NSF Return Item Fee

[XB]

I made a purchase on iTunes using my credit card for $1.99 and decided ti use Paypal instead to enhance my security. I linked my card to my account and proceeded with the purchase. I had a pending balance on my card so I deposited money on my account to pay for it. 

Upon checking my credit card online I noticed that there was a NSF Return Item fee of $25 from PayPal for my $1.99 purchase from iTunes! WTF! I used PayPal to secure my purchases from being stolen yet PayPal is ripping me off in plain sight!

I did not even recieve an email regarding the issue and if I had not checked my account this would have gone unnoticed.

[PayPal_Olivia]

Hi XB,

Welcome to the forums! 🙂

I think I see what happened here, and I'd be happy to help clarify.

When you use PayPal, the default payment source is your PayPal balance. When the balance is not available, the next default payment source would be a bank on file. A credit card may be available for funding the payment, but it would have to be selected at the time of the payment by clicking "change". This is available on a transaction-by-transaction basis. It is important to review the payment method before completing the payment, because the payment source may not be changed once the details have been reviewed and the button is clicked to complete the payment.

For subscriptions or recurring payments, you may change the default payment method for subsequent payments. A credit card can be established as the default payment method for future payments for that billing agreement specifically.

PayPal never charges NSF fees, but your bank may. In my experience, if you're in good standing with your bank and have never before requested a waiver of a fee, it may be worth calling to discuss the issue. If you explain that you misunderstood the funding for your payment, they may opt to waive the fee as a goodwill gesture. This is completely at the bank's discretion, but it's worth a shot! 🙂

I hope this helps!

Olivia