Paypal and direct debit

[Buzzard]

I've been using Paypal for years to buy things, using debit card details in their system, but recently I sold something and in order to get the money out of my account I had to input my bank details.  OK so I wanted the money so I did the necessary.

Now I've received an e-mail from Paypal saying I need to verify my bank details so that a direct debit can be set up.  I logged into my account and indeed that's what they're asking me to do but I'm wary about giving them full access to my bank account.

So whilst mulling this matter over I would like to know if anyone has had problems with direct debit and Paypal e.g. money deducted without good cause.  I'm guessing that they have to follow UK Banking rules but we all know what a load of bankers they are 

Thanks in advance,

Nigel

[petercharlesfagg]

I too have been using the selfsame set up with Paypal.

In nearly 5 years I have only had one glitch but it was rapidly stopped by Paypal. 

They do have my bank details but not my personal security numbers.   

The system works very well both ways, debiting and crediting have worked almost faultlessly.

The only gripe is the repayments for faulty goods returned for credit when it takes a week, sometimes, to get the monies returned to my bank account.

Regards, Peter.

[woodbury22uk]

Never had a problem with Paypal Direct Debit. Did once have an issue when a utility took money which was in dispute. Upshot was they refunded the full amount and I received "compensation" for the nuisance. ironically it was at the time I was changing suppliers so they had already lost my business, but they clearly did not want me contacting my bank to reclaim the money.

[oscar]

They can't refund to Barclaycard, only to your bank account. They've had my details since 2003 and I have had nearly a thousand transactions with no problems.

[GerryB]

I've been using the same setup you refer to without any difficulties or concerns for over 10 years. As Peter said in an earlier post - they have my bank account details, sort code etc.. but not my security details.

Gerry

[Brooksy]

I don't think that they have full access to your bank details, as you put it, any more than if they have your credit/debit card details. I think that the direct debit gaurantee is pretty solid so wouldn't worry about it too much. If they want money from you for whatever reason, they are going to (try to) get it through bank/debit/credit card anyway.

One thing to look out for though is that I think that this their cheapest way of taking money from you so I think that on all your future transaction this will become the default payment option. This is what happened when I used to pay by credit card but added my bank details. Now, on every payment I have to specifically change the payment option from bank account to credit card - not too much of hassle - a couple of clicks - but you have to be aware of it.

[Geoff]

Never had a problem with PayPal, I set up a DD and it all seems fine with no money going out that should not.

Not sure if they are classed as a bank and they have to abide by certain rules and regulations.

[Oldun]

If you're not to happy with this email request I suggest you log in to your PayPal account and
go to the section headed 'I received an email from PayPal - how do I know if it's genuine?

Read that and if you're still unsure click on the 'contact us'. Its an 0800 number so its free.

[trainsdownunder]

Never had an issue in over 10 years. rock solid performance from them. Always been helpful and a recent dispute with an eBay seller was handled very well - full refund.

[Brooksy]

If you're not to happy with this email request I suggest you log in to your PayPal account and
go to the section headed 'I received an email from PayPal - how do I know if it's genuine?

Read that and if you're still unsure click on the 'contact us'. Its an 0800 number so its free.

This x 1000. First, make sure that the email is genuine and preferably only do it (the registration) by logging onto the main Paypal page and not via link in email. I didn't think of that initially.

[middlefour]

Never had an issue in over 10 years. rock solid performance from them. Always been helpful and a recent dispute with an eBay seller was handled very well - full refund.

Totally agree with all that. No problems at all in 12 years of using PP. Likewise they were very helpful when a buyer claimed a parcel had not arrived when I had proof it had. They were first class. I don't think you need to have any worries at all.

[Chinahand]

I have set up 2 payment methods for my Paypal account. One for my credit card and another for my normal bank account. That way I can buy things with my credit card and get the protection that offers and I can sell things with the money going directly into my bank account.

[dch05]

After many years using PAYPAL for EBAY sales & purchases, I find the only pain is the terrible exchange rates applied when converting from another currency.  As to the issue of direct debit risks - my PAYPAL account has direct debit authority over my CREDIT CARD ONLY, never my bank account.  Of course PAYPAL does have my bank account details but they can only use these to direct CREDIT my withdrawals into.  Unlawful debits can be reversed by application to your bank as far as credit cards are concerned, and as I have said, there's no authority for PAYPAL to ever take money OUT of my bank account.

Useful feature is being able to send money to anyone with an email address.



DCH

[Buzzard]

Many thanks to all for your input which has greatly calmed my fears about what Paypal is asking. 

Mods,

Please can you now lock this thread as it's been a useful exercise that might assist others in the future.

Nigel

[Pengi]

Locked at the request of the OP