Overview

• Germany’s savings banks association (DSGV) confirmed incidents with unauthorised PayPal direct debits and said the issue was reported to regulators in Luxembourg.
• PayPal said it identified the cause of a temporary service interruption, is working with bank partners to update accounts, and will fully reimburse legitimate merchant transactions.
• Banks blocked questionable PayPal bookings, keeping money in customer accounts but delaying merchant payouts, and retailer Otto temporarily suspended PayPal acceptance.
• Payment flows have largely resumed and remain under observation with manual reconciliations continuing, though some users still report problems.
• Consumer groups urge account checks, stronger authentication and password reviews, unverified reports of leaked credentials persist, and customers can dispute unauthorised SEPA debits within set timeframes.