<VV> PayPal & bank accts.--NO CORVAIR

[Bill Elliott]

For securtiy reasons I have some strong feelings on this. As a very heavy Paypal and Ebay user, here is what I did:

1. Credit card is one with a low limit and special "internet" protection (limiting my losses in case of ID theft)

2. Bank account is at a credit union, is "savings" only,  and is set up to allow electronic deposits but NOT to allow electronic transfers out. This will allow 
you to verify your Paypal account (because they transmit in a few cents), to move money out of your Paypal account, but not to use this method to move 
money into your account.

Disadvantage: some Paypal users have an account that will not accept Paypals from a credit card. For these you have to have an account balance since 
you can't use an e-check or e-transfer from the bank account. If you do need to add money to your balance, you will need a separate Paypal account 
(non-verified) to send in credit card payments to your account. 

Advantage: Your entire Paypal liability (if you are concerned about that from reading all the horror stories) is only your Paypal balance. Paypal can't hit your 
credit card without your permission and can't hit your savings account due to the bank.  

Consequently, I move all payments out ASAP into my dsaving account and leave a Paypal balance of near zero.

You should be aware, however, that most credit card companies will NOT intercede or arbitrate when a third party system like Paypal is used. Still it's better 
than nothing. I do understand why Paypal wants this info... it's your choice whether to supply the info (and get the benefits of being able to do more and 
higher dollar trasnactions) or stick with the severe limitations you get with a nonverified account.

I have several hundred Paypal transactions (in and out) and have never had a problem with this setup. And I've found Paypal to be BY FAR the safest way 
to buy stuff from outside the US (which I often do to support my strange cars..)

Bill Elliott


On Fri, 23 Sep 2005 10:35:54 EDT, Wrsssatty at aol.com wrote:

>I know a lot of you folks do eBay so I thought I'd seek your thoughts/advice 
>on this.  PayPal now requires the submission of bank account information for 
>users to become "verified" and have even set an arbitrary dollar amount limit 
>before becoming verified is mandatory.  In other words, with only the credit 
>card information that one originally submitted to them, they will now only allow 
>a lifetime dollar amount limit they will allow you to spend before you have 
>to become "verified" by submitting the bank account information.  I find using 
>PayPal convenient, especially when dealing with foreign currencies but I am 
>extremely hesitant to give bank account information.  I feel the credit card 
>access, which they already have, should be sufficient and that using the credit 
>card gives me, as a consumer, greater protection against fraud and greater 
>leverage in seeking arbitration of disputes.  Do any of you have any thoughts on 
>giving PayPal bank account information?  Private replies O.K.  BTW, I'm 
>seriously considering filing a complaint with the New Jersey Div. of Consumer Affairs 
>regarding PayPal's practice.  Don't know if it would do any good but what 
>have I got to lose by trying?

>Thanks!

>Bill Stanley
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