Whats the best bank account for Paypal?

23n1th

Hi guys,

I'm thinking of setting up a paypal account. And I was wondering which bank account is best to set one up with.

Basically I don't trust paypal as I have heard numerous horror stories about them randomly taking payments and making people overdrawn etc.

With that in mind I would like to set up a bank account just for paypal which has no overdraft facility and one that should there be no funds in the account no money will be paid from the account.

Is there such a bank account?

Thanks for your help.

Gromitt

I just use a credit card, then it isn't my money and can't make me overdrawn. Also means I get 3% cashback on whatever I buy via paypal (as thats what my CC gives me)

If you use a bank account and forget to add funds before using paypal, it could get messy. I know someone who got charged £50 for doing just that. I don't know any banks which will just refuse without charges apart from some which will close your account instead.

However, If your intending using Paypal for selling, then things are different. I don't know if you can use a CC as your main funding source when you have an bank account linked with them which will cost them next to nothing to withdraw funds from (compared to a CC)

hillcats

Indeed I don't trust PayPal one iota - nothing but greed !
As already stated only use a credit card, not your everyday current account.

Deru

Any bank account with a bank that will let you have an overdraft facility. You can have the facility but not use it. First Direct give you £250 interest free.

Then use a credit card for PayPal payments as suggested. You would need a bank account for withdrawals but there's a chance that you accidentally fund a purchase with the bank account if PayPal defaults your funding source to your bank. In the event of a charge back, they will attempt to take money from your bank rather than your credit card to save themselves charges. Charge backs and for PayPal to claw back money before giving you a chance to do something about negative balances is rare though given the number of amount of transactions.

Saying that, there is always the chance of getting defrauded if you sell stuff so always use tracked and insured postal methods for high value items. Don't bother with cheap stuff but do get Proof of Posting. Also, don't allow collections for items paid with PayPal.

fiesta04

Credit card is definitely the way to go.

F4

innovate

You can predict with almost certainty that some shady characters will appear as soon as the word Paypal is mentioned

Hominu

I do sell stuff on Paypal, but its only low value stuff, so rather than linking Paypal to my bank account, I simply spend the money elsewhere. If I don't have sufficient funds, my CC is linked.

Once a bank account is linked, it will be the default for all payments. You can change it when you make a payment, but you can't set a CC to the default payment method once you have a linked bank account. If you try, it'll set it as a "Backup funding source" instead.

23n1th

Thanks for the replies.

I won't be selling anything our buying much either unless I'm forced to with no other option. So am I right in thinking that a credit card is best? If they withdraw money from the credit card I dispute it then Paypal have to deal with them?

dalesrider

Be aware that if you use paypal to buy anything, if funded by a credit card.
You lose S75 ( no debitor/creditor link)

Also any chargeback actioned by your card provider can fail as PP are just the money movement company and not the supplier of goods.

If your only reason for signing upto paypal is to stop retailer gaining access to your card details. Then do not bother as its more trouble than its worth.
If its beacuse you need it for ebay then its OK.

23n1th

dalesrider wrote: »

Be aware that if you use paypal to buy anything, if funded by a credit card.
You lose S75 ( no debitor/creditor link)

Also any chargeback actioned by your card provider can fail as PP are just the money movement company and not the supplier of goods.

If your only reason for signing upto paypal is to stop retailer gaining access to your card details. Then do not bother as its more trouble than its worth.
If its beacuse you need it for ebay then its OK.

I need paypal to make one purchase from a website that doesn't have any other means of payments.

Like I said I don't trust paypal, I have never used it before and I don't use ebay for the same reasons.

I've been doing some reading if I understand it right I will link my CC to paypal for this purchase and then unlink it once I have the items.

dalesrider

23n1th wrote: »

I need paypal to make one purchase from a website that doesn't have any other means of payments.

Like I said I don't trust paypal, I have never used it before and I don't use ebay for the same reasons.

I've been doing some reading if I understand it right I will link my CC to paypal for this purchase and then unlink it once I have the items.

You can you the paypal system as a guest to make payments.

While there are many scare stories about PP. In the main they are good at dealing with issues. See them on a regular basis.

Not sure you will be able to link and then unlink a card without providing another card.