A paypal question

[JustHolly]

I know a few of you do a lot with ebay and other online auctions. My father has a question, and I told him I'd check my "sources"

He just opened a paypal account and was given the option to put money into it. It is also linked to his checking account. His question is, by putting money into the paypal account, does it process the transactions any more quickly? And if he buys something, does the payment come out of the money he put into paypal, or from his checking account first? What if the thing he buys is more than what's in his paypal account, does it then automatically get deducted from his checking?

Basically, what are the advantages and disadvantages of keeping money in your paypal account?

Thanks in advance for your help!
Holly

 

[Fire14]

if you pay for something with exsisting balance in acct. paypal will deduct from that first, if you buy something costing more than balance in pp acct. it will make up diffence by asking you where to get money from ie: checking acct. cc on file with paypal etc. I have never noticed increased speed of receiving something when paying from exsisting balance and actually sellers wouldn't know unless you used a cc and their acct can't accept cc. I know you can earn ainterest on your PP acct. balance but I found it to much effort to even set that part up.

 

[JustHolly]

Thanks for the quick reply! I called him and told him.

 

[Cinders]

His question is, by putting money into the paypal account, does it process the transactions any more quickly?

Yes if enough is in there to cover the whole auction.

And if he buys something, does the payment come out of the money he put into paypal, or from his checking account first?

He makes that choice when he pays.

What if the thing he buys is more than what's in his paypal account, does it then automatically get deducted from his checking?

Depends....some people accept credit cards as payments. He could choose Credit card, Echeck or withdrawal from his checking (the last 2 take a few days)

Basically, what are the advantages and disadvantages of keeping money in your paypal account?

If its a small amount then it makes for very fast payments. But I would not keep a large sum in there since its possible for someone to somehow steal the money. Usually IF I have any money in my account its only $10. And thats only if I have bid on something.....say a postcard and I know I'll most likely win it. It just makes the transaction go faster which means I get the card faster. Most of us that sell on Ebay that are on the Budget Board have opened a separate checking account that is used strictly for Ebay. Once we have a certain amount in that account we either move it into another account, buy Disney Dollars, or just withdraw it and put it in a envelope or something to save for our trips. If he is in no hurry to receive the items he is buying I'd suggest not keeping a balance in the PayPal account....sellers will happily await a transaction that has been started.

 

[*Flower*]

Honestly, I refuse to have anyone given the ability to access my bank account- unless there's a minimum amount of money in it.
I use a low limit charge card (I buy, not sell(- that way if someone tries to empty my account- all they get is a bit. And I'm only out $50 or so- if I wait to report the fraud.

Just a thought........

 

[KathiWithAnI]

Now I'm confused why people are saying it's "faster" if you do it this way or that... I have bought things from ebay via paypal many many times and have sometimes funded with a credit card and sometimes funded with a checking account.... both ways pymts were sent instantly to the seller........I never keep a balance in paypal.
I could see the e-check maybe taking a day or 2, but simply funding from my checking acount has always sent the money immediately to the seller

Just curious,
Kathi

 

[JustHolly]

Thanks so much for all the info. I forwarded him a link!