Can PayPal Take Money From Your Checking Account After You Close the PayPal Account?

PayPal User Agreement
PayPal's user agreement is the contract between PayPal and you, the user. It provides the terms, actions, rights and responsibilities of both you and PayPal. The contractual language it is written in can be confusing. Many provisions in the agreement protect you: security provisions and limits on financial loss due to fraud. PayPal is protected by many of the provisions when it comes to ensuring limiting liability and its ability to collect funds owed to PayPal. It is important to know the date on which you opened your PayPal account, because the user agreement you committed to may be different from the one posted on PayPal's site today.
PayPal Privacy Policy
PayPal will not disclose your information, except internally and to other organizations that are responsible for ensuring the safety and fraud prevention services, as well as providing relevant information if law enforcement agencies requires PayPal to disclose the information. Information may be shared if any of your payments or remittances has been an error. However, PayPal will confirm transaction numbers, accounts, amounts and other information internally and try to identify the problem by giving basic information without revealing banking details to the parties involved.PayPal also indicates that it could change any of its privacy policies, and it will inform users of these changes. However, PayPal does not ask for permission when changing these policies. Still, PayPal gives protection for privacy to its users and offers discretion and confidence.
Closing a PayPal Account
To close your account, you must enter your profile. At the top of the page there is an option for 'Profile'; log in, select 'Close Account' and the system will prompt you to complete some additional steps. Before you disable your account, you may delete the numbers of your credit or debit cards and your checking account number for security. To do this, you have to log in to your profile and then go to 'Bank Accounts,' select which account numbers you want to close and you should be done.When making this decision you should know that you cannot reactivate your account. When you close your account, you erase your access to the transaction history and all kinds of transactions are suspended. You cannot delete your PayPal account if you have money in your account.
One Risk of 'Agree and Create Account'
The user agreement used to open your PayPal account may allow PayPal, in certain circumstances, to remove money from your bank account. If you signed your user agreement after Oct. 11, 2001 and before Feb. 7, 2003, you are at risk if you had linked your bank account to your PayPal account. By clicking on 'Agree and Create Account' you agreed to allow PayPal to remove funds from the linked bank account that are owed to PayPal. The user agreements from Feb. 7, 2003 forward are more vague as to if PayPal can remove funds from your bank account. However, the language in the agreements does suggest that it is a possibility if you owe PayPal money even after you close your PayPal account.

How to Open a Bank Account for PayPal

1. Visit a local branch of the bank of your choice. Advise the bank representative that you would like to open a checking account. You also can opt to visit an online banking website if you do not wish to visit a local branch in person. Many banks, such as Bank of America, BB&T and Chase, will allow you to open a checking account online.
2. Complete the application for a new account. Provide the bank representative with a photo ID to prove your identity. If you are applying for an account online, you will have to enter information, such as your Social Security number and driver's license number to prove your identity.
3. Receive the account number for your new checking account. You also will need the routing number for the bank. Generally, the routing number and the checking account number will be listed on your new account paperwork. If you don't see the routing number, ask the bank representative for it.
4. Log into your PayPal account with your email address and password.
5. Click on the 'My Account' tab that is near the top of the page. Select the 'Profile' link.
6. Look underneath the 'Financial Information' section. Select the 'Bank Accounts' option.
7. Click on the 'Add Bank' button.
8. Select the 'Checking' option. Enter your bank's routing number and your checking account number into the appropriate boxes. Click 'Continue.'
9. Wait for PayPal to send the two small deposits to your checking account. The deposits can take up to two or three business days to appear. You will need to check your checking account deposit history in order to get the deposit amounts.
10. Log back into your PayPal account. Click on the 'Confirm' option. You will then be able to enter the amount of the two small PayPal deposits that were sent to your checking account. Once you have confirmed the amounts you can start using your PayPal account.

How to Use PayPal for Non

1. Sign up for a Business Account through PayPal. Click on the "Get Started" button under the "Business" option and select "Website Payments Standard" as the payment solution. Select "Nonprofit" as the type of business when filling out the application. Include checking-account details to verify your new PayPal account.
2. Collect proof of non-profit status. Prepare a copy of your tax returns and a bank statement as proof. PayPal may send an email to request documentation. Follow the instructions in the email to submit documentation. Include proof of 501(c)(3) status to obtain lower PayPal processing fees.
3. Select a place on the organization's website to put PayPal buttons. Choose multiple places to put buttons to increase the number of website visitors who see the buttons. Organizations that don't have a website can use a PayPal website service designed specifically for non-profit websites (see References 3). PayPal works with Blackbaud Now to provide the website.
4. Log in at the PayPal website and click on "Merchant Services" and "Donate" to create a donation button. Choose "Donations" in the first step and enter the name of the organization. Decide what kind of solicitation to make in the "Contribution amount" section. Non-profits can choose an open-ended solicitation to let donors enter their own amounts. They can also set a specific donation amount for all donors. Enter other optional details and click on "Create Button" at the bottom of the form to get the button code.
5. Copy the code and paste it into the HTML of the organization's website pages. Follow the instructions of the PayPal non-profit website service if using that service to host a site and solicit donations.
6. Contact PayPal for additional options if the organization generates yearly income of more than $100,000. Send an email to sales@paypal.com. Alternatively, call to 866-837-1863 (see Resources).

How to Start a PayPal Account

1. Go to paypal.com.
2. Click the 'Sign Up' link.
3. Select your country of residence, then click 'Get Started' under the 'Personal' tab.
4. Enter the email address that you want to associate with your PayPal account into the box under 'Email Address.' Enter your first and last name, date of birth, address, postal code and phone number into the boxes. Type in a password for your PayPal account into the 'Choose a Password' box.
5. Use the drop-down menu under 'Nationality' to select your nationality.
6. Click 'Agree and Accept' to create your PayPal account.

How to Wire Money Using PayPal

1. To wire money, click on the "Send Money" link near the top of the page.
2. Input the recipient's email address or mobile phone number, your phone number and the amount you wish to send. Select the currency and type of transfer, whether personal or for a purchase.
3. Enter the source of the money you would like to wire, whether PayPal balance, credit card or bank account. Confirm the account by providing the account number and other information requested. Review the payment on the next page and hit "send money" to complete the transaction.

How to Create a PayPal Link

1. Open www.PayPal.com in your Web browser. Enter your user name and password in the appropriate fields and click the 'Log in' button.
2. Click on the 'Merchant Services' tab at the top of the PayPal interface. Click on the blue 'Buy Now' link under the 'Create Buttons' heading.
3. Choose what kind of payment you want from the drop-down menu. Choose from products, services, gift certificates, donations and subscriptions or other recurrent billing.
4. Provide the additional item information requested. You must insert an item name and designate a price. Choose your preferred currency for payment--and add tax or shipping charges, if needed.
5. Click on the 'Step 2' link. Decide if you want to save your link, as well as track your sales or inventory. Choose your preferences by clicking on the corresponding boxes.
6. Click on the 'Step 3' link to edit advanced options. You can allow customers to change order quantities and add special instructions. You can also choose if the buyer's shipping address is automatically sent to you. This menu also allows you to set the redirect pages if customers cancel or complete their order. Click the 'Create Button' to continue.
7. Click the 'Email' tab to retrieve your PayPal link. Click within the text box to automatically highlight the link; right-click on the highlighted link and select 'Copy' to copy your link. Use this link to redirect your customers to make a payment.
8. Use this link on your blog, website, social networking sites and emails to sell your products.

How to Delete a Credit Card in a PayPal Account

1. Use your email address and password to log into your PayPal account.
2. Select the 'My Account' tab.
3. Click on the 'Profile' button.
4. Select 'Add or Edit Credit Card.'
5. Indicate the credit card you to wish to delete. Click on 'Remove.'