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Should I have a separate bank account for PayPal?

I've been using PayPal for years, with no problems. However, I've started to wonder if it might make sense to establish a separate bank account to use just for PayPal transactions.

I like the convenience of just being able to have funds for a purchase come right out of my checking account rather than using a credit card -- especially when buying something inexpensive. And I like being able to transfer the funds from a sale right into my account. Consequently, I wouldn't want to use PayPal without having it linked to a bank account.

That said, in my increasingly paranoid old age -- or is it simple wisdom? -- I've begun to imagine that something could go wrong. If PayPal is going to be able to remove all sorts of money from my linked account because of some odd mistake or whatever, I'd rather it weren't from the account I use for my living expenses.

Am I being overly nervous? What do most of you folks do?

Thanks for any advice on this.

-- Howard
hodu
minkwelder
256 posts
 
I always use a credit card for Paypal purchases and, in at least one case, it saved me a lot of grief (and I actually MADE money!). I was one of about 30 people who purchased custom-built tube amplifiers from a seller on that auction site who was in WAY over his head. In a nutshell, the guy made a feeble attempt to produce several of the amps, and the rest of us were stiffed.

I filed a claim with my credit card company and, after they investigated, I was reimbursed the entire $480. In the meantime, the seller hired an attorney who promptly paid us all back. As an added bonus, when I notified the credit card company that I was paid and asked them how to return their money, they informed me that the case was closed.

So, I was actually paid $480 for getting ripped off!

jmcgrogan2's avatar
jmcgrogan2
6,346 posts
 
I have heard enough PayPal horror stories that I got a separate bank account just for PayPal years ago, just in case anything should happen. I wouldn't want some scammer to have access to my main bank account through PayPal. Knock on wood, so far it hasn't really been an issue, but it's better to be safe than sorry.
polk432
1,142 posts
 
Yes! Only keep enough to cover expenses. A hacker can put in fake addresses along with yours, (you should periodically check your paypal information, look it up thru editing to make sure you only have your address in there) and make purchases that you are charged for, send them to a vacent lot or empty building, then the post office driver will take them back to the local post office, where the crook will try to claim it a few days later. It's getting to be like telling a person with an STD to be careful next time. Watch out!
zd542
5,339 posts
 
When PayPal makes a mistake, its your fault, not theirs.
ebm
9,311 posts
 
Paypal is a Jive Turkey!!
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