PayPal - Link Bank Account for $10 Bonus Credit

Lozblogger on 07/02/2012 - 10:07
Last edited 07/02/2012 - 11:04

Got an email just now from Paypal (genuine as far as I can tell)
saying if I link my bank account to my paypal account .. they'll give me bonus credit
weird thing is : I have 2 paypal accounts
it was $10 bonus for 1 account
and $20 bonus for the other

So my question is: is there a catch ? Any caveats ??
I'd prefer to keep my bank account separate from Paypal
Did anyone else get a similar email ?

T&C:

To qualify for the AU$20 bonus ("Bonus"), you must, after 6th February 2012, link your bank account to your PayPal account by completing the steps described above on or before 6th March 2012.The Bonus will be paid directly into your PayPal account by the 6th of April 2011. This bonus will only be deposited into PayPal accounts that are active and in good standing (that is, not limited, restricted, or have a negative balance) during the period 6th February 2012 to 6th March 2012. There is a limit of one Bonus per PayPal account. The promotion does not apply to customers that already have a linked bank account before 6th March 2012, and customers need to have the bank account linked from 6th March 2012, until the time when the bonus is paid. This offer is by invitation only. If you did not receive any communication from PayPal in relation to this promotion, you will not be eligible for the Bonus. PayPal may amend or withdraw this promotion at its discretion without notice to you and excludes all liability for any acts or omissions under this promotion.

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Comments

  • alwayscheaper on 07/02/2012 - 10:38

    Is this linking the bank account so u can actually take the money out from paypal into your bank account? Otherwise how do you take the money out?

    Have a feeling that this only applies to email recipient, I want to set up a new paypal account if this reward applies to me.

  • stralya on 07/02/2012 - 10:55
    +10

    No catch, but there are a few down sides to be aware of. Paypal is doing it because:
    a) Credit cards expire, but bank accounts do not. So accounts are always 'active' (less bounced transactions because of expired / changed credit card numbers)
    b) More profitable for them. Fees are lower on bank accounts for them, however, they charge some of their customers the same fees (3% or so) irrespective of whether a credit card or a bank account has been used to make a payment. My guess is they pay about 0.05% on bank accounts versus 1% - 1.5% on credit cards in interchange fees. So they are looking at upping their profit margin from 1.5% to 2.95% for some transactions.

    Down sides:
    1. Once you set up a bank account, it becomes the default payment method. You cannot change the default. If you want to use your credit card, each time you make a transaction, you have to manually override the 'funding source', and this option is not as obvious as it seems. I've got caught out several times when I've been I've been in a bit of a hurry and put transactions to my bank account rather than my credit card.
    2. It is quite difficult to remove your bank account from Paypal. i.e, if you wanted to go back to just having your credit card on file, it is close to impossible, unless you shut your bank account (or spend endless hours on e-mail with a customer service agent who responds with stock answers to your every query.

    In hindsight, I should have never gone down the path of adding my bank account, but I did it at a time my credit card got cancelled and I was waiting for a replacement. My advice would be, if you are happy using oyur credit card only, stick to it. DONT add your bank account. The $20 incentive is not worth it.

    • ozblogger on 07/02/2012 - 11:08

      Fair enough, I had my doubts too … not being able to delete the bank account … hmmm
      I've had heard stories where if something goes wrong Paypal can actually debit your account since you've authorized it, and disputing that with the bank could get messy !
      Probably not worth the bonus then

      • stralya on 07/02/2012 - 11:11

        In the event of a dispute, with a credit card, you can just cancel the credit card and move on to a different credit card. It is far more difficult with a bank account, with all the direct debits, credits, salary deposits etc set up.

        • t25 on 08/02/2012 - 12:56

          not if you set up a free banking account that is used exclusively for paypal. i rather have a delay of 1-2 days than risk my daily account being compromised by paypal

      • FiDad on 07/02/2012 - 12:27

        I might be special but i have previously removed my Linked bank account from my paypal account……..did it last year so don't remember much about it but i had to add a credit card first and then it let me remove the bank account easily; i have got this email too so am thinking of adding it back and then deleting it again once i get the credit

        • llama on 07/02/2012 - 22:09

          Yep - It's easy to remove your Bank Account. You just unlink it. Takes a few moments

    • c64 on 07/02/2012 - 12:48
      1. It is quite difficult to remove your bank account from Paypal. i.e, if you wanted to go back to just having your credit card on file, it is close to impossible, unless you shut your bank account (or spend endless hours on e-mail with a customer service agent who responds with stock answers to your every query.

      if it is like any other direct debit agreement then you give them notice in writing that you want to cancel the agreement. if paypal access your account after that then you contact the bank and they will reverse the transaction for you since paypal had no authority to debit your account.

      • janeymac on 07/02/2012 - 18:33

        Yeah, direct debits need to be cancelled by the party who is taking money out. I've called banks before to try to stop a direct debit from my end, because a gym couldn't find my details to cancel the account. The bank told me they couldn't do anything - my money kept being taken out each month. Was very frustrating. That was a few years ago, and things may have changed, but I try not to direct debit anything from my bank account any more. Even my rent I set up automatic payments.

        • Lenneth on 07/02/2012 - 21:24
          +3

          That doesn't sound right and it sounds like someone working at the bank didn't want to fill out the paperwork to get it done. As you authorized the direct debit you are within rights to deauthorize it too.

          From the financial ombudsman website:
          http://www.fos.org.au/centric/home_page/resolving_disputes/m…

          "If you have given a third party an authority to debit your account, that authority may be cancelled either by notice to the third party and/or by notice to the bank. This is reflected in clause 19 of the New Code of Banking Practice, which says that a bank will promptly process your instruction to cancel a direct debit request and will not direct or suggest that you should first raise any such request directly with the third party. The bank may suggest that you also contact the party and this is a prudent course to take to ensure that the authority is cancelled."

          If I got into a situation with a teller trying to fob me off then I would demand to have my account closed there and then. What could they then do? Tell me I can't close it because it has direct debits activated on it?

    • atlas on 07/02/2012 - 23:38

      I think they are most certainly doing it for the cheaper fees that they pay on direct debit vs credit card.

      Why else do you think they removed American Express?

      Why else do they gouge sellers on fees, especially in collusion with eBay (one and the same btw)?

    • atlas on 07/02/2012 - 23:42

      Out of curiosity, I logged in to my account to see if I could change/remove my bank account. It actually appears to be very easy.

      Just click on 'Profile' and then 'Add/Edit Bank Account'.

      It will then tell you the following (in answer to my own question about withdrawing funds):

      "If you remove this bank account, you can no longer withdraw funds from your PayPal account.

      Note: Removing this bank account cancels the agreement that authorised PayPal to conduct money transfers on your behalf. It will no longer be possible to use this bank account to add funds to PayPal or to pay by Instant Transfer or eCheque. If you register this bank account again later, you will have to repeat the confirmation steps in order to use these payment methods."

      • f4te on 08/02/2012 - 09:44

        Yup, it's actually quite easy to do.

      • llama on 08/02/2012 - 17:27
        +1

        Yep - it's easy to remove a Bank Account. The people who say it isn't are talking out of their a….

    • f4te on 08/02/2012 - 09:43
      +1

      It is quite difficult to remove your bank account from Paypal. i.e, if you wanted to go back to just having your credit card on file, it is close to impossible, unless you shut your bank account (or spend endless hours on e-mail with a customer service agent who responds with stock answers to your every query.

      This is not true at all from my recent experience. You just need to wait for all transactions that involve your bank account to clear, and then in PayPal go to 'Profile' > 'Add or Edit Bank Account', and then select 'Remove' next to your account. Simple & easy.

  • Choc0 on 07/02/2012 - 11:05

    Paypal are crooks. Beware. The less of your personal information they have the better.

  • CuteBirdy on 07/02/2012 - 11:38

    I didn't get this email, why??

    • c64 on 07/02/2012 - 12:56

      i haven't either.

      • bbear on 07/02/2012 - 14:54

        From T&C (according to OP):

        "This offer is by invitation only. If you did not receive any communication from PayPal in relation to this promotion, you will not be eligible for the Bonus."

      • Lenneth on 07/02/2012 - 21:04

        aww I didn't get it either.

    • Geewhizz on 10/02/2012 - 09:27

      Is your account active …. ie have you made any transactions recently? That's one of the conditions stated.

      I've just logged into my account for the first time in several days (since before the email) and there's a large banner thingy there, with the same offer I received in the email. It might be worthwhile logging into your account on the offchance an email simply went astray??

      They seem to be incredibly random in the sending out of their offers.

  • BigTime on 07/02/2012 - 13:38

    If you link your bank account and choose to pay for something (say from ebay) and paypal takes the money directly from your account (instead of your credit or debit card) does it cost anything extra? Or is it simply the same as taking the money via card except from your account?

    • Geewhizz on 07/02/2012 - 16:37

      If they take it from your account instead of the credit card, their charges are no different. However if you wanted it to come from the CC but they attempt take it from your account instead and the funds are not there to cover it, you may well incur a dishonour fee from the bank, well in excess of what paypal is offering here.

      CC is safer in that if you need to make a claim, and paypal don't make the right decision with regard to getting a refund you can always fall back on a charge back through your cc.

      Also be aware that if you do make a claim and paypal decides in your favour, the money is returned to the CC that you paid with almost instantly. Funds can take 3 to 7 days to reach a savings account.

      I had my accounk linked a few years ago, and the due to a glitch in the pp system, in spite of having selected CC as the payment method it went to my account for the funds instead (and DID incur a dishonour fee.) I don't recall now how I did it, but I unlinked my account soon afterward.

  • shortgum on 07/02/2012 - 14:14

    Is this only for one account for $10 bonus? can we add multiple of link accounts?

  • Geewhizz on 07/02/2012 - 16:46

    I've just checked my mail and have a $20 offer also. If you decide to take up the offer, be sure, as a safety precaution, to go to paypal via your usual method rather than clicking on the link:

    Link a bank account now
    You will be taken to the PayPal homepage to login

  • CuteBirdy on 07/02/2012 - 20:18

    I want the email, it's easy money.
    If you're concerned about unauthorised direct debits, close the account and open a new one! Staff are always keen to do it for you, they get commission from it.

    • stralya on 07/02/2012 - 20:40
      +2

      Easier said than done, especially if your home loan is linked to it, and you have direct debits set up. Believe me, I've been through it, and in my view, it's not worth the hassle for $10 or $20. Even if you miss moving one direct debit over, you can get pinged $20 or so in fines, as I experienced when I moved accounts. I forgot to change over my kids school fees, and was very embarrassed.

      • atlas on 07/02/2012 - 23:36

        Well then get another account, there are plenty of free ones out there.

      • CuteBirdy on 07/02/2012 - 23:41

        Who said you're only allowed to one account at a time, you can have as many as you want, obviously don't give out your main account to get the Paypal bonus, give them a dummy one.

        • Geewhizz on 08/02/2012 - 10:04

          don't give out your main account to get the Paypal bonus, give them a dummy one.

          Uh, no, don't give them a dummy one - they will want to verify the account. They will make a couple of tiny deposits into the account and you will need to tell them those amounts to qualify to receive the bonus.

  • llama on 07/02/2012 - 22:14

    Note to those who want multiple accounts… You may only link one Bank Account once.

    In my case I have an ANZ account that has a standard card and a linked Visa Debit card too. Paypal counts that as one account, not two - so I could only use it on one of my Paypal Accounts. I have two accounts to separate out my taxable income in a lazy way.

    So what I ended up having to do was use the Visa Debit as the ONLY funding source on my Buying account (personal) and used another Bank Account as my only funcding source on my Selling account. That was the only way I could get around echeques being sent.

  • INFIDEL on 07/02/2012 - 23:15

    My PayPal is linked to 28Degrees CC for free foreign exchange.
    Will changing to a bank account mean PayPal or my bank will charge conversion fees or give a worse exchange rate?? I know I can still select my cc as the funding source. Any ideas?

    • joeechick on 08/02/2012 - 09:57

      Yes, it will. It's a pain to 1. set funding source to CC, not bank account, and 2. tell paypal to charge you in the original currency and not AUD

      • INFIDEL on 08/02/2012 - 10:25

        Thanks.

  • atlas on 07/02/2012 - 23:39

    One question though - if you remove your bank account from your Paypal account, how do you withdraw money if you sell something?

    • CuteBirdy on 07/02/2012 - 23:43

      You don't, you spend it…

    • atlas on 07/02/2012 - 23:46

      The proper answer, that I subsequently found out, is that you can only withdraw funds by transferring to your bank account.

      • llama on 08/02/2012 - 17:29

        Of course, but this offer is only for people who DO NOT have their Bank Accts linked. Those are people who aren't selling or getting money transferred in, otherwise they would already have a Bank Acct linked (make sense?)

  • Geewhizz on 10/02/2012 - 07:16

    Yeah - I'm not real sure why they're so keen to have bank accounts linked. I don't see that it makes much difference to them, unless they're trying to reduce cc chargebacks . And in the case of a refund, there ARE those extra few days that they can hang onto your money if they're returning it to a bank account.

    As previously mentioned, I no longer have my ank account linked. I wonder if I do link to the account I previously used, whether the system will recognise it (and not give me the promised $20)???????

    • Geewhizz on 10/02/2012 - 10:29

      Located a statement for a nab account I opened but never used. Easy peasy. :)

      Had to ring up and get a neew card though. The girl just about gave me a heart attack when she told me a new card and pin had been requested and sent out at the end of January, because I know full well I neither requested nor received them. On investigation though, she realised that was January of LAST year when I opened the account. lol

  • Tardvark on 10/02/2012 - 09:50

    I didn't get any cash monies for linking my account :(

    Edit; Also removing the account was a 1 click process.

    • Geewhizz on 10/02/2012 - 10:30

      Haha you'd better go back and relink it, Twisted. The bonus won't be paid in until April

  • BigTime on 06/04/2012 - 12:00

    Did anyone actually receive the money from paypal? It was supposed to be deposited by the 6th of April. Here we are and still no $20

    • Geewhizz on 06/04/2012 - 17:16

      Got mine - used it to buy the Krispy Kreme doughnuts offer posted today.

      I was actually half expecting they wouldn't pay it because the couple of purchases we'd made where we'd forgotten to change the funding option from the now default bank account to CC, it bounced back to the CC anyway because there are zero funds in the account.

      Thank goodness NAB doesn't charge a dishonour fee. lol

      • BigTime on 06/04/2012 - 19:18

        How long ago did you get yours?

    • INFIDEL on 06/04/2012 - 19:41

      Yes - 4 Apr 2012 Cashback From PayPal Completed
      Just bought $24 32GB microSD card & delvery with it. Already had $6 credit with shopping square, so $2 left.
      Now to set default to CC! Only way seems to delete bank account, so did that.
      Money for nothing!

  • BigTime on 06/04/2012 - 21:20

    sighs

    looks like im gonna have to try and contact paypal and ask why I didn't get it.

    • INFIDEL on 06/04/2012 - 22:30

      Bugger@!

  • INFIDEL on 06/04/2012 - 22:30

    Check your PayPal transactions - should show a $20 deposit if successful:

    4 Apr 2012 Cashback From PayPal Completed $20

    • BigTime on 06/04/2012 - 23:05

      Nope, nothing. I'll give them a few more days (seeing as how we've got the longggg weekend) then attempt to get to the bottom of it.

  • BigTime on 13/04/2012 - 08:42
    +1

    I contacted paypal about the issue on Wednesday. They said that yes, I should have gotten the cashback and that it would be passed onto the relevant department. Got the $20 today very happy :)

  • Plentiful3271 on 24/07/2012 - 10:06

    I'm STILL waiting for my $20… been back and forth with PayPal via email and phone for ages. Bloody hopeless.

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