Overview

• Multiple German banks halted PayPal-initiated Lastschriften after a screening system went down, with reports estimating more than €10 billion frozen and about €4 billion at BayernLB.
• The scher SparSparkassen- und Giroverband confirmed incidents with unauthorized PayPal debits and said payment flows at Sparkassen returned to normal on Tuesday morning under continued monitoring.
• PayPal described the disruption as a temporary service interruption, said the cause was identified, and noted it is working with bank partners to update accounts and release transactions.
• Manual checks are creating a backlog that could take days to clear, and some users report lingering payment failures even as PayPal states services are restored.
• The stoppage followed reports of roughly 15.8–16 million PayPal credentials offered on the dark web, and regulators including Luxembourg authorities and the ECB have sought information; consumers are urged to change passwords and use strong two-factor authentication.