PayPal

[Volvo_ST1]

I have a PayPal Premier account with a $500 withdrawal limit per month. I routinely get more than $500 in my PayPal account per month, and I don't feel comfortable leaving my money to accumulate in this account. PayPal has a history of putting a hold on money, for example, if a dispute arises.

I can lift the $500 withdrawal limit by confirming my Social Security Number. Since I am not insane, this is not an option. My other option is to "link and confirm my debit or credit card." I have already had to link my bank account to my PayPal account. What potential disadvantage can arise from linking and confirming my debit or credit card?

 

[gathermewool]

I have my credit card linked to my Paypal and use it exclusively for purchases where I need the safety of Payal (i.e., buying something on the forums.) I don't use paypal for much else, but have had zero issues in 5+ years.

 

[dparm]

Nothing, really. PayPal could *in theory* charge your credit card for something, or your CC# could get stolen, though these are very very slim.

 

[wallyuwl]

Don't do a debit card. Credit cards usually have much stronger fraud liability. I would use a credit card and then delete the card from your account after the transaction. But this might be a problem as long as you keep getting deposits into the paypal account. But really, I would be more concerned with having my bank account linked than a credit card.

I have a paypal account but use it only for direct deposits from people, and for purchases on places like Rock Auto. I have not linked a credit card or bank account to it. But wouldn't really have a big issue with adding a credit card if I had to for some reason.

 

[The_Jeff]

Can you use the debit card attached to the bank account you're already using? That would kind of minimize your identity footprint.

The debit card will have different numbers than your checkbook numbers. But of course they can still figure out it's you, and likely that it's the same account.

 

[greenaccord02]

What about a prepaid card? Just get a $50 prepaid mastercard and link that. It might work...

 

[dparm]

Originally Posted By: greenaccord02
What about a prepaid card? Just get a $50 prepaid mastercard and link that. It might work...


Probably not because the address won't match.

 

[greenaccord02]

I don't know, I've used them for some pretty interesting stuff before that you wouldn't think they would work with. As long as you don't actually use the card (which it doesn't sound like he's going to do) everything should be cool.

 

[Volvo_ST1]

Originally Posted By: eljefino
Can you use the debit card attached to the bank account you're already using? That would kind of minimize your identity footprint.

I can do that.

Quote:
The debit card will have different numbers than your checkbook numbers. But of course they can still figure out it's you, and likely that it's the same account.

Correct.

 

[Volvo_ST1]

Originally Posted By: dparm
Originally Posted By: greenaccord02
What about a prepaid card? Just get a $50 prepaid mastercard and link that. It might work...


Probably not because the address won't match.


I have never used a prepaid card. Why won't the addresses match?

 

[sentra]

Volvo, i advise you, and everyone else, that you open a new savings account that you exclusively use for withdrawing money from your Paypal account. That is the only way you can guard against Paypal's selective enforcement of what can be draconian terms and conditions. Remember, you agreed to them, most likely without reading? I am partially guilty, too.

Anyway, once you have transferred money out of your Paypal account to your savings account, move ALL of it from the savings account to your regular bank account, or withdraw it in cash.

To pay for purcahses paid through Paypal, always use a credit card. Never use money directly from the bank account linked to the Paypal account. In case the deal goes awry, you can always claim a chargeback from the credit card company if Paypal doesn't help you.

Never give Paypal access to any money in the bank, because once money leaves the bank, for whatever reason, it's gone. That's exactly what the bank will tell you. Paypal will provide you with all sorts of phony guarentees; don't buy into them. Horror stories abound the world wide web.

No need to get a prepaid credit card for Paypal. Just use one of your regular credit cards. If you have one with a low credit limit, say, $500-$1000 per month, that you use for online purchases, that's even better. However, that's not required.

That being said, i urge you not to allow Paypal access to your bank account that has any money in it. As i said, don't leave anything in that particular account, just empty it.

 

[sentra]

Between, good call on not providing Paypal with your social insurance number. Unfortunately, there are people gullible enough to do that.

I have read of people really protective of their privacy providing false names to Paypal, and they haven't had any problems.

 

[Volvo_ST1]

sentra, you confirm what I have been suspecting. I have heard the horror stories.

I am unclear about the meaning of my PayPal account being linked to my checking account. That I could not avoid, as far as I know. Is that a problem, too? I withdraw money from the PayPal account directly into my checking account. Never had a problem in over 9 years.

 

[greenaccord02]

Originally Posted By: Volvo_ST1
Originally Posted By: dparm
Originally Posted By: greenaccord02
What about a prepaid card? Just get a $50 prepaid mastercard and link that. It might work...


Probably not because the address won't match.


I have never used a prepaid card. Why won't the addresses match?


That's the thing - you can just make up the address. Worrying about the address is over-thinking it.

I've had mine linked with my checking acct. for awhile with no trouble, but I'm not buying anything too crazy or gambling or whatever, so I'm not concerned.

 

[zyxelenator]

Glad that my company provides ID thief insurance for free. But I never worry about to confirm my id to reputable company like PayPal. You can always sue then if something happens, and it's better for them to make you happy.
Id security is very respected these days, otherwise companies would lose their business.
About debit cards: Chase has 0 liability on their debit cards as I know, same as credit.

 

[sentra]

Originally Posted By: Volvo_ST1
sentra, you confirm what I have been suspecting. I have heard the horror stories.

I am unclear about the meaning of my PayPal account being linked to my checking account. That I could not avoid, as far as I know. Is that a problem, too? I withdraw money from the PayPal account directly into my checking account. Never had a problem in over 9 years.


Volvo, good to know you haven't had a problem in 9 years with your current arrangement, but when if you have one, it's very frustrating.

The problem with withdrawing money from your Paypal account directly to your checking account is the following: someone you have sold something may file a false claim against you, and the tens of Socrates-like intellectuals working for Paypal, feverishly busy advancing it as a symbol of justice, may decide in the scum’s favor, tapping your checking account for the claim amount, all without your authorization. Other scenarios are also possible, such as the hacking of you Paypal account, compromising your checking account number, and its funds.

The bank may or may not help. Most cases, they won’t, because the money has already left the bank, and Paypal has the terms and conditions you agreed to on its side. In a nutshell, the goal is to not allow Paypal access to instant funds such as your Paypal balance or money in your bank account that is linked to your Paypal account.

Also, you do not specifically need to have your checking account linked to your Paypal account to withdraw money from it; it can be any bank account. Your bank will most likely open a savings account for you for free, and you link that account to your Paypal account, which you empty immediately after you have withdrawn money to it from your Paypal account.

 

[Volvo_ST1]

Originally Posted By: sentra
Also, you do not specifically need to have your checking account linked to your Paypal account to withdraw money from it; it can be any bank account. Your bank will most likely open a savings account for you for free, and you link that account to your Paypal account, which you empty immediately after you have withdrawn money to it from your Paypal account.


Thank you for that excellent advice!

 

[bradepb]

We went through a nightmare with paypal last year, my son had his debit card linked to his account and his paypal was hacked, many withdrawals from his bank later we got little satisfaction from paypal,. The bank was more helpfull than paypal.
If you insist on using paypal do it with a seperate bank account and only have enough money in it to pay for your purchase.

 

[crinkles]

I have had my credit card hacked after I closed my paypal account. $600 too. I assume that once you close your account their security requirements relax.

 

[Turk]

I don't use Paypal, but, whoa, that's some good advise to remember!!