PayPal sending limits

[*wheels*]

I have used PayPal for eBay and non eBay purchases for the past 2 years. I have had my bank account and credit card both linked to my PayPal account. Last year I removed my bank account and since then have solely used my credit card for all purchases.

I recently tried to pay for an online order from overseas with my PayPal account but kept getting an error message saying that I had exceeded my sending limit and I needed to link a debit or credit card to remove this limit. ?? I checked my account and it still said I was verified. I looked all through PayPal's help pages and could find nothing to tell me what was going wrong.

I phoned PayPal and was finally connected after 25 mins then was put on hold for another 5 mins while the operator tried to find an answer to my question. She finally said that I needed to link a bank account to re-verify my PayPal account. I then sent an email to PayPal to query this. The response I got:
Your account will have to be Verified in order to override the sending limit. Our system will automatically detect that your account is no longer Verified if the bank account is removed. This will put you back in the Unverified status with a default of a sending limit.

Verification takes about 3 days so in the meantime I paid for my online order with my Visa (and received a nice discount).

It is no wonder people get frustrated with organisations like PayPal. I have already gone through the verification process. I have never had any disputes with PayPal. So why is my credit card spending limited?
It would have been so much easier if
- there was a warning when I removed my bank account that there would be a limit placed on my spending unless I added another bank account.
- the correct message was displayed when I was trying to make a payment. After wasting time searching through the unhelpful Help pages I then wasted time phoning and emailing, only to find out I had to add a savings account to remove the limit, not another debit or credit card.

PayPal defaults to the savings account as the source of funds for payments. It seems there is no way to make it default to my credit card.

Rant over. 

[*Brum6y*]

It would have been so much easier if
- there was a warning when I removed my bank account that there would be a limit placed on my spending unless I added another bank account.
- the correct message was displayed when I was trying to make a payment. After wasting time searching through the unhelpful Help pages I then wasted time phoning and emailing, only to find out I had to add a savings account to remove the limit, not another debit or credit card.

Wheels, what you have described is a classic example of inadequate design. The fundamentals are in place and the application does the basics, but there hasn't been any 'real-life' intelligence.  It's like climbing a tree - if you start at the base and follow a single line of ascent, you'll get to the end of that branch ... just don't try and jump across to another branch! (which is what real life is really like)

This is why sometimes you'll be told to jump out of the tree and start climbing again.

[*Brum6y*]

Full marks, though, for deriving an explanation of what appears to be going on!!

(not that you should have needed to!)

[*CountessA*]

This is a bit of a problem for people who don't want their bank account to be linked to PayPal. And after all, why should someone be forced to have their bank account linked to their PayPal account? If they have another payment method attached (e.g., credit card), why is there any necessity for PayPal to know about their bank account?

And as you say, Wheels, there is obviously no warning to buyers that the removal of bank account details results in suddenly having a spending limit.

[*Ubbie Max*]

G'day everyone. I don't have any banking accounts linked to Paypal, only a debit card with a limited amount in it. The beauty of a credit/debit card is that Chargeback facilities are available if all else fails. I will never record any bank account details on Ebay or Paypal & I don't need to as I'm not a seller.

My banking institution (a Credit Union) has told me that they have something similar to chargeback

[*wheels*]

Ubbrd, do you know what your sending limit is with no bank account listed on your PayPal account? I never even knew that I had a limit until I obviously went over it. I have now linked a savings account that only has a small balance to my PayPal account. At least now I am unlimited again. It makes no sense to me! 

[*Ubbie Max*]

G'day Wheels.

I haven't got a clue. I have payed hundreds thru Paypal in the past without a problem but I rarely use it these days. I haven't bought from Ebay for a while now. I find better prices for Fishing & Archery gear (including O/S post) on other websites, many of which are ex Ebay sellers who accept Visa (etc) through their secure sites.

[llama]

On the first page of your paypal account, find the link that says "View Limits" in the PayPal balance section

It will lead to this (screen capture is from one of my unverified PP accounts)...

-click thumbnail below to enlarge it-

[*wheels*]

Thanks Llama, but I don't have a 'View Limits' tab on my PayPal screen because I have now linked another savings account and am reverified. My account was still showing as Verified even after I removed the savings account last year.

[Bazinga]

I have never given paypal a credit card or bank account

here are the limits.

Type of Limit Limit

Sending Limit $4,200.00
Remaining Limit  AUD $754.66 AUD

Withdrawal Limit $700.00 AUD $700.00 AUD

Sending Limit. The maximum amount of money you can send through PayPal before getting Verified. Getting Verified brings even more features to your PayPal account, such as being able to offer Buyer Protection.


I get funds from people I know by transfering via EFT to them and they send me paypal $$
they are typically small sellers who dont want to pay paypals fee for transfering less than the $150 minimum.

BTW I am currently looking for some more $$

[bobbybigbear]

An internet savings account cost you nothing, there are no monthly fee's and you get a slightly higher rate of interest. PayPal has no idea of how much you have in the bank, and having a netsaver account will qualify you as being verified. If you want the full options of PayPal, simply get one of these accounts and transer funds back and forth as required for purchases. When you withdraw from your PP account, you can then log in to your bank and transfer to any account you like.

You will need to remember to declare how much interest you earn to the ATO though, as unlike before, you have to declare any interest over $1.