@shacklestore wrote:
@englishrosegardens wrote:
When anyone wants to sell and use paypal they have to authorise access to their account. This is becasue of the shonky sellers who get a heap of sales, withdraw their paypal funds, then disappear into thin air. It's just paypal's way of ensuring that people don't abscond with the funds after fraudulent transactions. If there was no way for paypal to recoup the funds in this sort of situation then it'd become a pretty popular practice, and guess who'd end up paying for it? Yes, the honest sellers.
They upgraded their agreement a few years ago so that anyone who continued to use paypal agreed to give them access to their bank account. We all got an email about it and agreed to it by default (by continuing to use paypal).
It's not really that much different to banks refusing to give you credit without some sort of security for the loan.
I have to disagree with you. I don't believe giving Paypal access to my bank account so that they can withdraw funds at will is safe. The agreement includes allowing Paypal to withdraw funds at the request of third-parties (whoever they may be). Also I don't believe that the reason Paypal is demanding this is to protect from shonky sellers. It may be one reason but it is a feeble reason. Those shonky sellers could just transfer fraudulent obtained funds to another bank account anyway. The direct debit agreement is a facility but I don't need it so don't want it.
However there are 2 issues at hand regarding Paypal's position. The second one is Paypal holding into funds until I authorise their access to funds in my bank account. However whether it is legal will be clarified by the regulator once they get back to me.
Paypal had full access to your funds in your previous bank account so it's no different with your new account.
Even if a shonky seller transfers the funds out of their account and there's nothing in it, paypal has authorisation to withdraw funds from the account and leave it overdrawn. When they brought this in they put a clause in to say that any fees for being overdrawn as a result of this are the seller's responsibility, not paypal's. By continuing to use paypal we all agreed to this by default, and we were all notified about it at the time so we had a choice.
One of the third parties involved is ebay - when there's a claim for item not received or not as described, ebay asks paypal to either retrieve the funds from our paypal balance or from the linked account. Another third party would be another bank if someone does a chargeback through their bank.
You might not want the direct debit facility but you can't use paypal without it because they need security for your selling - end of story. I'm not arguing the legality of it, I'm just stating what the paypal terms are and have been for some time.
