paypal credit nightmare with apple store advise needed

petedv

Hi, I'm a professional DJ and after the usual Friday night gig, my current MacBook pro was not fully operational and my iPhone too, so I decided to go home and purchase both brand new items on the apple store online. I decided to opt for the new PayPal, credit option for payment which lets you pay for your items in installments via PayPal. At 02.59am on Saturday morning I received an email from PayPal saying that I had been declined the credit. Then after that at 3am... I received an email confirmation from Apple stating that my order had been processed and stated clearly that the payment method was 18 monthly payments via PayPal credit of 134.13. At 3.01 another email from PayPal stating that I had submitted an order to apple for my total which was £2167. I thought no more of it as the credit had been declined. So this morning I received a text from apple to say that my phone had been dispatched and would be with me tomorrow. I wondered to myself, how could this be, sure I was declined the credit, however, after coming home from work, I checked my PayPal account and found that they are using my bank account as a backup funding service, to fund the transaction. I never once authorized this nor was I made aware of it. Therefore, if this transaction was and is going ahead, I would be potentially overdrawn with my bank and left penniless. Plus, if any, other direct debits or bill payments were to come from my bank account there would be no money in there to cover them. I called PayPal, they advised that I was not the only one with this problem, admitted they were the cause of it, and asked me to speak to apple to cancel the goods. However My phone had already been dispatched and won't be refunded until it was returned back to apple which is due for delivery tomorrow (they were able to cancel the laptop, as it was not yet dispatched) PayPal have been the cause of this issue and have yet to sort out anything. They are leaving me broke, and with the time it takes for items to be returned and refunds issued I will not be able to get my account into the black, for at least 10 days. They suggested I call my bank to cancel my payment with them, but alas Santander can do nothing as of yet. I am really angry at this situation not only having received confirmation from the apple of acceptance of credit terms initially, PayPal is now leaving me skint and in the minus with a potential lot of bank charges. Can ANYONE PLEASE ADVISE?

CoolHotCold

Have you ACTUALLY suffered any loss yet?

petedv

No, I have not suffered any loss yet, but I probably will check my account tomorrow and find that the payment has come out. If so what happens ? No the funds have been taken from my bank account apart from £25 which was in the paypal account at the time, however, at no time did I see on the screen that a backup funding source would be used if PayPal credit was not accepted

unholyangel

OP i presume you mean they have a pending transaction to your bank for the full amount, rather than the installment fee?

ETA: I tried searching the UK paypal site for info on credit and couldnt find any page offering it.....although in the Q&A it did say their "bill me later" feature is not available in your country.

petedv

Yes, I have a pending transaction for the phone now on PayPal... pay pal credit is available in the UK, plus I have the receipt from apple showing the installment amount, in British pounds the payment has yet to come out of my bank but will be due out tomorrow... Although the payment they are trying to take will be for the full amount.. For the phone, Apple can't cancel it as the phone is due for delivery today... And the backup funding source was used as my bank account which I did not authorize. Surely if you enter a shop or online store apply for credit and get declined, you don't get your bank account charged or your debit card charged for the goods in full if you dont get accepted .

Nodding_Donkey

Why didn't you just cancel the DD to paypal?

wealdroam

petedv wrote: »

For the phone, Apple can't cancel it as the phone is due for delivery today...

Send an email to Apple cancelling the order.
It is very likely that you will have to cover the cost of returning it and Apple will refund you in due course.

petedv wrote: »

And the backup funding source was used as my bank account which I did not authorize.

You almost certainly did authorise that... when you joined Paypal.

In Paypal's T&Cs, item 3.4 says:

3.4 Default Funding Sources.
When you make a payment you authorise us to obtain funds on your behalf from your applicable Funding Source, to issue E-money and to transfer the E-money to the recipient or to your Balance in each case according to your instructions and subject to the terms of this Agreement. PayPal will fund your transaction as follows:

Balance: If you have a Balance in your Account, PayPal will always use your Balance to fund your payment.

If you do not have a Balance, or your Balance is not sufficient to fund your entire transaction, PayPal will fund your transaction, or the remainder of your transaction, in the following order (to the extent that such Funding Sources are available for use with your Account):
Balance (if any)
Instant Transfer from your bank account
PayPal Credit
Debit card / credit card
eCheque

byjimini

Have to admit, I was struggling with the wall of text too.

I too have taken out Paypal credit, for an iPhone. My application was accepted, but I'm putting in some money to cover it in case they take it from my bank. As soon as I accepted it, I started to have 2nd thoughts, because Paypal can be a complete pain in the !!!! when they want to be.

d123

I haven't read the complete wall of text in the OP, but here are some details relating to the plan.

If you apply and are approved for PayPal Credit, you can use the credit limit granted to pay for today’s purchase and future purchases up to your credit limit.

Apple Store instalment purchases qualify for 14.9% p.a. for a fixed period depending on the length of the term selected.

For example a £1200 purchase split over 24 monthly payments at 14.9% p.a. would cost £57.60 per month.

Representative Example for PayPal Credit: Representative 17.9% APR (variable), purchase rate 17.9% p.a. (variable), £1200 assumed credit limit.

http://store.apple.com/uk/browse/finance/PaypalFinancingLandingPage

I would presume if you continue with a purchase after being declined for the credit it will then process as a normal PayPal payment. You will need to just cancel the purchase as you would any other distance transaction.

OP, if you really want help please learn to use paragraphs, it is extremely difficult to read a huge block of unpunctuated text on a smallish screen.

madein83

What is it with forums and their tendency to attract smug, self-satisfied !!!!!!s?

So he didn't hit 'enter' after each sentence. Whoop-de-doo. If you don't like the question, don't hit reply. Maybe, I dunno, go spend some time in the real world, with actual human beings? Or wouldn't that allow you air your arrogance behind the defences of a computer screen?

The OP is asking a simple financial question after what is a common PayPal issue. He tried to use credit, got declined, and it wasn't made clear to him that a back-up funding source would be used for the purchase. Who applies for credit and expects to be charged automatically for the full amount upon decline?

So, for the first anti-smug answer I've seen on this thread (or indeed any, at this miserable forum):

The first thing to do before using PayPal Credit, is to log in to PayPal and remove any other payment method as a back-up funding source.

Secondly, when going through the cart, double-check no other payment source is shown. It should be credit only. PayPal try to hide this in small wording (hey, they want the sale any way they can!), so make sure that's not happening.

Thirdly, if the page does not mention any source, then clearly it is a PayPal technical issue, and a call to customer service should rectify it. If it doesn't, call your bank and stop the payment.

Worst case, you'll receive your goods and be charged for it. Then, issue an immediate return, wait 7-10 days after receipt, and you should have your money back. Not ideal if you're hit with overdraft charges in the meantime, but less than absorbing the cost of a new laptop.

LilElvis

madein83 wrote: »

What is it with forums and their tendency to attract smug, self-satisfied !!!!!!s?

So he didn't hit 'enter' after each sentence. Whoop-de-doo. If you don't like the question, don't hit reply. Maybe, I dunno, go spend some time in the real world, with actual human beings? Or wouldn't that allow you air your arrogance behind the defences of a computer screen?

The OP is asking a simple financial question after what is a common PayPal issue. He tried to use credit, got declined, and it wasn't made clear to him that a back-up funding source would be used for the purchase. Who applies for credit and expects to be charged automatically for the full amount upon decline?

So, for the first anti-smug answer I've seen on this thread (or indeed any, at this miserable forum):

The first thing to do before using PayPal Credit, is to log in to PayPal and remove any other payment method as a back-up funding source.

Secondly, when going through the cart, double-check no other payment source is shown. It should be credit only. PayPal try to hide this in small wording (hey, they want the sale any way they can!), so make sure that's not happening.

Thirdly, if the page does not mention any source, then clearly it is a PayPal technical issue, and a call to customer service should rectify it. If it doesn't, call your bank and stop the payment.

Worst case, you'll receive your goods and be charged for it. Then, issue an immediate return, wait 7-10 days after receipt, and you should have your money back. Not ideal if you're hit with overdraft charges in the meantime, but less than absorbing the cost of a new laptop.

Your response might contain useful advice, but the question was posed 6 months ago. Why resurrect an old thread to rant at other members?