Linking Paypal accounts for direct debit - does this work?

MsPoundPincher

Hi, would like advice/confirmation from anyone who may have done this and whether it works.

- I have 2 bank accounts that require me to have 2 direct debits for switching/bonus etc

- I have a Paypal account set up with 1 monthly bill to be paid

- I have linked this Paypal account/bill to Bank Account A already

Q1: Would it work if I linked this same Paypal account to Bank Account B, and count as an active direct debit for Account B? I have set it such that the bill will be paid via Bank Account A.

Q2: If not, would it work if I linked a second monthly bill to the Paypal account and set it to be paid via Bank Account B?

Thanks in advance!

ColdIron

Some banks like to see DDs paid out and not just active

What I have done in the past is make adhoc DD withdrawals with PayPal. You need to link a bank account not a card. So sort code and account number not card number as DDs don't use a card. It's a long time since PP allowed this on the website but it worked via the app and probably still does. It can't be automated, takes quite a few days to set up and longer to receive the money but might be worth it just to qualify

MsPoundPincher

ColdIron said:

Some banks like to see DDs paid out and not just active

What I have done in the past is make adhoc DD withdrawals with PayPal. You need to link a bank account not a card. So sort code and account number not card number as DDs don't use a card. It's a long time since PP allowed this on the website but it worked via the app and probably still does. It can't be automated, takes quite a few days to set up and longer to receive the money but might be worth it just to qualify

Thanks! Just to clarify, what you're saying is that the answer to Q1 is no, because in that setup there will be no money taken out via DD for Bank Account B. However a workaround (and somewhat an answer to Q2) is to still link Bank Account B but to make adhoc withdrawals such that there is money coming out of it every month?

ColdIron

Probably and yes

MsPoundPincher

ColdIron said:

Probably and yes

Great! And as a follow on thought, I could also set up multiple £1 monthly withdrawals into the same Paypal account but with multiple banks (not even just these 2 but possibly others)?

ColdIron

I don't see why not, just make sure they are DDs and not card payments. However PP is OK for emergency type DDs but not really a permanent solution. Some banks want separate ongoing DD mandates for benefits and may not see two to PP as separate but I think for switching bonuses it's not as important

boingy

In the PayPal app you can link a bank account and they set-up a DD after a week or so. Once it is set-up you can just go into the app and manually add money to your PayPal account whenever you want.

You can't add money like this on the PayPal website but you can buy stuff on the account which uses the DD.

MsPoundPincher

ColdIron said:

I don't see why not, just make sure they are DDs and not card payments. However PP is OK for emergency type DDs but not really a permanent solution. Some banks want separate ongoing DD mandates for benefits and may not see two to PP as separate but I think for switching bonuses it's not as important

Actually what I meant was to link the same Paypal account to say e.g. 5 different bank accounts that require DD, and set up withdrawals such that £1 is taken out of each of the 5 accounts each month. That way the 5 banks will see only 1 PP DD each.

ColdIron said:

Some banks like to see DDs paid out and not just active

What I have done in the past is make adhoc DD withdrawals with PayPal. You need to link a bank account not a card. So sort code and account number not card number as DDs don't use a card. It's a long time since PP allowed this on the website but it worked via the app and probably still does. It can't be automated, takes quite a few days to set up and longer to receive the money but might be worth it just to qualify

By the way, you mentioned that it can't be automated... if manual wallet topups from the bank accounts come through as a direct debit, does setting up a standing order (i.e. monthly topups) not work the same?

PloughmansLunch

MsPoundPincher said:

ColdIron said:

I don't see why not, just make sure they are DDs and not card payments. However PP is OK for emergency type DDs but not really a permanent solution. Some banks want separate ongoing DD mandates for benefits and may not see two to PP as separate but I think for switching bonuses it's not as important

Actually what I meant was to link the same Paypal account to say e.g. 5 different bank accounts that require DD, and set up withdrawals such that £1 is taken out of each of the 5 accounts each month. That way the 5 banks will see only 1 PP DD each.

This works fine as a DD for multiple linked bank accounts - I used to add £2 to my PayPal wallet twice a month for both RBS and NatWest reward accounts, and merely having a linked (but unused) PayPal account was enough to qualify as a direct debit for TSB, but it couldn’t hurt to add £1.

PRAISETHESUN

MsPoundPincher said:

ColdIron said:

I don't see why not, just make sure they are DDs and not card payments. However PP is OK for emergency type DDs but not really a permanent solution. Some banks want separate ongoing DD mandates for benefits and may not see two to PP as separate but I think for switching bonuses it's not as important

Actually what I meant was to link the same Paypal account to say e.g. 5 different bank accounts that require DD, and set up withdrawals such that £1 is taken out of each of the 5 accounts each month. That way the 5 banks will see only 1 PP DD each.

ColdIron said:

Some banks like to see DDs paid out and not just active

What I have done in the past is make adhoc DD withdrawals with PayPal. You need to link a bank account not a card. So sort code and account number not card number as DDs don't use a card. It's a long time since PP allowed this on the website but it worked via the app and probably still does. It can't be automated, takes quite a few days to set up and longer to receive the money but might be worth it just to qualify

By the way, you mentioned that it can't be automated... if manual wallet topups from the bank accounts come through as a direct debit, does setting up a standing order (i.e. monthly topups) not work the same?

Standing orders are not direct debits. Any request for money needs to come from PayPal for the DD to activate and as far as I know PayPal doesn't offer the ability to schedule this. 

Otherwise everything else will work in the manner which you have described.

Zanderman

MsPoundPincher said:

By the way, you mentioned that it can't be automated... if manual wallet topups from the bank accounts come through as a direct debit, does setting up a standing order (i.e. monthly topups) not work the same?

It has to be direct debits.

And yes, there is no automation/scheduling in paypal. Unless it's actually paying a regular bill.

For withdrawals to your own accounts you have to manually draw money each time. Be sure to use DD for this in paypal - paypal can also use cards and open banking (and I think will try to steer you to open banking these days). Neither of those methods would count as DDs.

So if you want a DD taking £1 from 5 bank accounts each month you'll need to login to paypal every month to arrange each of the withdrawals. And be sure it is by DD.

And, each time, choose the relevant bank account for the withdrawal.