PayPal Charges $1.00 For Updating Credit Card

PayPal charges $1.00 for updating credit card info, but then immediately cancels the transaction. In this case, it still showed up on my bank statement.

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My credit card I had linked to my PayPal account was recently about to expire.  Therefore, I went in and updated my information, which in this case was simply changing the expiration date on the Mastercard.

I noticed on my bank statement that I was charged a $1.00 fee from PayPal, however there were no details.  Usually, when authorizing a credit card with PayPal they notify you that there will be a small charge, accompanied by a 4 digit number to confirm.  This allows you to prove that the card is in fact yours.  I was not notified of a charge, nor where there any codes to enter into PayPal or attached to the transaction.

After contacting PayPal, I was notified that they charge $1.00 anytime credit card information is updated in their system, even if it’s simply the expiration date.  This is to confirm that the card is still usable.  I was then told that the charge was immediately cancelled, so there should be a credit back to my statement for the dollar charged.

PayPal should do a better job of indicating when anytime of transaction, no matter if it’s immediately cancelled, is going to be carried out on an attached credit card.  This way we can be vigilant of our banks and ensure we receive the credit where it’s due.  As of this post, I’m awaiting a credit back to my account, but was assured by PayPal that the issue would be handled.

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