“Will PayPal overdraft my bank account?” is one of the most frequently asked questions online about Paypal. Many people are concerned that PayPal will overdraft their bank accounts should there not be enough funds for a transaction. In this article, you’ll be learning whether PayPal overdrafts your account and about related PayPal policies.
PayPal is an online money management service and not a bank. For this reason, PayPal cannot overdraft your bank accounts. However, you have the option of linking a bank account to your PayPal account which can serve as the primary funding source or backup funding source.
There are several benefits to linking a bank account to your PayPal account. You should always try to check that your bank account has sufficient funds for a transaction before initiating it. PayPal will of course prompt you to add a backup funding source if you use your bank account as your primary source. This allows PayPal to be able to charge you via other means if you don’t have sufficient funds in your account.
PayPal and Overdrafts
If you set up your bank account as your primary funding source, PayPal will attempt to charge you from your bank account. If you have insufficient funds in your bank account, the transaction will not complete. However, your bank may charge a dishonor fee. PayPal will attempt to charge you from your bank account again after three days. It is assumed that you’d have taken steps to add more funds to your bank account before the second attempt. If there are still not sufficient funds in your account, PayPal will then attempt to use your backup funding source.
Note that your bank may again charge you a dishonor fee for the second time. So to avoid being charged dishonor fees by your bank, it’s important you make sure you have sufficient funds in your bank account before attempting to make payment particularly if you set up your bank account as your primary funding source.
How do you get a negative balance on PayPal?
It’s possible for your PayPal balance to become negative if your transaction is reversed. This could be due to a chargeback, lost claim, or if you don’t have sufficient funds in your bank account to cover the amount. When any of this occurs, you’ll have to reimburse PayPal for the amount of the reversed transaction. Also, you must pay any associated fees incurred by PayPal. It’s important that you try to resolve your negative account balance as soon as you can. PayPal gives you 120 days to resolve a negative account balance after which your account may be locked and you won’t be able to log in to your PayPal account.
To resolve a negative balance by adding money to your account:
- Log in to your PayPal account
- Go to Wallet.
- Then click on Add money.
- Choose any of the options available to add funds to your account.
- Then Click Continue. Follow the instructions.
PayPal may also resolve your negative account balance by paying it off with any money you receive in your PayPal account. IF you have money in another currency, PayPal may also use it to resolve your negative balance,
Note that pending withdrawals may also be canceled on the account. Also, PayPal will not attempt to resolve your negative balance by withdrawing funds from your bank account. It’s up to you to resolve your negative balance.
There are several benefits to linking a bank account to your PayPal account. It’s very easy to link a bank account to your PayPal. Simply log in to your account and then navigate and click the “Add or Edit Bank Account” button which can be found on your profile page. An email explaining how to add a bank account will be sent to you by PayPal. And PayPal will either deposit or withdraw a few cents to verify the account is linked. If you use your linked bank account as a backup funding source, then you can always buy something that costs more than the amount of money you have in your PayPal account.
You can also move money from your bank account to your PayPal balance and use your balance as a primary funding source to avoid being charged from your bank account. This is because the remainder of the money will be charged from your bank account. Paypal also gives you the option to link PayPal to a credit or debit card.
You can easily review your PayPal balance anytime you like by logging in to your account. If your PayPal account is your primary funding source, then try to check you have enough funds in your bank account to avoid being charged a dishonor fee by your bank. There is a potential risk that comes with linking bank accounts to PayPal especially when hackers gain access to your account.
This is why you should make sure to never reveal your login credentials to anybody and only be careful about clicking links from emails. If you receive an email from PayPal, don’t click any link. Instead, log in to your account and you’ll still be able to resolve any issues. The reason for this is that hackers now send guise emails that are made to look like they came from PayPal but will steal your data if you click on them. So it’s better to be safe than sorry. After all, you don’t want your hard-earned money falling into fraudulent hands.