Complaint / review text:
When I tried to add my Netspend credit card ACH information to my existing Paypal account exactly the way the Netspend website says to, Paypal locked my account. The details of that incident will be in a different report. That was Paypal's bad but, the reason I am faulting Netspend for this is because Paypal is so prominently displayed on their website for funding options. The following letter from Paypal's account review department says why this should not be:
"As a security measure for PayPal customers, we randomly verify account information. During a recent review of your account it was determined that the bank account you have listed is actually a prepaid or stored value credit card. Stored value or prepaid credit cards can only be used through PayPal as a credit card and cannot be added to PayPal as a bank account.
Therefore the card that you added as a bank account has been removed."
Netspend's website contains explicit instructions on how to set the funded card account up to look like a checking account to Paypal so that ACH transfers can take place. Of course you can only "deposit" money with this mechanism and not "withdraw" it.
After attempting this, all the money I had in my Paypal account was frozen (800 dollars) for over three weeks. Paypal claims it was "suspicious activity". I'm glad I was not counting on that money for anything really important like my electrical bill or mortgage. Before you say "Well go and fund it a the local funding location", I will say we tried that, twice. The cards were inoperable. At the second location the person at the desk called Netspend and basically got no help. She shrugged her shoulders as she handed my wife the cards back (both brand new Netspend cards).