School me on paypal schemes, WTF is this 'verify with your bank account info'? Options

[CrashTestDummy]

So, my wife's had a paypal account for several years, now. She's used it to buy stuff online and even let me use it to buy car parts from people with paypal accounts. It IS convenient. She pays the bill through a credit card she set up to pay for it through. Always paid the bill, no problems there.

Now, after many years of use, we've reached a 'spending limit' of $10,000, and can make no more purchases unless we 'get verified' by:

1. providing paypal with bank account information so they can deposit money in it and she sends it back, or
2. getting a paypal credit card.

WTF?!?!

Item no. 1 sounds like every ebay money order scam we've all read about, and we don't need another freaking credit card. Why the hell does she _now_ need to be verified after using their services trouble-free all these years? We WON'T be providing them with any bank account information, and DON'T need another credit card.

Are there any solutions, or do I go back to sending the seller a check and waiting for it to clear like I used to? This sux, IMHO!

[TylerWilson785]

So, my wife's had a paypal account for several years, now. She's used it to buy stuff online and even let me use it to buy car parts from people with paypal accounts. It IS convenient. She pays the bill through a credit card she set up to pay for it through. Always paid the bill, no problems there.

Now, after many years of use, we've reached a 'spending limit' of $10,000, and can make no more purchases unless we 'get verified' by:

1. providing paypal with bank account information so they can deposit money in it and she sends it back, or
2. getting a paypal credit card.

WTF?!?!

Item no. 1 sounds like every ebay money order scam we've all read about, and we don't need another freaking credit card. Why the hell does she _now_ need to be verified after using their services trouble-free all these years? We WON'T be providing them with any bank account information, and DON'T need another credit card.

Are there any solutions, or do I go back to sending the seller a check and waiting for it to clear like I used to? This sux, IMHO!

I feel your pain! Paypal only allows you to spend $10K before they "verify" you. I was in the middle of purchasing a bunch of stuff from Blainefab during my verifying experience. I had to wait to pay Alan until I was verified, so it was tough as he was in the middle of making a roll bar and ordering parts, so the project took a few days longer. I did give them my account # (checking) and they made 2 deposits of like $.01 and $.02 and told me to tell them how much they had deposited so that they could verify that I had an account. I am sure they have many reasons for taking people through this process, I didn't like it but I decided I liked the convenience of it so I did it. I don't know any way around it, maybe someone else does.

[CrashTestDummy]

What I don't understand is why we can spend $10K, $10-$20 at a time, over the course of years, and then we have to be 'verified'?!? Just about any sane person would think that if I'm making unchallenged transactions over the course of several years, and paying the bill when it comes due (sometimes before), that would be 'verification' enough. Something's not adding up.

It would seem that by me giving my account information would then waive me of any recourse should something really bad happens with the account at paypal. I'd be getting the 'Vendor Salute'; paypal says 'it's on your account, take it up with the bank', then the bank would say 'but you gave them your account info, you should never do that, and we're not responsible for what happens after you do.' Seems like a great opportunity to be stuck in the middle holding an empty bag.

[Al weyman]

Why are you worried about giving your account details out, I do on every invoice I send out so so people can pay electronically into my account should they so desire. I have no problem doing this because it only means they can pay money in as with paypal they cannot take money out and it will only be taken out when you have confirmed it with PayPal. I seriously wouldnt worry about it.

[Al weyman]

Why are you worried about giving your account details out, I do on every invoice I send out so so people can pay electronically into my account should they so desire. I have no problem doing this because it only means they can pay money in as with paypal they cannot take money out and it will only be taken out when you have confirmed it with PayPal. I seriously wouldnt worry about it. I would imagine the rational behind this is because of the fees the card companies must charge them/

This post has been edited by Al weyman: Nov 24 2012, 07:01 PM

[The Batman]

I have never had any issues with being verified. I verified my account shortly after I created it years ago.

[ReEntryRacer]

I have never had any issues with being verified. I verified my account shortly after I created it years ago.

I have to speak up here. I also saw no issue with that process, and I did it soon after signing up. then...2 years later, I was amazed to find both my bank account and Am. Express card balances dinged for a total of $4500 within a one hour period by a crook that appeared to be in China/Hong Kong. I did call the bank right away and they were not at all sympathetic as indeed I had signed away my permission for a PayPal withdrawl so I then called Amex and they offered to investigate the issue and froze my account. The next call was to PayPal and they had already frozen my PP account due to their computer system automatically shutting off the purchases being made as they were "not normal".
Long, long story short: I did get my money back -- after 16 weeks! I wrote a detailed account of what I had endured at PP's request after I cancelled my account. They sent absolutely no response. I do not use PayPal now and never will again.

Good Luck!

[JMP33]

That's the exact reason why I don't let anyone have access to my bank account. I got a PayPal credit card instead. Haven't had any issues.

[SuperMacGuy]

I've used Paypal for years without problems. Yes I also verified my account almost as soon as I made it, because I wanted to take payments and put it in a "real" bank account. It was not really a big deal. Gene, I would not get so upset about it. If you are worried about having problems like ReEntryRacer, then make a different bank account to link to Paypal and only use it for those purchases and not any household or big dollar savings.
Also, follow good password rules (for ALL websites, so they can't use the same Paypal password that you used for FaceBook or AOL or Netflix etc.), and/or use a Mac so you don't get viruses that can hack your passwords or keystrokes so easily.

[Rampant]

I never knew it was the $10k deal, but in hindsight it makes sense. Years ago I was buying lots car parts with Paypal. Then got the notification they wanted my bank info. I called them and asked WTF, no issues and now I am no good. The said verify or leave, I left. It can be a PITA without it, but I feel safer.

[CrashTestDummy]

Yeah, I fought using it for a while, then buckeled. I used to ask if I can just send a check and wait for it to clear. I usually had no problem with that process, it just delayed the delivery of the parts. I'm not certain what we'll do at this point, but am leaning back in that direction.

It's just VERY annoying that you can be a good customer for all these years, but once you reach a certain arbitrary number, you're standard process of doing business is now all suspect. I find that model WRONG. Build a relationship with your customers and then tell them you don't trust them any more. Nice work, paypal!

[cozog]

Warning: With your 'verified' paypal account (bank or cc), pp can take whatever they want whenever they want and you have little recourse to contest it.

Just set up another email address and use it for paypal transactions.

[StanIROCZ]

They want your bank account because it is cheaper for them to draw money from there than a credit card. If you notice they don't insist, but strongly try to pursuade you to use your bank account for payments rather than cc.

Ive never been burnt but it has always pissed me off that ebay/paypal seems to be the only player for online auctions and payment system, and they make a ton of money for doing nothing but facilitating a website, more or less. Think about it 2.9%? It seams like some competition could put that in check.