Paypal blues

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Forum topic by hairy posted 09-11-2010 03:12 PM 1651 views 0 times favorited 26 replies Add to Favorites Watch
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2780 posts in 3709 days

09-11-2010 03:12 PM

Is it always this hard, or is it me?

I recently created a separate bank account, solely for paypal. I thought I could put money in the bank to spend online.When I try to make a purchase, not e-bay, they want a credit card number.

Paypal has verified the bank account. According to their tutorial, paypal will transfer funds from my bank to the vendor.

I set up a Premier account at paypal.

The vendors I have tried to use display the paypal logo, but want a credit card at checkout.

I was thinking that this would function as a debit account; I could only spend the money I have in the bank.

Sarah, the automated customer support assistant at paypal, always seems to answer a question other than what I ask.

I’m just about ready to close the bank and paypal accounts. What good is it if I need a credit card ? The reason I did this was to avoid a credit card.

-- My reality check bounced...

26 replies so far

View hairy's profile


2780 posts in 3709 days

#1 posted 09-11-2010 03:32 PM

I can’t tell where my problem is.

Is it the vendor’s fault, when they say they take paypal, but insist on a credit card? Is it paypal, not doing what they advertise? Or, more likely, me not understanding who does what? Senior moments are becoming the norm.

There is a credit card linked to the bank account. I have not provided paypal with that number.

I also have seen at paypal, where I can transfer money from my bank to a paypal account. Is this what I need to do?

-- My reality check bounced...

View mvflaim's profile


189 posts in 3268 days

#2 posted 09-11-2010 03:42 PM

The way I use PayPal is like this.

I sell a bunch of stuff on eBay and get a total of $500. That $500 is automatically deposited in my online PayPal account. I can either use that money in eBay or I can transfer it to my personal bank account. Or I can request a PayPal debit card and use the money through that card. When I go shopping through brick and mortar stores, I can whip out my PayPal debit card and the money is immediately withdrawn from my online PayPal account. However, when I shop online with the vendors that accept PayPal, the PayPal button will send me to a secured PayPal link where I enter my email address and password. When I hit the submit button, the money is immediately withdrawn from my online account just like as if I was using my debit card. The vendor never sees my email address, password or card number. All info is exchanged through PayPal’s secure website.

The one thing I want to add is you should never use your PayPal debit card number as a credit card online. PayPal debit card is like holding cash with no buyer protection. If you send a vendor your PayPal debit card number, they can use it like it was their own card. You just gave them your 16 digit number and they can go out and buy whatever they want as long as there is enough money in your online account to cover the purchase.

Hope it helps.


View Beginningwoodworker's profile


13345 posts in 3850 days

#3 posted 09-11-2010 03:44 PM

Hairy, thats why I stop buying form E-bay is a good place to buy stuff, but they screw up when they stop taking checks and money orders. I use my debt card for my internet purchases but they dont take that.

View swirt's profile


3315 posts in 3149 days

#4 posted 09-11-2010 03:53 PM

Yes Hariy you need to transfer money form your bank account to paypal, then you can spend it. The typical bank transfer in or out takes 3-5 days…. that’s why you can’t spend what you don’t have in your paypal account.

JorgeG’s concern of giving them a bank account but no credit card confuses me. You’d give them access to a bank at which if Paypal does something wonky you have little to no recourse, but you won’t give them a credit card where if Paypal did something wonky you would have the more options to get your money back?

-- Galootish log blog,

View hairy's profile


2780 posts in 3709 days

#5 posted 09-11-2010 04:00 PM

I want to avoid credit / debit cards. I only want to spend what I have in the bank. It’s probably a fact of life that I can’t get away from having one.

I have not tried e-bay. That could be worse than a lumberjock addiction.

One vendor displayed the paypal logo, but it was not an option at checkout. Another did give the link to paypal to enter my paypal account, but still wanted a card number.

Thanks for the help.

-- My reality check bounced...

View docholladay's profile


1287 posts in 3236 days

#6 posted 09-11-2010 04:31 PM

I have always done sort of like Mike. Because of my tool addiction, I am always buying tools. However, that often means I end up with duplicates or at least similar tools that do the same function. That means that I am often placing items up for sale on Ebay. I then use that money for Ebay purchases. What makes better sense than the separate bank account just for Ebay purchases, why not have a separate credit card that is used for Ebay purchases. Then just pay the CC balance as you normally would using the money that you had budgeted for those purchases. I do something similar to this in my business in that I use a credit card for my travel expenses. I put all of my travel expenses on the CC then submit to my company for re-imbursement. When they reimburse me, I simply pay off the balance on the card. That way, the money is never taken out of my families normal budget.

-- Hey, woodworking ain't brain surgery. Just do something and keep trying till you get it. Doc

View Praki's profile


201 posts in 4174 days

#7 posted 09-11-2010 04:33 PM

Years ago, my Amex card had this “one time use” CC numbers that I used with zero worries of on-line fraud. For some weird reason, they withdrew that service. I believe Discover and Citi now offer “virtual” credit card numbers (not sure if they work the same) that I have looking into. I might have to get a Citi/Discover CC for just this service.

As far as Paypal/ebay, I haven’t had any problems so far. Personally, I feel a lot more confident giving them my CC than my bank account number. In my experience, CC companies deal with fraud reports swiftly. If this virtual CC thing works out, I will just cancel my Paypal account altogether.

-- Praki, Aspiring Woodworker

View John Steffen's profile

John Steffen

218 posts in 3233 days

#8 posted 09-11-2010 04:35 PM

I believe to make instant purchases you must link paypal to a checking account.

-- Big John's Woodshed - Farmington, IL

View CharlieM1958's profile


16278 posts in 4396 days

#9 posted 09-11-2010 04:36 PM

PayPal , IMO, does not try to rip anyone off. It’s just that they have such a confusing set of security policies to protect both them and their customers that it is easy to get lost in voice mail/email hell when you have an issue.

Once you work through this, the system should work just like you want it to. I have my PayPal account linked to my checking account, but I know I originally had to give them a credit card as well. Like swirt said, you can always contest a credit card charge with the issuing bank, so I don’t see the harm in giving it to them.

The only issue I ever had with PayPal is when a vendor issued me a credit for a shipping discount, and he coded it as a payment rather than a refund. PayPal thought they were being cheated out of their merchant commission, and it was a PITA to get straightened out. But in a number of years, I’ve never had any unauthorized charges or debits to my bank account or credit card.

-- Charlie M. "Woodworking - patience = firewood"

View Chris Cunanan's profile

Chris Cunanan

339 posts in 3657 days

#10 posted 09-11-2010 04:43 PM

oh yes, this is exactly what we’re about to go thru in the state of CA as a whole with Meg Whitman….i can hardly wait! $100 MILLION+ already spent on the campaign, gonna be about 1/2 what McCain spent in ‘08 Presidential race by the end of it….sorry for the off topic, but to relate it to ur discussion I would say this and many other reasons are why i choose to NOT use Paypal….if you have a problem with anything, usually fraud, they won’t do much/if anything to help you resolve it. And after they started hiking all the rates/fees up years ago, i said F em ‘n went to craigslist. I know you may not find what you want on there, but whatever you can do to cut out the middle man (paypal/ebay) i would say usually will give you less headaches in the end…

View hairy's profile


2780 posts in 3709 days

#11 posted 09-11-2010 04:44 PM

I guess I’m just old fashioned. It’s kind of like maintaining a budget using envelopes to keep the rent money in.

I want a method to buy and sell online. The bank is close enough to deposit money if needed.

I’m getting frustrated because it’s not as simple as they claim.

When I created the bank account, I explained that it would be solely for paypal, for online commerce.

I think I will transfer funds from the bank account, to the paypal account for shopping.

Thanks for all the help.

-- My reality check bounced...

View hairy's profile


2780 posts in 3709 days

#12 posted 09-11-2010 04:45 PM

The bank account is a checking account.

-- My reality check bounced...

View William's profile


9950 posts in 3019 days

#13 posted 09-11-2010 05:34 PM

Hairy, the ONLY thing I use PayPal for is to buy and sell on Ebay. In my humble opinion, that is about all PayPal is good for. The only thing you need to be wary of with PayPal is to remember they DO NOT send emails out to you EVER. If you get emails wanting you to verify your account for what ever bullcrap reason , it is a scam. PayPal has had real problems with bot sites being set up and stealing people’s logon information and then wiping their accounts out. This is not PayPals doing. It’s outside scammers. I have had nothing but good experiences with them. Like I said though, Ebay is all I use it for.
Now, with all that being said, a good option to do what you wish to do is Green Dot. For all my other interent transactions and local transactions that I don’t want tied to my regular checking account, I use Green Dot. It is a pre-paid Visa card. There is no credit check and you can only spend what you put on the card. If you try to spend over that, the charge will be rejected. It’s easy to get one. I bought mine at WalGreens for about $25. There is a $5.95 charge every month and it costs you $5 every time you load money on it. Every month, I figure how much I need (or want if I’m planning on buying patterns or something else wood related) on the card. I load it on there and do what I need to do. I also (when finances allow) try to keep a little extra on there just in case I stumble across any other “deals” I want to spend money on online. To me though, the advantage of the Green Dot card is the fact that I can only spend what is loaded on the card and not a dime more.


View reggiek's profile


2240 posts in 3447 days

#14 posted 09-11-2010 05:42 PM

I have a separate checking account for paypal and put just enough cash to make purchases as needed. I do not want them in my “real” checking account and certainly not attached to my credit card. There is way too much abuse and scams out there to give card numbers out like candy. It is also recommended never to use a debit card for online purchases….there is too much chance of having your account raided….a credit card has better protections for this.

I did this as I had a friend that had his account compromised by paypal or by ebay (they are not sure as to which one caused the breach)....and the thief would take small amounts at a time (using ebay/paypal as the reference)....(they didn’t notice this on their account until the scammer had taken a considerable sum through the small purchase). After hearing this – I set up my paypal as stated.

Also, the bank account has a P.O. Box for address – and a free email account for contact info – This way I don’t end up with tons of garbage mail – Paypal and Ebay both sell your information to “related businesses” by the way – even though they have a “privacy policy.”

-- Woodworking.....My small slice of heaven!

View William's profile


9950 posts in 3019 days

#15 posted 09-11-2010 05:55 PM

100% of the people I have talked to that have had money taken out of their PayPal accounts went through this exact scenerio.
They got an email stating various things from PayPal. The most popular one is that your PayPal account has been compromised in some way, usually that someone tried to make unusual charges to it. The email tells you that you need to click on the link in the email and verify your logon information. Soon after that, their PayPal account is either wiped out, the account that PayPal is connected to is wiped out, or either of those sources start to get small withdrawals over time that are not noticed until too late.
This scam has been addressed many times on PayPals FAQ page and in the PayPal forums. If you get this type of email, close it. DO NOT click on the link. Although I haven’t heard of it personally, I’ve been told that some of these scammers have gotten real smart and even clicking the link downloads keyloggers onto your computer. PayPal recommends that if you get this email and have doubts, to immediately close the email and go to the site by typing onto your computer. Any other address is a scam. Usually, if you click the link in the email, it will go to a site that has paypal in the address line, but a lot of other letters and words too. It’ll be a long drawn out address, unlike PayPals simple address. These scammers have went to great length to make it look like a legitimate PayPal site. It is not, so please be weary of this scam.
I personally leanred of this scam early on when I started with PayPal about five years ago and have never had any problems.


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