Do Not Link Checking Account To Paypal


Here's what paypal recently did to me...
Transferred $40 into paypal and left a few dollars in my other institution's checking account. Waited several days until the paypal deposit said it had completed in the web interface. Then used paypal debit card, believing they would take the funds from my paypal balance. Only instead they took the funds from my checking account, causing an overdraft. When I called they argued with me over whether the funds were available in my account or not.
Now, paypal says that they take 3-4 days to process before you can use the funds. What it seems like that means is - I initiate a transfer, and when the funds look like they are available in paypal three days later then I can use them.
What it really means must be -
"You cannot use the funds for 3-4 days AFTER we say they have arrived in your account". Not when you initiate the transaction, but when they say it has arrived. So really it can take over a week from the time you sent the funds, and they will not display the real status in the interface. so you have to check every day and count days to make sure you are well outside the time if you are expecting funding to come actually from the paypal account instead of from a backup account.
But what's worse is that when I called the rep and talked about this, they failed to explain that the transaction WAS STILL BOUNCING. A week later I get multiple charges from the same transaction hitting and generating additional NSF. Now it has been over 2 weeks since I initiated the purchase, and it is still going to poll one more time. This is an $11.00 dollar purchase that has cost me close to $200 because of this craziness.
Best advice I have seen came from this forum - do NOT link any of your checking accounts to paypal. They can only be trusted with credit cards

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