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.