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The main argument for another small bank account to interface with PayPals of this world is not that it cannot fail, but if it does it is an easily survivable e
by ptero 4y ago
The main argument for another small bank account to interface with PayPals of this world is not that it cannot fail, but if it does it is an easily survivable event.
- dotancohen 4y agoWhy is it easily survivable any more than Paypal taking money out of your regular bank? If you don't pay it, the bank will come after you.
- ptero 4y agoPayPal cannot take more money out of your account than what is in the account. If you have $500 in an account the bank will not let PayPal withdraw $5000 from it. It's not different from writing a check for $5000, which will just bounce. The bank is not in the business of allowing overdrafts and then somehow collecting the difference.
- dotancohen 4y ago> The bank is not in the business of allowing overdrafts > and then somehow collecting the difference. But one's main bank is? I don't see how the intermediary is any different in that regard?
- ptero 4y agoNo bank will honor your check for more money than is in your account. The amount in your account gives a hard stop on the amount you can lose. Having a separate account with enough for the current Paypal transaction (that you refill from the main bank account as needed, in a few mouse clicks) means you limit your losses from a transaction gone wrong with a major company. Can a malicious player try pulling money from your main account? Absolutely. But the chances of a large company, like Paypal, hitting you like this on an account not registered with them is zero. And your bank's fraud protection should stop an attempt to pull a large sum from your account by an unknown company in a sketchy country.