Using PayPal for Direct Debits

Cotta

Hi All,

There was a conversation on here some time ago about using Paypal to setup dummy direct debits to enable people to meet bank switching criteria's (Some banks require up to four). I can't find the old conversation, however is this possible and do banks accept these as legitimate direct debits?

Thanks in advance.

ColdIron

With Marcus there isn't much point in jumping through these hoops any more for some accounts. I have a surfeit of DDs now

Cotta

ColdIron wrote: »

With Marcus there isn't much point in jumping through these hoops any more for some accounts. I have a surfeit of DDs now

Marcus ???

ColdIron

Cotta wrote: »

Marcus ???

Where have you been for the last 6 weeks?

Marcus is a new easy access savings account offering 1.5%, no strings attached, no hoops. There are many many threads and posts about it since it opened 26/09. It makes the Lloyds/BoS/Santander 123 etc a bit pointless now for many unless you want cinema tickets or other fringe benefits. I've emptied several accounts and moved them to Marcus

https://www.marcus.co.uk/uk/en

Cotta

ColdIron wrote: »

Where have you been for the last 6 weeks?

Marcus is a new easy access savings account offering 1.5%, no strings attached, no hoops. There are many many threads and posts about it since it opened 26/09. It makes the Lloyds/BoS/Santander 123 etc a bit pointless now for many unless you want cinema tickets or other fringe benefits. I've emptied several accounts and moved them to Marcus

https://www.marcus.co.uk/uk/en

Sorry I was unaware of it, however the reason for the switching was to avail of the bonus hence why the direct debits are required.

karlie88

I can only set up one DD per bank account on Paypal (upto 8 accounts in total). If you can set up 4 DDs on the same bank account solely via Paypal then do let us know as that would make things a lot easier for certain switch incentives.

Cotta

karlie88 wrote: »

I can only set up one DD per bank account on Paypal (upto 8 accounts in total). If you can set up 4 DDs on the same bank account solely via Paypal then do let us know as that would make things a lot easier for certain switch incentives.

My understanding too, however how is a direct debit attached to a PayPal account?

masonic

You can have 2 Paypal accounts (one personal and one business). I've never tried linking both my Paypal accounts to the same bank account, but this is likely to be possible and result in two separate DD mandates with different references. If you are part of a couple and have a joint account, presumably you could have four linked to the same bank account.

Cotta wrote: »

My understanding too, however how is a direct debit attached to a PayPal account?

You need to verify your account and complete bank funding. You also need a debit card registered. The main purpose is so that Paypal can use 'Instant bank transfer' as a payment option (these are collected by DD and are cheaper for Paypal to process than card payments). For switching incentives, ongoing DD pulls are unimportant, so I'll refrain from comment about those.

Edit: I've used Paypal as one of my DDs for several switching incentives in the past and I've also used it for monthly pulls on and off when needed.