Recently, I noticed a negative balance in my Paypal account. Wondering what could be the wrong, I contacted their customer support. It seems, when Paypal tried to transfer the amount to my bank, it bounced. That's the reason I got a negative balance in my paypal account. Actually, I recently changed my bank details and forgot to update the IFSC code. As per Paypal rules, if you don't pay the negative balance within 120 days, you would never be able to login to your paypal account. I cleared this negative balance and again in the following month, I noticed another negative balance. I contacted their customer support once again, but this time they didn't have an answer. It was a mistake, because their account section did not update my Paypal account details. Though they never admitted it. Beware, a negative balance cannot be reversed! You would have to first clear the negative balance in your paypal account, before transferring any amount to your bank account.
Thank you for sharing this with us. I never thought there would be a negative balance in bank account or PayPal account. Good that you let us know about this, and I think it is good for us to check our PayPal account always. Well, perhaps at least once in 3 or 4 months. Did your bank or PayPal contact you when the transfer failed?
This information is really good, I have never had a negative balance in my Paypal until now. Maybe this does not fit for me because the PayPal transfer the money on my card and not in my direct bank account!
Thanks for the information! I am also a PayPal user and never had such an issue with them. The payment gets withdrawn directly to my Bank account. But I am not able to understand exactly the reason that why did they charged you with a negative balance. I gotta read their terms and conditions again.
It is a good thing that you share this fact, I will keep this in mind and will be extra careful with my Paypal credits. I just wonder, does your negative balance grow for say, you have a negative $50 in your account and then a month had passed? Will it accumulate if you don't settle it soon and just ignore it? Or it will just stay as it is?
You have done well to share your experience with PayPal especially about the negative balance. It is not clear to me what causes it because I used to think it is a debt. I have never experienced it because I never withdraw money from PayPal to bank directly. My bank account is connected to PayPal as a prepayment and so I log in on my online bank account and withdraw from there. PayPal will show I have paid a bank account.
I didn't know that we have different ways of withdrawing money from our Paypal funds to our respective bank accounts. I typically make the withdrawal through my Paypal account to my bank account so I can't possibly transfer funds to my bank account if the Paypal balance is negative. That also means that I would have to access my Paypal account to make the transfer and that a negative balance or Paypal charge can't go undetected. I can only transfer whatever balance there is on my Paypal account. In any case, my monthly funds/earnings would have automatically covered the Paypal charge, if any.
I never heard of this and I never had any negative balances in my account as far as I can remember. If I don't have enough cash directly in Paypal a bill is charged from my connected debit card. I know they combine payments if you lack in main account, but I never heard the payment can bounce and that you may end up with a negative balance.
Let me share my own experience on the negative balance. There was a time that I sent money to someone using my Paypal. I didn’t notice that the money I am sending is more than the balance of my Paypal account. Before clicking the send button, there was a message that the money to be sent would be charged to my bank account. And since I was in a hurry, I did not mind it and went on with the sending. The transaction was okay since the other party acknowledged my remittance. But then I got a message from my bank about the withdrawal. When I checked, the remittance was charged on my credit card and my Paypal balance was unchanged.
I haven't had a negative balance yet, but thanks for the heads up! I make it a point to always keep my details up to date so that such situations can be avoided.
Negative paypal balance never happened to me. So I have no idea what lead to that. I am sure that there are some people who must have faced this. It could be possible that paypal does this to recover sales and other dispute charges. And another thing possible is that paypal has it's set of the limitations with the negative balance as well. So we have to check with their support.
This is very strange, I have never heard of Paypal doing this to anyone until now. Whenever I am paid from any of the sites I work for in my Paypal Account, it is always automatically transferred to my linked bank account the same day or the next day so my account balance is always zero. This is something new for me. It is really annoying that it happened to you, but I hope it is cleared by the customer service and your money is not lost!
Now the Paypal has a different money tactic; if you have not just enough cash in the Paypal account they will charge both the Paypal account and the card connected to it. If you happen to not have enough money in the card, they will report an error. So, I don't know how the user could have the negative balance unless he has a card that allows a negative balance as is.
This is a new information for me. I did not know you could have a negative balance. My paypal account is not linked with bank. I have linked a card and when my account balance is insufficient for payment, I use my card associated with paypal. Since I don't withdraw my paypal balance, I don't have to send it to my bank.
This is certainly a new concept for me. I appreciate you sharing this information. It never occurred to me that a PayPal balance could go negative or that a payment to the bank could bounce. I have been using PayPal for the past three years and experienced no problems whatsoever. I am glad that the customer support guys helped you out. I, however, don't understand something you have mentioned. What is the IFSC code?
