Originally Posted by socaldmax
That is not how it works. If you sell something and the buyer sends you money, the money is held in escrow for a period, until it appears the buyer is satisfied. They can't go in an randomly take money from your account. Every withdrawal has been approved in advance by the paypal user.
Incorrect, that IS how it works...buyers have 45 days to initiate a dispute, and I've never had them hold funds in escrow for 45 days until that window passes. They might do that for high risk sellers but its not the norm. PayPal does infact have the technical and legal
ability to take money from your bank account at any time. You give them that right when you link the accounts and give them all your bank info.
It used to be more common for them to withdraw money from bank accounts during disputes, but after a lot of bad press, they now generally prefer to just empty your paypal balance and make your PayPal balance go negative if you don't have enough. Any future payments are automatically confiscated and if you take too long to clear the balance, they send the bill collectors after you and damage your credit score. But they still retain the technical and legal
ability to drain your bank account to resolve negative balances.
Infact, the default setting automatically takes your ebay fees
directly from your bank account if your paypal balance has insufficient funds, and I've seen reports of bank overdraft fees
being incurred because of this.