Did you get an email from Paypal with the subject ‘PayPal Debit MasterCard Information’, or something similar, telling you that a Debit Card Credit will be deducted? Here’s why.
First, have you ever wondered how much of a hold a gas station puts on your credit or debit card when you pay up front at the pump? Well, at least in some cases it’s $100, and if you don’t complete the transaction, eventually the hold is released and those funds go back into your account – in this case your Paypal account.
But, as the note from Paypal below demonstrates, sometimes it seems that in addition to releasing the hold on your funds, they will additionally (and wrongly) issue you a credit for the same amount. This results in your being overcompensated for the hold, resulting in the debit card credit being reversed.
According to Paypal, “these processing challenges may occur from time to time.”
But, there are also things you can do to help ensure that these hiccups don’t happen. For example, says Paypal, if you select ‘credit’ instead of ‘debit’ at the pump, it will help to ensure that this doesn’t happen.
Here is an example of the full notice from Paypal. So, yes, if you received something like this, it’s likely legitimate. But, again, to check on the status of anything in your Paypal account, log in directly to your account, never click on a link in such an email.
On 1/18/2015 a PIN transaction was attempted with the gas station at 1446 N 95th St., at an automated gas pump in the amount of $100.00. At the time of the authorization, we placed a temporary hold on the funds in your PayPal account. However, because the authorization was not completed we released the hold returning the funds to your PayPal account balance. In addition, we mistakenly issued to your PayPal account balance an additional “Debit Card Credit” in the amount of $100.00. As the funds in the amount of $100.00 were not deducted from the balance by the merchant as expected, the Debit Card Credit issued for that amount will be deducted on or after 2/13/2015.
If your PayPal balance is not sufficient to cover the amount of the debit, the balance will become negative. As a reminder, any attempts with the PayPal Debit MasterCard® will be declined if the balance is negative. To fund that balance, you can initiate an “Add Funds” transfer to add funds from a bank account, purchase a Green Dot Money Pak, or receive a payment into your PayPal account.
While these processing challenges may occur from time to time there are some options to avoid this from occurring in the future. For instance, when using this merchant you can choose to prepay inside the store for a set dollar amount, or you can select the ‘credit’ option instead of ‘debit’ when using the automated gas pump.
We apologize for any inconvenience this may have caused and appreciate your understanding.
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