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This is not enough. Add a middle layer between your bank and paypal. Once you sync your bank account, Paypal can claw funds from your account for any reason i
by IG_Semmelweiss 4y ago
This is not enough.
Add a middle layer between your bank and paypal.
Once you sync your bank account, Paypal can claw funds from your account for any reason it deems necessary.
Do not give them this access into your business's main operating account. Bite the bullet and open a separate, standalone DDA with another bank (not the same bank, that won't achieve its intended effect).
- HoppyHaus 4y agoCould you elaborate more on this? Specifically the DDA bit - I don't know which acronym you're referring to.
- lexa1979 4y agoDirect Deposit Account ?
- IG_Semmelweiss 4y agoDemand deposit account. This is the technically correct term used with US-based vanilla bank accounts that are FDIC insured
- mzzter 4y agoI’m assuming DDA stands for demand/direct deposit account. Keeping a separate one with a low balance for internet accounts can help keep a primary account unaffected if paypal or other internet services initiate a transfer without your permission (could also be due to a compromised paypal account).
- HoppyHaus 4y agoThank you!
- icelancer 4y agoYup. This is mandatory. I think doing it at the same bank would be fine enough, but if you can pull it off, go to a different bank. I definitely take that extra precaution myself.
- IG_Semmelweiss 4y agoSame here. I went thru the hassle of opening a new account with a new institution just for this. We may still close paypal after all (which is what i'd love to do in the first place)
- ilyt 4y agoWouldn't just debit card be enough ? My bank have "internet card" feature where card has its sub-account I need to charge before any payment goes thru
- Symbiote 4y agoThat depends on the country. In Britain, I think PayPal uses a direct debit, so it's easy to reverse any transaction.
- Fnoord 4y agoYou can just connect it to an IBAN with 0 EUR/USD, and then requiring you to put currency on it before PayPal can withdraw (ie. no overdraw). My bank (bunq) gives me 25 IBANs.
- ThePowerOfFuet 4y agobunq is awesome, but you don't even need a separate IBAN, you can (and should) simply decline SEPA direct debits ("SDD Core" for non-business, which has different regulations than B2B SDD). And don't give them a SEPA mandate at all; there's a small link on the "add bank account" page that bypasses the SDD mandate while still allowing use of the IBAN for withdrawals. Or, better yet... don't use PayPal at all. I closed my account years ago and don't regret it one bit.
- ridgered4 4y agoIt was unclear to me if they could claw funds in the USA way back when I looked. But I setup a small balance account and switched to it because I'd heard way back paypal managed to get people's bank accounts frozen for months in a dispute and if that was the same account you paid your bills out of you were in for a major hassle to you life. Which probably extorted a lot of people to give in.