# PayPal Verified - Linking Bank Account - Have You Done This?



## jlwquilter (Jan 8, 2011)

Well, I got the dreaded email yesterday from Paypal informing me that I have just about reached their spending limit. I now 'need' to link my bank account to my Paypal account or I can't pay for items using Paypal. That stinks. Especially as I just bought another timeshare last night and kinda maybe need to pay for it using Paypal!

I am leary of linking my bank account to _any_ organization. I have a long and good history with Paypal (which is how I spent so much $$ using them!). I also know that it's a good history since I've not had any problems ever. That may change at any time though. Sooner or later I'm bound to have somethign go wrong with a purchase. Also with the hijackings of account information that major businesses do suffer, I want to keep my exposure as low as possible: ie: not link if I can avoid it.

I do have a call into the seller to see if other options are available for this specific buy (cashier's check, etc.) but sooner or later I am going to have to address this issue. Do I link as it's really not a big deal or are there other options available to me??

I'd love to hear what otehr TUGgers have done!


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## myoakley (Jan 8, 2011)

jlwquilter said:


> Well, I got the dreaded email yesterday from Paypal informing me that I have just about reached their spending limit. I now 'need' to link my bank account to my Paypal account or I can't pay for items using Paypal. That stinks. Especially as I just bought another timeshare last night and kinda maybe need to pay for it using Paypal!
> 
> I am leary of linking my bank account to _any_ organization. I have a long and good history with Paypal (which is how I spent so much $$ using them!). I also know that it's a good history since I've not had any problems ever. That may change at any time though. Sooner or later I'm bound to have somethign go wrong with a purchase. Also with the hijackings of account information that major businesses do suffer, I want to keep my exposure as low as possible: ie: not link if I can avoid it.
> 
> ...



I had the same concerns.  At the bank, the manager suggested that I open another account with a smaller amount of money in it to use just for Paypal.  You might want to consider this option.


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## caribbeansun (Jan 8, 2011)

I've had my bank linked to Paypal for 10+ years and have never had an issue of any kind.


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## learnalot (Jan 8, 2011)

myoakley said:


> I had the same concerns.  At the bank, the manager suggested that I open another account with a smaller amount of money in it to use just for Paypal.  You might want to consider this option.



My husband did the same thing.  A designated account only for Paypal, not linked to any overdraft protection accounts, keeps very small amount of funds in account and transfers money in only when needed to pay for a purchase.


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## Passepartout (Jan 8, 2011)

learnalot said:


> My husband did the same thing.  A designated account only for Paypal, not linked to any overdraft protection accounts, keeps very small amount of funds in account and transfers money in only when needed to pay for a purchase.



Sounds like an excellent solution. How come I hadn't thought of it? I have always been a little wary of having PayPal linked to a 'regular' account. Thanks for the tip.

Jim Ricks


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## pjrose (Jan 8, 2011)

myoakley said:


> I had the same concerns.  At the bank, the manager suggested that I open another account with a smaller amount of money in it to use just for Paypal.  You might want to consider this option.



We did that too.

Just be sure that you do NOT use the link in an email to make any changes to your PayPal account, as the email might be phishing.   Go directly to PayPal via your browser.


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## jlwquilter (Jan 8, 2011)

I like the idea of having a seperate small bank account for the linking to Paypal if I do have to link. I could live with that.

Now to figure out how to have that small account. These days banks don't want that small account! For it to be free you have to keep a larger than I'd want balance (defeats the purpose) or have a direct deposit, which also would defeat the purpose in our case as only DH works and his pay goes into our normal account for living.

We do have a small minor's account for our daughter - my DH is the custodian. Do you think that would link ok? Can you link a savings account vs. a checking account if it's a 'regular' savings acct. (not a minor's)?

I appreciate the information!


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## learnalot (Jan 8, 2011)

jlwquilter said:


> I like the idea of having a seperate small bank account for the linking to Paypal if I do have to link. I could live with that.
> 
> Now to figure out how to have that small account. These days banks don't want that small account! For it to be free you have to keep a larger than I'd want balance (defeats the purpose) or have a direct deposit, which also would defeat the purpose in our case as only DH works and his pay goes into our normal account for living.
> 
> ...



Don't know the answer to your savings account question.  We bank with credit unions.  Not only do they allow him to maintain an account with a very small balance that is only for Paypal, on our main accounts they pay 6.25% interest on the first $500 in each account.  We have 4 accounts (plus the small one for Paypal): one checking and one savings in each of our names.  Each of us is primary on two and an authorized user on the other two.   I do our banking out of one and keep the others as reserve.  We can easily transfer money between the accounts as necessary.


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## pjrose (Jan 8, 2011)

Our bank (M&T) waives the checking acct fees if there is more than $XX in all the *combined* accts....so having 1 small one doesn't cost us more.


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## DeniseM (Jan 8, 2011)

Someone already said this, but it can't be emphasized too much - *Do NOT respond to the email - it could be a scam.*  Instead, log in directly to your Paypal Acct. and make any changes there.

I also have a separate bank Acct. for Paypal.


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## jlwquilter (Jan 8, 2011)

DeniseM said:


> Someone already said this, but it can't be emphasized too much - *Do NOT respond to the email - it could be a scam.*  Instead, log in directly to your Paypal Acct. and make any changes there.
> 
> I also have a separate bank Acct. for Paypal.



I appreciate the warnings. Even though I am overall careful, it just takes a second of inattention to spell disaster.

In this case I have logged onto Paypal directly and my limit cap is for real. I tried to pay for the auction anyway (you never know!) but it said nope, I need to verify.

The seller does accept cashier's checks so I can go that route. He has good feedback and nothing negative said here. That will take the pressure off me  .

I am going to call my bank tomorrow and see what they offer. They've been bought twice now since we opened our acct. so who knows what the new rules and offerings are. I will call some credit unions in the general area and see what they have to say as well.


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## chriskre (Jan 8, 2011)

I've been paypal verified for about 5 years because as an ebay seller you gotta do it to get your money.  

So far no problems except once when I purchased something and there was no paypal balance and paypal kept drawing from my bank account because it was a purchase from China and credit card was not an option back then.  

I don't think that's an issue anymore since I've made several purchases since then but it cost me quite a bit in ACH denial fees.  My credit union would not waive the fees and basically extorted me by saying either I pay the fees or they would report me to the banking credit bureaus. 
I paid the fees.:annoyed: 

Now I always keep a balance in paypal so I don't have to deal with it anymore.


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## pwrshift (Jan 8, 2011)

I've never been told by Paypal that I needed a bank link but that may because I keep several thousand dollars from past TS resales (in the old days) and never needed the money in my bank.  I too would be concerned about Paypal accessing my bank accounts...but I don't do any online banking for the same reason of not trusting the internet.

Brian


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## Talent312 (Jan 8, 2011)

I linked my bank account to PayPal for a while and there were no issues.
But after several months, I deleted the link, becuz it was too easy to pay
from checking by mistake and for me, the risk didn't serve any purpose.

For those who do, I would not only use a second account, but also another
bank or credit union. I have accounts at three different credit unions here.
Each account is designed to serve a distinct purpose.


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## chrispy08 (Jan 8, 2011)

I've had a paypal linked bank account for at least 5 years and never had a problem...I can even choose to pay with a credit card instead of out of the account!


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## NWL (Jan 8, 2011)

If you do choose to link a bank account, it will become the default payment option for all transactions.  You must click on the "Change" button to choose another mode of payment.  

Cheers!


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## pjrose (Jan 8, 2011)

NWL said:


> If you do choose to link a bank account, it will become the default payment option for all transactions.  You must click on the "Change" button to choose another mode of payment.
> 
> Cheers!



They don't make this really obvious...and then if you do change the option, they make you confirm that you really want to use your credit card...it's easy to miss.


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## jlwquilter (Jan 8, 2011)

pjrose said:


> They don't make this really obvious...and then if you do change the option, they make you confirm that you really want to use your credit card...it's easy to miss.



That's the point TAlent123 was making. I don't know what Paypal gets out of the whole thing anyway. If they make you link for security (I see don't see the security it provides) they could still let you then set your credit card as the payment default. But they don't.

And I am at the unverified limit of... get this... $10,000.00 So I have spent almost $10,000 using Paypal over the past 10 years or so and NOW they are worried I may be fraudulent?? It's crap. And that just makes me mad and even more determined to find a way around this.


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## NWL (Jan 8, 2011)

pjrose said:


> They don't make this really obvious...and then if you do change the option, they make you confirm that you really want to use your credit card...it's easy to miss.



Yes it is easy to miss.  I learned about this from a TUG thread that appeared a couple of years ago.  Just wanted to "pay it forward".



jlwquilter said:


> It's crap. And that just makes me mad and even more determined to find a way around this.



Since you use PayPal that much, I think a separate bank account that is only used for PayPal is a good option.

Cheers!


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## AwayWeGo (Jan 8, 2011)

*I Resemble That Remark.*




jlwquilter said:


> I am leary of linking my bank account to _any_ organization.


The checking account I have that's connected to PayPal is a dinky, throw-away account used only for PayPal.   It never has more than a few hundred dollars in it.  If the bad guys hack in & wipe it out, the loss is minimal -- by contrast with what could happen if the bad guys hacked into my _real_ checking account. 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## jlwquilter (Jan 10, 2011)

My thanks to everyone who posted! DH went to our bank on lunch and opened a free checking acct. with a $5 deposit. I guess times have changed and free checking is now once again available.

I will try linking this throw-away account to my Paypal Account tonight. I feel much happier paying for the new timeshare purchase using a credit card.


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## pittle (Jan 10, 2011)

That sounds like a good idea.  We have had my checking account linked with PayPal for at least 5 years.  We have never had a problem with PayPal and our checking account. We used to just use the credit card, but now only choose that option for more expensive items - like timeshare purchases.  

You just have to do what is most comfortable for you.


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## funtime (Jan 10, 2011)

While I have my regular account linked, this thread reminded me of a prior thread and its advice I went in and "delinked" a second account that I also had linked in.  Halves the danger.  Funtime


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## jlwquilter (Jan 10, 2011)

I just linked the throw away checking account. So far, so easy. Now I have to wait until the 2 small deposits show up so I can complete the verification process.

BTW, they do give an option to link a savings account as well.

Does anyone know if I can link more than one Paypal account to a single bank account? I have a small balance (under $100) on another Paypal account (I bake professionally, rarely). I've let that money sit there a long time because I didn't want to link it. Now that I have a link on my main Paypal acct. as may as well link the small Paypal account to it the throw away bank acct. as well, if possible. I didn't want to try it tonight in case a 2nd link would mess things up.... I need to move on the timeshare purchase as a priority.


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## Explorer7 (Jan 10, 2011)

chrispy08 said:


> I've had a paypal linked bank account for at least 5 years and never had a problem...I can even choose to pay with a credit card instead of out of the account!



ditto for me it's been about 7 years with checking and credit card linked with no problems


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## DeniseM (Jan 10, 2011)

jlwquilter said:


> Does anyone know if I can link more than one Paypal account to a single bank account? I have a small balance (under $100) on another Paypal account (I bake professionally, rarely). I've let that money sit there a long time because I didn't want to link it.



You don't have to do that.  Just send the $100 to the new Acct. -  Log in to the old Acct., click "send money,"  click on "personal," and "other," and send it to the new Paypal email address.


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## jlwquilter (Jan 10, 2011)

DeniseM said:


> You don't have to do that.  Just send the $100 to the new Acct. -  Log in to the old Acct., click "send money,"  click on "personal," and "other," and send it to the new Paypal email address.



Awesome! Do I pay a fee to do that?


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## DeniseM (Jan 10, 2011)

No - not with a transfer from your Acct. to another Acct.


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## Kona Lovers (Jan 10, 2011)

myoakley said:


> I had the same concerns.  At the bank, the manager suggested that I open another account with a smaller amount of money in it to use just for Paypal.  You might want to consider this option.



This is what I have done as well.


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## jlwquilter (Jan 11, 2011)

DeniseM said:


> No - not with a transfer from your Acct. to another Acct.



Thanks Denise - then that is what I will do once the dust settles.


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