I've only linked my bank account to paypal as well, but I can see many reasons to use a CC only. bfun mentioned the fraud issue. I think paypal handles fraud transactions well and swiftly, but that may not always be the case, as it would be a case by case issue. But the other is if you have a CC that has kickbacks /rewards for incentive for you to use it.
I actually have a checking account for Direct Deposits. But I do let money pile up in that one. I've read enough PayPal horror stories to where a free checking account is worth the effort.
Any examples of horror stories? Seems unlikely for someone to be able to zero out your checking account through PayPal without it being obvious fraud.
Nothing has ever happened to me, and due to my paranoia and DoD level checks and balances, nothing will! But there are entire websites devoted to PayPal related horror stories. Google search: paypalsucks.com screw-paypal.com aboutpaypal.org paypalwarning.com All it takes is < 1 minute to get yourself a free checking account, is all I'm saying. Why wouldn't you?
I've never had a problem with paypal, but I've also never used it anywhere dodgy. Just Steam, Greenmangaming, and ebay.
Those sites look really sketchy, and they're all pushing an "alternative" to PayPal with a bunch of unverified stories and dodgy info.
I've never worried about it before but maybe I should. Set up a subscription the other day. Maybe I'm now DOOOOOOMED. The only instance I've had of fraud so far is with a credit card I never used in real life at all or in any virtual environment. It was just a balance transfer thing to get free interest. We got the money back fine but it must have been the bank fucking up somehow.
That's what I though but then I got the notice that I'd reached a 10k limit and I thought BS. They don't make it easy to search though history but I guess after all these years of using it I finally maxed out. There is always the possibility of some evil person gaining access to a PayPal account and if that happens I'd much rather them rack up a bunch of charges on my credit card rather than pull money from my checking. My first transaction after linking the checking account went a stray. I chose to use a credit card but it went with my checking account instead. Possibly because the seller wanted a verified account. The transaction overdrew my account and I had to run and make a deposit the same day. I was lucky I didn't get an overdraft fee. I used to love PayPal but now I think they know they're the only game in town and don't care if they piss people off.
I've only ever used it on eBay and never had an issue. In fact, PayPal has given me back my money with every eBay dispute I can remember. @alterego The only one that was around years ago when I implemented my no direct account setup with PP was Paypal Sucks. Most horror stories don't actually involve buying but selling, which I did on eBay a lot a few years ago. There was potential to get your account frozen or them even trying to charge your checking for fraudulent charge backs. Small sellers have almost no recourse against a charge back, you are out the $$ and merchandise on the CC co.'s say so. The buyer horror stories are usually related to stupidity on the part of the user. But over 11 years now I've never had an issue. At the same time, I just don't see any harm in minimizing my potential losses, especially when it can be done for free and very lazily.
I'm surprised a hippy liberal like alterego would have so much faith in a greedy mega-corporation. They pollute the air with CO2, cut down trees, and burn barrels of cash in front of poor people.
The faith isn't really in the corporation. It's in the probability. And I don't agree with bfun that having a giant tab on a credit card that can be charged up to 30% interest on the bank's whim provides greater peace of mind. Even if you lost the money in your checking account, they can't charge you interest on it if they stonewall you on the fraud issue.
I think the only thing that can be disagreed on is the level of paranoia. In terms of "buyer protection", Bfun is 100% correct. A credit card will offer you way better safety, not just on PayPal but anywhere. You don't pay any interest on a disputed transaction, so that is a non-issue. The CC company doesn't pay the seller for 60-90 days, so the seller can't screw you over because you have lots of time to do a return/dispute. If you pay with cash or checking account, your money is gone and you are relying on the good faith of the seller to deliver. I once had a ~$1200 fraudulent charge on my CC after travelling abroad. They issued me a new card overnight, and shifted my monthly recurring bills and everything themselves. For example, my Netflix still has the old card number, but CC co. forwards the charge to my new account, I guess. (Thought it was good/bad because I've often used the cancelled card trick to get out of monthly recurring charges!) But the point is, I never had to do anything but call the 1800#. If it was my checking account, it would have been a total pain in the ass to deal with, and I would be without the $1200 the entire time of the investigation.
Why bother to use PayPal in the first place if you think fraud protection for credit cards is really that safe? And the fact remains: linking your PayPal account to checking doesn't increase the probability of being defrauded. There's no difference.
I do use a CC through PayPal, doubling my layers of protection. I can do a PP dispute as well as CC dispute on an eBay item. Are you at a higher risk of being defrauded with a linked checking account, no. But if you are, it's going to be a long tedious chore vs a CC. @bfun They default you to the checking account for the money. It cost them $0 to take from your checking account and they charge the merchant a 2.9% fee. If you pay with a CC, it probably cost PP ~1.5% which eats into the merchant fee.
I'm still not seeing how checking would be more of a chore vs. a credit card if the transaction in question goes through PayPal.
This. With the exception of Amazon I trust PayPal more than most online stores but that doesn't mean I trust them fully. Let me ask you this. If you make a purchase through a website that you've never used before and you can't use PayPal, would you feel more comfortable giving them your checking account information or using a credit card?
That's an entirely different situation. PayPal, regardless of checking or credit being linked, conceals the direct information about either source when used for payment. My argument isn't about using your checking account directly online vs. a credit card. I'm just questioning the idea that linking to checking thru PayPal is somehow riskier or more difficult for resolving fraud claims.
Well I've gotten to a point that I don't use my checking for anything but payment to my credit cards which are also with the same bank. Most all of my bills go through my credits cards which I feel is safer and provides me with the added benefit of cash back. I don't even use a debit card. I also don't carry any cash or use ATMs if I can help it. The one and only time I used an ATM to make a cash deposit the stupid machine flaked out and lost the transation. I had to file a complaint with the bank and they had to do a physical money count on the machine to find the money.
Because the money is gone from your checking account!!! I can't sleep at night on that. On a CC it's a charge you have 30-90 days to deal with and sort out.
It's not PayPal I'm afraid of. It's some asshole on eBay that might try to screw me, if PP doesn't resolve my dispute I damn well will get my money back from my CC company.