PayPal Funding Sources

Have you ever wondered how PayPal Funding Sources work and what's the order in which they're taken?If so - read on:The funding sources available to you when you make a payment by PayPal will depend on whether or not:You have sufficient money already in your PayPal account (i.e. a PayPal balance)You have added a bank account and confirmed it by gepleting bank fundingYou have a valid credit card attached to your PayPal accountPayPal BalanceIf you have enough money in your PayPal account to cover a payment then that money will always be used first unless payment is made by eCheck.PayPal balance payments are instant.eCheckAn eCheck is a payment made from your bank account using Direct Debit.So
if you have confirmed your bank/checking account with PayPal, but dont have a
credit card, you can make a payment by eCheck.An
eCheck is similar to a paper cheque. Funds are deducted from your bank
account by PayPal and then paid to the sellers PayPal account. This
process takes about 3-4 working days from a US bank account. An eCheck payment will remain Uncleared
until the money is actually deposited in the sellers PayPal account.
Most sellers will not send out goods until the eCheck has cleared, in
case the transfer fails for some reason.Please remember that the seller does not receive cleared funds as soon as the money has been taken from your bank account.Instant Bank TransferAn
Instant Bank Transfer is a payment made from your bank account using
Direct Debit when you also have a credit card attached to your
PayPal account. So it is like an eCheck, but in this case the payment
is instant and doesnt have to clear, because if the Direct Debit
payment fails then your credit card is used as a backup
funding source.For this reason, when you make an IBT payment, you cannot remove the credit card used as the Back-Up Source from your PayPal account until the money has been deducted from your bank account.Remember it will take PayPal several days to actually take funds from your bank account even though PayPal will give the money to your seller straight away.When youve set up Direct Debit with PayPal and have added a credit card to your PayPal account, IBT is the default funding source when you make a payment. So if you want to use your card you will have to select it manually.Credit CardIf
you dont have enough funds for the payment and you havent confirmed
your bank account then payment will be funded by the card youve
nominated as Primary, though you can change that to another card when
you pay.If the funding source is defaulting to IBT (i.e. you
have confirmed your bank account) you can change the funding source
from IBT to any of the cards you have added to your PayPal account at the point you make a payment.Click the More Funding Options link to change the funding source:This then shows all the available funding options:Select the relevant card and press Continue.Ignore any messages from PayPal encouraging you to use your bank account.It
is safer for you to use a credit card in case the goods dont arrive or
there is a problem when they do, because your card issuer may charge-back the payment for you.But always check with your credit
card issuer what protection you will have because this varies from
gepany to gepany. Visa card providers appear more likely to do this than Mastercard providers.Your screen will now show the card as the funding source:SummaryIf
you have enough existing funds in your PayPal account to cover a
payment, then those funds will be used instead of IBT or your
credit card, and you cant change that. But you will be able to make
the whole of the payment by eCheck and not use the funds already in
your PayPal account.If your account balance is not
enough for the payment, then what funds there are will be used and the
rest needed to make up the payment will be funded by IBT or your credit card.But you will be able to make the whole of the payment by eCheck and not use the funds already in your PayPal account.