debit is not a deduction but a reconciling transaction. Thereby the results of these actions are not a matter of amounts levied or collected but are a positive or negative test result with no financial implications.

Paypal can only get away with unauthorized debits if people let them. Paypal may think they are above the law but no matter how big and valuable a company is, it means nothing to the DOJ and FTC. People just need to speak up and eventually something will be done. Paypal got a slap on the wrist last time but it is unlikely that they won't get a harsher punishment this time.

Don't create a myth.

The deposits are another matter.

Read futuremogul's post.

We have to stick to facts and not speculate.

Fact is by verifying your bank account with pp, you authorize them to have access to your bank account for deposits and withdrawals within reason. If you owe them money, their reason is quite clear for dipping into your account. I have had a once dip into my bank account 4 years back.

rsot, if your logic applies across the board then:

If your supplier provides you with his banking info to pay him via wire and then you later decide that your supplier owes you money, you can use the info the supplier gave you to debit his bank account.

If you give your gym your bank info to charge a monthly recurring membership fee, then they can charge that same account at their discretion if you damage a piece of equipment.

Your logic states that if you give your banking details to a party, then they can do whatever they want with it as long as they believe they can justify it on their end.

If you are saying that only Paypal has the privilege to debit your account at their discretion, what makes them special? It isn't in their TOS because it is illegal so what makes you think that them dipping into your bank account 4 years ago was in anyway permissible.

Fighting PP is a biatch. I would rather avoid confrontation if possible.