Why I'm Cancelling PayPal

[photogdave]

PayPal has been using my US dollars to pay for Canadian transactions.

I've always had my credit card as my primary payment source on my PayPal account. I had never linked a bank account or carried a cash balance because I'd never sold anything, only made purchases.

Last year I sold some articles to a US publication and they paid me in USD to my PayPal. I thought I would just keep this balance onhand to make purchases in US while continuing to make Canadian dollar purchases with my CC.

Recently I started using a web-hosting service that bills me through PayPal. I would get a monthly email saying the transaction had been done but no mention of the payment method. I only just discovered that PayPal defaults to your onhand balance first before using your chosen payment method. So for the past six months I've been needlessly paying this Canadian web service in US dollars through PayPal!

Us Canucks have limited resources for VW parts so have to buy most stuff from the US but the exchange rate can be a killer. It really sucks to have needlessly spent a bunch of USD I had saved up to pay for Canadian transactions. PayPal was no help and won't let me change the payment method. I have to spend all the money at once so I have a zero balance before the transactions will go back to my credit card. I can ask the web hoster for a refund and then repay them another way but they are not obligated to do this for me.

I suppose I should have checked my credit card statements more closely but I just assumed (never assume!) that since all my previous transactions used my CC, this one would too.
Maybe I'm just ignorant of how the online economy works but this annoyed me enough that I'm going to cancel my PayPal.

Edit: Sorry, meant to post this in Off Topic! ...um, Vanagons...
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[davevickery]

They must be doing a conversion though so I am not sure I understand the issue. You can transfer any balance to your bank then it will go back to cc purchases. You don't have to wait either you just have to initiate it. PayPal is so convenient and free if you want it to be.

[photogdave]

The issue is that I thought I had a specific amount of money is US currency that I could use for US purchases. PayPal has been using that US currency to pay for a Canadian service, so now I have less US money. If I want to make a purchase from the US I will now have to convert more Canadian money and lose on the exchange rate.
If I transfer the balance to a bank account (I don't have one connected to PayPal and don't really want to) they will convert it to CDN and again I will lose on the exchange rate for future US purchases.
Basically I'm upset that I didn't realize PayPal was using my USD to pay for a Canadian service and I've been needlessly wasting US currency that could have been better spent on Vanagon parts.
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89 Syncro GL Westfalia 2.1 WBX/WBXaustSS

My Westy Movies:
photogdave On Vimeo
photogdave On YouTube

Stop dead photo links! Post your photos to The Samba Gallery!

[Q-Dog]

It has been this way since the very beginning of the service ... Paypal will always use up the balance in your acount before charging your alternate form of payment. Again, It has always been this way. The backup account or credit card is supposed to cover you if your Paypal account gets to zero. That said, I never keep a balance in mine and haven't used it in years.
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'69 Dune Buggy
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[60ragtop]

I was under standing that they used your balance first also.
from paypal site
"If you have a balance in your PayPal account, we always use that first."
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[photogdave]

I guess because for years I had never carried a balance and always made purchases that debited my CC, I had never become familiar with this term of the service.
So although I can't fault PayPal per se, I'm still angry that I can't choose my payment method and have to unload my US dollar balance at a time not of my choosing.
Not the end of the world but in future I will choose not to use PayPal.
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89 Syncro GL Westfalia 2.1 WBX/WBXaustSS

My Westy Movies:
photogdave On Vimeo
photogdave On YouTube

Stop dead photo links! Post your photos to The Samba Gallery!

[[email protected]]

There are alternative payment services other than Paypal. I prefer Paypal personally, but I kind of Know they will do that, its in their contract you got when you signed up. We were up to Canada for the June Jitter Bug, had a great time, although stuff was more expensive. Socialism sucks, or sucks your wallet, not being smart assed, but did you ever consider moving to the USA? The southeast US is cheap to live, and has an abundance of VW grave yards/recyclers with very reasonable prices.

[Major Woody]

If you have paypal linked to your bank account, you can transfer your balance out of Paypal and into your bank account anytime and at no charge.
Honestly I don't know what the problem is other than that you didn't pay attention to how the site works.

[photogdave]

[calvinater]

Could you use two seperate accounts
One for Can dollars and one for USD ?
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"Albatross"!

[Keith]

You're annoyed they don't provide more options for preferred payments?!

You should take some time to look at the PayPal website or call PayPal to have them explain your options.

You basically have unlimited options. I have a checking account, debit cards and several credit cards connected to my paypal.

By default it will use what's in your PayPal balance ( as it is clearly stated) UNLESS you specify that you want to use a different method on a drop down menu.

Your issue isn't an issue at all other than you didn't fully understand how PayPal works and that's nobody else's fault but your own. Chalk it up to the cost of learning and move on.
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[babysnakes]

Some good advice above. I like PayPal. I use it for most online transactions if possible. The fewer businesses I give my financial info to the better. I have used them for years.

[photogdave]

[Cali_Army_Guy]

How would you loose money? You'd get $1.34 Canadian for every $1 US. So if I bought something from you for $2 and you deposited it in to your bank you'd end up with $2.68.
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2015 VW Passat Wolfsburg Edition
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[Bruce]

You don't understand how currency conversion works. When you send that $2USD at the time when the conversion rate says it's worth $2.68CAD, Paypal will only give us $2.61CAD. That's because Paypal charges a fee to convert the money. Then, on the other side, if I needed to buy $2USD, Paypal will charge me $2.75. Note, this conversion fee is on top of the fee Paypal charges for making the transaction.

For photodave, make a trip to Point Roberts WA and go into the Banner Bank and open an account. There's no charge. Then link this US bank acct to your Paypal account. When you sell something in $USD, immediately pull it out of your Paypal and into the safety of your Banner Bank acct. When you need to buy something, fund it from your US bank acct.
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[photogdave]

[hotsam]

I use Paypal to avoid signing up to websites and giving them my information. I only have it linked to a credit card (not debit). I'll never link my bank account to them, never maintain a balance, and I'll never give them my SSN.

I used to sell things, and as a seller Paypal is a complete nightmare. People can dispute anything and Paypal can lock up your account and suck you dry whenever they feel like it.
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1968 Beetle

[aeromech]

I love PayPal. Been on since about 1999 or so. I remember buying stuff on eBay before PayPal.

Win auction
Drive to post office to buy money order
Mail money order
Wait about 10 days
Finally receive item

PayPal is well worth it to me for buying stuff and I like getting an immediate email when a transaction happens unlike a regular cc. I also use PayPal to receive payment for services I render like the $200 I got this week for doing a pre-purchase inspection on a 1971 bus.
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[Ashfordy]

Agreed with hotsam, anyone can dispute anything and you end up getting it withdrawn from your paypal...it is a nightmare for a seller. I only use it to purchase now and will never sell on ebay again.

[VDubTech]