Overview

• German banks halted PayPal Lastschrift transactions in the multi‑billion‑euro range after an alleged failure in PayPal’s fraud‑filtering systems triggered suspicious debit requests.
• PayPal says the service interruption is resolved and pledges to fully reimburse legitimate merchant transactions, while apologizing for the disruption.
• Backlog clearance is under way through automated checks and case‑by‑case reviews to prevent double debits, with the savings banks association aiming to finish by mid‑next week and a six‑figure number of items still to process.
• Merchants continue to face payout delays as the e‑commerce group BEVH reports significant chargebacks, and retailer Otto has temporarily stopped accepting PayPal.
• BaFin is in close contact with institutions and Luxembourg’s CSSF reports no need for intervention, as politicians across parties push for European payment alternatives such as Wero.