Credit Card Validation

**2k1Toaster** · 10-24-2008, 12:34 AM

Originally Posted by ODYSSEY

Do not follow what you are saying.

Are you saying you transferred money (from a buyer) from you paypal account to your linked bank account, withdrew the money, then paypal wanted the money back, so they charged your credit card?

Or you deposited money to make a payment (to a seller), but the funds had not cleared yet, so paypal used your back-up source (credit card)?

If it was the first, then that would be an unauthorized transaction and a very easy charge-back.

If it was the other, that is how paypal works when paying by a bank account. NEVER use a bank account to pay a seller. It leaves you at the mercy of paypal for protection.

Also remember paypal can freeze your account at any time for no reason and refuse to give you any money left in your account. Another reason to keep no money in your paypal account.

No no... 2 seperate things.

First if you have no funds in a bank account and transfer money out of the account, or use a debit card of the account, or write a cheque on that account, then the bank will automatically charge your credit charge for the amount that is trying to be overdrawn plus a fee plus a credit ding.

Second part is if this $0 account is linked with Paypal, and PP tries to get money out, they will. Bank will give PayPal money. Bank will then charge you that amount on your Credit Card plus fees and a ding.

Personal story is PP has never done this to me (knock on wood). But I have multiple accounts, and sometimes I transfer money between them online very shortly after depositing at the physical bank. Sometimes, the physical bank hasnt actually updated properly (yet) so the money is not really there even though the bank has it. So the transfer gets charged to my Credit Card, and the charge and the ding. Usually within a day the funds eventually show up, but by then they are still in account #1, and account #2 has funds that the bank "borrowed" automatically from my Credit Card at a ridiculously high interest rate if you dont pay it off right away.

Might be a little confusing but basically the bank wont deny PayPal money. They will give it to them, and then charge your credit card the difference between what they gave to PP and what you had in the account.

**ODYSSEY** · 10-24-2008, 12:52 AM

Originally Posted by 2k1Toaster

No no... 2 seperate things.

First if you have no funds in a bank account and transfer money out of the account, or use a debit card of the account, or write a cheque on that account, then the bank will automatically charge your credit charge for the amount that is trying to be overdrawn plus a fee plus a credit ding.

Second part is if this $0 account is linked with Paypal, and PP tries to get money out, they will. Bank will give PayPal money. Bank will then charge you that amount on your Credit Card plus fees and a ding.

Personal story is PP has never done this to me (knock on wood). But I have multiple accounts, and sometimes I transfer money between them online very shortly after depositing at the physical bank. Sometimes, the physical bank hasnt actually updated properly (yet) so the money is not really there even though the bank has it. So the transfer gets charged to my Credit Card, and the charge and the ding. Usually within a day the funds eventually show up, but by then they are still in account #1, and account #2 has funds that the bank "borrowed" automatically from my Credit Card at a ridiculously high interest rate if you dont pay it off right away.

Might be a little confusing but basically the bank wont deny PayPal money. They will give it to them, and then charge your credit card the difference between what they gave to PP and what you had in the account.

Oh, you are talking about overdraft and overdraft fees. I do not have overdraft on any of my bank accounts. So if Paypal tries to transfer money back to them, the transaction would be denied.

For the first thing, I do not use my linked bank account for anything other than paypal (no debit card, no checks). My second bank account is with the same bank. I have never ran into a problem with an internal bank transfer.

Overdraft/NSF do not get reported to credit agencies. They get reported to ChexSystems.

**Heather** · 10-24-2008, 09:28 AM

Guys,

Can I close this up? I hope we made thing clear.

Funny enough, I have noticed a drastic decrease in fraudulent orders these days! Kind of wondering if this whole discussion helped.

**blackcobra487** · 10-27-2008, 09:04 AM

Originally Posted by 2k1Toaster

No no... 2 seperate things.

First if you have no funds in a bank account and transfer money out of the account, or use a debit card of the account, or write a cheque on that account, then the bank will automatically charge your credit charge for the amount that is trying to be overdrawn plus a fee plus a credit ding.

Second part is if this $0 account is linked with Paypal, and PP tries to get money out, they will. Bank will give PayPal money. Bank will then charge you that amount on your Credit Card plus fees and a ding.

...

Might be a little confusing but basically the bank wont deny PayPal money. They will give it to them, and then charge your credit card the difference between what they gave to PP and what you had in the account.

I want to know how your bank has your CC number to charge anything against it. That doesn't seem right.

**2k1Toaster** · 10-27-2008, 01:21 PM

Originally Posted by blackcobra487

I want to know how your bank has your CC number to charge anything against it. That doesn't seem right.

All 3 accounts are Wells Fargo, both checking have Wells Fargo Visa Debit Cards, and then 1 shared Wells Fargo Visa Credit Card all managed in the same area on Wells Fargo's website.

**ODYSSEY** · 10-27-2008, 03:12 PM

Originally Posted by 2k1Toaster

All 3 accounts are Wells Fargo, both checking have Wells Fargo Visa Debit Cards, and then 1 shared Wells Fargo Visa Credit Card all managed in the same area on Wells Fargo's website.

It is a good rule to never have a credit account at the same bank you have a deposit account. Give banks too much power over your money.

**2k1Toaster** · 10-27-2008, 05:27 PM

Originally Posted by ODYSSEY

It is a good rule to never have a credit account at the same bank you have a deposit account. Give banks too much power over your money.

It doesnt bug me much. They always reverse the charges if they make them. Now I just wait 3 days no matter what it says before I pay things. I am too used to instant things for the slow banking process...