Instant Transfer/bank overdraft?

[shanagam]

My daughter paid for items via PayPal Instant Transfer and it caused her bank account to overdraw. I'm unclear why PayPal would authorized payment.  Can someone clarify?

[Robmerc]

Any luck figuring this issue out

[shanagam]

Not yet.

[kernowlass]

@shanagam 

Sorry but do you mean she purchased items without enough money in her bank account?

If so then...........

Transfers from bank accounts are never instant, that is why when you buy something paypal credit the seller upfront for you and paypal take the wait for the funds to transfer to pay them back again, this is so you get your item without delay.

Takes 5-7 working days to transfer as Paypal use the slowest (cheapest) transfer option BUT funds normally leave your bank account from a few hours up to a few days later.

If there are not enough funds then your bank will either decline the transaction and so paypal will put your paypal account into negative until you pay them back again OR the bank will allow you an overdraft and go ahead and transfer the funds to paypal.

[shanagam]

Thank you!  That's helpful!

She apparently had her account and my account linked to her PayPal.  We received several overdraft notices that the bank covered that said "Starbucks/PayPal Instant Transfer".  Does that mean she has a PayPal Credit?  I'm assuming if not that she had money in her wallet that she didn't transfer to her account.