Overview

• Multiple lenders halted PayPal direct debits starting Monday after flagging millions of suspicious transactions reported to have bypassed anti-fraud checks.
• Germany’s Savings Banks association said unauthorised PayPal debits significantly disrupted payment flows across Europe and confirmed supervisors were informed.
• BaFin acknowledged it was notified, while Luxembourg’s CSSF said there was no major ongoing disruption requiring intervention.
• Retailers have not received funds and some customers saw PayPal payments fail at checkouts, with banks expected to manually review transactions over several days.
• Reports named Bayerische Landesbank, Hessische Landesbank and DZ-Bank among those pausing flows, with one report suggesting about €4 billion was withheld at Bayerische Landesbank.