PayPal gives you several purchasing options for your online financial transactions. By default, PayPal first draws funds from your existing PayPal balance before drawing from another funding source such as a bank account or credit card. PayPal enables you to adjust your preferred funding source at the time of a purchase, but if you want to automate your funding source for all future transactions to your pre-approved merchants, you can do so by changing the Preferred Payment Method under the "My Money" section of your profile. For Business payments, PayPal limits your funding options to your PayPal balance and eCheck bank account.
Change Funding Source For All Merchant Transactions
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Step 1
Log in to your PayPal account. Hover your cursor over "Profile" and select "My Money" from the menu.
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Step 2
Click "Update" under the section "My preapproved payments."
Step 3
Click the "Set Available Funding Sources" link.
Step 4
Select or deselect one or more of the payment funding sources in the "Available Funding Sources" list. Click the "Save" button. From now on, all purchases you make with your pre-approved merchants will be funded from this source. If you select more than one source, PayPal will draw funds first from your PayPal balance, next your bank account, and last your PayPal Credit sources such as Bill Me Later, your debit card, credit card and eCheck bank transfers.
Change Funding Source For Individual Merchant Transactions
Step 1
Log in to your PayPal account. Hover your cursor over "Profile" and select "My Money" from the menu.
Step 2
Click "Update" under the section "My preapproved payments."
Step 3
Click the name of the merchant from the list. Under "Funding Source" and "Backup Funding Source," click "Change."
Step 4
Select your preferred source and click the "Save" button. From now on, all purchases you make with this merchant will be funded from this source after PayPal first draws from your existing PayPal balance.
Tip
If you do not want PayPal to draw from your existing PayPal balance for transactions, PayPal recommends that you first withdraw your balance before you make a payment or purchase an item with a PayPal eCheck. To make a purchase using a merchant's In-Store Checkout system, however, your PayPal account balance must have enough funds to cover the cost of the item or the transaction will fail.
Warning
PayPal does not give you the ability to adjust funding sources for all online transactions, only for pre-approved merchant services. By default, PayPal will draw funds from your account in this order as it is applicable to your account: PayPal balance, bank account transfer, PayPal Credit, debit card, credit card and eCheck bank transfers.