Overview

• PayPal is automatically crediting €10 to directly affected German accounts, requiring no action from customers and appearing as “Kredit von PayPal.”
• Fewer than 5% of German users were directly affected, according to the company.
• PayPal says services are restored for most impacted accounts and that merchants have been paid for the large majority of affected transactions, with some still under review.
• German banks blocked PayPal SEPA direct debits on August 23–24 and froze large sums, including about €4 billion at Bayerische Landesbank.
• The Sparkassen reported payment flows back to normal by August 26 and informed regulators, while branches are contacting customers about flagged debits as phishing callers impersonate bank or PayPal staff.