If you're adding a debit card to your PayPal account, READ THIS FIRST!
There may be a limitation to adding debit cards to your PayPal account. In my case, I was charged a fee of US$1 (MYR 3.27), and have to now go through a time consuming process to have it refunded.
It's been 30 days since I was charged that fee in error. With both the bank and PayPal shrugging their shoulders and unwilling to take ownership of the problem, I've been left in a lurch.
On January 10, 2008, I added my Standard Chartered debit card to my list on PayPal. A day later I realised I was billed for US$1 by PayPal. Here's what PayPal had to say after I sent them an email:
As usual, Standard Chartered was not aware of this problem, and was also not able to provide more information on the "temporary charge" policy. They however, advised me to wait out the 30 days as specified by PayPal, and then contact PayPal if the reversal / refund was not made by that time. In typical Standard Chartered style, not very helpful.
I've waited for 30 days, and have now sent another email to PayPal to highlight this case.
Here's my guess as to what's happening: Unlike credit cards, most debit cards do not have the feature of making a temporary charge. This is similar to what "they" do to your card when you use it at a petrol station, i.e. the bank will block off RM150 irrespective of whether you are pumping less fuel. However, you never see this transaction on your statement, as it's just a temporary charge.
Come to think of it, a little bird at Visa tried explaining this to me over the weekend, but I've lost track of the exact terms and process flow. I'll try to get her to help with a brief explanation for everyone's benefit asap.
Till then, remember to check your statements!
It's been 30 days since I was charged that fee in error. With both the bank and PayPal shrugging their shoulders and unwilling to take ownership of the problem, I've been left in a lurch.
On January 10, 2008, I added my Standard Chartered debit card to my list on PayPal. A day later I realised I was billed for US$1 by PayPal. Here's what PayPal had to say after I sent them an email:
We noticed that you have concerns about the MYR 3.27 (around US$1) on your card ending with 1219. By checking, we found that you added this card on Jan 10, 2008.
Please note that for any cards you add to or edit on your PayPal account, our credit card processor will place a temporary charge USD1 on your account as part of the credit card authorization process. The authorization will stay only briefly on your card and will stay in a "hold" or "pending" status. The transaction will be removed from your account within a few minutes to 30 days depending on your bank. You may see an authorization even if the card was not approved. Please do not worry. You can contact PayPal customer service again if this charge remains after 30 days. Thank you.
As usual, Standard Chartered was not aware of this problem, and was also not able to provide more information on the "temporary charge" policy. They however, advised me to wait out the 30 days as specified by PayPal, and then contact PayPal if the reversal / refund was not made by that time. In typical Standard Chartered style, not very helpful.
I've waited for 30 days, and have now sent another email to PayPal to highlight this case.
Here's my guess as to what's happening: Unlike credit cards, most debit cards do not have the feature of making a temporary charge. This is similar to what "they" do to your card when you use it at a petrol station, i.e. the bank will block off RM150 irrespective of whether you are pumping less fuel. However, you never see this transaction on your statement, as it's just a temporary charge.
Come to think of it, a little bird at Visa tried explaining this to me over the weekend, but I've lost track of the exact terms and process flow. I'll try to get her to help with a brief explanation for everyone's benefit asap.
Till then, remember to check your statements!
Labels: banks, paypal, standard-chartered, user experience
posted by Praveen at
9:59 PM
10 Comments:
You can definately find a whole lot of explanation on what is credit and debit card in wiki. Basically, debit card is linked to your savings account which is your money while credit like its name is on credit and the bank waits for you to pay them.
I believe the $1 transaction is what we term as a status check transaction which is used to validate if the card number entered is valid and "alive". Because this is a debit card, the amount is generally deducted from your savings account immediately and should be reinstated if its a status check transaction and usually does not take up to 30-days (but this depends on the bank).
Suggest that you get the SCB ppl to check if they have paid Paypal or the bank behind Paypal. If they have not done so, then SCB should credit the amount back to you immediately. If they have paid Paypal, then they should get in touch with Paypal (or the bank behind Paypal) to reimburse back the amount to them. All in all, I do not believe that the cardholder should be punished for all these discrepancies. SCB should have followed up on these disputes and it be minimal inconvenience to you.
Suggest you also speak to the customer service manager instead since there are various versions of response you are getting from everyone else.
Drop me a mail if you need more info :)
@mp: thanks for the comprehensive explanation. No feedback yet from SCB or PayPal on this case. $1 still missing!
Paypal is a bit messed up, I don't know why they do it but I believe you'll get back that $1 when you make your first payment with paypal.
hi,
I've been trying to add my STANCHART card to PayPal but it rejects saying the bank has denied verification etc! Also a charge of USD 1.95 will be charged which will be refunded after verfication!! the bank said that they prefer that we DO NOT use the card for online transactions! Weird!
@fayyaz: absolutely weird! Where are you based?
I have been looking myself for the ways which can help me to know the exact way to add Debit Card to PayPal. I have an AXIS Bank debit card and the same message i.e. bank has denied verification shows to me. Contacting the Bank was of no use as they had no clue whatsoever.
If they have stopped adding Debit Cards then why is the option still there?
I have a paypal account! and the 1.95 dollars they charge have been refunded to my credit card! i currently have a standard chartered credit card in United Arab Emirates! can i withdraw amount to my card from the paypal account?
@saif: it's best to check with your bank if they can handle withdrawals. In most cases you can only withdraw through a debit card, and not credit cards.
Sir, I have a debit card on Axisbank but Paypal decline my card and say to contact with my bank. I alredy Varified by visa. So Wht I can do now... Help me..
My email Id: tgb4biz@gmail.com Thanks for read this
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