Paypal Used Next Payment Option

I thought when you buy something and you don't have enough in your Paypal account that they take whatever is in the Paypal account and then the rest from your next payment option?

I bought something that is more than I have in my Paypal account and they took ALL the money from the next payment option.

 

Thanks!


You only fail when you don't try!
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Paypal Used Next Payment Option

Is there a difference between the currency you had in PayPal and the item you bought? Because sometimes, I have a mix of US $ and CAD $. When I buy something in US $, they will take both currencies and then the rest in my bank account in CAD $.

 

However, if the alternate method is a credit card and I choose the conversion rate of the credit card, they will only take the US $ and leave the CAD $ balance in PayPal. I have to convert every penny in US $ if I want them to take the whole amount before putting the rest on my alternate method. Maybe that's what happened for you?

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Paypal Used Next Payment Option


@greenmangoes wrote:

I thought when you buy something and you don't have enough in your Paypal account that they take whatever is in the Paypal account and then the rest from your next payment option?

I bought something that is more than I have in my Paypal account and they took ALL the money from the next payment option.


PayPal help is rather useless for this question. but here's a few things from the user agreement.

https://www.paypal.com/ca/webapps/mpp/ua/useragreement-full

 

3.2 Default Payment Methods.

When you make a payment, if you have not selected a Preferred Payment Method, PayPal will fund your transaction in this order:

  Balance

  Instant Transfer from your bank account

  Debit card

  Credit card

  eCheck

 

3.3 Preferred Payment Method.

If you set eCheck as your Preferred Payment Method in your Account Profile, it will be used to fund your PayPal payments first, even if you have a Balance.

 

...

 

For balance partial allocation (years ago) it was same currency balance of purchase first, then conversion if required from the primary currency balance, then next source of funds,

 

...

 

Side note: PayPal now charges extra for currency conversion on a purchase versus the buyer doing the conversion themselves before buying (since July/2017 I believe the rate spread is now 0.5%)

 

-..-

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Paypal Used Next Payment Option

I use paypal as a funding source for most if not all of my online purchases as a buyer.

 

Normally, what will happen is that if the order is, for example, $200 CAD and I have $150 in paypal as a balance, they will take the paypal balance first and then charge the $50 remainder of the order to my next funding source.

 

It essentially works this way except for two things.

 

One is issuing a refund. On the rare occasions I have had to issue a refund to a buyer, the refund comes totally from my next finding sure even if I have a balance of 99 per cent of it in paypal.

 

The second time it went awry is when paypal had that technical glitch a few months ago where transfers of the balance to a bank account went instead to la la land and then were reversed and reinstated and then redone. While paypal played vanishing act and then refunds and then catch-up, I had a purchase BOUNCE to my absolute horror in which case the re-payment came not from the paypal balance OR the primary funding source but my back-up which was a credit card. It was a real mess, and worse, one that was totally not my fault. 

 

Still, it will say on the invoice when you pay where the money comes from. Depending on the retailer, some may take the payment immediately and others might take it when the order ships. It depends. 

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Paypal Used Next Payment Option

All along I thought they take the funds from your Paypal account first and then the rest from your next payment option - unless something changed.  They didn't this time, they took all of the payment from my Bank Account.

My Preferred Payment Method is:

- Paypal
- Bank Account
- Credit Card

Anyway, thanks all.


You only fail when you don't try!
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Paypal Used Next Payment Option

I think it varies.

 

Reason being, I use PayPal for paying bills like eBay Seller fees etc., and when I pay my sellers fees, if I have a PayPal balance, that is used first then the remainder is taken from my bank. I have automatic billing setup for that, was set years ago, perhaps they changed things, my account is old, it dates back to when PayPal was first available in Canada.

 

On the other hand, when I  pay online for Duties and taxes for DHL shipments, it no longer gives me an option for using my balance, only credit card.

 

So I think it's not exactly set in stone. Also, not related per say, but a few years ago I recall that PayPal said to me that payments options that are offered also depend on who is receiving the money, perhaps some sort of risk analysis where they will only allow certain types of transactions.

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Paypal Used Next Payment Option

I recently experienced an incident where my payment was taken from the wrong funding source. On submitting the payment on checkout, I specified 'PayPal balance plus credit card' and the purchase was instead was instead funded by 'PayPal balance plus bank account'. It was an expensive purchase for business that was drawn instead from the pool of funds I use to pay my household expenses. This is now causing me no small amount of difficulty in managing my household expenses. It's the first time (maybe second?) that I can ever recall a mistake such as this being made, and it falls on the heels of a 'transfer balance to bank account' that failed to properly execute for no discernible reason (funds transferred and were then reversed) so I'm more than a bit unimpressed with PayPal right now.
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