If this doesn’t scare you away from this company, I don’t know what will. A couple of weeks ago I made a purchase that amounted to roughly $430 using PayPal and selected to pay by credit card versus a bank account payment as I always do. I’ve been paying this way for at least 10 years glitch free. Well I logged in two days ago to see that I have a negative amount owing to PayPal and some guy from accounts receivable trying to contact me to pay it. This makes zero sense as all of my payments are immediate since I use my credit card. I looked at that transaction for $430 and see that I successfully submitted it but two days later, PayPal decided to ignore the fact that it was a credit card payment and instead gave the seller…get this…$280 from PayPal funds. Not even $430 but this random amount of $280. PayPal then decided that I now owe them slightly more than $280 U.S. And I’m Canadian. This would work out to over $300 for me to pay. The difference ‘owing’ to this Canadian retailer is $154. So where the hell is this random U.S. amount coming from?!! They literally reached into my account, changed my form of payment, didn’t properly pay the retailer and are now billing me some astronomical fee. What a bizarre and irritating situation.
Source: http://www.paypalwarning.com/trusting-morons-paypal-money-day/