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German Banks Freeze PayPal Direct Debits After Security System Failure

PayPal calls it a brief service interruption, with banks now manually reviewing flagged transactions under regulatory scrutiny.

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Paypal ist die beliebteste Bezahlmethode im Internet

Overview

  • Multiple lenders including DZ Bank, BayernLB and Helaba halted PayPal-initiated lastschriften on Monday, with reports estimating more than €10 billion was blocked.
  • PayPal says the underlying issue has been fixed and accounts are being updated, while the Sparkassen group reports payments have largely returned to normal since Tuesday morning under continued observation.
  • Banks are clearing a backlog that requires manual checks, leaving many merchants waiting for funds as customer accounts were not debited during the stoppage.
  • Regulators are engaged, with Germany’s BaFin coordinating with Luxembourg’s supervisor and the European Central Bank seeking information from banks.
  • Reports of 15–16 million PayPal credentials offered on the Darknet last week have heightened concern, and consumer groups urge users to review recent activity, change passwords and enable strong two-factor authentication.