I use PayPal all the time to make online purchases. I find it very very convenient.
A number of my clients use it to collect payments on their websites because it is free to join, the fees are comparable to other merchant services and your customers no longer need a PayPal account to make a purchase or pay an invoice with PayPal. It is a great option for letting people pay you online.
Several weeks ago, a client of mine called because one of her customers kept having their credit card declined by PayPal and she wanted to know what could be the matter. We did some sleuthing. I called the PayPal customer service number (888-215-5506), but since the difficulty didn’t happen with a transaction on my PayPal account they couldn’t check the logs. When my client called, they were able to look at the error logs and we found out why the credit card would not go through.
AND it wasn’t for all your normal reasons like the billing address doesn’t match the credit card address or the card is maxed out. It was for a reason that never would have occurred to me.
When you go to check out with PayPal, there is an option to not check out with a PayPal account (see image below).
The reason why the customer’s credit card was being rejected was because the customer had a PayPal account with that credit card number recorded in it. However, the customer didn’t realize that they could pay by credit card logging into their PayPal account, or for some reason wanted not to log into their PayPal account, so they had clicked on “Don’t have a Paypal account” option and were trying to pay outside of their PayPal account.
PayPal assumes that if a credit card number is in someone’s PayPal account, and then a charge is run through on the same number but not through the PayPal account, there may be fraud involved. The card might have been lost or stolen.
If you have a PayPal account, the option “Don’t have a PayPal account” will not work unless you use a credit card number that is not associated with your PayPal account.
PayPal defaults, I believe, to extract payments from the bank account that you have on file. If times are lean and your bank account is feeling anemic, then you may hesitate to use PayPal for purchases. It is very very easy, however, to change the payment method for a purchase once you’ve logged into your PayPal account.
When you log into your PayPal account to make a purchase, there is a link to change your payment method.
When you click the change link, you can then select to pay with your credit card on file.
In conclusion, if you have a credit card on file with PayPal, and want to make purchases with that credit card, you need to do it by logging into your PayPal account and selecting it as a payment method. If you try to use it without logging into your PayPal account, chances are it will be declined.