PayPal and Cross Collateralization?

[vicmost]

I have a PayPal credit card and a PayPal account. I was concerned that they may be able to collect funds from items I sell or may even be able to debit my checking account for payments not made to my credit card. (I'm filing within the next two weeks). Does anybody have any info on this? As it stands I deleted all the links to bank accounts and credit cards...I'd rather be safe than sorry!

[kvangild]

From my experience of having a PayPal Credit Card and PayPal account I don't believe they do cross-utilization. I had my PayPal Credit card charged off and still had incoming money from sales on EBay coming into my PayPal account. I was able to cash-out to my bank account with no problems of them taking it. I'm sure this might be a case by case basis and my balance on the PayPal credit card wasn't very high when it was charged off, so it could be different if you have a larger balance. I haven't looked at the user agreement in a long time so you might want to take a closer look there.

[kvangild]

One more thing I wanted to mention was your paypal credit card is provided by GE Money Bank and your PayPal account is provided/owned by Ebay. So I doubt they can do cross-utilization. Just my two cents........

[Penny Less]

I defaulted on a "Providian" (now chase?) PayPal credit card AND a GE Money "Buyer's Credit?" thingy that were linked to my PayPal account. Not a peep from them. The amounts were maxed at about $3k and $200. This was last Feb and my PayPal account is fine.

If your actual PayPal account goes negative for any reason on its own they will come after you very aggressively. But they are VERY easy to work with - so much better then any bank. I had an issue last year where due to a system error on their end I had an -$800 balance that built up over a course of 6 months. It posted all at once. They gave me 100 interest free days to pay it back and didn't hurt my account at all - they even stopped their 3rd party collection agency when I asked them nicely on the phone!

[vicmost]

Thanks for the advice. I will add my current bank and then delete it just to be safe. I need to purchase a tool for my work and it is much cheaper on ebay...It sounds like i'm safe though..It's very hard to buy something on ebay without paypal anymore.
Thanks again!

[Penny Less]

One more thing, they won't let you delete your bank account if your account goes negative. Just FYI.

Also, you might want to call PayPal itself, after adding your bank account, and have the customer service representative remove anything on your account that could cause an "auto-charge" to the bank.

When I called about the $800 the CS person actually told me there was a bunch of stuff that could potentially auto-charge and they took it all out over the phone in one swoop. Some of it I think I agreed to over the years, others, I just don't know, it wasn't obvious to me at all that it was in there. So it's absolutely worth having a CS person check even if its a new account - they can do alot of stuff you can't.