Jump to content

Sign in to follow this  
bluesmap

usaa insufficient funds? what?

Recommended Posts

im having trouble understanding exactly what insufficient funds means, and i'd like to clarify that before i call usaa and eventually paypal.

 

i thought that you are hit with an insufficient funds fee if you try to make a charge, and you dont have enough funds, and the bank covers the amount of the insufficient funds for you. you get hit with a fee if you dont have overdraft protection, etc.

 

but, if a merchant tries to charge say a debit transaction and the debit transaction is denied, why should i, or anyone else pay an insufficient funds fee? im having trouble understanding this concept because i thought that you get hit with a fee only when the bank covers you, not when a charge simply gets declined.

 

i need to go ahead and cancel my paypal account, its just been a nightmare with them over the years. they (paypal) were supposed to take funds from my usaa credit card, not my usaa checking account and now i have fees with usaa checking. im pissed. super pissed.

ebay, paypal....im cancelling those accounts asap.

 

but can i get usaa to reverse those insufficient charges since all that happened was the charges to my checking was declined when paypal attempted to complete a transaction?

Edited by bluesmap

Share this post


Link to post
Share on other sites

I'm going to take a guess here and say that PayPal processed it as an ACH instead of running it through your debit card. If you had not signed up for overdraft protection and PayPal tried to process against the debit, you should have gotten no charge. But they probably used ACH (eCheck) which is much cheaper for them and, yes, that's just like a bounced check so hence the fee. Now if you call USAA and explain the situation, I'd be shocked if they wouldn't refund you as long as this is your first incident of something like this happening.

 

And, as honest advice, stop using PayPal the way you are doing it. Because you lose CC protections and open yourself to something not working somewhere down the line. Ideally you should just transfer the PayPal money in your account to USAA checking, use your CC, then use the money to pay it off...Of course that's just advice so don't take it the wrong way. Just keep in mind and be prepared for PayPal to likely continue using ACH vs. CC/Debit as it is much cheaper for them.

Share this post


Link to post
Share on other sites

Addition: Also I'd recommend that you make good on any negative balances as soon as you financially can so you don't end up in Chex due to some stupid computer. Of course this is only if you can financially afford to do so. You can then argue for the refunds of wrongly billed fees, but thirty bucks is better off written off as the cost of banking with a shi*ty non-bank (paypal) than ending up in Chex or something.

Edited by Remember Remember

Share this post


Link to post
Share on other sites

its actually 29 dollars, twice. when it was denied teh first time, paypal waited a few days and did it again.

 

the thing is, i didnt even want to go through my checking. i wanted to use my credit card to pay for the transaction. but when im on ebay, it forces me to use paypal, in the end i couldnt simply use my credit card for a simple transaction. i tried to pay as a "guest" and use credit card, but it still found a way to force me to log into my paypal account and complete the transaction that way. so then i added my credit card into my paypal account and decided to just let paypal use my credit card. but then it became a big fat mess.

 

im cancelling ebay/paypal as i just dont need the headache. ive never had any problems online until i started using paypal, and right now ive had enough.

 

yes, it was processed as ACH

Share this post


Link to post
Share on other sites

its actually 29 dollars, twice. when it was denied teh first time, paypal waited a few days and did it again.

 

the thing is, i didnt even want to go through my checking. i wanted to use my credit card to pay for the transaction. but when im on ebay, it forces me to use paypal, in the end i couldnt simply use my credit card for a simple transaction. i tried to pay as a "guest" and use credit card, but it still found a way to force me to log into my paypal account and complete the transaction that way. so then i added my credit card into my paypal account and decided to just let paypal use my credit card. but then it became a big fat mess.

 

im cancelling ebay/paypal as i just dont need the headache. ive never had any problems online until i started using paypal, and right now ive had enough.

 

yes, it was processed as ACH

Paypal most of the time defaults to your bank account linked to the account(in my case, my savings). All you do, is when you get to that page, there is "change payment" option to click on. Click that, and change it to your CC. I do it every time I use Paypal.

Share this post


Link to post
Share on other sites

PayPal does not allow a credit/debit card as the default payment method in order to maximize their profits by reducing the transaction fees they pay. Only a checking account or Bill Me Later/PayPal credit account can be the default payment method.

 

I run all eBay/PayPal purchases via credit card, so for every single payment I have to change the payment method. It's very easy to either forget to change it or not complete the process as PayPal likes to swap the buttons around and vary the process in order to make people slip up. I've made it a habit the past several years to double- and triple-check the payment method before hitting "submit". Fortunately for me, the "checking" account attached to my PayPal account is just a prepaid card that never has any funds on it and doesn't charge overdraft fees for declined ACH transfers so on the couple of occasions when I slipped up (with PayPal's help) it hasn't cost me anything.

Share this post


Link to post
Share on other sites

so the question i guess, should i even bother calling usaa and try to get both $29 charges reversed. i have funds in my checking, its not like those 29 charges are not covered. i just dont want to be out 60 bucks (well, 29 x 2 = 58 really)

 

or should i just move on as a lesson learned with paypal. i really REALLY thought this was going through my credit card, im still pissed.

Share this post


Link to post
Share on other sites

They may offer a curtosey refund for those fees. My local credit union does. Usually everyone will at least refund NSF fees once a year for customers.

Edited by stroked89coupe

Share this post


Link to post
Share on other sites

Yeah, USAA is pretty good (well, the best in my book!), so it is definitely worth asking. My guess is they get calls about PayPal related problems on a daily basis.

Share this post


Link to post
Share on other sites

PayPal does not allow a credit/debit card as the default payment method in order to maximize their profits by reducing the transaction fees they pay. Only a checking account or Bill Me Later/PayPal credit account can be the default payment method.

 

I run all eBay/PayPal purchases via credit card, so for every single payment I have to change the payment method. It's very easy to either forget to change it or not complete the process as PayPal likes to swap the buttons around and vary the process in order to make people slip up. I've made it a habit the past several years to double- and triple-check the payment method before hitting "submit". Fortunately for me, the "checking" account attached to my PayPal account is just a prepaid card that never has any funds on it and doesn't charge overdraft fees for declined ACH transfers so on the couple of occasions when I slipped up (with PayPal's help) it hasn't cost me anything.

 

You can remove your checking account from Paypal. You only need a checking account if you are going to sell. Then it should default to debit or credit card. I don't like to add any card now--it is much harder to add a prepaid debit card but not impossible. As long as the prepaid debit card provides online transaction history you should be able to use the debit card. The paypal code will only show on the posted transactions-not memo.

Share this post


Link to post
Share on other sites

I haven't checked in a while, but last I heard without attaching your checking account to PayPal they put a monthly spending limit on your account.

Share this post


Link to post
Share on other sites

update on this dilemma, happy ending.

 

long story short, paypal tried to charge the transaction as etf/checking. without funds it got declined and usaa charged me insufficient funds fee. paypal tried again, and again i was charged a fee.

 

i called usaa, usaa said: "let me see here what i can do.....can i put you on hold for a moment?......ok done. there. i went ahead and took care of that for you, sorry to keep you on hold for so long. and dont worry we get calls about paypal so much people are having problems with paypal so dont feel bad."

 

boom. i removed usaa accounts from my paypal account and closed that account. i have another paypal account that i use with my New York address.

 

usaa, from my experience, is super duper awesome. :yahoo:

 

:clapping:

Edited by bluesmap

Share this post


Link to post
Share on other sites

As a long time member of USAA and Ebay/PayPal. You can set PayPal up several different ways. I do mostly sell so my experience may be different than yours. However USAA have some of the best customer support and I had a INF fee. Called them explained my situation and they reversed it. So will they yes however if this is a common occurrence but from the sound of it it is not. Then by all means call them discuss with them. You may be surprised.

 

 

***Sorry you posted before I hit enter. USAA is great!***

Edited by ljayatl96

Share this post


Link to post
Share on other sites

Congrats!

 

I have only ever called USAA to ask for the discount on CCMP. Both times they have been super nice, though.

Share this post


Link to post
Share on other sites

Glad they were able to help you, they are awesome. As a side note, did you know you could link your credit card to your checking account and have overdraft protection at no charge? That would have elimated your entire issue. Just FYI. :)

Share this post


Link to post
Share on other sites

Glad they were able to help you, they are awesome. As a side note, did you know you could link your credit card to your checking account and have overdraft protection at no charge? That would have elimated your entire issue. Just FYI. :)

 

i JUST found out days ago. i was talking to a friend and she told me about it on messenger. i immediately signed on to USAA, found the option and "fixed" it. :yahoo:

 

thank YOU for the heads up. :D

Share this post


Link to post
Share on other sites

its actually 29 dollars, twice. when it was denied teh first time, paypal waited a few days and did it again.

 

the thing is, i didnt even want to go through my checking. i wanted to use my credit card to pay for the transaction. but when im on ebay, it forces me to use paypal, in the end i couldnt simply use my credit card for a simple transaction. i tried to pay as a "guest" and use credit card, but it still found a way to force me to log into my paypal account and complete the transaction that way. so then i added my credit card into my paypal account and decided to just let paypal use my credit card. but then it became a big fat mess.

 

im cancelling ebay/paypal as i just dont need the headache. ive never had any problems online until i started using paypal, and right now ive had enough.

 

yes, it was processed as ACH

Paypal most of the time defaults to your bank account linked to the account(in my case, my savings). All you do, is when you get to that page, there is "change payment" option to click on. Click that, and change it to your CC. I do it every time I use Paypal.

 

I've run into issues with this before as well. I used to have it default to my CC and sometime in the past 2 years, they changed it so it always defaults to your checking account. Every time I make a payment using PayPal I have to change the funding source. Pain in the butt but now that I know I need to do that, it's commonplace.

Share this post


Link to post
Share on other sites

Side note--if using your debit card to fund paypal in seperate account. Turn off overdraft coverage for both checking & debit card. In fact, you don't need to add a checking account to use paypal unless you are going to sell. I don't think there is a spending limit. Just a monthly transfer limit to your checking account. That shouldn't effect you, unless you put money in paypal or receive money from a freind as a gift. Purchase will always be refunded to your debit card.

 

 

There may be a spending limit on your own debit card. Some banks have daily authorization limit.

 

One another thing, if you turned off overdraft coverage for the debit card. The bank or credit union cannot charge you an overdraft fee or NSF for that transaction even if they covered that transaction. The only exception is if you have auto payments set to come out each month, then the bank or credit union can charge.

Share this post


Link to post
Share on other sites

Setting up a USAA credit card as your overdraft protection for your USAA checking has got to be one of the most useful things they have, seriously!

 

I have literally paid a bill via bank account withdrawal KNOWING it would OD me and end up on the credit card (free of charge no less) just so I could know that the bill was paid.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines