If you are required to link paypal to a bank account then the best idea is to have a separate account that keeps very little money in it to reduce your exposure.

 

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This reminded me to cancel my PayPal account. Thanks.

 

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To those saying not to link it to a bank account... Etc etc.. That's the whole problem here. It wasn't linked; the transaction went through because PayPal refuses to see the payment from Microsoft as a refund and because the bank is now not authorizing that payment PayPal decided they have to take it from somewhere and opened an account to do it with.

That is why this got so messed up. His bank has been fighting with Microsoft over the transaction for him. PayPal was kept in the loop; which is why he didn't handle it direct with PayPal... Once he thought it was all straight PayPal still applied the amount; didn't contact him, and now refuses to do anything to help.

 

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Paypal is all about the benjamins... All Paypal cares about really is that they are never on the hook for any money. It is whoevers fault they can collect from easiest.

 

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From what you've said, yes it was linked... just because you talk to your bank to block paypal, does not mean your paypal account is no longer linked to that bank as your primary payment method (which is the only reason I can think of that PayPal would request a payment from the bank in the first place).

Why should Paypal, a simple online payment system, be tracking whether Microsoft's internet transactions are refunds or not? That's what I don't understand... what is the link exactly between PayPal and Microsoft Points here?


I've been in a similar situation with Paypal, they withdrew from my bank when there wasn't enough money in it, my account ended up getting locked and I had to pay a fee to the bank. But it was my fault, I messed up while using an automated payment mechanism. I'm not going to blame the Pay-Pal coding.

 

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Never use them, never will. I haven't found a need to use them over my credit card.

 

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i have been using paypal for years and never had a prob like this. although it sounds like your friend uses it alot more, but still..


what has always troubled me about pay pal and made me leary of them and makes use them so sparingly and only for certain things, is that there is no brick and mortar place that i know of to go bang on a door to complain so i have always been cautious with them.


and i have never "left money" in my paypal account.


matter of fact i have recieved money thru paypal only a couple of times.


mostly i use it to pay for stuff in single transactions for convenience sake. if i recieve money from someone, i transfer it out to my bank acct immediately.


it is also entirely possible that there is more to the story.. who knows..

hope he gets it unfacked soon!

 

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It is known.

 

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Slip of the tongue on "Linked"... but the effect is the same. Paypal had no linked account that was authorizing the payment, so they put it on a CC (Found out they're called Smart Connect) to cover the balance. As for why Paypal should be tracking whether or not Microsoft is refunding is because they are the middle man, who is actually passing money back and forth.

Microsoft to PayPal: Give me $100
PayPal to Microsoft: Okay, here you go.
PayPal to Bank: Hey, I need $100 for Microsoft.
Bank to PayPal: Here you go, $100.
... Later ...
Bank to PayPal: Whoa, wait a sec. That's fraudulent and wasn't initiated by my client. I'm sorting this out with Microsoft.
PayPal to Bank: Oh, okay; we'll just put his account on hold so it doesn't happen again.
... Later ...
Microsoft to PayPal: Here's that $100 back
Bank to PayPal: I'd like that $100 to balance the account
PayPal: Oh sure, here you go.
... Later ...
PayPal: Hey, I still have this $100 charge to take care of. Bank Give me $100
Bank to PayPal: Umm, no. We resolved this. Microsoft isn't authorized to charge through PayPal.
PayPal: Well, I have to charge this. It wasn't refunded.
... 2 Months Later...
Collection Agency: Hey, I need $250 from you to pay PayPal.
Friend: WTF?

Maybe that explains the history a little better? PayPal ended up processing the payment through because it was never "resolved" (Refunded) and the Bank refused to pay it because it was not authorized to. PayPal says you cannot have a negative balance; so it created a Smart Connect account in his name to house the negative balance, and started charging my friend interest and late fees... then called collections on him.

 

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Well you have 4 entities -- Microsoft, Paypal, the Bank, and your friend.

Somebody has to take a loss on this because of the thief.

Take a guess who will lose every single time...

The only way you will not lose in this situation is if you can manage to make it cost MORE than the amount to ANY one of the three other organizations above to not pay off.

The aformentioned take them to court can work.
Potential negative publicity can work.
Sometimes the promise of extra business can work (IE if losing you as a customer costs them more than the amount they would have to eat)

 

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