PayPal now requiring us to give our bank logins to a third party

[Hachet]

PayPal now has an official policy in place, using Yodlee's API to verify bank accounts and available funds. This wouldn't be so significant if it weren't for a few VERY alarming details, not the least of which is the fact that Yodlee is involved in lawsuits over the mishandling of user data (mining and selling user data without consent) and that PayPal REQUIRES that you hand over your banking login details to this third party in order to "verify" your bank account.

One of the biggest problems here is that it doesn't matter if you have had a verified bank account for years attached to your PayPal account, or even if you don't use an online bank (meaning you have no login credentials.) They are requiring (seemingly at random) all kinds of customers, including myself, to RE-verify our accounts in order to send money to individuals for products and services or just as a gift to friends and family.

The end game seems to be that PayPal no longer wants its customers to use PayPal to send direct payments, but wants to move that type of transaction to Venmo, thus separating the brands and their newly intended purposes.

I can for example, spend all the money I want at stores and on eBay et al using my PayPal account and NEVER receive a message about having to verify my bank account (that's because my bank account was verified years ago) but now, after several random attempts to get me to do so, the message pops up EVERY TIME I try to send a direct payment.

So I searched the forums and I searched the web and I was almost in disbelief at what customers were saying. So... I contacted PayPal myself, and I got the same response that others did; "If you don't like it, don't use PayPal."

Attached are screenshots of the message that pops up as well as the last messages from the conversation I had with PayPal support.

So basically, you have no way of knowing when or if this is going to happen to you (I suspect everyone will eventually get this message) and if you don't want to hand over your bank login information to a third party that is in legal trouble for mishandling customer data (they have no right to my bank login details to begin with,) then you simply won't be allowed to use PayPal to send direct payments (including both Goods and Services and Friends and Family.)

I suppose that means the BST will only be open to members willing to take the risk of giving Yodlee and PayPal power of attorney.

Don't take my word for it though. Feel free to research this.

Thanks and I hope this info is helpful to someone.

Oh and by the way, though the screenshot says you can turn off this feature, that is simply NOT true. No one has been able to find it and everyone who asks PayPal how to do it gets the same response ("you cannot opt out")

 

[Dominic]

PayPal now has an official policy in place, using Yodlee's API to verify bank accounts and available funds. This wouldn't be so significant if it weren't for a few VERY alarming details, not the least of which is the fact that Yodlee is involved in lawsuits over the mishandling of user data (mining and selling user data without consent) and that PayPal REQUIRES that you hand over your banking login details to this third party in order to "verify" your bank account.

One of the biggest problems here is that it doesn't matter if you have had a verified bank account for years attached to your PayPal account, or even if you don't use an online bank (meaning you have no login credentials.) They are requiring (seemingly at random) all kinds of customers, including myself, to RE-verify our accounts in order to send money to individuals for products and services or just as a gift to friends and family.

The end game seems to be that PayPal no longer wants its customers to use PayPal to send direct payments, but wants to move that type of transaction to Venmo, thus separating the brands and their newly intended purposes.

I can for example, spend all the money I want at stores and on eBay et al using my PayPal account and NEVER receive a message about having to verify my bank account (that's because my bank account was verified years ago) but now, after several random attempts to get me to do so, the message pops up EVERY TIME I try to send a direct payment.

So I searched the forums and I searched the web and I was almost in disbelief at what customers were saying. So... I contacted PayPal myself, and I got the same response that others did; "If you don't like it, don't use PayPal."

Attached are screenshots of the message that pops up as well as the last messages from the conversation I had with PayPal support.

So basically, you have no way of knowing when or if this is going to happen to you (I suspect everyone will eventually get this message) and if you don't want to hand over your bank login information to a third party that is in legal trouble for mishandling customer data (they have no right to my bank login details to begin with,) then you simply won't be allowed to use PayPal to send direct payments (including both Goods and Services and Friends and Family.)

I suppose that means the BST will only be open to members willing to take the risk of giving Yodlee and PayPal power of attorney.

Don't take my word for it though. Feel free to research this.

Thanks and I hope this info is helpful to someone.

Oh and by the way, though the screenshot says you can turn off this feature, that is simply NOT true. No one has been able to find it and everyone who asks PayPal how to do it gets the same response ("you cannot opt out")
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I don't like that last sentence: "If you are not comfortable completing this, then I recommend choosing to pay another way." In other words, "we don't care about your concerns. Don't bother us anymore."

 

[TexLaw]

I don't like that last sentence: "If you are not comfortable completing this, then I recommend choosing to pay another way." In other words, "we don't care about your concerns. Don't bother us anymore."

Why did you ever believe they had any other position?

 

[RayClem]

I do use EFT from my bank account to pay some of my bills. However, I refuse to link my bank account to my PayPal account. I always use a credit card to pay for any purchases using PayPal. If they insist that I link my bank account, I will stop using PayPal. I want the extra layer of protection provided by using a credit card.

 

[Tanuki]

I refuse to link my bank account to my PayPal account. I always use a credit card to pay for any purchases using PayPal. If they insist that I link my bank account, I will stop using PayPal. I want the extra layer of protection provided by using a credit card.

Absolutely correct! I can forgo PayPal. I hope that would not mean abandoning BST. If consumer protection law ever catches up with online payment 'innovation' I will be shocked.

 

[FarmerTan]

I do use EFT from my bank account to pay some of my bills. However, I refuse to link my bank account to my PayPal account. I always use a credit card to pay for any purchases using PayPal. If they insist that I link my bank account, I will stop using PayPal. I want the extra layer of protection provided by using a credit card.

I'm 99.4% sure this is what my wife has ALWAYS done. She just had to pay for some stuff I bought on Fleabay last night, but to me it's all magic that I'm not allowed to touch.

 

[Hachet]

Yeah... I got a phone call from a representative as a follow up. They told me to move on. Welp... That's that.

 

[Jubejubilee]

Yeah Paypal are awesome.

I deleted my account that time when they froze my payment for A&E Cuban Highball shaving soap, because it sounded suspicious. “Could be alcohol! Or tobacco products! Or maybe some other shady stuff from Cuba!!!”

They had to ”investigate” my transaction for like 5 days.

Never looked back, and I don’t miss em one bit.

 

[Dominic]

Why did you ever believe they had any other position?

OK, maybe they're a little more open about it now.

 

[RogerStenning]

You guys are in the USA, I assume? Not seen this in the UK?

 

[Hachet]

You guys are in the USA, I assume? Not seen this in the UK?

Yeah

 

[Rhody]

I stopped using pp 5 + years ago but they still email me frequently with all sorts of junk as if I still care. I never take the time to mark it as junk / spam

 

[StillShaving]

I can understand them wanting person-to-person direct payments (the kind with less protections) to be steered over to Venmo. Since it is more "social" and they need to compete with CashApp and the all the rest. But Paypal and their subsidiaries Venmo and Xoom are on my personal avoid if possible list due to really bad past customer experience. Options of last resort.

I am just surprised they did not respond more along the lines of: "If you don't like it, go jump in the lake while we delete your account."

 

[luvmysuper]

Depending upon the entity I am buying from, I source funding through, in order of preference
Credit Card
Debit Card
PayPal Credit (which I immediately pay with credit card for points)
My bank account
Never had an issue. They ask me each time what source I'd like to use.
No matter what we may think, a business is most interested in their own well-being.
In this age, the few people who abandon PayPal because of these policies are a drop in the cosmos, and while not using PayPal on principle is soul soothing, it doesn't hurt their bottom line one iota.
Use a credit card instead of a bank account for purchases that require PayPal.

 

[RenoRichard]

Wow- that's scary and awful. I just used PayPal last week for a direct small B/S/T G&S purchase, but didn't get that message. I remember when PayPal paid you interest on any balance. It was nice back then. I suppose, as others have said, the best answer then is to always use a credit card with PayPal, so long as that option still works without hassle.

 

[RayClem]

Depending upon the entity I am buying from, I source funding through, in order of preference
Credit Card
Debit Card
PayPal Credit (which I immediately pay with credit card for points)
My bank account
Never had an issue. They ask me each time what source I'd like to use.
No matter what we may think, a business is most interested in their own well-being.
In this age, the few people who abandon PayPal because of these policies are a drop in the cosmos, and while not using PayPal on principle is soul soothing, it doesn't hurt their bottom line one iota.
Use a credit card instead of a bank account for purchases that require PayPal.

Be very careful of using a Debit Card to pay for online purchases. Unlike credit cards, debit cards provide no protection for the consumer. It is similar to paying cash.

 

[Jnatcat]

I know lots don’t like PP but to be honest I have never had an issue and whenever I have disputed a sale as the purchaser they have always sided with me but then my OCD has me always keeping all documentation during a purchase or sale.

 

[Rudy Vey]

Be very careful of using a Debit Card to pay for online purchases. Unlike credit cards, debit cards provide no protection for the consumer. It is similar to paying cash.

I learned this the hard way. Using your debit card for online purchases is the best way to get your account hacked. Happened to me three times in as many years....so, speaking to my banks manager she said: use your debt card only to pay for stuff in the store, like your groceries etc. Whenever you buy stuff or pay something online, use the credit card. Extra layer of security. Debit comes right out of your bank account. I also have set up a notification system via messages; whenever I or my wife use the debit card, I get an alarm message right away. Most my bills are now paid with EFT, saves me money for checks and postage.
Paypal is for me, as a brush maker, still my preferred way of accepting payments.
But I also use Zelle and Venmo a lot to pay.

 

[luvmysuper]

Be very careful of using a Debit Card to pay for online purchases. Unlike credit cards, debit cards provide no protection for the consumer. It is similar to paying cash.

Right you are. That's why I use different sources for different payees, but it routes through PayPal rather than the end seller.

 

[Jan Sobieski]

Yeah Paypal are awesome.

I deleted my account that time when they froze my payment for A&E Cuban Highball shaving soap, because it sounded suspicious. “Could be alcohol! Or tobacco products! Or maybe some other shady stuff from Cuba!!!”

They had to ”investigate” my transaction for like 5 days.

Never looked back, and I don’t miss em one bit.

Idiots.